Use access key #2 to skip to page content.

MagicDiligence (< 20)

October 2012

Recs

2

Magic Formula Investing Weekly Roundup 10/28/2012

October 28, 2012 – Comments (0) | RELATED TICKERS: ATVI , MCK , TRW

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

3

Warner Chilcott Needs to Grow Up

October 25, 2012 – Comments (0) | RELATED TICKERS: WCRX

Warner Chilcott (WCRX) is a mid-sized specialty pharmaceutical company. The firm's largest product category is in women's healthcare, about 57% of trailing 6 month sales as a group. Within that category, the largest contributor is osteoporosis (weak bone condition) drugs, specifically ACTONEL (22% of sales) and its newer delayed-release formulation, ATELVIA (2.4%).

Oral contraceptives ("OC", or birth control drugs), also categorized within women's healthcare, make up 21% of Warner's sales.LOESTRIN 24 (15.5% of total sales) and its replacement, LO LOESTRIN (4.7%) are the two primary marketed drugs here.  [more]

Recs

1

Magic Formula Investing Weekly Roundup 10/14/2012

October 14, 2012 – Comments (0) | RELATED TICKERS: ORCL , INTC , VCI

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

3

How to Use Excess Cash in Stock Analysis

October 09, 2012 – Comments (0) | RELATED TICKERS: ABC

Joel Greenblatt's Magic Formula® Investing (MFI) strategy relies on two and only two metrics: pre-tax earnings yield (EBIT/EV) andreturn on tangible capital. The first finds companies with stocks selling at a high return on their earnings, the second finds companies that generate high returns on the capital they invest into their business. Put it together, you get "cheap stocks of good companies". Sounds like a good way to invest.

MagicDiligence has attempted to generate a close approximation to these two statistics with the statistics calculator, which you can run any non-financial stock through. It gives you the earnings yield and return on capital figures and tells you whether they look good or not. Additionally, and more to the point of this article, it provides a detailed breakdown of the calculations used to achieve those figures.  [more]

Featured Broker Partners


Advertisement