MD

http://www.magicdiligence.com
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32 Comments

    • Mon Nov 10th 16:29 PM | Rating: +1 0
      Commented on:
      Big Media: Future Growth Depends on Serious Change
      > There will be a concurrent meltdown with the large ad/PR/etc agencies.
      > Just wait. There will be "Lehmans" in the communications business.

      Lehman, Bear, AIG, etc. were all levered 25-30 times and held the bulk of their assets in illiquid securities of unknowable value. How does this even remotely compare to the media corporations like News Corp that still is forecasting 4.4 billion dollars in profit even in a down market?

      It's fun to make bold proclamations, especially when there is no responsibility attached, but please try to provide value to SeekingAlpha readers.

      Steve
      MagicDiligence.com
      View article »
    • Thu Oct 9th 10:17 AM | Rating: 0 0
      Commented on:
      What's an Investor to Do - Patience or Panic?
      To those who think their money should go up every day, you don't belong in the stock market. No long term successful investor has played financial hokey pokey, they are almost to a person patient, with a several year horizon on investments. You may feel good today sitting on cash, but you will feel poor when the market turns. It always has. Always.
      View article »
    • Fri Aug 29th 08:47 AM | Rating: 0 0
      Commented on:
      News Pitch: Why To Buy News Corp
      The link above is the quantitative part. Pitch articles are qualitative. Magic Formula stocks are by definition cheap with high return on capital.
      View article »
    • Fri Aug 29th 08:46 AM | Rating: 0 0
      Commented on:
      News Pitch: Why To Buy News Corp
      www.magicdiligence.com...
      View article »
    • Thu Aug 28th 09:56 AM | Rating: 0 0
      Commented on:
      Thor Industries: Strength From Weakness
      Great analysis, spot on. They are so much better run than the competition, and travel trailers will survive high gas prices better than motor homes. If oil dips back, as it always has, current prices represent a nice buy.

      Steve
      MagicDiligence.com
      View article »
    • Thu Aug 7th 10:37 AM | Rating: 0 0
      Commented on:
      Amgen Should Start Paying a Dividend
      I'm not sure anyone's too concerned about Amgen not being around for long... this is a 70 billion dollar company! But your point is well stated. Most pharma companies pay generous dividends, and Amgen can certainly afford it with nearly 5 billion dollars of free cash flow. With no generic biodrugs in the U.S. for the forseeable future, their legacy drugs will continue to bring in loads of cash.

      Steve
      magicdiligence.com
      View article »
    • Thu Jul 31st 11:07 AM | Rating: 0 0
      Commented on:
      Buying a Buffett Portfolio
      This is how I like to invest as well. I use the Magic Formula stock screen - the point of the strategy is to find good companies (high return on capital) at low prices (high earnings yield). Then check out the long term moat characteristics to make sure a stock is not a flash in the pan. You definitely have some excellent companies there, but a stock does not have to be owned by Berkshire to have these characteristics. Look at some of the smaller caps as well, even Buffett has said that these offer the greatest gains for the individual investor.

      Steve
      magicdiligence.com
      View article »
    • Wed Jul 30th 14:04 PM | Rating: 0 0
      Commented on:
      Barrett Business Services Earnings Review
      Sounds like hindsight, but BBSI was really a no brainer. Net cash was almost half of market cap, and no debt. The company was in a good position to ride out any troubles in California, plus they had spent the past 2 years diversifying into other western markets. Long term, PEO is an attractive growth market. I haven't heard the CC, but the CEO is quite entertaining. He sounds like grandpa telling it like it is.

      Steve
      magicdiligence.com
      View article »
    • Mon Jul 28th 15:01 PM | Rating: 0 0
      Commented on:
      Barrett Business Services: Jumping in Ahead of Earnings
      The company holds nearly half it's market cap in cash with no debt - enterprise value is only a bit above 75 million. With 56m in cash and no debt, they can survive a downturn for some time. California is a challenge, no doubt. They've been trying to expand their geographical base with acquisitions in Arizona, Colorado, and Utah.

      The trick is surviving the downturn, which the company is well positioned to do. Try a DFCF scenario - the stock is 20% undervalued today assuming the company never increases free cash flow for 10 years!

      Steve
      magicdiligence.com
      View article »
    • Mon Jul 28th 12:45 PM | Rating: 0 0
      Commented on:
      KLA-Tencor and the Fate of the Semiconductor Capital Equipment Sector
      Cadence and KLA sounds like an odd match. KLA-Tencor is very specialized in yield management, while Cadence is a jack of all trades EDA vendor. I don't see how Cadence's tools for synthesis, logical simulation, layout... in fact the whole front end match with anything KLA-Tencor is doing. Still, good overview of the company.

      Steve
      magicdiligence.com
      View article »
    • Mon Jul 28th 10:14 AM | Rating: 0 0
      Commented on:
      8 Dow Stocks Likely To Outperform
      Most of the comments here are typical emotionally driven investing, which has failed in the past and will continue to fail. Dogs of the Dow has been a successful strategy over long periods of time and will likely continue to be. Sure some of these may see dividend cuts (particularly financials), but over the long run the vast majority will maintain and even raise the dividend. Don't let a few months of macro concerns deter you from following strategies that are proven over long periods of time. Nobody can predict the overall economy, but it seems everyone thinks they can.

      Steve
      magicdiligence.com
      View article »
    • Fri Jul 25th 13:44 PM | Rating: 0 0
      Commented on:
      Crocs Crushes the Bottom Feeders
      Tattoo this to your forehead and read it every morning brushing your teeth:

      I WILL NOT INVEST IN FAD COMPANIES

      Great job Daniel.

      Steve
      magicdiligence.com
      View article »
    • Fri Jul 25th 13:43 PM | Rating: 0 0
      Commented on:
      NVIDIA's Long-Term Prospects Mean It's Currently Undervalued
      Good write up, and I agree largely with your analysis. In my opinion there are too many competitive and technology pressures that can sink this stock. Outperformance is no sure thing. There's a lot of risk. There's no "moat". Why gamble with money on this one when there are so many other stocks that come closer to being a sure thing, or as close as you can get in the investing world?

      Steve
      magicdiligence.com
      View article »
    • Mon Jul 21st 15:55 PM | Rating: 0 0
      Commented on:
      Pfizer Stock: Value Trap?
      With a solid balance sheet and huge cash flow and reserves, Pfizer can participate in whatever the next big drug category will be. The dividend isn't going anywhere - payout of free cash flow is high at 80%, but don't forget share buybacks (which lower total dividend payout) and the fact that it's one of only 8 companies with a AAA debt rating. R&D is a numbers game, and nobody has the scale of numbers that Pfizer brings to the table.

      Steve
      magicdiligence.com
      View article »
    • Fri Jul 18th 13:08 PM | Rating: 0 0
      Commented on:
      Earnings Preview: Hasbro
      Love Hasbro. The new strategy is golden - milk every last cent out of their long established properties. Next year they have Transformers 2 and GI Joe movies, plus they should profit in 2Q from Iron Man and Hulk. In Q3 they have the Star Wars animated flick to drive toy sales. Their new TF cartoon toys have been flying off the shelves, and I've noticed these toys are about 10% more expensive then a year ago.

      Steve
      magicdiligence.com
      View article »
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