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MagicDiligence (< 20)

August 2012

Recs

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Top 10 Magic Formula Stocks by Dividend, P/S, P/B

August 29, 2012 – Comments (0) | RELATED TICKERS: PBI , LMT , GME

The top 10 current Magic Formula stocks by forward dividend yield, price-to-sales ratio, and price-to-book ratio.  [more]

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Magic Formula Investing Weekly Roundup 8/26/2012

August 26, 2012 – Comments (0) | RELATED TICKERS: MRVL , HLF , HFC

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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Comparing Two Healthcare IT Companies

August 23, 2012 – Comments (1) | RELATED TICKERS: MEDW.DL , QSII , CERN

Healthcare in the United States has been a hot topic of discussion for the last 3 years now. And no wonder. In 2011, healthcare spending share of GDP in the U.S. reached an all-time high of 18.2% - no other country in the world exceeds 12%. A major side effect of this is that more and more Americans cannot afford health insurance. The percentage under 18 without insurance increased to 17.7% in 2011, up from 14.8% in 2008, a 20% increase in just 3 years.

With those kinds of costs, one would think the quality and safety of treatment would be beyond reproach. But that's just not true either. Preventable medical errors are the 6th leading cause of death in the U.S., with a recent study showing that 1/3rd of all people who check into a hospital suffer from a medical error while inside. A study done back in 2006 showed that 1.5 million people every year are the victims of medication or prescription errors.  [more]

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Magic Formula Investing Weekly Roundup 8/19/2012

August 19, 2012 – Comments (0) | RELATED TICKERS: ACN , DLX , 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]

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Can Decker's Outdoor Bounce Back?

August 14, 2012 – Comments (0) | RELATED TICKERS: DECK

Deckers Outdoor (DECK) is a seller of niche, luxury footwear. Deckers has 3 main product brands. The most important is UGG Australia, the well known (and expensive) luxury sheepskin footwear. UGGs provide about 62% of Decker's total sales. The second brand is Teva, an outdoor performance footwear brand that started as a sandal label and has been expanded into sports, hiking, and outdoor footwear as well. Teva is around 20% of sales. The third primary product line is Sanuk, a line of sandals and footwear focused on the surfing community. Sanuk was just acquired by Deckers in July of last year and currently is generating 16% of revenues. The remaining few percent are from Decker's "other" brands, including TSUBO (high-end casual footwear) and the since-shuttered Simple line (sustainable footwear, whatever that means), as well as brand licensing for other merchandise like handbags and apparel.

Fast growing, upscale consumer brands can make for great investments - just look at the gains inApple (AAPL) and Coach (COH) over the last several years. Decker's has clearly fallen into this category. UGGs have been pimped by all kinds of A-list celebrities ranging from Oprah Winfrey toBritney Spears to Tom Brady! Celebrity cache has been a big driver behind Decker's compound annual revenue growth of 26% since 2007. The brand has been so strong that sales still rose 18% during the deep recession year of 2009! Decker's stock soared from below $30 in 2007 to a high of over $115 just last October. The company was on a roll.  [more]

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Magic Formula Investing Weekly Roundup 8/12/2012

August 12, 2012 – Comments (0) | RELATED TICKERS: WCRX , LMT , NUS

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

High Piotroski Scores In Magic Formula Investing

August 06, 2012 – Comments (0) | RELATED TICKERS: HPQ , STX , DLB

Joseph Piotroski is an former accounting professor at the University of Chicago, and an active value-based investor. He noticed when reviewing stocks with very low price-to-bookratios that many of them were in poor financial shape, unlikely to survive and deserving of their low valuation. Piotroski set out to devise a system to take these low price-to-book stock lists and mechanically filter out the ones that were unlikely to survive and prosper, leaving a number of potentially attractive investment opportunities.

Piotroski's method is very simple. A stock is scored by 9 different criteria that measure the company's performance between the past 2 years. The stock gets a "1" for each test it passes, and a "0" for each test it does not. At the end, all of the scores are added up to come up with the Piotroski score. In this scale, a "9" is a perfect score, passing all tests. "8" is also an excellent score worthy of consideration. Back-testing has found that choosing stocks with low valuations and Piotroski scores of 8 or 9 vastly outperforms the market.  [more]

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Magic Formula Investing Weekly Roundup 8/4/2012

August 04, 2012 – Comments (0) | RELATED TICKERS: ACN , COH , JOY

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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