Magic Recipe 0.87%
Deep Value 1.38%
Star List -0.55%
S&P 0.42%
Today's Performance (see long-term performance)

Introducing The Spell Caster And TONS Of New Features!

Today I'm super excited to announce the largest batch of new features to MagicDiligence - EVER!

Last year we ended our previous stock recommendation service. In January, the site re-launched with the previous tool set, due to member demand.

But I've always felt Joel Greenblatt's ingenious ranking strategy, based on advanced company statistics, had a lot of untapped potential for finding ALL KINDS of interesting stocks - not just short-term value plays.

To that end, today MagicDiligence is rolling out a number of new features and tools. For current members, never fear - all of your favorite investing tools are still here and better than ever!

I'll quickly go over our new features, talk a little about the changes to previous ones, and give a few thoughts. There is a lot to say, so expect more exploratory articles over the next several weeks!

Introducing the Spell Caster

What is magic without magic spells?

Previously, we had (and still have!) our Magic Screener and Portfolio Ranker, both designed to mimic but add some extra features and information to Greenblatt's famous screening methodology.

We now take the strategy to the next level with our newest stock finding tool: the Spell Caster!

Magic Wand

The Spell Caster provides extreme flexibility in designing your own Magic-style screens. Want to run a Magic Formula-style screen on only retail stocks? You can. Want to rank only stocks under $5 billion market cap by revenue growth and free cash flow yield? No problem. Want to rank all the market's stocks by earnings yield and free cash flow yield, while limiting the results just to companies with better-than-average returns on capital? Easy.

Really, the possibilities are immense - check it out to see everything you can do. And because I know a lot of stock screeners out there are ridiculously complex, you can always start with one of our own "magic spells". Which brings us to...

The MagicDiligence Book of Spells

Using the Spell Caster, we've created some custom "spells" that are designed to highlight the market's most attractive stocks in a variety of themes. For those just looking for attractive ideas, you don't have to run a complex screen. Just check out these spells, updated daily!


Magic Recipe Spell: This is our best approximation of Joel Greenblatt's Magic FormulaŽ Investing screen, using a $1 billion market cap minimum. The Magic Recipe is and always will be FREE for everyone to check out.

Deep Value Spell: This spell is designed to identify companies trading truly cheaply against their trailing earnings and free cash flows. We take all stocks over $1 billion and rank them by just two factors: earnings yield and free cash flow yield. Study after study has shown that these two factors consistently dig up stocks that dramatically outperform the market.

Quality Growth Spell: There is no reason a ranking strategy cannot be of tremendous value to growth investors as well! In fact, winning long-term investments are made in companies that can grow sales at high rates of return. This spell ranks stocks over $500 million by 3 year revenue growth rate and cash return on invested capital to find quality growth companies for the next 3+ years. For those looking for the next Netflix (NFLX) or Amazon (AMZN), this could be your ticket!

Star List Spell: Our popular Star List returns in spell form! The Star List is a very unique club: the ONLY stocks in the market that rank in the top 20% for all of these metrics: earnings yield, free cash flow yield, earnings and cash return on tangible and total capital, and 3-year revenue growth rate. They also must have a current ratio over 1.0 to ensure decent financial health. There are only a select few that make this spell - the cheapest stocks of some of the most efficient and fastest growth companies in the world!

Other Changes

With our new tools and features come some changes to stuff we had before. Here's a quick run-down:

Single Stock Stats Calculator: The functionality from our single stock calculator has now been moved right into the stock review pages. Simply search for your ticker in the menu bar and get all of the previous features you loved, including Instant Diligence and a run-down of the statistical calculations. It even tells you when your stock is current a member of our spells!

Stock Pages: In addition to now containing the stats calculator features, our stock pages now also include some new statistics. Return on Total Capital simply includes goodwill back into a return on capital calculation. I felt that the Magic Formula unfairly rewards firms that use expensive acquisitions to grow. We also added the free cash flow equivalents for return on capital, allowing a full, cash flow based valuation analysis of your stocks.

Give Us A Try Today!

I hope with these changes, MagicDiligence still provides the utility it always has for Magic Formula-based investors, while offering unique, simple, and effective tools for investors of any stripe to find stock opportunities. If you have ANY questions, comments, or suggestions, please feel free to comment on this article or contact me at

For unlimited use of all our features, we're asking just $8/month. That's less than your last lunch outing and probably less than your last stock trade! I truly believe there is NO other investing offering on the market that provides more value for your investing research dollar. Give us a try today!

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