New stocks to invest in April 20th 2014

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.

Company name Symbol
Nordion Inc(USA) NDZ
Sandridge Mississippian Trust I SDT
Liberty Media Corp LMCA
King Digital Entertainment PLC KING
Sino Agro Food Inc SIAF
Autobytel Inc. ABTL
PulteGroup, Inc. PHM
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
Overstock.com, Inc. OSTK
Entravision Communication EVC
Nautilus, Inc. NLS
Adams Express Company ADX
Whiting USA Trust II WHZ
Chesapeake Granite Wash Trust CHKR
Delta Air Lines, Inc. DAL
Magnachip Semiconductor Corp MX
Brunswick Corporation BC
Tri-Continental Corporation TY
Imperial Holdings, Inc. IFT
Inteliquent Inc IQNT
Capital Southwest Corporation CSWC
SandRidge Permian Trust PER
Immersion Corporation IMMR
Lihua International Inc LIWA
iShares S&P NA Tec. Semi. Idx. Fd.(ETF) SOXX
TiVo Inc. TIVO
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

Persist!