Magic Formula Purchases for Sept. 2008
Time for another round of purchases. The magic formula continues to perform great as we head into the final stretch of the year. The magic formula is beating the S&P by a cool 8% and is up 5% the past 3 months. The magic formula is also eeking the S&P by .07% over the past 6 months. I will take a small lead over a big loss any day. Now, here comes the fun part. Selling the stocks after 1 year (in January) . I have about 20% in cash and 4 months (5 stocks to buy) left before the fund sees some selling. I decided to buy 2 stocks this month, and 1 stock each month for the rest of the year. In the end, I will be in the 20-30 stock range Joel Greenblatt reccommends for a diversified magic formula portfolio.
Deluxe Corporation (DLX), together with its subsidiaries, provides various personalized printed products, promotional products, and merchandising materials to small businesses, financial institutions, and consumers in the United States and Canada The company currently sports a P/E of 6.25 and has a ROIC ofgreater than 100%. According to Yahoo Finance, it has an Enterprise Value/EBITDA of 5.162 or a yield of 19.37%
KHD Humboldt Wedag International, Ltd. (KHD) operates as an industrial plant engineering and equipment supply company,the company was founded in 1951. It was formerly known as MFC Bancorp, Ltd. and changed its name to KHD Humboldt Wedag International, Ltd. in 2005. The company is based in Central, Hong Kong.The company currently sports a P/E of 13 and has a ROIC of 28%. According to Yahoo Finance, it has an Enterprise Value/EBITDA of 3.495 or a yield of 28%
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September 17th, 2008 at 5:14 am
hi, are you familiar with this website . Would like to get your thoughts on it. thanks
http://members.cox.net/econisvoodoo/piotroski/greenblatt.TRADEDUS.GL.AC.html
October 2nd, 2008 at 7:56 pm
Hi,
This is a link for a Magic Formula investment stockscreener for European and UK market.
October 2nd, 2008 at 7:57 pm
http://www.magicformulainvesting.eu/