Oct 1st 2016 Tranche

Newest Tranche

First we bid so long, farewell to 9/30/15 tranche.  I have changed the colors to the grey/white I use to show it is finito.  As is tradition,  I have listed all closed tranches since I started the Formula approach:

10/1/2014 Stocks	Start	Current	Dividend	Pct Gain	R3K Gain
BAH	$23.52	$26.21	$0.50	13.5%	-0.6%
BKE	$45.55	$36.97	$3.68	-10.8%	-0.6%
CA	$27.87	$27.30	$1.00	1.5%	-0.6%
GME	$41.70	$41.21	$1.41	2.2%	-0.6%
NUS	$44.56	$41.28	$1.40	-4.2%	-0.6%
Totals				0.5%	-0.6%
12/31/14 Stocks	Start	Current	Dividend	Pct Gain	R3K Gain
CA	$30.83	$29.26	$1.00	-1.8%	-0.3%
CSCO	$28.36	$27.70	$0.82	0.6%	-0.3%
RGR	$34.81	$60.08	$1.10	75.7%	-0.3%
GME	$34.21	$28.71	$1.44	-11.9%	-0.3%
IQNT	$19.87	$17.78	$0.60	-7.5%	-0.3%
Totals				11.0%	-0.3%
3/31/2015	Start	Current	Dividend	Pct Gain	R3K Gain
HRB	$31.99	$26.33	$0.80	-15.2%	-1.1%
GME	$37.69	$32.12	$1.45	-10.9%	-1.1%
KING	$15.85	$18.00	$0.00	13.6%	-1.1%
NSU	$3.43	$3.24	$0.16	-0.8%	-1.1%
PPC	$22.65	$25.40	$0.00	12.1%	-1.1%
Totals				-0.2%	-1.1%
7/1/2015	Start	Current	Dividend	Pct Gain	R3K Gain
BKE	$46.45	$25.51	$1.96	-40.9%	-0.3%
CA	$29.34	$31.53	$1.01	10.9%	-0.3%
MSFT	$44.42	$49.29	$1.39	14.1%	-0.3%
QCOM	$62.95	$53.45	$1.97	-12.0%	-0.3%
VIAB	$64.75	$40.81	$1.60	-34.5%	-0.3%
Totals				-12.5%	-0.3%
10/1/2015	Start	Current	Dividend	Pct Gain	R3K Gain
BKE	$36.83	$24.03	$1.98	-29.4%	13.6%
IQNT	$21.96	$16.14	$0.60	-23.8%	13.6%
QCOM	$53.45	$68.50	$2.02	31.9%	13.6%
CSCO	$26.37	$31.72	$0.94	23.9%	13.6%
CA	$27.30	$33.08	$1.01	24.9%	13.6%
Totals				5.5%	13.6%

So we have five closed tranches.  Pretty mixed results thus far.  Average tranche has lost by 1.4 points to the bench mark (three open ones are leading by 90 basis points).

New Picks

As a refresher, I make my picks entirely by formula.  I use the official screen (50 stocks greater than $100m market cap). I then get a subset, which consists of stocks with market cap > 600m and dividend yield greater than 2.4%.  These parameters are based on my analysis of MFI stocks since 2006 - this subset has outperformed.  That being said, that outperformance has not been seen since I started using real dollars.

Here are the stocks that met the criteria:

Number	Ticker	Market Cap	Price	Dividend	Yield
1	HRB	5,072	23.15	0.88	3.8%
2	BKE	1,168	24.03	1.00	4.2%
3	CPLA	674	58.04	1.56	2.7%
4	CSCO	158,790	31.72	1.04	3.3%
5	GME	2,869	27.59	1.48	5.4%
6	HPQ	26,510	15.53	0.50	3.2%
7	LDOS	3,159	43.28	1.28	3.0%
8	PBI	3,370	18.16	0.75	4.1%
9	TGNA	4,685	21.86	0.56	2.6%

I do allow myself to reject one stock from this list. I am not going to do that this quarter.  As others have noted, at times the list is sparse (this may be the fewest names I have seen) and we do get a lot of repeats (besides LDOS, all of these names have been there multiple times).

My next step is to run a random number generator (I really do this as I want to take my emotion/bias out of equation).

Random #	Stock
3	CPLA
7	LDOS
5	GME
4	CSCO
8	PBI

So that is my buy list on Monday.  CSCO will be a carry forward though I will have to sell a few shares.   Here are my open positions:

12/31/15 Stocks

BBY

GME

IILG

PPC

VIAB

Totals

4/1/16 Stocks

CALM

HPQ

TIME

IILG

TSRA

Totals

7/1/2016

IILG

VIAB

CPLA

HRB

PBI

Totals

So I will have two helpings of GME, CPLA and PBI.

If you are interested, here are stocks under 600m that do not make my list:

Number	Ticker	Market Cap	Price	Dividend	Yield
1	BPT	399	18.66	2.06	11.0%
2	HSII	345	18.55	0.52	2.8%
3	IQNT	552	16.14	0.64	4.0%
4	PDLI	550	3.35	0.20	6.0%
5	RECN	541	14.94	0.44	2.9%
6	SPOK	366	17.82	0.50	2.8%
7	WILN	183	1.54	0.04	2.6%

MCFT should be there as well (they had a special  dividend).