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MagicDiligence (< 20)

March 2012

Recs

3

Is Nature's Sunshine Breaking Through the Clouds?

March 28, 2012 – Comments (0) | RELATED TICKERS: NATR.DL , USNA , HLF

Nature's Sunshine (NATR) is a direct selling, multi-level marketing (MLM) firm. Herbal products account for about half of sales, including remedies for better circulation (Cardio Assurance), blood pressure (Blood Pressurex), and immune system function (Liquid Chlorophyll). Vitamins, Minerals, and Supplements comprise another 43% of sales, catering to a wide variety of both general and targeted outcomes. Personal care, including skin and hair products, round out the portfolio. Nature's Sunshine is an international firm, with 45% of sales originating outside of the United States.

MLM companies are nothing new to Magic Formula® Investing (MFI). The direct marketing model involves individuals (known as distributors) recruiting additional distributors to buy and market products, and to recruit further distributors to build out a network. Essentially, this is a low cost way to build both an advertising and distribution network, leading to high returns on capital. The downside is that turnover is very high (over 55% of NATR's distributors do not renew), government regulations can be restrictive, and both the general public and investing community have a less-than-positive view of the business model. Let's face it, being hounded to buy (and then sell) stuff by a relative or friend is a real pain in the posterior.  [more]

Recs

2

Magic Formula Investing Weekly Roundup 3/25/2012

March 25, 2012 – Comments (0) | RELATED TICKERS: WCRX , WNR , MYGN

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

6

Magic Formula Investing Weekly Roundup 3/18/2012

March 18, 2012 – Comments (0) | RELATED TICKERS: TWX , IDCC , ESIC

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

2

Magic Formula Investing Weekly Roundup 3/11/2012

March 11, 2012 – Comments (0) | RELATED TICKERS: TRW , UTHR , KRO

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

Top 10 Fastest Growing Magic Formula Stocks

March 09, 2012 – Comments (0) | RELATED TICKERS: CF , INTC , SNDK

Joel Greenblatt's Magic Formula® Investing (MFI) strategy is a value stock picking mechanism. It looks for stocks with the best combination of a high earnings yield and a high return on tangible capital, creating a simple algorithm to find "great companies at cheap prices".

What is does not consider is growth, a key ingredient to determining if a stock is truly "cheap", or justifiably carries a low multiple of earnings. Wouldn't it be nice to find great,growing companies at cheap prices? The combination of earnings and multiple growth is what can lead to huge stock price advances. One of the greatest but least talked about "super investors" was Shelby Davis, who generated 23% compound annual returns over a 47 year investing career (turning $50k into $900 million!). He looked for exactly the situation we are talking about here, dubbed the "Davis Double Play".  [more]

Recs

4

Magic Formula Investing Weekly Roundup 3/4/2012

March 04, 2012 – Comments (0) | RELATED TICKERS: LLY , GILD , HPQ

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]

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