Magic Formula Investing Weekly Roundup 11/28/2010
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: CSGS - CSG Systems International Inc.
LINC - Lincoln Educational Services Corp MRX - Medicis Pharmaceutical Corp
PWER - Power-One Inc. UNTD - United Online Inc
Dropping out of the 50 over 50 million screen:
ASYS - Amtech Systems Inc CNU - Continucare Corp GME - GameStop Corp. LHCG - LHC Group Inc VECO - Veeco Instruments Inc
Entering the 50 over 1 billion screen: BR - Broadridge Financial Solutions Inc CSCO - Cisco Systems Inc MRX - Medicis Pharmaceutical Corp
Dropping out of the 50 over 1 billion screen: JCG - J Crew Group Inc KBR - KBR Inc
LXK - Lexmark International Inc.
Entering the 30 over 3 billion screen: CSCO - Cisco Systems Inc
Dropping out of the 30 over 3 billion screen:
HPQ - Hewlett-Packard Co