A look into the mind of how a value investor 
works through the process will help you to 
develop a deeper understanding of what is 
involved in this approach to investment.

By following a predefined value investment guide you will learn how to
 identify great opportunities based on the skill of where to look and on how
 to conduct and decipher fundamental analysis. Whilst this may sound like
a technical process, value investors can follow a defined criteria as they
 zone in on an opportunity that conforms to the principles of value investing.

Sector specific stock screening

Objective - Generate sector specific ideas to conduct fundamental
 analysis on 20 companies.

Begin with your focus on a specific industry sector. For example, as part
 of your diversification strategy you would like to include a Pharmaceuticals
 stock to your portfolio. Using any one of the free stock screeners
 (Google Finance, Yahoo Finance), filter through to your chosen
 sector to begin looking for signs of attractive valuations.

Identifying attractive valuations will require you to look into the basic 
financial structure of companies. As value investors we are looking for 
cheap valuations in great companies. To determine this in your chosen
 sector, begin by assessing companies under the following criteria;