The company must be profitable. Preferably it will have increased its earnings for the past five years and there will have been no deficits over that period.

There will be losing years; but if the art of making money is not to lose it, then there should not be substantial losses.

I suspect that my thinking is an eclectic mix, not pure net-net because I couldn’t do it anyway so you have to have a new something to hang your hat on. But the framework stays the same.

Long term debt and bank debt (including off-balance sheet financing must be judiciously employed. There must be room to expand the debt position if required.

I bought stuff at 3.5 cents once and I thought it can’t go down to zero. It can.

The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.

The company must be profitable. Preferably it will have increased its earnings for the past five years and there will have been no deficits over that period.