Magic Formula Investing Weekly Roundup 11/27/2011

Nov. 27, 2011 8:46 AM ETCMTL, BHC, NSU-OLD, WDC, VG, HRB, XCRA, PRX, SAVE, STRI, BID, CSCO, CUB, MRK, HPQ, UIS, GD, GILD, LO
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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:

Comtech Telecommunications Corp. (CMTL)
Medicis Pharmaceutical Corp (MRX)
Nevsun Resources Ltd (NSU)
SanDisk Corp (SNDK)
Vonage Holdings Corp (VG)

Dropping out of the 50 over 50 million screen:

Block (H&R) Inc. (HRB)
LTX-Credence Corp (LTXC)
Par Pharmaceutical Companies Inc (PRX)
Spirit Airlines Inc (SAVE)
STR Holdings Inc (OTCPK:STRI)

Entering the 50 over 1 billion screen:

Sotheby's (BID)
Cisco Systems Inc (CSCO)
Cubic Corp (CUB)
Medicis Pharmaceutical Corp (MRX)
Nevsun Resources Ltd (NSU)

Dropping out of the 50 over 1 billion screen:

Cubist Pharmaceuticals Inc (CBST)
Dun & Bradstreet Corp (The) (DNB)
GT Advanced Technologies (OTCPK:GTAT)
Hewlett-Packard Co (HPQ)
Unisys Corp (UIS)

Entering the 30 over 3 billion screen:

Cisco Systems Inc (CSCO)
General Dynamics Corp (GD)

Dropping out of the 30 over 3 billion screen:

Gilead Sciences Inc (GILD)
Lorillard Inc (LO)


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