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January Magic Formula Newsletter Released

January 12, 2013
GuruFocus

GuruFocus

214 followers
This month's magic formula stock is one of the cheapest stocks available on the market (selling for a P/E around 5x), and on top of that it’s got some really compelling catalyst opportunities.

Most stocks selling for 5x P/E are shrinking quickly or facing declining markets. But this stock has almost doubled revenues from fiscal 2008 to fiscal 2012. Even better, profits have more than tripled.

The share price is currently depressed because of a forced seller and small float. But there's reason to believe there are several catalysts on the horizon, including the potential for a highly lucrative sale.

Our target share price is almost double today's price, and that could be conservative if the company's growth looks anything like it did from fiscal 2008 to 2012.

Download this month’s Microcap Magic Formula Newsletter.

GuruFocus publishes three monthly newsletters. These newsletters are the included features for Premium Members.

1. Ben Graham: Net-Net Newsletter focuses on net-net stocks that Ben Graham would buy. It is released on the first Friday of each month.

2. Micro-Cap Magic Formula Newsletter picks companies that have high return on capital and high earnings yield. It is released on the second Friday of each month.

3. Buffett-Munger Best Bargains Newsletter recommends companies that have high business quality, but traded at undervalued prices. A younger Buffett would buy this kind of companies. It is published on the third Friday of each month.

Also don’t miss:

November Ben Graham Net-Net Newsletter

The pick for November has a market cap closing in on $1 billion dollars, with sales in excess of $2 billion dollars. The company's profits are consistent. The company plays a vital role in the electronics manufacturing industry.

All the monthly newsletters are included in GuruFocus Premium Membership. If you are not a Premium Member, we invite you for a 7-day Free Trial.


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