How Deep Is Your Value?

Here's a deep value screen I run from time to time. It's been lighting up recently, for whatever reason--many more results than normal.

It uses the following criteria:

Current P/E less than 10, Forward P/E less than current P/E, Debt/Equity Ratio less than 1, Quick (Acid Test) ratio greater than 1.

This is not a screen for quality by any stretch (although I'll run some of those later on). The idea is to find very inexpensive companies that are not crushed by debt and are liquid enough to stay afloat long enough for that value to be recognized.

If you're interested in getting quality as well, you'll want to screen for return on equity or invested capital. But you're going to have to make some substantial concessions on price.

These are not exactly Ben Graham's net-nets (which would sell at a 33% discount to net current assets), but it's roughly the same idea. These are "cigar butts," as Buffett would put it, generally good for one puff.

(Scroll way down) . . .

Deep Value Screen
SymbolCompany NameCurrent P/EForward P/EQuick Ratio
IMMRImmersion Corp3.603.509.50
ASPVAspreva Pharmaceuticals Corp5.704.8010.10
HSOAHome Solutions Of America Inc6.005.002.70
AVCIAvici Systems Inc6.203.003.80
MTEXMannatech, Inc6.805.101.10
VLOValero Energy Ord Shs7.207.201.00
TXTernium SA7.307.001.10
GNAGerdau AmeriSteel Corp7.807.101.80
CPXComplete Production Services Inc8.508.002.50
BRLCSyntax-Brillian Corp8.706.102.00
SIMGrupo Simec ADR8.906.802.80
ZINCHorsehead Holding Ord Shs8.907.901.50
ESVENSCO International Inc9.208.102.60
MTLMechel ADR Rep 3 Ord Shs9.207.901.40
VIRCVirco Manufacturing Corp9.208.601.20
KGKing Pharmaceuticals Inc9.406.503.20
LMCLundin Mining Ord Shs9.408.302.90
ZEUSOlympic Steel Inc9.809.701.30

Bear with me on the screwy formatting. If any of you are HTML-inclined and have some thoughts on good ways to present tables, drop me a line at gnomeofzurich1@gmail.com.

Next, I'll give these a closer look and we can see if anything decent turns up.