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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market -- Ignore unavailable to you. Want to Upgrade?

To: mikeslemmer who wrote (28)	1/23/2006 8:34:47 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 218

I agree with you that I need a big list of exchange traded liquid stocks. Very interesting example, NOOF. When I run my analysis on it, I get the following: Last Trade: 6.42 Market Cap: 146760 Cash And Cash Equivalents: 16568 Total Current Assets: 38656 Total Current Liabilities: 4957 Property Plant and Equipment: 3096 Intangible Assets: 9259 Other Assets: 836 Long Term Investments: 9617 Long Term Debt: 0 Minority Interest: 0 Preferred Stock: 0 Redeemable Preferred Stock: 0 Total Common Debt: 0 Net Fixed Assets: 22808 Earnings Before Interest And Taxes: 16007 Total Other Income/Expenses Net: 837 Non Recurring: -546 Adjusted EBIT: 14624 Excess Cash: 16568 Enterprise Value: 130192 Net Working Capital: 17131 Market Cap 146760 Price $6.42 Capital 36.616% Earnings 11.233% But I see on the magic formula investing site, I see: Market Cap: 148.60 Earnings Yield: 12% Return on Capital: > 100% The earnings yield is very close and could have to do with the calculation of Excess Cash (which might need to include more short term investment). But since the both Cash, Short Term investments & Long Term investments appear to be excess cash, I'd say the EV is around $108 million, and Earnings Yield should be around 13% to 15%. The ROC probably has to do with whether you include Intangible Assets or Long Term assets are included in the calculation. Since I counted both, my ROC is around 36. But since Long Term assets are marketable securities, they should not be calculate, the value should indeed be more like > 100% at minimum. That question of whether Intangible Assets should be included is a real big one. I think that why stocks like BSX are rated so much lower in my scans than on the magic formula investing. Regards, Stew