What a Difference a Month Makes!

Value Fights Back?

Exactly a month ago, I noted that the 11 open tracking portfolios were trailing the benchmark by a stunning 7.5% on average.  I do not know if that is the worst I have seen, but it was near the bottom.

Well my friends - the old magic formula is making a comeback.  Not all the way back, but that 7.5 gap has been narrowed in 30 days to 4.1 percentage points.  And the dividend subset is only trailing by 70 basis points.

MY MFI Index is up about 5 points in the past 30 days, pretty much a rocket move for those 50 stocks.  And the 50 new stocks from 8/26 are up 6.7%. Let us look at them:

Stock	Initial Price	End Price	Percent Change	Mkt Cap
NATH	55.50	73.25	32.0%	232
NCMI	5.57	7.08	27.0%	338
DHX	2.00	2.40	20.0%	101
NHTC	20.04	23.87	19.1%	227
MNKD	1.55	1.84	18.4%	162
BBSI	48.86	57.34	17.3%	355
KLAC	90.48	104.07	15.0%	14,191
VEC	27.43	31.45	14.7%	304
GILD	73.33	83.97	14.5%	96,370
RCM	3.20	3.64	13.7%	336
HSII	18.20	20.60	13.2%	342
PDLI	3.00	3.39	13.0%	462
RHI	44.04	49.75	13.0%	5,557
MCFT	17.66	19.89	12.6%	329
AMAG	16.80	18.90	12.5%	593
AGX	59.15	65.95	11.5%	916
BPT	19.50	21.50	10.3%	417
GME	19.02	20.90	9.9%	1,965
MPAA	26.09	28.65	9.8%	506
PBI	12.64	13.72	8.5%	2,355
SYNT	18.06	19.59	8.5%	1,511
DLX	67.92	73.07	7.6%	3,284
EGRX	55.14	58.82	6.7%	894
CSCO	31.44	33.53	6.6%	155,942
CPLA	66.40	70.68	6.4%	775
IPG	20.02	21.29	6.4%	7,944
IDCC	70.40	74.58	5.9%	2,444
SQBG	2.82	2.98	5.7%	178
ABC	78.10	82.40	5.5%	17,571
TGNA	12.61	13.23	4.9%	2,719
SCMP	11.30	11.80	4.4%	523
TIME	12.56	13.10	4.3%	1,255
OMC	72.59	75.41	3.9%	16,893
ESRX	60.79	62.93	3.5%	35,109
TRNC	13.92	14.35	3.1%	457
MSGN	20.70	21.33	3.0%	1,554
FFIV	117.60	120.97	2.9%	7,473
CSVI	45.19	46.10	2.0%	636
MD	44.22	43.82	-0.9%	4,134
AVID	4.57	4.48	-2.0%	188
LEE	2.15	2.10	-2.3%	122
AMCX	60.45	59.02	-2.4%	3,898
USNA	59.45	57.73	-2.9%	1,464
VIAB	28.98	27.93	-3.6%	11,746
DISCA	22.66	21.49	-5.2%	13,097
CJREF	10.94	10.33	-5.6%	2,247
UTHR	128.45	119.48	-7.0%	5,984
FRAN	8.03	7.29	-9.2%	298
HRB	29.44	26.65	-9.5%	6,155
AOBC	18.08	15.75	-12.9%	974

Interesting that the top 6 were all under $400m of market cap.  In fact, the stocks with market cap under $400m (14 of the 50 total) are up an average of 12.9% in the past 30 days!

I would hazard a guess that these smaller cap stocks will be much greater beneficiaries of a tax cut than larger cap stocks.  Also interesting that HRB is near the bottom as tax code might get simplified.

Stay tuned to same bat channel.