Magic Formula Purchases for July 2008
Below are the purchases for the month. The Garcia Magic Fund has held up pretty well in this choppy market. Pictures speak louder than words so I attached a couple of images that show how it has been faring well.
The two stock picks for the month are as follows
Ambassadors Group Inc (EPAX,14) , an educational travel company, organizes and promotes international and domestic educational travel and sports programs for youth, athletes, and professionals. The company currently sports a P/E of 9 and has a ROIC of 57%. According to Yahoo Finance, it has an Enterprise Value/EBITDA of 3.571 or a yield of 28%
Perini Corp, (PCR, 24) together with its subsidiaries, offers general contracting, construction management, and design-build services to private clients and public agencies worldwide.The company currently sports a P/E of 6 and has a ROIC of 25%. According to Yahoo Finance, it has an Enterprise Value/EBITDA of 1.457 or a yield of 68%. I actually own PCR in my real life portfolio. The company has a 7 bilion plus backlog and is trying to expand internationally in places like Dubai. PCR is also expected to be a front runner in some Las Vegas mega projects.

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