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Magic Formula Investing Weekly Roundup 1/23/2011

Jan. 23, 2011 2:26 PM ETAHCI, CJJD, DELL-OLD, DVOXQ, RIGL, XPER, MRK, FLL, FRX-OLD, LPS, PETS, STRA, GPS, ZD, LXK, MD, STX, WDC, HLF
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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:

Allied Healthcare International Inc. (AHCI)
China Jo-Jo Drugstores Inc (CJJD)
Dell, Inc. (DELL)
DynaVox Inc (DVOX)
Rigel Pharmaceuticals Inc (RIGL)
Tessera Technologies Inc (TSRA)

Dropping out of the 50 over 50 million screen:

Cubist Pharmaceuticals Inc (CBST)
Full House Resorts Inc (FLL)
Forest Laboratories Inc. (FRX)
Lender Processing Services Inc (LPS)
PetMed Express Inc (PETS)
Strayer Education Inc (STRA)

Entering the 50 over 1 billion screen:

Gap Inc. (The) (GPS)
j2 Global Communications Inc (JCOM)
Lexmark International Inc. (LXK)
Mednax Inc. (MD)

Dropping out of the 50 over 1 billion screen:

Cubist Pharmaceuticals Inc (CBST)
Forest Laboratories Inc. (FRX)
Seagate Technology (STX)
Western Digital Corp (WDC)

Entering the 30 over 3 billion screen:

Herbalife Ltd (HLF)
Mednax Inc. (MD)

Dropping out of the 30 over 3 billion screen:

Forest Laboratories Inc. (FRX)
Seagate Technology (STX)

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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