Magic Formula Investing Weekly Roundup 2/6/2011
Growth At A Reasonable Price, Long Only, Value, proprietary formula investing
Contributor Since 2008
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 earnings season (that is, now) there is often a lot of turnover in the screens, some of which is temporary.
Entering the 50 over 50 million screen:
Lender Processing Services Inc (LPS)Mind Cti Ltd (MNDO)
Oshkosh Corp (OSK)
PetMed Express Inc (PETS)
Renaissance Learning Inc (RLRN)
Dropping out of the 50 over 50 million screen:
Aeropostale Inc. (ARO)Dell, Inc. (DELL)
Sparks Networks Inc (LOV)
Value Line Inc (VALU)
ZST Digital Networks Inc (OTC:ZSTN)
Entering the 50 over 1 billion screen:
AmerisourceBergen Corp (ABC)Biogen Idec Inc (BIIB)
Broadridge Financial Solutions Inc (BR)
Myriad Genetics Inc (MYGN)
Oshkosh Corp (OSK)
Dropping out of the 50 over 1 billion screen:
Amedisys Inc (AMED)Mednax Inc. (MD)
The McGraw-Hill Companies Inc. (MHP)
Reynolds American Inc (RAI)
Tessera Technologies Inc (TSRA)
Entering the 30 over 3 billion screen:
AmerisourceBergen Corp (ABC)Biogen Idec Inc (BIIB)
Herbalife Ltd (HLF)
Hewlett-Packard Co (HPQ)
KLA-Tencor, Inc. (KLAC)
Lexmark International Inc. (LXK)
Oshkosh Corp (OSK)
Teradyne Inc. (TER)
Dropping out of the 30 over 3 billion screen:
CA Inc (CA)Gannett Co Inc. (GCI)
GameStop Corp. (GME)
McKesson Corp (MCK)
Mednax Inc. (MD)
The McGraw-Hill Companies Inc. (MHP)
Reynolds American Inc (RAI)
Time Warner Inc (TWX)