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Special – May Microcap “Magic Formula” Newsletter

May 20, 2011
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:


Rating: 2.1/5 (17 votes)


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Performances of the stocks mentioned by

User Generated Screeners

Kbannon77All Stocks
opadovaniP median2
carter2u2Small Cap No Debt
bkw82Predictable/ebitda 10/52 week
pbarker46Hist. High Yield
andrewgu999valleylink - gogogo
DBrizanROTA ultimate18nov2017 1041p
DBrizanROTA18nov2017 1041p
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