Not much activity on this board, but just wanted to post. I utilize Greenblatt's quantitative approach quite a bit and just wanted to post some recent activity for anybody reading. Again - in the spirit of the quantitative approach advocated by Greenblatt, I mostly run the numbers, and do a shallow look at the companies - especially for one-time events and to understand if business has potential economics that I'd want to be involved in. As I've discussed before on this thread (somewhere) the approach is modified from Magic Formula, but at it's core the spirit of the approach is still the same, but adding in consideration for other ways of measuring investment returns besides ROC and other measures of valuation than yield. Also I built in a weighting for "growth" characteristics, and to a smaller degree a bit of price momentum for one of the filters I look at. It's a little bit different from pure Magic Formula, but still arrives at many of the same companies.
Some recent buys include
LQDT Liquidity Services
GEOS Geospace
PETM PetSmart
DE Deere
DHX Dice Holdings
CRUS Cirrus Logic
I think most of the above showed up my recent Greenblatt sorts.
Other longer term buys (I've held some of these longer than the 12mo Greenblatt recommends):
INTC Intel,
CMI Cummins,
OUTR Outerwall,
CTSH Cognizant Tech,
NEU NewMarket (probably doesn't show up on Magic Formula screens anymore but I keep it).
QCOM Qualcom,
CHRW CH Robinson,
CHKP Checkpoint,
VMI Valmont Industries,
SNI Scripps Networks,
CF CF Industries,
HFC Holly Frontier
I think most of these were at least partly in the portfolio due to Magic Formula approach, and most will rank fairly well currently. I use other approaches also and convergence of Greenblatt and other approaches is only a positive in my mind. |
