New Mechanical Stocks - BPI & GME

Two new stocks will be entering my out-performing mechanical portfolios (top 30 and top 50). As a reminder, a stock is entered into the mechanical portfolio for a year if it is new to either screen in the past 52 weeks. The new stocks are BPI, a recent IPO offering online education and GME, a stock my 11 year-old son knows, Gamestop. BPI is added to both portfolios and GME is only new to the top 50.

I am now using the mechanical portfolios for real investment decisions. The top 30 is up 10% overall and is outperforming the S&P 500 by 19.7 points. The top 50 is similar, up by 6.4 and outperforming by 18.7 points.

Here are my calculations of earnings yield and return on working capital for each stock:

		bpi	gme
+	Operating Income After Depreciation	47.42	698.26
-	Minority Interest - Income Account	-	-
=	Income for Calculation	47.42	698.26
	Diluted Shares Outstanding	52.374	168
	Share Price	16.74	22.95
+	Market Cap Calc	876.74	3,854.96
+	Preferred Capital	27.54	-
+	Debt in Current Liabilities	0.23	-
+	Long-Term Debt	0.39	495.57
	Cash and Short-Term Investments	79.82	230.26
-	Excess Cash	14.77	230.26
=	Enterprise Value	890.13	4,120.27
+	Property Plant and Equipment - Net	34.70	559.44
+	Receivables	39.63	47.27
+	Inventories	0.30	1,160.77
+	Other Current Assests	12.37	88.79
+	Working Cash	65.05	-
-	Accounts Payable	3.85	775.55
-	Current Liabilities - Other	113.50	411.10
=	Invested Capital	34.70	669.62
	Earnings Yield	5%	17%
	ROIC	137%	104%

It is funny. I am a little gunshy on recent IPOs after the Rosetta Stone fiasco. BPI seems similar. The MFI screen says the market cap is 69m, which I am sure gives them a high earnings yield. But I get 876m, which is consistent with Yahoo and the 52m shares I show o/s combined with a $16 stock price. I don't think BPI should be on the screen and will say so on the board. I will, however, include in my mechanical portfolio as it is mechanical.

I like GME, the have no debt and I think the worst may be behind them. I will buy them on Monday per my intentions to begin following the mechanical approach more completely... as it seems to work pretty well.

Here is a listing of top 50 in the mechanical portfolio. Two stocks were closed out this weekend, ESIC and NCMI.

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
MFLO	1/26/08	12.42	22.01	-	133.04	1.31	77.2%	-0.4%	77.6%
AIRV	2/2/08	5.22	5.09	-	139.58	2.72	-2.5%	-38.7%	36.2%
CDNS	2/2/08	10.61	3.78	-	139.58	2.72	-64.4%	-38.7%	-25.7%
GHM	2/2/08	17.01	9.96	0.08	139.58	2.72	-41.0%	-38.7%	-2.3%
LIVE	2/2/08	5.25	1.50	-	139.58	2.72	-71.4%	-38.7%	-32.7%
VSEC	2/2/08	28.07	28.76	0.09	139.58	2.72	2.8%	-38.7%	41.5%
CJR	2/13/08	21.81	11.10	0.48	136.37	2.72	-46.9%	-37.3%	-9.6%
FORM	2/13/08	20.09	16.06	-	136.37	2.72	-20.1%	-37.3%	17.3%
MMS	2/13/08	37.32	37.59	0.42	136.37	2.72	1.8%	-37.3%	39.2%
KLAC	2/16/08	40.75	19.70	0.60	135.14	2.72	-50.2%	-36.7%	-13.8%
NVTL	2/16/08	13.35	6.34	-	135.14	2.72	-52.5%	-36.7%	-15.8%
GSB	2/23/08	3.53	0.56	-	135.62	2.72	-84.1%	-40.9%	-43.2%
TPX	2/23/08	16.67	6.46	0.24	135.62	2.72	-59.8%	-40.9%	-18.9%
VSEA	2/23/08	32.87	18.90	-	135.62	2.72	-42.5%	-40.9%	-1.6%
BOLT	3/1/08	17.39	6.43	-	133.82	2.72	-63.0%	-42.7%	-20.3%
CHRD	3/1/08	5.78	2.14	-	133.82	2.72	-63.0%	-42.7%	-20.3%
MRX	3/1/08	20.47	11.28	0.12	133.82	2.72	-44.3%	-42.7%	-1.6%
ELOS	3/1/08	16.19	5.22	-	133.82	2.72	-67.8%	-42.7%	-25.0%
AMSWA	3/12/08	5.76	3.17	0.36	131.36	2.08	-38.7%	-46.0%	7.2%
CRDN	3/12/08	29.28	14.87	-	131.36	2.08	-49.2%	-46.0%	-3.3%
CROX	3/12/08	20.59	1.19	-	131.36	2.08	-94.2%	-46.0%	-48.3%
DEPO	3/12/08	2.97	2.12	-	131.36	2.08	-28.6%	-46.0%	17.3%
EME	3/12/08	22.24	14.31	-	131.36	2.08	-35.7%	-46.0%	10.3%
ELNK	3/12/08	7.34	6.13	-	131.36	2.08	-16.5%	-46.0%	29.5%
IGC	3/12/08	3.70	0.44	-	131.36	2.08	-88.1%	-46.0%	-42.2%
OMPI	3/12/08	9.55	4.05	-	131.36	2.08	-57.6%	-46.0%	-11.6%
SNVNF.PK	3/12/08	1.18	0.52	-	131.36	2.08	-56.3%	-46.0%	-10.3%
TBI	3/12/08	12.42	6.17	-	131.36	2.08	-50.3%	-46.0%	-4.4%
ALLI	3/22/08	4.08	4.43	-	132.08	2.08	8.6%	-36.4%	45.0%
FIX	3/22/08	12.93	10.52	0.14	132.08	2.08	-17.6%	-36.4%	18.8%
DWCH	3/22/08	3.18	1.18	-	132.08	2.08	-62.9%	-36.4%	-26.5%
TRA	3/22/08	35.85	28.25	0.40	132.08	2.08	-20.1%	-36.4%	16.3%
NTRI	4/6/08	14.91	14.25	0.70	136.89	2.08	0.3%	-34.9%	35.1%
BID	4/6/08	26.57	10.00	0.60	136.89	2.08	-60.1%	-34.9%	-25.2%
FDRY	4/11/08	11.57	16.66	-	133.38	2.08	44.0%	-33.2%	77.1%
MWW	4/11/08	22.23	11.89	-	133.38	2.08	-46.5%	-33.2%	-13.4%
CHE	4/19/08	40.84	41.47	0.18	138.48	2.08	2.0%	-35.6%	37.6%
SLP	4/19/08	1.71	1.19	-	138.48	2.08	-30.4%	-35.6%	5.2%
LQDT	4/26/08	8.43	8.94	-	139.60	2.64	6.0%	-36.0%	42.1%
NHWK	4/26/08	7.28	2.99	-	139.60	2.64	-58.9%	-36.0%	-22.9%
QCOR	5/2/08	4.38	4.49	-	141.51	2.64	2.5%	-36.0%	38.5%
WINS	5/2/08	4.86	6.24	-	141.51	2.08	28.4%	-34.7%	63.1%
SILC	5/2/08	8.80	6.73	-	141.51	2.64	-23.5%	-36.0%	12.5%
SYX	5/2/08	16.50	16.93	-	141.51	2.64	2.6%	-36.0%	38.6%
ASF	5/9/08	27.44	22.67	0.39	138.90	2.64	-16.0%	-34.0%	18.0%
SWIR	5/9/08	17.73	6.08	-	138.90	2.64	-65.7%	-34.0%	-31.7%
SNCR	5/9/08	12.79	11.31	-	138.90	2.64	-11.6%	-34.0%	22.4%
BR	5/16/08	21.68	17.39	0.19	142.66	2.64	-18.9%	-35.8%	16.8%
PROJ	5/16/08	9.00	4.08	-	142.66	2.64	-54.7%	-35.8%	-18.9%
MD	5/16/08	55.75	41.67	-	142.66	2.64	-25.3%	-35.8%	10.5%
NSR	5/25/08	22.27	19.59	-	137.64	2.64	-12.0%	-33.4%	21.4%
SPSS	5/28/08	38.89	33.37	-	139.30	2.64	-14.2%	-31.7%	17.5%
CSKI	5/31/08	13.30	14.74	-	140.35	2.64	10.8%	-32.2%	43.0%
SIGM	5/31/08	18.50	15.46	-	140.35	2.64	-16.4%	-32.2%	15.8%
ZINC	6/6/08	12.78	8.03	-	136.29	2.64	-37.2%	-28.7%	-8.5%
DYII	6/15/08	7.00	3.37	-	136.15	2.64	-51.8%	-28.2%	-23.6%
ESIC	6/21/08	3.44	1.58	-	131.58	2.64	-54.1%	-28.0%	-26.0%
NCMI	6/21/08	12.59	13.44	0.32	131.58	2.64	9.3%	-28.0%	37.3%
BIDZ	6/28/08	8.85	2.85	-	127.53	2.64	-67.8%	-25.8%	-42.0%
RMCF	6/28/08	9.63	8.02	0.20	127.53	2.64	-14.6%	-25.8%	11.1%
APKT	7/5/08	4.62	9.38	-	126.31	1.97	103.0%	-25.6%	128.6%
HANS	7/5/08	25.25	30.77	-	126.31	1.97	21.9%	-25.6%	47.4%
MTW	7/5/08	27.58	5.82	0.08	126.31	1.97	-78.6%	-25.6%	-53.0%
NVDA	7/5/08	12.49	11.18	-	126.31	1.97	-10.5%	-25.6%	15.1%
BA	7/12/08	63.28	48.44	1.22	123.84	1.97	-21.5%	-24.1%	2.6%
CHH	7/12/08	23.24	25.74	0.37	123.84	1.97	12.3%	-24.1%	36.4%
MSFT	7/20/08	25.86	24.07	0.26	125.98	1.97	-5.9%	-25.4%	19.5%
VCLK	7/20/08	10.20	11.26	-	125.98	1.97	10.4%	-25.4%	35.8%
SHFK.PK	7/26/08	27.50	15.10	-	125.48	1.97	-45.1%	-25.1%	-20.0%
IBAS	7/26/08	3.90	1.24	-	125.48	1.97	-68.2%	-25.1%	-43.1%
CF	8/8/08	134.65	74.99	0.20	129.37	1.97	-44.2%	-27.3%	-16.8%
ANF	8/8/08	50.38	26.01	0.35	129.37	1.97	-47.7%	-27.3%	-20.3%
AYSI.OB	8/8/08	1.77	0.35	-	129.37	1.97	-80.2%	-27.3%	-52.9%
DEIX	8/8/08	1.70	0.16	-	129.37	1.97	-90.6%	-27.3%	-63.3%
PRFT	8/8/08	7.36	7.04	-	129.37	1.97	-4.3%	-27.3%	23.0%
TEX	8/8/08	47.22	12.67	-	129.37	1.97	-73.2%	-27.3%	-45.8%
DBTK	8/8/08	11.20	9.05	-	129.37	1.97	-19.2%	-27.3%	8.1%
GRMN	8/8/08	37.09	22.27	0.38	129.37	1.97	-38.9%	-27.3%	-11.6%
KHD	8/8/08	25.26	8.35	-	129.37	1.97	-66.9%	-27.3%	-39.6%
LOOP	8/8/08	10.50	7.50	-	129.37	1.97	-28.6%	-27.3%	-1.2%
LO	8/8/08	68.41	69.05	1.84	129.37	1.97	3.6%	-27.3%	31.0%
MPAA	8/8/08	6.60	4.00	-	129.37	1.97	-39.4%	-27.3%	-12.1%
STX	8/8/08	15.00	9.69	0.12	129.37	1.97	-34.6%	-27.3%	-7.3%
BARE	8/26/08	12.81	8.25	-	127.39	1.97	-35.6%	-26.2%	-9.4%
EGN	8/26/08	53.56	39.78	0.25	127.39	1.97	-25.3%	-26.2%	0.9%
PRM	8/26/08	3.02	2.50	0.07	127.39	1.97	-14.9%	-26.2%	11.3%
LOV	8/26/08	4.26	2.44	-	127.39	1.97	-42.7%	-26.2%	-16.5%
SCMP	9/2/08	9.50	5.76	-	128.79	1.97	-39.4%	-27.0%	-12.4%
EGMI.OB	9/6/08	0.69	1.34	-	124.42	1.97	94.2%	-24.4%	118.6%
MLNX	9/6/08	10.61	11.54	-	124.42	1.97	8.8%	-24.4%	33.2%
WFR	9/15/08	34.34	19.14	-	126.09	1.97	-44.3%	-25.4%	-18.8%
KBR	9/15/08	19.17	18.65	0.05	126.09	1.97	-2.5%	-25.4%	23.0%
DELL	9/22/08	16.63	13.29	-	124.12	1.97	-20.1%	-24.3%	4.2%
NGA	9/22/08	6.50	6.00	-	124.12	1.97	-7.7%	-24.3%	16.6%
TTWO	9/22/08	16.57	8.46	-	124.12	1.97	-48.9%	-24.3%	-24.7%
FWLT	10/6/08	31.91	24.81	-	110.34	1.28	-22.3%	-15.4%	-6.8%
MOS	10/6/08	40.88	46.45	0.05	110.34	1.28	13.7%	-15.4%	29.2%
WRLS	10/6/08	1.82	2.04	-	110.34	1.28	12.1%	-15.4%	27.5%
TSCM	10/6/08	5.09	2.21	0.03	110.34	1.28	-56.1%	-15.4%	-40.7%
CTCM	10/10/08	9.02	10.59	-	88.50	1.28	17.4%	5.4%	12.0%
DAR	10/10/08	7.55	7.22	-	88.50	1.28	-4.4%	5.4%	-9.8%
NOV	10/10/08	23.42	34.33	-	88.50	1.28	46.6%	5.4%	41.1%
PRGX	10/10/08	4.69	2.66	-	88.50	1.28	-43.3%	5.4%	-48.7%
PCP	10/10/08	54.15	79.87	0.04	88.50	1.28	47.6%	5.4%	42.1%
ALDN	10/10/08	9.64	11.49	-	88.50	1.28	19.2%	5.4%	13.7%
GPX	10/17/08	5.03	4.95	-	93.21	1.28	-1.6%	0.1%	-1.7%
BKE	10/31/08	26.34	31.12	0.20	96.83	1.28	18.9%	-3.6%	22.5%
CYNO	10/31/08	8.76	7.69	-	96.83	1.28	-12.2%	-3.6%	-8.6%
DHX	10/31/08	4.06	5.30	-	96.83	1.28	30.5%	-3.6%	34.2%
GES	10/31/08	21.77	24.76	0.10	96.83	1.28	14.2%	-3.6%	17.8%
HWAY	10/31/08	10.10	13.69	-	96.83	1.28	35.5%	-3.6%	39.2%
WBC	10/31/08	18.37	17.21	0.07	96.83	1.28	-5.9%	-3.6%	-2.3%
GTLS	11/7/08	11.62	19.86	-	93.86	1.28	70.9%	-0.6%	71.5%
CDII	11/7/08	2.77	1.60	-	93.86	1.28	-42.2%	-0.6%	-41.7%
IPHS	11/7/08	19.97	16.54	0.17	93.86	1.28	-16.3%	-0.6%	-15.7%
MSPD	11/7/08	1.31	2.21	-	93.86	1.28	68.7%	-0.6%	69.3%
QLGC	11/7/08	11.49	12.87	-	93.86	1.28	12.0%	-0.6%	12.6%
SCHN	11/7/08	27.07	60.14	-	93.86	1.28	122.2%	-0.6%	122.7%
SVR	11/7/08	8.92	14.97	-	93.86	1.28	67.8%	-0.6%	68.4%
TDC	11/7/08	14.48	23.01	-	93.86	1.28	58.9%	-0.6%	59.5%
EBAY	10/31/08	14.19	17.28	-	96.83	1.28	21.8%	-3.6%	25.4%
TKTM	11/14/08	5.87	7.19	-	86.62	1.28	22.5%	7.7%	14.8%
ERES	11/14/08	4.65	6.51	-	86.62	1.28	40.0%	7.7%	32.3%
FEED	11/14/08	1.76	6.24	-	86.62	1.28	254.5%	7.7%	246.8%
HCKT	11/14/08	2.57	2.25	-	86.62	1.28	-12.5%	7.7%	-20.2%
FLR	11/14/08	35.73	50.27	0.13	86.62	1.28	41.0%	7.7%	33.3%
GTI	11/14/08	4.79	11.31	-	86.62	1.28	136.1%	7.7%	128.4%
INTX	11/14/08	4.10	4.74	-	86.62	1.28	15.6%	7.7%	7.9%
MSO	11/14/08	3.91	3.09	-	86.62	1.28	-21.0%	7.7%	-28.7%
JCG	11/14/08	11.22	25.43	-	86.62	1.28	126.6%	7.7%	118.9%
MDR	11/14/08	7.80	20.54	-	86.62	1.28	163.3%	7.7%	155.6%
ABAT	11/21/08	1.34	3.75	-	79.52	1.28	179.9%	17.4%	162.5%
ADSK	11/21/08	14.37	20.54	-	79.52	1.28	42.9%	17.4%	25.6%
GIGM	11/21/08	3.79	5.50	-	79.52	1.28	45.1%	17.4%	27.8%
OPTV	11/21/08	0.94	1.30	-	79.52	1.28	38.3%	17.4%	20.9%
PRO	11/21/08	4.14	8.45	-	79.52	1.28	104.1%	17.4%	86.8%
WTSLA	11/21/08	2.20	3.48	-	79.52	1.28	58.2%	17.4%	40.8%
AIRT	11/28/08	6.08	8.57	-	90.09	1.28	41.0%	3.6%	37.4%
BSQR	11/28/08	2.48	2.38	-	90.09	1.28	-4.0%	3.6%	-7.6%
CKSW	11/28/08	2.20	5.48	-	90.09	1.28	149.1%	3.6%	145.5%
IILG	11/28/08	5.30	9.45	-	90.09	1.28	78.3%	3.6%	74.7%
PBSO.PK	11/28/08	0.39	0.31	-	90.09	1.28	-20.5%	3.6%	-24.1%
DIVX	12/8/08	4.37	5.51	-	87.93	1.28	26.1%	6.1%	20.0%
GSIT	12/8/08	2.94	3.44	-	87.93	1.28	17.0%	6.1%	10.9%
HGRD	12/8/08	1.35	3.75	-	87.93	1.28	177.8%	6.1%	171.6%
ISIL	12/8/08	7.92	12.56	0.12	87.93	1.28	60.1%	6.1%	54.0%
MAXY	12/8/08	5.80	6.60	-	87.93	1.28	13.8%	6.1%	7.7%
PVSW	12/8/08	3.80	5.64	-	87.93	1.28	48.4%	6.1%	42.3%
DDMX	12/14/08	11.13	16.00	-	88.99	1.28	43.8%	4.9%	38.9%
PSOF	12/14/08	2.74	4.70	-	88.99	1.28	71.5%	4.9%	66.7%
ITWO	12/29/08	5.61	12.00	-	87.16	0.56	113.9%	6.2%	107.7%
JOYG	12/29/08	21.95	36.60	-	87.16	0.56	66.7%	6.2%	60.5%
TRMS	12/29/08	1.03	2.19	-	87.16	0.56	112.6%	6.2%	106.4%
CTGX	1/5/09	3.18	5.53	-	92.96	0.56	73.9%	-0.4%	74.3%
PMD	1/5/09	6.44	6.70	-	92.96	0.56	4.0%	-0.4%	4.4%
HPY	1/26/09	8.54	8.72	-	83.11	0.56	2.1%	11.4%	-9.3%
HLIT	1/31/09	5.15	6.36	-	82.83	0.56	23.5%	11.8%	11.7%
HGT	1/31/09	13.06	14.04	-	82.83	0.56	7.5%	11.8%	-4.3%
CNU	2/9/09	1.96	2.50	-	86.98	0.56	27.6%	6.5%	21.1%
SJT	2/9/09	19.05	16.30	-	86.98	0.56	-14.4%	6.5%	-20.9%
SGU	2/9/09	2.55	3.55	-	86.98	0.56	39.2%	6.5%	32.8%
TC	2/9/09	4.33	10.54	-	86.98	0.56	143.4%	6.5%	137.0%
BITI	2/16/09	3.72	3.72	-	82.76	0.56	0.0%	11.9%	-11.9%
FORR	2/16/09	17.56	24.88	-	82.76	0.56	41.7%	11.9%	29.8%
ZYXI.OB	2/16/09	1.20	1.00	-	82.76	0.56	-16.7%	11.9%	-28.6%
FRD	2/23/09	4.95	6.15	-	77.42	0.56	24.2%	19.6%	4.6%
SOLR	2/23/09	4.22	5.80	-	77.42	0.56	37.4%	19.6%	17.8%
MTXX	2/23/09	17.90	5.55	-	77.42	0.56	-69.0%	19.6%	-88.6%
TYPE	2/23/09	3.02	6.02	-	77.42	0.56	99.3%	19.6%	79.7%
PTIE	2/23/09	5.41	5.06	-	77.42	0.56	-6.5%	19.6%	-26.1%
PDO	2/23/09	3.19	6.21	-	77.42	0.56	94.7%	19.6%	75.1%
SAPE	2/23/09	3.38	5.91	-	77.42	0.56	74.9%	19.6%	55.2%
VDSI	2/23/09	5.25	7.40	-	77.42	0.56	41.0%	19.6%	21.3%
IGTE	2/23/09	2.99	6.18	-	77.42	0.56	106.7%	19.6%	87.1%
DECK	3/2/09	41.27	69.18	-	73.93	0.56	67.6%	25.3%	42.4%
KTII	3/2/09	55.48	79.73	-	73.93	0.56	43.7%	25.3%	18.5%
INT	3/2/09	29.01	41.72	-	73.93	0.56	43.8%	25.3%	18.6%
ICAD	3/2/09	0.90	1.21	-	77.42	0.56	34.4%	19.6%	14.8%
EXBD	3/9/09	12.96	20.45	-	68.92	0.56	57.8%	34.4%	23.4%
DISH	3/9/09	9.27	15.18	-	68.92	0.56	63.8%	34.4%	29.4%
QLTI	3/9/09	1.41	2.32	-	68.92	0.56	64.5%	34.4%	30.2%
SRDX	3/9/09	16.87	21.87	-	68.92	0.56	29.6%	34.4%	-4.7%
INFI	4/20/09	5.83	5.24	-	87.08	-	-10.1%	5.7%	-15.8%
CRAY	5/3/09	3.98	6.71	-	87.89	-	68.6%	4.7%	63.9%
TWX	5/3/09	22.84	25.15	-	87.89	-	10.1%	4.7%	5.4%
RST	5/3/09	29.83	26.50	-	87.89	-	-11.2%	4.7%	-15.9%
ULCM.PK	5/3/09	2.18	2.15	-	87.89	-	-1.4%	4.7%	-6.1%
AAV	5/18/09	3.41	4.89	-	88.71	-	43.4%	3.8%	39.6%
AMED	6/1/09	30.43	31.72	-	92.53	-	4.2%	-0.5%	4.8%
UTA	6/1/09	7.90	10.28	-	92.53	-	30.1%	-0.5%	30.7%
PFE	6/7/09	14.51	15.00	-	94.55	-	3.4%	-2.7%	6.0%
VM	6/7/09	4.55	3.80	-	94.55	-	-16.5%	-2.7%	-13.8%
ONTY	6/14/09	2.60	2.28	-	95.08	-	-12.3%	-3.2%	-9.1%
BPI	6/21/09	16.74	16.74	-	92.04	-	0.0%	0.0%	0.0%
GME	6/21/09	22.95	22.95	-	92.04	-	0.0%	0.0%	0.0%
						Totals	6.4%	-12.2%	18.7%
55.6% of stocks beat the S&P 500 Benchmark						Closed	-30.8%	-37.6%	6.8%
S&P C			92.04			Open	21.1%	-2.3%	23.3%