MARGIN OF SAFETY & +VE CASH FLOW

I find it hard to pick a good undervalue stock now compare to months ago as the price ( most of the good stock ) has recovered from low and reach 12 months high.

We must make sure that our pick now must meet the 'Margin of Safety' investment pronciple :-

We must ensure that the market price of the stock is lower that it's NTA or it's intrinsic value or the fair value of it's assets.

AND

The company MUST :-

1. Low Debts
2. Cash Rish
3. The ability to have positive cash flow from it's business operation.
4. Profits making capability even during difficult time.