I subscribe to the belief that all stocks are POSs, because even the best stocks can bring huge losses. But our job as ch-analysts is to find the alpha, and KUN was loaded with it in the .50's, not because of its balance sheet, but because of its story.
I used to spend 3x the amount of time poring over financial statements than I do now, and while the results were terrific, I can usually find the same alpha by having more insight into stories versus financials. Of course great financials tell a great story, so it's still a big part of trading - i mean, just follow what Superman does; massive earnings plays - but there's so much more to a stock than its financials. That's what makes trading and research so fun!
Solid DD combined with timeliness and conviction is a recipe for profits.