Looking further back, we need to find evidence of Earnings Stability, with no deficit in last five years, i.e. no evidence of an annual loss. Additionally, evidence of earnings growth over a five-year period is a must. This can simply be consideration, for example, that 2004 earnings were greater than 2000 earnings.

There should be some current dividend payout. Finally, current price of stock should be less than 120% of NCAV per share or Graham's Number. Where to find this number? From balance sheet, subtract Total Liabilities from Current Assets, and divide result by number of shares outstanding. Assuming you have a positive number that is greater than zero, stock's price should not be greater than 120% of this number.

At grahaminvestor.com, we list stocks that are trading within 120% of NCAV per share. Since this was an important measure for Graham, you can start there and work your way backwards through other criteria.

Graham did not set any lower limit on market capitalization. "Small companies may afford enough safety if bought carefully and on a group basis." He meant that a well diversified portfolio with a fair number of such companies stock would protect enterprising investor from bankruptcy of one or two companies.

(c) 2005 The Graham Investor - Intelligent Value Investing You may use this article, as-is, provided this copyright notice is kept intact.

Find out who has access to your information at work. Be sure to verify that records are kept in a secure location, and are accessible only to employees who have a legitimate reason to access it.

Memorize your passwords and personal identification numbers instead of carrying them with you. Avoid using easily available information like your mother's maiden name, your birth date, last four digits of your SSN or your phone number, or a series of consecutive numbers.

Other ID Theft Facts

Zero responsibility doesn't mean zero problems. Because credit card companies must limit consumer responsibility to $50 in most cases of fraud, and because many new cards include "zero responsibility" identity theft prevention or protection, some people think there's no reason to worry about credit fraud. But in its most advanced form -- identity theft -- credit fraud can cause wide-ranging long-term problems. Identity thieves can use your personal information to take over your credit accounts and open new ones. They may even use your good credit to get a job, take out a car loan, or rent an apartment.

Check your credit report regularly. Checking your credit report can help you catch mistakes and prevent identity theft fraud before they wreak havoc on your personal finances. Make sure your report is accurate and includes only those activities you've authorized. It's also a good idea to review your credit report from each of three major credit reporting agencies every year -- it's possible that information is reported to one but not others.

Quick Fact

Although identity theft problem is nationwide, states with highest incidence of identity theft are California, New York, New Jersey, Connecticut, Pennsylvania, Ohio, Florida, Georgia, Texas, Illinois, and Washington.

Itna Yeknom is an independent author for core industry related websites.

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