Friday, August 17, 2012

You Might Want to Change Your Table

I was logging into the Magic Formula Investing site (Magic Formula Investing) this morning, and actually looked at the front page.  They give (before you log in) a sample screen shot of what their stock screen looks like.  I have captured the screenshot below.  Of course, my eye is drawn to the fact that of the 10 stocks listed here, 2 have turned out to be fraudulent (CSKI and CHCG).  Looking at the market caps, this is probably a screen pull from October 6th 2008, the very depth of the post-Lehman, AIG global financial crisis.  So there were also some bargains in this box.

BVF - went up at least 70% the next year and then did even better thereafter, at least another double.
BVSN - they dropped about 15% the next year and hav dropped another 15% since.
CF - was down about 10% the year after, but has since more than doubled.
CHCG - down at least 60% the next year and down 100% overall
CSKI - up about 20% first year, now down 100%.
DEPO - up 19% the first year, another 20% since
DBTK - Up 25% the first year
ELNK - up about 5%, down 10% since
GHM - down about 30% first year, regained it since
HSII - down about 25% first year, flat since

Wow, that is unbelievably mediocre.  Again, you might want to change your table!

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