I have finished reading Pabrai's book and got a lot of new ideas from him, I have talked about them in some of my recent posts, especially the way to look at downside risk, return and uncertainty.
Pabrai recommended "The Little Book That Beats the Market" by Joel Greenblatt, whose method is simply using P/E and ROIC to figure out which stock to buy. He calls it 'Magic Formula'.
Frankly speaking, I don't believe in any simple formula that can beat the market without further research. If you have read the majority of my posts here, you do know I care about causality much more than pure numbers.
However since I not only trust, but also admire Pabrai, I went ahead and checked out Joel's website
What a nice discovery! I used 50 stock filter mkt cap>100M. I found my OVTI there, I also found zzpt's NXG, my recent coal play pick FDG. and one interesting pick AVCI I have been doing research on.
Another one I am familiar with is USNA, however my position on it will be short, since its multi-level marketing empire is going down and I just don't think it will come back given a series of negative developments recently.
It seems that this formula works nicely with my style. and I probably need to buy the book and read it.