Here's the scenario that I posit: there is a company in lousy shape that looks like a certain bankruptcy candidate, except that there are no significant events requiring liquidity for 3 - 5 years. (alephblog.com)
If it's really the case that 2 / 3rds of the cheapest price to book stocks go under then screening out those bankruptcy candidates by simply insisting on a tiny debt to equity ratio would have a powerful effect on your portfolio. (greenbackd.com)
If we ever lose sight of that we're at risk of becoming credit card junkies or bankruptcy candidates. (freefrombroke.com)