It is also essential to consider stock ownership levels of all key management, how stock remuneration is structured and how stock options for mid-level employees are allocated (or not). It is of course rare to find companies with good capital discipline, particularly within this universe of these cheap stocks. The key attributes to identify are whether management’s stance is changing or if there is potential for improvement to the status quo.

Usually these changes occur quietly but can be triggered through events such as change in board membership, a new planning department head being appointed, M&A or new business partnership, etc. Moreover, if key senior executives that possess influence and energy – even if they are not the CEO or board members – are willing to learn, take risks and work with shareholders and stakeholders for the long-term prosperity of the business, this can positively impact how the company is perceived by investors over time, as it is generally starting from a very low base.