MagicDiligence's  Instablog

Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, and buying from the resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens used by MagicDiligence. Note that in the middle of earnings season, turnover is frequent, as stocks drop out of the screen for a few days after reporting earnings (to compile the new numbers):

Entering the 50 over 50 million screen:

Dropping out of the 50 over 50 million screen:

Entering the 50 over 1 billion screen:

Dropping out of the 50 over 1 billion screen:

Entering the 30 over 3 billion screen:

Dropping out of the 30 over 3 billion screen: