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Magic Recipe 0.77%
Deep Value 1.09%
Star List 3.79%
S&P 0.11%
Today's Performance

Reviewing the Magic Recipe Stocks: #11-20

What are the best stocks in the Magic Recipe Spell?

There are a lot of stocks in there - 50 in total. Doing full reviews on all 50 would take a substantial amount of time, and by the time we were done, the list would be all different again!

So we're breaking them up into 10 at a time and doing a "Twitter" style, 160-character maximum review of each current Magic Recipe stock (140 was not enough)! In addition, I'll provide a quick "thumbs up", "thumbs down", or "neutral" OPINION of each stock's potential to outperform the market over the next 12-18 months, as well as a basic-as-possible description of the company's business.

You can find reviews of stocks #41-50 here, #31-40 here, and #21-30 right here. Today, we get down closer to the end and cover stocks #11-20. With no further ado...

#20: Biogen (BIIB)

Company Description: Biotech, predominantly MS drugs.

Outlook: Thumbs up.

"Tweet" Review: Dominates huge MS field with 40% market share. Pipeline has MS candidates, hemophilia, Alzheimers. Good balance sheet. Cheap for biotech at P/E of 15.

#19: Robert Half (RHI)

Company Description: Staffing and consulting.

Outlook: Thumbs up.

"Tweet" Review: Cyclical business but long-term performer. Modest growth, strong cash flows, excellent balance sheet. Good biz trading cheap but w/ few competitive advantages.

#18: USANA Health Sciences (USNA)

Company Description: Multi-level marketing supplements.

Outlook: Thumbs up.

"Tweet" Review: MLMs are controversial but long-term Magic winners. Super ROIs, double-digit rev growth, good cash + bal sht. Room to grow: 1/4th size of $HLF, 1/2 $NUS.

#17: TEGNA (TGNA)

Company Description: TV and Internet spin-off from Gannett (GCI).

Outlook: Neutral.

"Tweet" Review: 46 TV stations, Cars.com, CareerBuilder. Generates cash but meager growth outlook. LOT of debt, not cheap enough on P/E basis to be interesting, IMO.

#16: NeuStar (NSR)

Company Description: Hodge-podge of Internet and marketing services.

Outlook: Thumbs down.

"Tweet" Review: After loss of number portability contract, very fragmented business. Modest growth but lot of debt, declining ROI. Tough road ahead, market overly optimistic.

#15: Fitbit (FIT)

Company Description: Consumer health tracking wearables.

Outlook: Thumbs up.

"Tweet" Review: One of my favs in screen. Growing sales 35%+. Brand synonymous with health wearables. Debt-free. Founder-run. All this at earnings yield near 11%! Strong buy.

#14: Michael Kors (KORS)

Company Description: Bags and other fashion accessories.

Outlook: Thumbs up.

"Tweet" Review: Strong brand, good cash flows, no debt, quite cheap at 14% earnings yield. Growth flagging, making this a true "value" play. China opportunity large.

#13: InterDigital (IDCC)

Company Description: Wireless IP

Outlook: Thumbs up.

"Tweet" Review: Lumpy results, but wireless still has big future with IoT. Inexpensive @ 13% earnings yield, 17 P/E, 1.4% yield. Depends if you like patent sale model or not.

#12: Taro Pharmaceuticals (TARO)

Company Description: Generic drugs.

Outlook: Thumbs up.

"Tweet" Review: Generics still a trending business. Over a decade of double-digit revenue growth, steady rising margins. Strong ROI, debt free. What's not to like?

#11: Brocade (BRCD)

Company Description: Networking equipment.

Outlook: Thumbs up.

"Tweet" Review: Classic value. 2.5% yield, aggressive buybacks, rising margins. Has upside to $13 or so, but don't see this as a long-term hold.

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