The Selection of “Ubika’s Value 20” is a two-step process:
- The stocks are first screened on the following criteria:
- Listing on the following exchanges: U.S: NYSE, AMEX, NASDAQ, OTC BB (no Pink Sheets); Canada: TSX, TSXV, and CNSX
- Market capitalization should be between $50 million and $5 billion in their respective currency.
- Last closing price should be greater than equal to $0.50 in their respective currency.
- Three months daily average traded volume should be more than 100,000.
- Dividend Yield greater than 0.
- Finally, “Ubika’s Value 20” is selected based on:
- Dividend Yield: Value investors seek high dividend yield.
- PEG ratio (P/E to growth ratio): PEG ratio less than 1 is generally considered undervalued.
- Debt to equity ratio: Companies with lower debt level have more free cash for further expansion and thus create value for the company in the future and is less vulnerable to recession.
- Operating margin: High operating margin indicates that the company is more competitive and thus is more likely to create value for the shareholders in the future.
- Price to Book value (P/B): Low P/B ratio is preferred for undervalued stocks.
To view the complete Ubika Value 20 report, click on the download link.
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