Many of you may be familiar with some of the criteria that we use to qualify stocks as GeoSpecials.

Following a new slant, we will be increasing our emphasis on the U.S. sector when looking for stocks to include in the GeoSpecial list that may offer upside based solely on P/E ratio valuation gaps.  At times, but not always, we may see a need to reference documentation to help support our decision.

If a company is growing its EPS between 20% and 30% we will generally apply a P/E of 20 on trailing EPS and a P/E of 10 on forward EPS estimates/guidance. 

If a company is growing its EPS at greater than 30% we generally apply a P/E of 25 to 30 on trailing EPS and P/E of 15 to 20 on forward EPS estimates/guidance. 

We will also consider book value per share in some cases.

This is intended for investors to begin their own due diligence as we generally will not interview these firms or perform full due diligence..