In April there were a few placement companies ranked highly on the Magic Formula list. I wanted to invest in one of them as one of the 5 MF stocks I planned to buy in April. The one I liked best was LRW. Then its first quarter earnings came out, and LRW went from about 18 to about 22. Regretting that I didn't buy it at 18, and not wanting to pay more for it, I passed and bought another placement company, BBSI.
Today, after its second quarter earnings were announced, LRW is trading at 28.
I'm up about 10% on BBSI, but -- if I had been willing to pay 22 for LRW -- I'd be up about 30% on it now.
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