Investing in a Cyclical Company?

The method at the firm that I've founded is all valuation based. We want low leverage, not necessarily no leverage and there will be some exceptions to that rule. The one thing we don't want to do is to combine high leverage operationally with high leverage financially in the same company. It's very important that it should have a balance sheet which is strong enough to let it be there in four or five years time whatever happens. Then the third aspect of quality is management. We are rather skeptical about meeting management but rating the management is important. And then it is straightforward valuation based on primarily on history and current but with of course some projections.