Find Great Small Cap Value Stocks with this New Screening Feature
MagicDiligence has always been dedicated to finding which stocks are the best buys on Joel Greenblatt's Magic FormulaŽ Investing (MFI) screens.
But did you know that we also have our own stock screener that mimics the MFI screening strategy?
About the MagicDiligence Screener
The MagicDiligence Screener is fundamentally very similar to the "official" MFI tool.
You can enter a minimum market capitalization, select a number of stocks to show, and click "Go". That's it!
So why have our own screener?
It provides several advantages over the "official" site's implementation:
1) Instead of just an unordered list of stocks, our screener actually ranks the stocks from highest to lowest.
2) Our screen provides actual, sortable earnings yield and return on capital figures, and users can also use the Single Stock Stats Calculator to cross-check our calculations and data.
3) Our screen provides current ratio as a quick check of financial health.
4) Our screen will show you up to 500 stocks, far more than the maximum of 50 that the official site allows.
5) If Mr. Greenblatt ever decides to take down the official site, we've got it covered!
New Features Just Added!
Recently, I have added 2 NEW features to the screener!
The first is the ability to specify a maximum market cap.
This allows you to create some interesting, focused screens. Looking for an attractive list of quality, reasonably priced small-cap stocks? Try a $200 million - $1 billion range. Micro caps? How about $50 million - $200 million? Many investors consider the "sweet spot" for attractive investments to be the mid-cap, $750 million - $2 billion range - why not try that out as well?.
The second is the ability to use free cash flow yield instead of earnings yield to find "cheap" companies.
Why is this important? Free cash flow is the lifeblood of a company. Without it, a company cannot re-invest cash for future growth, buy back its own undervalued shares, or pay - and raise - its quarterly or annual dividend to shareholders. Free cash flow is like oxygen or water to the business animal. And unlike earnings, which can be gamed using accounting tricks, cash flow is much more difficult to misrepresent to investors.
Both of these exciting new features now allow you to find even more attractive stock opportunities using the MagicDiligence screener!
Give it a try and be sure to let me know of any suggestions or additions you'd like to see in the future!
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