Great-Stock

LOW DEBT TO EQUITY STOCKS: FISCALLY RESPONSIBLE AND PROFITABLE COMPANIES!

In both bullish and bearish markets, one can find stocks with good growth potential. The key is in selecting them according to pertinent measures of valuation. In other words, screen to find what screaming Jim Cramer would call "forgotten, forlorn, and undiscovered stocks." Like a foxy debutant, they will be stars someday, yet no one dances with them now.

Useful criteria are measures such as a stock's debt to equity, price to sales, price to book, and PEG ratios. All of those should be lower than their peers. These are companies worth something that just aren't priced accordingly. In addition, the insiders should own a substantial amount of company stock.

Stocks in the table below are particularly notable for their low price, high value, and minimal debt. Specifically, these companies get a lower percentage of their worth from borrowed money and more from operations and investments. Here there is more meat and less fat!!

To estimate the value of a stock with consideration of its debt, enterprise value, and earnings, apply the following formula:

Stocks that pass the initial screening should then be investigated in detail prior to purchase, and the ones without improving fundamentals eliminated from further consideration. Go with the rising stars.