Hi all, I haven't posted here in a long-long time, but I've recently started getting into Greenblatt's Magic Formula approach and wanted to post some currently holdings in case it's of interest to others with a Value Investing framework. I'm approaching these from a trading rather than long term perspective and will occasionally hold for less than a month, but am finding I might hold more like 2-3 months on average, but in order of size excluding some microcaps:
MSFT Microsoft
INTC Intel
AFAM Almost Family - (home health)
LLY -Eli Lilly - pharma
CHL China Mobile
TEO Telecom Argentina
WDC Western Digital
DO Diamond Offshore
NE Noble Energy
LHCG LHC Group (home health)
All of these companies will have strong combinations of returns on capital and earning yield.
The two drillers DO and NE have been disappointing to me as I expected with the study on the BP well to be complete I was expecting business to begin returning to normal, but things are still a little slow.
AFAM and LHCG in home health are both getting scrutiny from govt payers, but they look very cheap to me. AMED is in the same sector and appears most aggressive in billing practices and I've decided to stay away from AMED for that reason.
MSFT and INTC look like ridiculously good bets right now I think I understand the bear case and threats from small portable devices, but these things are being priced like they're dying. I just don't see it and have my 2 biggest bets on these. I think WDC is sortof being painted into the same boat and seems very cheap on case of premature demise of the PC.
LLY - I'm more in it for div and low valuation as anything. I don't know much about the pipeline which is described as weak at the moment. Alot of the big pharma seems in the same boat with big drugs coming off of patent. I'm probably best approaching this space from a mutual fund, but occasionally end up buying some of these stocks (like GILD, AZN, LLY, MRK or others) for a trade based on price swings.
CHL and TEO. both are ADR. They look like long term growth stories to me with international and govt involvement risk. Dividends are nice. I'm also purposely looking for international diversification. |
