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MagicDiligence (< 20)

January 2011

Recs

6

Magic Formula Investing Weekly Roundup 1/30/2011

January 30, 2011 – Comments (0) | RELATED TICKERS: CA , GD , TWX

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:  [more]

Recs

8

Should Price Momentum Be Important To Value Investors?

January 26, 2011 – Comments (2) | RELATED TICKERS: PWER.DL.DL , IDCC , SNDK

Price momentum as a stock performance predictor is often scoffed at by fundamental value investors and "efficient market" academics. Momentum, they will tell you, has nothing to do with the fundamental factors that drive revenue, profit, and book value growth - the ultimate factors that determine the value of a business and, hence, the price of a stock. No less an authority than Warren Buffett has said that past prices are only good at predicting past returns! Many value investors even believe that the stocks that have been the most beaten down make the best investments because the stock price is logically closer to the bottom.

On the other hand, there are armies of technically-oriented traders that use nothing other than price charts to make investment decisions!  [more]

Recs

4

Magic Formula Investing Weekly Roundup 1/23/2011

January 23, 2011 – Comments (0) | RELATED TICKERS: GPS , LXK , MD

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:  [more]

Recs

4

Does PetMed Express Have Fleas?

January 19, 2011 – Comments (0) | RELATED TICKERS: PETS

PetMed Express (PETS), better known as 1-800-PetMeds, is the largest American firm focusing primarily on mail order pet pharmaceuticals. The company offers about 750 different products for dogs, cats, and horses, with about 70% of sales coming from non-prescription medicines and the rest from prescriptions. PetMeds sells directly to pet owners, with about 70% of orders coming through their www.1800petmeds.com website, and the rest through phone, fax, and mail orders.

There are many things to like about PetMeds. The company has outstanding financial metrics, with over $70 million in balance sheet cash vs. no debt. The business model is very efficient, with low capital requirements leading to high returns on capital. Average 5-year return on equity is over 28%, with return on assets averaging an impressive 26%. Management has been generous about returning capital to shareholders, also. Share count has been reduced by over 2% annually over the past 3 years, and the dividend was recently boosted 25%, yielding an attractive 3.2% at current share prices.  [more]

Recs

5

Magic Formula Investing Weekly Roundup 1/16/2011

January 16, 2011 – Comments (0) | RELATED TICKERS: V , LLY , ENDP

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:  [more]

Recs

5

2 Solar Stocks That Look Too Cheap

January 12, 2011 – Comments (2) | RELATED TICKERS: PWER.DL.DL , GTAT , LDKSY

In perusing over the official Magic Formula Investing (MFI) screens, one sees the common stocks of many currently out-of-favor and possibly declining industries: for-profit education, defense contractors, tobacco firms, hard disk drive makers, solar energy equipment providers...

Wait, solar energy equipment providers? In a value screen? Isn't that a growth industry?  [more]

Recs

7

Magic Formula Investing Weekly Roundup 1/9/2011

January 09, 2011 – Comments (0) | RELATED TICKERS: GPS , ENDP , MCK

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:  [more]

Recs

4

Will an Investment in Nu Skin Age Well?

January 05, 2011 – Comments (0) | RELATED TICKERS: NUS , PPD.DL , AVP

Nu Skin Enterprises (NUS) is a global direct marketing firm focused on selling personal care products and nutritional supplements. The company has two primary brand lines. Nu Skin consists of personal care products, mainly focused on skin care. Some product examples include moisturizer, suntan lotion, soaps, cosmetics, and so forth. Pharmanex is the nutritional supplements line. Products here include LifePak pill-based supplements (similar to what you'd find at GNC), g3 nutritional fruit juices, weight loss shakes (like Slim-Fast), etc.

Last year, the Nu Skin line accounted for about 55% of sales, and Pharmanex 43%. Over a longer period of time, the breakdown has been about 50/50. Nu Skin is truly a global company. Japan is its largest market at about 30% of sales. China accounts for about 18% of revenue, and both the U.S. and South Korea 15%.  [more]

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