Joseph Piotroski has devised a screen that has beaten the market by 7.5% over a 21-year period.
It chooses companies with low price-to-book value that are profitable, declining debt, and improving operational efficiency.
I suppose it makes sense, but it differs a bit from the kind of stocks that I look for. I don't worry about declining debt. If the debt is already zero, how can it decline? Improving efficiency is obviously good. But I'm satisfied if a company can sustain a steady level of efficiency year after year.
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