The founder and editor of MagicDiligence.com, a website dedicated to researching and recommending only the best stocks in Joel Greenblatt's Magic Formula Investing screen.
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:
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DV is an interesting pick-- the Department of Education is cracking down on funding For Profit schools, since they have lower rates of graduation, and higher rates of defaults on loans. I'd watch the outcome of the governmental changes, it can be quite a rocky ride in the coming months.
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Magic Formula Investing Weekly Roundup 9/12/2010 1 comment
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:
Entering the 50 over 50 million screen:
FSYS - Fuel Systems Solutions IncHRB - Block (H&R) Inc.
LO - Lorillard Inc
ZLCS - Zalicus Inc
Dropping out of the 50 over 50 million screen:
CRXX - CombinatoRx IncGMAN - Gordmans Stores Inc
MPAA - Motorcar Parts of America Inc
VALU - Value Line Inc
Entering the 50 over 1 billion screen:
GPS - Gap Inc. (The)HRB - Block (H&R) Inc.
TER - Teradyne Inc.
Dropping out of the 50 over 1 billion screen:
ABC - AmerisourceBergen CorpINTC - Intel Corp
WTW - Weight Watchers International Inc.
Entering the 30 over 3 billion screen:
DV - DeVry IncFWLT - Foster Wheeler AG
HRB - Block (H&R) Inc.
Dropping out of the 30 over 3 billion screen:
ENDP - Endo Pharmaceuticals Holdings IncFLR - Fluor Corp.
SAI - SAIC Inc
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I'd watch the outcome of the governmental changes, it can be quite a rocky ride in the coming months.
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