July 2016 MFI Formula Tranche

July 2016 MFI Formula Tranche

Another year has come and gone.  Out with the old and in with the new.  Pretty funny, if you went back a year ago and read my blog about this tranche as it started - you would see a great amount of trepidation.

Brexit had just occurred.  The markets had just fallen quite a bit and people were saying it could spark a bear market.  I actually waited a few days beyond July 1st to start this tranche due to the turmoil.

Since then we have seen Trump get elected, allegations of the Russians influencing our presidential election and through all of that - my tranche finished up 26.7%. That is my best "formula" tranche ever, edging out April, which was also strong.

For those who do not read my blog regularly, I have two investment strategies of real money in Magic Formula Investing.  In each I have 4 tranches containing five stocks each, which I buy and hold for a year.  The Formula tranches are derived from the official screen, taking a subset of dividend stocks and then applying a random number generator.

At the end of this blog, I'll tell you my 5 new picks for tomorrow.  Here are all the formula tracnhes since I started this approach in October 2014:

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%
12/31/15 Stocks	Start	Current	Dividend	Pct Gain	R3K Gain
BBY	$30.31	$42.67	$1.57	46.0%	12.1%
GME	$28.34	$25.45	$1.48	-5.0%	12.1%
ILG	$15.89	$18.17	$0.48	17.4%	12.1%
PPC	$22.22	$19.14	$2.75	-1.5%	12.1%
VIAB	$40.93	$35.40	$1.20	-10.6%	12.1%
Totals				9.3%	12.1%
4/1/16 Stocks	Start	Current	Dividend	Pct Gain	R3K Gain
CALM	$51.27	$37.55	$0.44	-25.9%	18.0%
HPQ	$12.10	$17.88	$0.51	51.9%	18.0%
TIME	$15.24	$19.35	$0.76	31.9%	18.0%
ILG	$13.85	$20.96	$0.51	55.0%	18.0%
XPER	$30.79	$33.95	$0.80	12.9%	18.0%
Totals				25.2%	18.0%
7/1/2016	Start	Current	Dividend	Pct Gain	R3K Gain
ILG	$16.76	$27.49	$0.54	67.2%	16.8%
VIAB	$44.00	$33.57	$0.80	-21.9%	16.8%
CPLA	$53.22	$85.60	$1.62	63.9%	16.8%
HRB	$23.62	$30.91	$0.90	34.7%	16.8%
PBI	$17.69	$15.10	$0.75	-10.4%	16.8%
Totals				26.7%	16.8%

So you can see the most recent 2 have been solid.  ILG was just great from day 1.  CPLA gathered a lot of steam when Trump was elected as I guess the market thought the scrutiny/criticism of for profit education would diminish.  HRB had all of its gains since February.

The Next Five

Recall my rules:

• Official MFI screen 50 stocks over 100 m.
• Subset of stocks with dividend 2.4% or greater and in the top 2/3 market cap of list.
• I can then throw out one stock.
• Then a random number generator to select my five stocks.

I will be increasing my $ commitment per stock by almost 40%.  This has been my approach on all my tranches as I am moving away from other investing approaches and I have money coming from other sources.

Here are the stocks post screen:

Number	Ticker	Market Cap	Price	Dividend	Yield
1	HRB	6,499	31.37	0.96	3.1%
2	BKE	850	17.40	1.00	5.7%
3	CSCO	154,438	30.90	1.16	3.8%
4	CJREF	2,166	10.62	0.87	8.2%
5	DIN	766	42.62	3.88	9.1%
6	GME	2,118	20.91	1.52	7.3%
7	GILD	90,510	69.25	2.08	3.0%
8	HPQ	29,206	17.35	0.53	3.1%
9	OMC	19,120	81.50	2.20	2.7%
10	PBI	2,785	14.95	0.75	5.0%
11	RGR	1,090	61.70	1.92	3.1%
12	SYNT	1,352	16.16	15.00	92.8%
13	VIAB	13,320	33.20	0.80	2.4%

I am not going to throw out any stocks.  Drum roll please.

Random #	Stock
3	CSCO
11	RGR
12	SYNT
8	HPQ
6	GME

Well - I already own all 5 of these stocks, so nothing new.  CSCO is my #4 holding and SYNT is #9.  This will make CSCO #1 and SYNT #2 or #3.   Gulp!  But tomorrow I make the trades.

Later.  Scholss words of wisodom.