9/18/2010

Nano Cap Magic Formula Ideas

Joel Greenblatt produces a list of magic formula stocks on his free web site;


http://www.magicformulainvesting.com/welcome.html

based on his popular work “The Little Book That Beats the Market”.

As most of you know, he’s looking for good companies selling at cheap prices. Companies with a high ROIC are good companies and a high earnings yield measure cheapness. The combination of ROIC and Earnings yield (EBIT/EV) are ranked and averaged together. The highest ranking stocks are hopefully the most desirable.

Not a perfect search but may contain some useful nano cap ideas;

The search was further restricted by market capitalization; only companies below 50 million, reporting year over year quarterly revenue increase, share count reduction or relatively flat based on the average prior 3 year count versus the TTM share count.

These 4 introductions have already seen large price movement over their 52 week low.

Click to view;

http://www.shadowstock.com/ss_091810.html

1 comment:

Chroma said...

John,

Thanks for stopping by my site. And thanks for the consistently high caliber of information you post here. While I have also pursued a value approach, I have found my choices this year have been mixed. I have been playing with some mechanical investing based on Piotroski F score etc. in my 80-20. Good results limited options, and general NCAV stocks have not faired as well.