We select stocks based on the investing strategies of legendary investors; in this case, we look at the growth and value strategy of James P. O'Shaughnessy, notes John Reese, editor of Validea.

Neftyanaya Kompaniya Lukoil OAO (ADR: LUKOY) is a Russia-based integrated oil and gas company. It is an owner of refineries, gas processing, petrochemical plants, and gas station networks located in Russia, Eastern and Western Europe, as well as Africa.

The company's petroleum products are sold in the Russian Federation, the Commonwealth of Independent States (CIS) countries, Eastern and Western Europe, Asia, and the United States.

The stock earns a Guru Score of 100%, based on the Cornerstone Strategy, which is the growth and value methodology of James P. O'Shaughnessy.

The Cornerstone Value Strategy looks for large, well known companies whose market cap is greater than $1 billion. These companies exhibit solid and stable earnings. LUKOY's market cap of $55,799 million passes this test.

The second criterion requires that the company exhibit strong cash flows. Companies with strong cash flow are typically the value oriented investments that this strategy looks for.

The company's cash flow per share must be greater than the mean of the market cash flow per share ($1.60). LUKOY's cash flow per share of $21.54 passes this test.

This particular strategy looks for companies whose total number of outstanding shares are in excess of the market average (617 million shares). These are the more well-known and highly traded companies. LUKOY, who has 776 million shares outstanding, passes this test.

A company's trailing 12 month sales ($140,336 million) are required to be 1.5 times greater than the mean of the market's trailing 12 month sales ($20,862 million). LUKOY passes this test.

The final step in the Cornerstone Value strategy is to select the 50 companies from the market leaders group (those that have passed the previous four criteria) that have the highest dividend yield. LUKOY, with a dividend yield of 4.25%, is one of the 50 companies that satisfy this last criterion.

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