Subject: Re: Factor ETF Long-term Performance
Do you mean book value > 0?

No.
"and those with earnings > 0 and book value is < 0."

IIRC, the rationale was that BV < 0 means that the company has had such financial success that its book value has gone negative. Of course, it could be a troubled company, so you want to only look at one that have positive earnings.

Here is an article: https://www.osam.com/Commentar...

"Negative equity companies are often written off as distressed, but after reporting negative equity, most of them survive for years and have, as a group, outperformed the market 57% of the time. in rolling 3 years periods from 1993 to 2017."