Everyone has their own proven method. For me,nothing is more important than the balance sheet and ratios. What do you guys consider most important when picking stocks? Please do not name any real stocks.
Here are some of my value parameters.
Buying a stock that has a single digit PE and a growth rate that is at least 3 times higher than the PE number.
I also like finding a company that has a market cap less than its free cash (Cash- all debt) and their current business has to generate a positive cash flow from operations.
I also like to buy stocks with cash flows per share well below the industry average.
Note in some industries I deviate from these rules like in the oil and gas sector reserve growth and exploration trends hold more importance.