Magic Formula Investing Weekly Roundup 4/17/2011

Apr. 17, 2011 10:02 AM ETPRDO, CORV, GNI, MPAA, PETS, MRK, MFW, CNEP, NEWN, DLB, LHX, LMT, MKSI, EXPE, MO, V, OSK

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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:

Career Education Corp (CECO)
Cardiome Pharma Corp (CRME)
Great Northern Iron Ore Properties (GNI)
Motorcar Parts of America Inc (MPAA)
PetMed Express Inc (PETS)

Dropping out of the 50 over 50 million screen:

Cubist Pharmaceuticals Inc (CBST)
Jiangbo Pharmaceuticals Inc (OTCPK:JGBO)
M & F Worldwide Corp. (MFW)
China North East Petroleum Holdings Ltd (NEP)
New Energy Systems Group (OTC:NEWN)

Entering the 50 over 1 billion screen:

Dolby Laboratories Inc (DLB)
Harris Corp (HRS)
Lockheed Martin Corp (LMT)
MKS Instruments Inc (MKSI)

Dropping out of the 50 over 1 billion screen:

Cubist Pharmaceuticals Inc (CBST)
Expedia Inc (EXPE)
Altria Group Inc (MO)
Visa Inc (V)

Entering the 30 over 3 billion screen:

Dolby Laboratories Inc (DLB)
Harris Corp (HRS)
Lockheed Martin Corp (LMT)

Dropping out of the 30 over 3 billion screen:

Expedia Inc (EXPE)
Altria Group Inc (MO)
Oshkosh Corp (OSK)

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