Back in February 2007 you placed on record your choice of 5 stocks that you chose based on Greenblatt’s “Magic Formula” criteria (See #134 below).
I suggested, at the time, and since (See #135, #139, #147, #149 and #154 below), that of the 5 companies, only 2 companies, FCX and WDC, showed reasonable Fundamentals, while the balance, BLDR, CECO and PACR, were not worth the trouble.
As it happens, you’ve never partaken in a discussion or debate with me regarding these companies.
In fact, for reasons better known to yourself, you’ve put me “On Ignore”.
But that’s your choice and your business.
Fortunately, however, the hard, indisputable facts speak for themselves ….
Since early February 2007 we’ve seen the following price performance of those 5 stocks :-
BLDR : It was $17.50. It’s now $4.15. That’s a LOSS of -76%.
CECO : It was $28.60. It’s now $14.93. That’s a LOSS of -48%.
PACR : It was $32.50. It’s now $21.92. That’s a LOSS of -33%.
FCX : It was $56.70. It’s now $107.74. That’s a GAIN of 90%.
WDC : It was $19.32. It’s now $33.06. That’s a GAIN of 71%.
As far as I’m concerned, it supports my contention that Greenblatt’s Magic Formula doesn’t go far enough, nor is it comprehensive enough, from a Fundamental point of view, to adequately choose companies for a positive future outcome.
Hopefully, Banana Wind, for the sake of your investment account, you’ve come to the same conclusion. |
