Last but not least, a company must meet stringent financial parameters. We look for investments that meet most of the following financial markers. Criteria may vary slightly according to the industry in which a company operates.

• projected long-term EPS growth in excess of 15%
• high return on equity
• strong balance sheet
• company of adequate size
• strong cash flow generation

While we generally prefer to invest in non-cyclical industries, we do find some value in those companies that can grow their asset base in the resource and cyclical sectors as well as generating a reasonable return on invested capital and shareholders' equity.