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Every so often, MagicDiligence compiles a list of Magic Formula stocks sorted by their dividend yield, price-to-sales ratio, and price-to-book ratio for investors that like to use those metrics. The result is a list of attractive value stocks for additional research. Here are the top 10 in each of the three metrics listed above:

Dividend Yield

TickerCompanyDiv Yield
MSBMesabi Trust16.40%
CHKECherokee Inc11.00%
EXBDCorporate Executive Board Company (The)10.60%
USMOUSA Mobility Inc10.20%
GNIGreat Northern Iron Ore Properties9.20%
DLXDeluxe Corp7.20%
IPHSInnophos Holdings Inc4.70%
NTRINutriSystem Inc4.80%
HLFHerbalife Ltd3.80%
HSIIHeidrick & Struggles International Inc2.30%

Price-to-Sales Ratio

TickerCompanyP/S Ratio
PACRPacer International Inc0.08
EMEEMCOR Group Inc.0.19
KBRKBR Inc0.22
AHCIAllied Healthcare International Inc.0.23
GPXGP Strategies Corp.0.27
SWIRSierra Wireless Inc0.30
FIXComfort Systems USA Inc.0.31
IPHSInnophos Holdings Inc0.33
DELLDell Inc.0.35
QXMQiao Xing Mobile Communication Co Ltd0.35

Price-to-Book Ratio

TickerCompanyP/B Ratio
QXMQiao Xing Mobile Communication Co Ltd0.29
QLTIQLT Inc0.43
SWIRSierra Wireless Inc0.48
AHCIAllied Healthcare International Inc.0.52
VPHMViroPharma Inc0.58
PACRPacer International Inc0.59
GPXGP Strategies Corp.0.77
GTLSChart Industries Inc0.80
HCKTHackett Group Inc (The)0.89
DIVXDivX Inc0.95


Disclosure: Steve owns PACR, DELL

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This article has 5 comments:

  •  
    I like the idea of using additional criteria to evaluate magic formula results. But I don't trust P/S as much as I did a year ago. After the beating many stocks have taken, you still have to do some digging to find out what is behind the number.
    Apr 28 03:27 PM | Link | Reply
  •  
    Fascinating! I didn't know there were such assets as Iron Ore Trusts.
    Thanks for the pointers.
    Yield hogs should be aware that most of the high dividend payers listed pay erratically; the percentage indicated is only a short-term calculation.
    Apr 29 02:31 AM | Link | Reply
  •  
    great shopping/research list, thank you
    Apr 29 06:14 AM | Link | Reply
  •  
    AY:

    Have owned Great Northern Iron (GNI) since the `80s. It's been a good investment and a great dividend payer.


    On Apr 29 02:31 AM Alan Young wrote:

    > Fascinating! I didn't know there were such assets as Iron Ore Trusts.
    >
    > Thanks for the pointers.
    > Yield hogs should be aware that most of the high dividend payers
    > listed pay erratically; the percentage indicated is only a short-term
    > calculation.
    Apr 29 08:59 AM | Link | Reply
  •  
    I've been a big fan of KBR for some time. When the economy turns, and they get out of the razor thin margin / anti-hype / PR of Iraq suppport; these guys are poised for rapid growth.

    Instead of the P/S, look at cash vs debt and backlog. Not to mention these guys lead the world in LNG facilities. Qatar/Austrailia

    I got lucky and bought at $10, thought about trading it in bulk because of the cash, but kept at that price point. even at $16 its a buy. They will be back at $26 within a year.


    On Apr 28 03:27 PM Walt17 wrote:

    > I like the idea of using additional criteria to evaluate magic formula
    > results. But I don't trust P/S as much as I did a year ago. After
    > the beating many stocks have taken, you still have to do some digging
    > to find out what is behind the number.
    Apr 29 12:13 PM | Link | Reply