Q: Screening under value stocks with low risk

I'd like to raise a question regards to validating the following approach. I hope that I can get DQ stock SME's approval. Thank you in advance.

Goal: Find some under value stocks with upside potentials with low risk. i.e., the chance for the stocks going further down is very minimum.

Method:

1) Debt Ratio or DR: (Total Liabilities) / (Total Asset) in the latest or previous balance sheet. Expect that DR is around 50-60% or lower. No greater than 70%.

2) Market Cap ratio or MCR: Market Cap / ((Total Asset) - (Total Liabilities)). Expect that MCR is less than 1.0, ideally 0.7 or lower, and no more than 0.9.

Once the stocks passed these two criteria, you can do further FA/TA as necessary.

I found that the following stocks on the competition list in this week passed screening:

DRYS, COCO, DSX, JKS, OCZ, CHK, etc

Then you can further select these stocks based on your analysis and preference.

Does this approach make any sense? Your comments are highly appreciated.