One of the dangers about net-net investing is that if you buy a net-net that begins to lose money your net-net goes down and your capacity to be able to make a profit becomes less secure. So the trick is not necessarily to predict what the earnings are going to be but to have a clear conviction that the company isn't going bust and that your margin of safety will remain intact over time.
Peter CundillThe price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.
Peter CundillThe price must be less than one half of the former high and preferably at or near its all time low.
Peter Cundill