TOP 10 MAGIC FORMULA STOCKS BY DIVIDEND YIELD, P/S, AND P/B RATIOS

Apr 28, 2009

Every so often, MagicDiligence compiles a list of Magic Formula stocks sorted by their dividend yield, price-to-sales ratio, and price-to-book ratio for investors that like to use those metrics. The result is a list of attractive value stocks for additional research. Here are the top 10 in each of the three metrics listed above:

Dividend Yield

Ticker	Company	Div Yield
MSB	Mesabi Trust	16.40%
CHKE	Cherokee Inc	11.00%
EXBD	Corporate Executive Board Company (The)	10.60%
USMO	USA Mobility Inc	10.20%
GNI	Great Northern Iron Ore Properties	9.20%
DLX	Deluxe Corp	7.20%
IPHS	Innophos Holdings Inc	4.70%
NTRI	NutriSystem Inc	4.80%
HLF	Herbalife Ltd	3.80%
HSII	Heidrick & Struggles International Inc	2.30%

Price-to-Sales Ratio

Ticker	Company	P/S Ratio
PACR	Pacer International Inc	0.08
EME	EMCOR Group Inc.	0.19
KBR	KBR Inc	0.22
AHCI	Allied Healthcare International Inc.	0.23
GPX	GP Strategies Corp.	0.27
SWIR	Sierra Wireless Inc	0.30
FIX	Comfort Systems USA Inc.	0.31
IPHS	Innophos Holdings Inc	0.33
DELL	Dell Inc.	0.35
QXM	Qiao Xing Mobile Communication Co Ltd	0.35

Price-to-Book Ratio

Ticker	Company	P/B Ratio
QXM	Qiao Xing Mobile Communication Co Ltd	0.29
QLTI	QLT Inc	0.43
SWIR	Sierra Wireless Inc	0.48
AHCI	Allied Healthcare International Inc.	0.52
VPHM	ViroPharma Inc	0.58
PACR	Pacer International Inc	0.59
GPX	GP Strategies Corp.	0.77
GTLS	Chart Industries Inc	0.80
HCKT	Hackett Group Inc (The)	0.89
DIVX	DivX Inc	0.95

Disclosure: Steve owns DELL

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Comments

Posted by cookedc on 2009-04-29 20:53:09

Interesting that PACR, QXM, AHCI, GPX, and SWIR are all on the lowest Price-to-Sales and the lowest Price-to-Book top 10 lists. I own PACR and QXM; if these two post decent earnings going forward, they will seem very inexpensive when looking back.

One wonders what happened to MSFT (2.50% dividend yield) and GD (3.00% yield) as far as dividend yield top 10 list. Maybe they fell of the Magic Formula list.

Posted by Steve on 2009-04-30 03:57:30

Hey David - I only used the top 50 over 50 million screen and indeed MSFT and GD are not on there. Using the large cap screen would obviously have produced very different results!

Posted by cookedc on 2009-05-10 20:45:22

Update: PACR did not post decent earnings for 1Q09. In fact they posted disasterous results. Before noon on the day of their conference call I sold my position in PACR. If the company isn't forced into bankruptcy, and if the economy starts to recover, and if the domestic auto sector (one of PACR's major customers) rebounds somewhat, then at that time PACR may once again be a worthy investment. Until then, there are other fish in the sea.

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