Yes, double meaning intended in my blog title. I try to be apolitical here - but it might be good for all of us to look at the lyrics of this great song.
But back to MFI. The stocks in the MFI Universe, at least the top 50 over $100m, are in an absolute spiral. At the start of this year, I suppose when the markets were euphoric over potential of tax reform and lowered regulations, the stocks in this area vaulted upwards.
But they have fallen, almost like from a cliff recently. Honestly, the last time I remember such a drop in comparison with Russell 3000 was in 2007 - which ended up being a harbinger of the recession.
I do not see where a recession is in the cards right now, but there seems a bifurcation between value stocks and growth stocks of late.
Here are the 50 MFI stocks from my tracking portfolio from end of June:
| Stock | Initial Price | End Price | Percent Change |
| UIS | 12.75 | 8.00 | -37.3% |
| DHX | 2.85 | 1.90 | -33.3% |
| SQBG | 3.88 | 2.71 | -30.2% |
| FRAN | 11.18 | 7.99 | -28.5% |
| NHTC | 27.85 | 19.94 | -28.4% |
| AOBC | 23.94 | 18.43 | -23.0% |
| NCMI | 7.22 | 5.58 | -22.8% |
| BKE | 17.68 | 13.70 | -22.5% |
| AVID | 5.38 | 4.33 | -19.5% |
| PBI | 15.28 | 12.68 | -17.0% |
| VVUS | 1.21 | 1.01 | -16.5% |
| USNA | 64.20 | 55.00 | -14.3% |
| DISCA | 26.00 | 22.76 | -12.5% |
| VIAB | 34.35 | 30.08 | -12.4% |
| MNKD | 1.45 | 1.27 | -12.4% |
| DIN | 44.79 | 39.54 | -11.7% |
| MPAA | 28.34 | 25.14 | -11.3% |
| IDCC | 79.20 | 70.35 | -11.2% |
| MSGN | 22.55 | 20.25 | -10.2% |
| TGNA | 14.55 | 13.12 | -9.8% |
| MCFT | 19.54 | 17.75 | -9.2% |
| AMAG | 18.25 | 16.60 | -9.0% |
| VEC | 32.48 | 29.64 | -8.7% |
| CARS | 26.87 | 25.24 | -6.1% |
| OMC | 83.33 | 78.29 | -6.0% |
| WNC | 21.88 | 20.67 | -5.5% |
| BPT | 20.39 | 19.45 | -4.6% |
| ESRX | 63.89 | 61.73 | -3.4% |
| GME | 21.61 | 20.93 | -3.1% |
| LEE | 2.00 | 1.95 | -2.5% |
| QCOM | 55.08 | 53.87 | -2.2% |
| FOXA | 28.19 | 27.85 | -1.2% |
| UTHR | 131.32 | 129.76 | -1.2% |
| SCMP | 10.60 | 10.50 | -0.9% |
| DLX | 68.82 | 68.99 | 0.2% |
| NSR | 33.35 | 33.50 | 0.4% |
| AGX | 60.40 | 60.85 | 0.7% |
| GHC | 589.35 | 594.85 | 0.9% |
| HRB | 30.88 | 31.49 | 2.0% |
| CSCO | 31.12 | 32.09 | 3.1% |
| GILD | 70.86 | 73.12 | 3.2% |
| TRNC | 12.76 | 13.17 | 3.2% |
| TDC | 29.86 | 31.00 | 3.8% |
| ACIA | 41.38 | 43.71 | 5.6% |
| MIK | 18.35 | 19.81 | 8.0% |
| PDLI | 2.58 | 2.79 | 8.1% |
| HPQ | 17.57 | 19.04 | 8.4% |
| MSB | 13.49 | 14.80 | 9.7% |
| SYNT | 16.88 | 18.58 | 10.1% |
| AMCX | 53.26 | 60.98 | 14.5% |
They are down an average of 7.3% while the Russell 3000 benchmark is actually in the green. Does this mean now that the basket of current 50 stocks are a better value than 2 months ago? Or does it mean MFI just does not really work that well anymore? Many pundits say the market is "over valued", but I do think that there are stocks on this list that are under-valued.
I know I just bought 5 new names yesterday, but I am starting to think I should have bought BKE. At 13.70, it just has to be a good value - they have over $5 per share in cash and $2 in earnings TTM.
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