Hide

FocusBar

Subscribe to Premium Member
Free 7-day Trial
All Articles and Columns »

Special – May Microcap “Magic Formula” Newsletter

May 20, 2011
insider

Joel Greenblatt's magic formula has proven to be one of most popular and successful quantitative screens. By finding stocks with better than average return characteristics selling for below average prices, the screen has proven its ability to outperform the market.

However, the screen has one blind spot- stocks with a market cap under 50 million.

The magic formula newsletter aims to take advantage of this blind spot and find small companies with great business models trading for outstanding prices.

This month's pick is trading for 5.5 earnings despite returns on capital approaching 50%. Even better, earnings understate the company's true cash flow!

The company trades for about half the multiple of its direct competitors despite a stronger balance sheet and returns on capital twice their competitors.

There's even a catalyst in place! Activists own 30% of shares outstanding and are pushing for the company to sell itself, which could result in a huge premium for shareholders.

Interested? Find out what company this is in this month's microcap magic formula newsletter.

This is the link to download the special report:




Download guru portfolio report (PDF format):

Joel GreenblattDownload Guru portfolio report
Joel Greenblatt (Updated on 05/21/2013)


Rating: 2.2/5 (16 votes)

Comments

Please leave your comment:


More Gurufocus Links

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial
FEEDBACK

This article has been successfully added into your Bookmark.

Members Only. Please Sign Up or Log In first.

Bookmark of this article has been deleted.