I usually put in the purchases on the 12th to stay consistant but school kept me busy this month. No biggie. I took a look at how the Garcia Magic Fund is doing and the magic formula continues to outperform the S&P 500. Although the results are great, the portfolio has not been around to really feel about how it performs. One stock that has been tearing up the charts is Pacer International (PACR), which is up 63% since purchased at the beginning of the year. On the other hand, SOAP which was purchased in February has been the biggest loser. Anyway below are the purchases for June 2008.

Footstar (FTAR.OB), Footstar, Inc., through its subsidiaries, operates as a retailer of family footwear through licensed footwear departments and wholesale arrangements in the United States. It currently trades with a pre-tax earnings yield of 143% (according to magicformulainvesting.com) and pre tax return on capital greater than 100%, but the MSN screener has it as 60%.

China 3C Group (CHCG), is engaged in the business of the sale and distribution of mobile phones, facsimile machines, digital versatile disc (DVD) players, stereos, speakers, Moving Picture Experts Group layer-three audio (MP3) and Moving Picture Experts Group layer-four audio (MP4) players, iPods, electronic dictionaries, compact disc (CD) players, radio Walkmans and audio systems. According to magicformulainvesting.com, the stock currently trades with a 63% pre tax earnings yield and pre tax returns on capital greater than 100%.

 

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