Newest Top 25 Stock

My group of 34 MFI stocks that I have been tracking in Parallel with MagicDiligence's stock picks has performed quite well. As a reminder, a stock gets added to my list if it hasn't been in the top 25 in the past year (I pull the list every weekend). So far, my stocks are up 6% versus the S&P being down 3% for a 9% margin (about the same as MD).

Number 35 will come online on Tuesday. It is actually a company I like a lot, VSNT. This is a small software company that has been on and off MFI lists for the past 2 years. They are there because they reported earnings last week (which were good) but they were a little lukewarm about the future. This caused the stock to drop from $29.22 to $25.53 on Friday. Here is what their CEO said:

``We are very satisfied with the results in our third fiscal quarter, which established another record quarterly net income milestone for the Company,'' said Jochen Witte, CEO of Versant Corporation. ``However, due to the strengthening of the U.S. dollar and the difficult economic environment in the U.S. and Europe, achieving our future goals will become more challenging.''

Not terrible, but I suppose "challenging" is not a favorite word of investors. I am happy to add them to my list, I expect them to be competitive. They have about $24m in cash, for a $95 million company that has been growing quite steadily over at least the past two years, And they have a built in income stream from royalties. Here is my calc of their ratios:

		vsnt
+	Operating Income After Depreciation	9.93
-	Minority Interest - Income Account	-
=	Income for Calculation	9.93
	Market Cap Yahoo	95,100
	Share Price	25.53
+	Market Cap Calc	95.10
+	Preferred Capital	-
+	Debt in Current Liabilities	-
+	Long-Term Debt	0.05
	Cash and Short-Term Investments	27.41
-	Excess Cash	24.74
=	Enterprise Value	70.41
+	Property Plant and Equipment - Net	0.79
+	Receivables	3.51
+	Inventories	-
+	Other Current Assests	0.80
+	Working Cash	2.67
-	Accounts Payable	0.36
-	Current Liabilities - Other	6.61
=	Invested Capital	0.79
	Earnings Yield	14%
	ROIC	1261%

They essentially require no capital. Seems like a quality company with quality management.