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

To: Stewart Whitman who wrote (61)	2/6/2006 8:25:03 PM
From: Shane M	Read Replies (1) \| Respond to of 218

Based on the calcs I have I ran a list for Large Caps over 5 Billion in mkt cap. If anyone is interested here's what the current large cap list looks like based on AAII data I have. ticker company mktcap EV q1 ROC q1 yield Rank TOL Toll Brothers, 5288 6414 1821.9 22.5 1 DHI D.R. Horton Inc 11677 16574 2230.7 15.2 2 ACN Accenture Ltd 18485 24924 133.6 13.1 3 HRB H&R Block, Inc. 7975 8940 143.8 11.2 4 PCAR PACCAR Inc 11797 9568 71.1 18.0 5 UST UST Inc. 6337 6959 82.7 12.6 6 GIS General Mills, 17257 23249 190.8 10.2 7 TRB Tribune Company 9032 11374 97.8 10.9 8 FCX Freeport-McMoRa 11921 13417 56.8 15.7 9 MO Altria Group, I 150323 166300 101.8 10.0 10 FISV Fiserv, Inc. 8157 8405 329.8 8.7 11 VFC V.F. Corporatio 6165 7019 52.8 12.2 12 GCI Gannett Co., In 14732 20155 68.2 10.2 13 XOM ExxonMobil Corp 389740 364063 45.7 16.2 14 DGX Quest Diagnosti 9901 11307 134.1 8.5 15 CTX Centex Corporat 9036 23731 1198.0 8.2 16 HDI Harley-Davidson 14677 14859 64.5 9.9 17 COP ConocoPhillips 90188 100470 42.2 21.6 18 RAI Reynolds Americ 14906 14152 73.1 9.1 19 AVP Avon Products, 13213 13615 72.3 9.1 20 PCU Southern Copper 12824 13282 44.4 14.0 20 EV is enterprise value calc. the ROC and earnings yield calcs are my best understanding of what the book has. I also calculated a list based on the average of the last 3 yrs and the most recent quarter. It does appear, at least for large caps, that certain companies are consistently on the list so portfolio turnover could potentially be low. The 3yr avg list looks like this (included a price change from price 3 yrs ago to current for reference - not particularly great performance for this time period on these stocks): 3 yr avg Pchg ticker company name mktcap ROC Yield Rank q1/Y3 DHI D.R. Horton Inc 11677 1851.5 13.9 1 72.5 TOL Toll Brothers, 5288 1415.6 16.0 2 71.0 ACN Accenture Ltd 18485 89.1 14.5 3 19.8 HRB H&R Block, Inc. 7975 122.6 12.0 4 -11.7 MO Altria Group, I 150323 95.8 10.6 5 32.9 UST UST Inc. 6337 78.0 11.1 6 9.1 DGX Quest Diagnosti 9901 133.7 8.6 7 35.2 FISV Fiserv, Inc. 8157 307.1 8.0 8 11.2 GIS General Mills, 17257 109.2 8.7 9 7.3 GCI Gannett Co., In 14732 69.7 9.0 10 -30.7 AZO AutoZone, Inc. 7486 51.3 10.4 11 14.7 SHW Sherwin-William 7110 57.0 9.1 12 52.3 XOM ExxonMobil Corp 389740 40.4 14.4 13 53.0 TRB Tribune Company 9032 69.3 8.7 14 -43.8 CVX Chevron Corpora 132128 38.6 17.3 15 37.5 MAT Mattel, Inc. 6603 47.1 10.2 16 -14.4 VFC V.F. Corporatio 6165 42.3 11.6 17 28.3 HDI Harley-Davidson 14677 56.0 9.0 18 12.6 CPB Campbell Soup C 12241 147.4 7.7 19 11.7 K Kellogg Company 17576 94.6 7.6 20 12.7

To: Stewart Whitman who wrote (61)	2/7/2006 9:03:55 PM
From: Shane M	Respond to of 218

Stew, thanks for all the comments. good food for thought on this. Shane

To: Stewart Whitman who wrote (61)	2/11/2006 9:45:46 PM
From: Shane M	Read Replies (1) \| Respond to of 218

Hi Stew, I ran across this on the FAQ on Greenblatt's site. While I don't think it's mentioned in the book, I think you might be correct about the addition of other assets into his ROC calc. magicformulainvesting.com Q: Why might the results of my calculations of earnings yield and/or return on capital differ from the ones found on the magic formula website? <some snipped> Some common differences in calculations of these ratios are adjustments for “excess cash” (cash not necessary to conduct operations), “net working capital” (generally, current assets less excess cash less non-interest bearing payables), the calculation of “enterprise value” (which subtracts excess cash and includes any preferred stock) and the treatment of “other assets”.