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11/29/2009

11/29/09 Magic Formula Results

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