The 129 results presented in the prior post:
http://shadowstock.blogspot.com/2009/11/magic-formula-investing.html
I’ve broken the ideas down into potentially more useful groups.
My first “filter” of the original magic formula 129 ideas was as follows:
Share count remaining stable over the past 3 years
1) Average share count over the past 3 years / trailing 12 month share count > .98
Balance sheet strength using cash versus total liabilities
2) Enterprise value (Price – (Cash + Total liabilities))/Price < .90
Also:
-SGA/Revenue over the past 12 months <.35
-Positive cumulative FCF over the past 5 years
-Positive CFFO (cash flow from operations) over the past year
See Results:
http://www.shadowstock.com/ss_112909Filter1.html
EV/Rev < .40
See Results:
http://www.shadowstock.com/ss_112909Filter2.html
Additional comments:
http://www.shadowstock.com/ss_112909NOTES.html
if this post was useful or you have suggestions please let me know. Thanks John
john@shadowstock.com
