Magic Formula Investing Weekly Roundup 8/8/2010

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August 08, 2010 – Comments (0) | RELATED TICKERS: LLY , RAI , MO

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:

Entering the 50 over 50 million screen:

CBST - Cubist Pharmaceuticals Inc
CJJD - China Jo-Jo Drugstores Inc
FSYS - Fuel Systems Solutions Inc
IDCC - InterDigital Inc
SUPG - SuperGen Inc
VPHM - ViroPharma Inc

Dropping out of the 50 over 50 million screen:

GRMN - Garmin Ltd
GXDX - Genoptix Inc
MD - Mednax Inc
MRX - Medicis Pharmaceutical Corp
UNTD - United Online Inc
VALU - Value Line Inc

Entering the 50 over 1 billion screen:

CBST - Cubist Pharmaceuticals Inc
IDCC - InterDigital Inc
MCK - McKesson Corp
MO - Altria Group Inc
RAI - Reynolds American Inc
SOLR - GT Solar International Inc
VPHM - ViroPharma Inc

Dropping out of the 50 over 1 billion screen:

ABC - AmerisourceBergen Corp
CF - CF Industries Holdings Inc
GYMB - Gymboree Corp (The)
MD - Mednax Inc
MRX - Medicis Pharmaceutical Corp
TJX - TJX Companies Inc (The)
WTW - Weight Watchers International Inc.

Entering the 30 over 3 billion screen:

HRS - Harris Corp
LLY - Eli Lilly and Co
MCK - McKesson Corp
RAI - Reynolds American Inc

Dropping out of the 30 over 3 billion screen:

CF - CF Industries Holdings Inc
DGX - Quest Diagnostics Inc
EXPE - Expedia Inc
OSK - Oshkosh Corp