INVESTMENT STRATEGY - VALUE INVESTING Fool Spowley’s Value Strategy.

Fool Spowley’s Value Strategy.

• Forecast PE for the current year < 15.
• Good consistent dividend.
• Good cash flow.
• Avoid companies with high gearing.
• Buy only profitable companies with growing profits.
• Buy only companies with good tangible asset backing.

Strategy:
• Buy shares prior to results; say one month, if there has been a recent positive
trading statement.
• Alternatively buy shares on the day results are released, using TA for timing.
• Apply a stop loss 15%.
• Hold the shares beyond the ex-dividend date, until the payment of the dividend.