Magic Formula Investing Weekly Roundup 10/24/2010
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: CHKE - Cherokee Inc
CRME - Cardiome Pharma Corp
Dropping out of the 50 over 50 million screen: FRX - Forest Laboratories Inc.
PETS - PetMed Express Inc
Entering the 50 over 1 billion screen: CRI - Carter's Inc. DECK - Deckers Outdoor Corp FLR - Fluor Corp.
Dropping out of the 50 over 1 billion screen: FRX - Forest Laboratories Inc. GILD - Gilead Sciences Inc RAI - Reynolds American Inc
Entering the 30 over 3 billion screen:
DGX - Quest Diagnostics Inc FLR - Fluor Corp. GD - General Dynamics Corp
SAI - SAIC Inc
Dropping out of the 30 over 3 billion screen: FRX - Forest Laboratories Inc. GILD - Gilead Sciences Inc LLY - Eli Lilly and Co RAI - Reynolds American Inc