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Top 25 Picks by MFI

Published on March 2, 2007

Top 25 Picks by MFI

March 2, 2007

Attached is the latest screen from magic formula investing (for greater than $500 million market cap). I ran this screen to find out if there are great bargains available after the recent sell-off.  screenhunter_30.jpg  

I have extensively discussed this strategy in several posts. Pls find out from “Magic formula investing” under OP reading category.  There are several interesting names that one could look for to create a positive delta bullish spread strategy to use at the first sign of market turning direction to bull. Profitable trading, OptionPundit

ikoni

2 Comments

  • Hello,

    Selecting stocks with high ROIC’s in combination with a high EY’s makes sense. But, there can be a lot of factors which can lead to a high ROIC, for shorter or longer time frames, with or without the existence durable competitive advantages.

    So, in a selection of high ROIC stocks, one would find stocks WITH and WITHOUT (durable) competitive advantages. As Greenblatt says he uses the high (present) ROIC as an indication of a relative high further ROIC, one should opt for high present ROIC in combination with durable competitive advantages (DCA), as stocks with DCA’s have high ROIC’s for longer time frames.

    In short, I would recommend to do some research on competitive advantages / business models, and then to combine this knowledge with the selections of Greenblatt,

    Success in investing!,
    Hendrik Oude Nijhuis

  • Avatar stas says:

    According to this ACH is the best stock. However it is to prone to general market trend, which is clearly down today.

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