A new ranking list inspired by the Magic Formula Investing principles of Joel Greenblatt.
The full list is in a google spreadsheet.
As always, questions and comments are welcome at the bottom of this post.
Remember that this list is useful for long term traders or short term investors. This is a smart way of saying that the optimal cycle for this list is 12 months. If you’re used to trade in and out of a stock every week or month, make a separate account for this method and allocate some funds. Select some of the stocks at the higher percentile rank and invest with a quarter of the money on one tenth of the money. repeat every few months and aim to be fully invested in a year time.
Once you reach the fully invested in one year, the next modification is to sell the oldest stocks and use the newly available capital to reinvest using the fresh list of stocks.
rinse and repeat for at least 3 years. Four or five years is even better.
You will have a better opinion of this system only if you persist!
The main problem with any trading system is that people start using it enthusiastically and later lose interest. You have to keep on using the system even when you think it is temporarily not working, or worse, stopped working for good. Being smart or with high IQ can cause more harm than good here. You should postpone analyzing this system and its results until after enough time has passed and we’re talking years here.
Only after several years will you be able to compare the results to the general market and alternative investment vehicles. You need low frequency reminders – the easiest is to subscribe to my low frequency mailing list on this page. You will also get my free report on options trading which can be combined with this list.
The first 50 stocks from that list are here for your convenience:
The full list is here.
|Sandridge Mississippian Trust I||SDT|
|Liberty Media Corp||LMCA|
|King Digital Entertainment PLC||KING|
|Sino Agro Food Inc||SIAF|
|H&Q Healthcare Investors||HQH|
|Golar LNG Limited (USA)||GLNG|
|Yongye International, Inc||YONG|
|PDL BioPharma Inc||PDLI|
|Royce Value Trust Inc||RVT|
|H&Q Life Sciences Investors||HQL|
|iShares NASDAQ Biotechnology Index (ETF)||IBB|
|SandRidge Mississippian Trust II||SDR|
|magicJack VocalTec Ltd||CALL|
|Alaska Communications Systems Group Inc||ALSK|
|Titan Pharmaceuticals, Inc.||TTNP|
|WCI Communities Inc||WCIC|
|Adams Express Company||ADX|
|Whiting USA Trust II||WHZ|
|Chesapeake Granite Wash Trust||CHKR|
|Delta Air Lines, Inc.||DAL|
|Magnachip Semiconductor Corp||MX|
|Imperial Holdings, Inc.||IFT|
|Capital Southwest Corporation||CSWC|
|SandRidge Permian Trust||PER|
|Lihua International Inc||LIWA|
|iShares S&P NA Tec. Semi. Idx. Fd.(ETF)||SOXX|
|Pain Therapeutics, Inc.||PTIE|
|Federal Signal Corporation||FSS|
|Enable Midstream Partners LP||ENBL|
|Changyou.Com Ltd (ADR)||CYOU|
|Pacific Coast Oil Trust||ROYT|
|CVR Refining LP||CVRR|
|Take-Two Interactive Software, Inc.||TTWO|
|Shanda Games Limited(ADR)||GAME|
|Anacor Pharmaceuticals Inc||ANAC|
|BP Prudhoe Bay Royalty Trust||BPT|
|AGIC Equity and Convertible Income Fund||NIE|
|PIMCO Income Opportunity Fund||PKO|