Magic Formula Screen Results, September 19, 2009 (excerpted from 10x45 Bargain Hunter)

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10x45 Bargain Hunter:
Your Companion in the Hunt for Value

The Manual of Ideas is pleased to... (More) http://www.manualofide...

10x45 Bargain Hunter:
Your Companion in the Hunt for Value

The Manual of Ideas is pleased to provide a unique screening service for investors looking to uncover hidden value in the stock market.

Inspired by the Zeiss 10x45 Victory Rangefinding Binocular ("essential equipment for long range hunting and a reliable shot"), 10x45 Bargain Hunter is an essential tool for any value investor's arsenal. Whether you run your own screens or not, you'll find 10x45 Bargain Hunter a valuable ally as you seek out undervalued companies trading in U.S. markets.

We have worked hard to overcome the drawbacks of typical stock screeners. Most of all, we have designed 10x45 Bargain Hunter stock screens in a way that minimizes the inclusion of companies on the basis of non-recurring or irrelevant data. We have also sought to exclude companies that may meet certain narrow screening criteria but are otherwise fatally flawed as value investments. Of course, no screening tool is perfect, but you'll find that 10x45 Bargain Hunter represents a step up from the alternatives.

10x45 Bargain Hunter brings you 10 screens featuring 45 companies each — and it does so every two weeks. Inside, you'll find the following array of essential screens for value investors:

1. "Magic Formula," based on Trailing Financials — Companies with high returns on capital employed, trading at high trailing EBIT-to-enterprise value yield
2. "Magic Formula," based on This Year's EPS Estimates — Companies with high returns on capital employed, trading at high earnings yields (based on this FY EPS estimates)
3. "Magic Formula," based on Next Year's EPS Estimates — Companies with high returns on capital employed, trading at high earnings yields (based on next FY EPS estimates)
4. Contrarian: Shunned by the market, but not by insiders — Companies close to 52-week lows, with consistent insider buying and no selling
5. Contrarian: Biggest Losers (deleveraged & profitable) — Non-financial companies with no net debt, positive analyst estimates for next year's EPS, and large YTD price drop
6. Value with Catalyst: Cheap Repurchasers of Stock — Companies that may be creating value by reducing their shares outstanding at relatively cheap prices
7. Profitable Dividend Payors with Decent Balance Sheets — Dividend-paying companies with no net debt and EPS estimates in excess of 75% of the indicated annual dividend
8. Deep Value: Lots of Revenue, Low Enterprise Value — Companies that trade at low multiples of net revenue
9. Deep Value: Neglected Gross Profiteers — Companies that trade at low multiples of gross profit
10. Activist Targets: Potential Sales, Liquidations or Recaps — Companies that may unlock value through a corporate event
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