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A Lot Of New Stocks Entering The Magic Formula This Week

One of my favorite things about earnings season is that it causes some turnover in the often stagnant Magic Formula (MFI) screens, giving us some new stocks to look into!

This week, we had a load of turnover, including several stocks that have either never appeared in the screens, or have not appeared in many years.

Part of the whole MagicDiligence process is identifying "not really" Magic Formula stocks that show up in the screens from time to time. eBay (EBAY) is one of those stocks. While not extremely expensive, I only calculate a earnings yield of about 6.4%, which wouldn't put it close to MFI. It looks like the spin-off of Paypal (PYPL) might not be properly accounted for, yet.

Some stocks we've seen in MFI before, but not in some time, include Spirit Airlines (SAVE), Select Comfort (SCSS), and Western Digital (WDC). Spirit is near the bottom of its 52-week range, sold off along with the rest of the airlines but a very good operator throughout its history. Select Comfort, maker of the "Sleep Number" bed, has been a volatile stock for many years and traditionally a good pick when it hit the MFI screens. Western Digital, of course, is in the process of acquiring SanDisk (SNDK), another frequent Magic Formula stock in its own right.

Here are the full lists below. Lot of names here!

Entering the 50 over 50 million screen:

Barrett Business Services, Inc. (BBSI)
Collectors Universe Inc (CLCT)
eBay Inc. (EBAY)
Iconix Brand Group Inc (ICON)

Dropping out of the 50 over 50 million screen:

Gilead Sciences Inc (GILD)
Spok Holdings Inc (SPOK)
Unisys Corp (UIS)
Virgin America Inc (VA)

Entering the 50 over 1 billion screen:

eBay Inc. (EBAY)
International Business Machines (IBM)
MKS Instruments Inc (MKSI)
Polaris Industries Inc (PII)
Spirit Airlines Inc (SAVE)
Select Comfort Corp (SCSS)
Starz (STRZA)
Syntel Inc (SYNT)
Western Digital Corp (WDC)

Dropping out of the 50 over 1 billion screen:

Apollo Group Inc (APOL)
Coach Inc. (COH)
Crane Co. (CR)
General Dynamics Corp (GD)
Gilead Sciences Inc (GILD)
Block (H&R) Inc. (HRB)
Interval Leisure Group Inc (IILG)
Microsoft Corp (MSFT)
Rockwell Automation Inc. (ROK)

Entering the 30 over 3 billion screen:

eBay Inc. (EBAY)
International Business Machines (IBM)
Polaris Industries Inc (PII)
Starz (STRZA)
Syntel Inc (SYNT)
Western Digital Corp (WDC)

Dropping out of the 30 over 3 billion screen:

Coach Inc. (COH)
Deluxe Corp (DLX)
General Dynamics Corp (GD)
Gilead Sciences Inc (GILD)
Block (H&R) Inc. (HRB)
Microsoft Corp (MSFT)

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