A new section I hope to introduce to the Gurufocus community is news of magic formula stocks on a daily basis. While one could automate the whole magic formula investing system by taking a passive approach, I have found keeping tabs on old, current and new magic formula stocks provides investment opporturnities that would otherwise be missed by the passive investor. Easier said than done, but value investing is simple but not easy.
The market has rallied recently and it is becoming a bit tougher to find true bargains. Plenty of ideas will arise from the Value Investing Congress but I have always found it a bit more fun to search from my own ideas and the magic formula system provides that. Stocks are on the magic formula for a reason sometimes they are fundamental (APOL) other times they are not. As always, do your own homework
Two magic formula stocks took 25% dives while other magic formula stocks prepared to release their earnings.
The market has rallied recently and it is becoming a bit tougher to find true bargains. Plenty of ideas will arise from the Value Investing Congress but I have always found it a bit more fun to search from my own ideas and the magic formula system provides that. Stocks are on the magic formula for a reason sometimes they are fundamental (APOL) other times they are not. As always, do your own homework
Two magic formula stocks took 25% dives while other magic formula stocks prepared to release their earnings.
- Apollo (APOL) tumbles 25%- For profit education provider Apollo tumbled 25% as fourth quarter profit dropped 55%, which was better than expected. The chilling news came from it withdrawing its guidance for the coming year because "the transitional state of the business and the uncertain regulatory environment." Gurus who increased its position in APOL include Ruane Cunniff, Wallace Weitz, Lee Ainslie, John Rogers and George Soros.,
- Sharps Compliance Corp. (SMED) is a provider of cost-effective disposal solutions for small quantity generators of medical waste also dropped 25% on no news. Investors might be taking profits as SMED shareholders have seen its shares rise from $4.10 to a high of $5.87 in one month. No gurus own SMED.
- H&R Block (HRB) a diversified company involved in tax return preparation,electronic filing of income tax returns and other tax-related services, dropped 10% on the day as investors weren't too happy with the $250 million purchase of 2SS Holdings, Inc., developer of TaxACT digital tax preparation solutions. 5 Gurus recently increased their positions in HRB Jean-Marie Eveillard, Brian Rogers, Private Capital, Richard Aster Jr. and George Soros.
