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Reviewing The Magic Recipe Stocks: #41-50

What are the best stocks in the Magic Recipe Spell?

There are a lot of stocks in there - 50 in total. Doing full reviews on all 50 would take a substantial amount of time, and by the time we were done, the list would be all different again!

Instead of doing that, I'm going to try something different: a "Twitter" style, 160-character maximum review of each current Magic Recipe stock (140 was not enough)! In addition, I'll provide a quick "thumbs up", "thumbs down", or "neutral" OPINION of each stock's potential to outperform the market over the next 12-18 months, as well as a basic-as-possible description of the company's business.

We will do 10 stocks every other day until we wrap up all stocks on the screen as of 5/30. So, without further ado, let's start the countdown with stock #50!

 

#50: Expeditors International of Washington (EXPD)

Company Description: Shipping logistics.

Outlook: Neutral.

"Tweet" Review: Reliable logistics provider with sticky relationships and good past performance. Debt-free. Valuation is not particularly cheap given modest growth outlook.

#49: Cardinal Health (CAH)

Company Description: Drug and medical supply distribution.

Outlook: Thumbs up.

"Tweet" Review: 1 of only 3 major drug distributors. Strong moat, reliable business, immense cash flows. 2% yield, buys back shares. Good value under $80.

#48: CA Inc. (CA)

Company Description: IT software and services.

Outlook: Neutral.

"Tweet" Review: Sticky software & service contracts. Reliable cash flows. Sales declining, dividend flat, buying back shares. Few catalysts, valuation at top of range.

#47: Chemed (CHE)

Company Description: A "natural" combination of Roto-Rooter plumbing and Vitas hospice care company.

Outlook: Neutral.

"Tweet" Review: Odd combo of recession-proof businesses. Steady cash flows, modest dividend hikes but not much growth. No clear catalysts and not substantially undervalued.

#45: Foot Locker (FL)

Company Description: Athletic shoes and apparel retailer.

Outlook: Thumbs up.

"Tweet" Review: Trading at bottom of 52wk range. Top name in athletic footwear. Should benefit from Sports Authority bankruptcy. Debt-free, rising sales, rising margins.

#44: Viacom (VIAB)

Company Description: Big media, owns Nickelodeon, MTV, BET, and others, along with the Paramount movie studio.

Outlook: Thumbs up (slightly).

"Tweet" Review: Reliable, recurring cash flows. "Cord cutting" trend is over-hyped. Lot of room for improvement at Paramount. Balance sheet and ownership squabble are concerns.

#43: Herman Miller (MLHR)

Company Description: Fancy office furniture.

Outlook: Neutral.

"Tweet" Review: No moat, middling performer. Balance sheet improved but not great. Cash flow all over the place. I see it as an unreliable pick, though not expensive.

#42: Michael's (MIK)

Company Description: Craft and hobby retailer.

Outlook: Neutral.

"Tweet" Review: Modest growth potential but lots of competition, especially from online retail. Valuation at top of range - pricey for store retail. Poor balance sheet.

#41: Ambarella (AMBA)

Company Description: High quality camera modules for action cameras, drones, and other applications.

Outlook: Thumbs up.

"Tweet" Review: GoPro reliance should bleed off this year. Big potential in drone, auto, wearable camera markets. Debt-free. Looks cheap given future growth potential.