Share filter variables for Value Stocks

[Blik]

Morning all. Just a query on possible share filter variables for what one would consider a value stock. I dont want to start another debate on value vrs trading - just some thoughts if possible. I used the following variables for a filter search - PE ratio below 13, a DY greater than 3, a 3year ROCE Avg. above 18 and a Cap greater than 6 Billion - just as a first filter example and the following stocks were listed - AEG, ALT, LEW, GND, RLO, KIO, TKG and VOD. What other factors could be considered important in looking for THAT long term share to buy (using the OST share filter that is)? The only share I hold in the above filter result is VOD, from the TKG unbundle. I sold my TKG. Although I also hold some ATN, which accounts for some ALT. I am also not quite certain that Cap should be considered - maybe from a security point of view. Some of my best performing shares in terms of DY and growth are small cap shares. I also think we can only put in 5 factors into the OST search filter. Thoughts?

[Oom_Boom]

I think you are using the right filters, I have used a similar search but look at smaller cap (1bn) and a BUY consensus. I use more or less what Stuart Thomson used during one of the workshops he hosted for OST. He used: P/E under 11, Ratio-Price/NAV less than 5, DY 3%, CAP > R1bn, Consensus BUY. The list generated then consisted of 21 shares, same criteria now produces around 8. I am in the process of seeing how well those on the original list fared from then (18 SEP 2009) untill now.

[Blik]

Many thanks Oom - will try those as well. Am not convinced about the Consensus Buy factor - but Stuart knows his stuff, so factored in with the others it may be worth it.

[#4]

Blik, your criteria you posted is more or less the same as Greenblatt's magic formula. Now give the results of your search a joint rank in a spreadsheet by sorting the results from low PE to high, numbering them 1 to x. Call it (say) a PE rank. Then sort by ROCE descending and assign a ROCE rank from 1 to x. Now add up the 2 ranks and order that result from low to high. Buy the top 5, hold for a year and then rebalance for the next year. Easy mechanical system and proven track record.

[Enzed]

Guys - when would you use the ROCE filter and when the Return on Stockholder Funds filter. Which one is better and why?