My New MFI Formula Tranche

Newest Tranche

Ok. Drumroll please.  The Official website is updated through 12/30/15.  That means I can run my randomizer for my five new stocks to buy today.

Interestingly, PDLI now shows a market cap under $600 million.  So it is no longer even an option (recall the stock has to be >600m market cap and a 2.4% dividend yield).  While  not a written rule, I did exclude KING, as they have been bought by ATVI  and that should close shortly.

I also made a  manual change to Yahoo Finance and included PPC.  Yahoo Finance does not always capture special  dividends that well. But on January 28th last year, they did pay a SD of $5.77. I try to pick those up when I know about them.

So here are the eligible stocks:

Number	Ticker	Market Cap	Price	Dividend	Yield
1	BBY	10,505	30.46	0.92	3.0%
2	BKE	1,504	31.01	1.00	3.2%
3	CALM	2,305	47.53	3.00	6.3%
4	CSCO	139,908	27.53	0.84	3.1%
5	GME	2,988	28.48	1.44	5.1%
6	HPQ	21,359	11.84	0.50	4.2%
7	IILG	921	16.03	0.48	3.0%
8	OUTR	649	37.64	1.20	3.2%
9	PPC	5,787	22.32	5.77	25.9%
10	PBI	4,122	20.82	0.75	3.6%
11	PII	5,658	86.31	2.12	2.5%
12	QCOM	76,825	50.41	1.92	3.8%
13	VIAB	16,262	40.86	1.60	3.9%

Now my rules  allow me to discard one name from this list.  I am going to remove OUTR.  This is the company that runs the Red Box DVD rentals outside of stores.  They are the smallest company on the list and the least stable in my view.

My 5 Stocks

So from the list of 12 now.

Number	Ticker	Market Cap	Price	Dividend	Yield
1	BBY	10,505	30.46	0.92	3.0%
2	BKE	1,504	31.01	1.00	3.2%
3	CALM	2,305	47.53	3.00	6.3%
4	CSCO	139,908	27.53	0.84	3.1%
5	GME	2,988	28.48	1.44	5.1%
6	HPQ	21,359	11.84	0.50	4.2%
7	IILG	921	16.03	0.48	3.0%
8	PPC	5,787	22.32	5.77	25.9%
9	PBI	4,122	20.82	0.75	3.6%
10	PII	5,658	86.31	2.12	2.5%
11	QCOM	76,825	50.41	1.92	3.8%
12	VIAB	16,262	40.86	1.60	3.9%

I go to  randomizer.org and  run the routine.

Random #	Stock
1	BBY
5	GME
7	IILG
8	PPC
12	VIAB

Well, the Stock Market Gods must want me to own GME.  I will get a wash ruling on them as I sold  for a  loss yesterday and will re-buy today.  I do own a fair amount of PPC and VIAB already, but so it goes.  IILG and BBY will be brand new names. I will also set up this morning the 8 rejects as a  portfolio to track.

Last Years Rejects

Last year's rejected stocks did  poorly, down about 10% here.  They actually did a bit better as this excludes most dividends.  Probably down about 8%.

Out With The Old

Out With The Old

As we head into 2016, it is time to wind down my 12/31/14 MFI Formula tranche.  I just sold 4 of the stocks (as they had no capital gains): CSCO, GME, CA and IQNT.  I will buy five stocks tomorrow and then sell RGR on Monday.

12/31/14 Stocks	Start	Current	Dividend	Pct Gain	R3K Gain
CA	$30.83	$29.26	$1.00	-1.8%	-0.1%
CSCO	$28.36	$27.70	$0.82	0.6%	-0.1%
RGR	$34.81	$60.36	$1.10	76.5%	-0.1%
GME	$34.21	$28.71	$1.44	-11.9%	-0.1%
IQNT	$19.87	$17.78	$0.60	-7.5%	-0.1%
Totals				11.2%	-0.1%

The excitement is building regarding the new tranche.  I just peaked to see what the current list looks like (note, I will use tomorrow's run for official random run):

Number	Ticker	Market Cap	Price	Dividend	Yield
1	BBY	10,605	30.72	0.92	3.0%
2	BKE	1,500	30.90	1.00	3.2%
3	CALM	2,304	48.46	3.00	6.2%
4	CSCO	141,127	27.72	0.84	3.0%
5	GME	2,982	28.66	1.44	5.0%
6	HPQ	21,395	11.89	0.50	4.2%
7	IQNT	614	17.80	0.60	3.4%
8	IILG	933	16.01	0.48	3.0%
9	OUTR	658	38.12	1.20	3.1%
10	PDLI	612	3.65	0.60	16.4%
11	PBI	4,146	20.93	0.75	3.6%
12	PII	5,727	86.33	2.12	2.5%
13	QCOM	77,541	50.77	1.92	3.8%
14	VIAB	16,449	40.89	1.60	3.9%

Hmm, perhaps I should not have been so hasty to sell CSCO, GME and IQNT.  They are all potential repeats.  I would like some new names: HPQ, PII or IILG perhaps?  But I will play fairly - Mr Random will pick my five names (PDLI is out for me though).