Zecco.com - Magic Formula Investing with Zecco

Buy 3, Sell 1, Portfolio Problems at Icarra

Quasimodo — Mon, 07 Jan 2008 15:01:00 GMT

Ambassadors Group, Inc. (EPAX) profits by partnering with a non-profit, People to People, to send Americans on educational foreign trips. It pays a 2.75% dividend, and is currently under-valued due to the depreciating dollar and conerns over terrorism...(read more)

Selling 1 Losing Pick After 1 Year, Holding 1, Selling a Winner

Quasimodo — Tue, 18 Dec 2007 19:28:00 GMT

Biovail (BVF), CCA Industries (CAW), and EPIQ Systems (EPIQ) have all lost money since being picked last December. I personally believe Biovail is still a good investment and hold it in my real-money portfolio, but it has been a loser. On the Magic Formula site, it's still listed as one of the top 25 picks, so it can be held for another year...(read more)

3 High-Yielding Picks

Quasimodo — Sun, 02 Dec 2007 16:16:00 GMT

The recent sales in my Magic Formula portfolio, tracked at Icarra.com , have resulted in a cash position of $5126. Money market rates are dropping with Federal Reserve rate cuts. Zecco's CSAXX money market fund is now yielding just over 4%. However, the Magic Formula website is currently recommending 3 stocks that have yields higher than that, plus the potential for capital appreciation...(read more)

One Year Update

Quasimodo — Thu, 22 Nov 2007 00:20:00 GMT

My first Magic Formula transactions were November of 2006. So now, one year later, let's see how those initial picks have performed...(read more)

Four Options for September

Quasimodo — Tue, 04 Sep 2007 16:58:00 GMT

Here are four buy recommendations from the Magic Formula list of the top twenty-five companies. The first two do not pay a dividend, but the last two do. Korn/Ferry International (KFY) An executive search company, with over 5% net profit margin and growing, and best of all, no debt...(read more)

Take a Ride with FreightCar America

Quasimodo — Mon, 09 Jul 2007 15:34:00 GMT

FreightCar America (RAIL) has a market cap just over $600 million, a pre-tax Earnings Yield of 46%, and a pre-tax Return on Capital over 100%. The company makes railroad cars, primarily for carrying coal. Coal production, and therefore, orders for new railcars, is down recently...(read more)

Cherokee in the Bargain Bin

Quasimodo — Sun, 01 Jul 2007 19:08:00 GMT

Cherokee (CHKE) has a Pre-Tax Earnings Yield of 9%, a Pre-Tax Return on Capital of over 100%, and a Market Cap of $325 million. It licenses clothing brands to retailers such as Target (TGT) and has high gross margins. It dropped significantly from $48 to just over $36 last month and is now at $36...(read more)

PWEI Merger Completed

Quasimodo — Tue, 26 Jun 2007 06:04:00 GMT

PWEI, purchased in November, completed its merger on 6/22. Shareholders will receive $33.50 per share, a 7% loss from the original purchase price of $35.95. This has been reflected in my Icarra portfolio ....(read more)

Icarra Portfolio

Quasimodo — Mon, 25 Jun 2007 17:51:00 GMT

I've set up a tracking portfolio at Icarra.com . It's more advanced than just a spreadsheet like I've been using, including charts and comparisons to different benchmarks. Magic Zecco Portfolio at Icarra For simplicity's sake, I'm just using transactions of $500 for each stock, even though this results in fractional shares...(read more)

Market Swoon = Full Bargain Bin

Quasimodo — Mon, 12 Mar 2007 16:53:00 GMT

The recent market swoon has resulted in a few new names on the Magic Formula list, large and small. These two seem the best bargains. Axcan Pharmaceuticals (AXCA) specializes in gastroenterology. Each member of its sales force generates an average of $2...(read more)

Barrett Business Services Inc

Quasimodo — Wed, 14 Feb 2007 14:10:00 GMT

Barrett Business Services Inc (BBSI) is the latest company to make the Magic Formula list, with a pre-tax Earnings Yield of 11% and pre-tax Return on Capital of greater than 100%. It's currently $24.02/share with a market cap of $270 million....(read more)

Latest Recommendation: LAM Research (LRCX)

Quasimodo — Wed, 07 Feb 2007 21:39:00 GMT

This semiconductor stock has dropped 15% since the middle of January and appeared on the list of the top 25 stocks just this week....(read more)

New Magic Formula Stock (DEBS)

Quasimodo — Thu, 11 Jan 2007 16:43:00 GMT

Deb Shops (DEB) has recently appeared on the list of the top 25 Magic Formula stocks with market capitalizations over $50 million. Not much has changed on that list, what with big drops from EGY, FCX, FDG, FTO, and OVTI....(read more)

Zecco After 2 Months; 3 Magic Formula Picks

Quasimodo — Sun, 17 Dec 2006 21:11:00 GMT

Here are 3 Magic Formula picks that might be worth investigating. I probably won't be making any more transactions this year, since I've got 7 Magic Formula positions (FCX, FDG, PALM, PLAY, OVTI, PWEI, EGY). I'm glad I avoided Addudell (looking at the company's history, they seem to completely change their focus to match whatever the hot sector is at the time)...(read more)

Performance of Recommended Stocks

Quasimodo — Wed, 13 Dec 2006 20:57:00 GMT

Here is a Google spreadsheet that lists the stocks recommended by the Magic Formula , and each one's performance since it was mentioned here....(read more)