Proforma: The MHP (Magic Hat Portfolio) on Stockopedia (http://www.stockopedia.com/fantasy-funds/magic-hat-463/) is an experiment by me to see if a human can improve on a mechanical Greeblatt Magic Formula screen. I am trying to weed out "mistakes" that I feel the screening commits: unseasoned companies, scams, foreign companies (particularly Chinese), fishy accounting, and statistical quirks. Apart from that, I am agnostic as to the sector the company operates in, although I will try to avoid heavy concentration in any one sector. I will mostly apply "Strategic Ignorance", by which I mean that I wont try to be clever in my stockpicking. My picking will be mostly mechanical. A summary of transactions can be found at https://blippy.github.io/money/greenblatt.htm As of January 2020, I have adjusted my strategy a little. Instead of selecting stocks from the Greenblatt Screen, I will select them from Stockopedia's Screen Of Screens, and look for a StockRank (TM) in the 90's. I won't rule out selecting something from the Greenblatt Screen, though. With the boilerplate now out the way, let's move on to the actual content ...


Mission (LON:TMG) leaves the portfolio by rotation. It has a low StockRank, and doesn't pass any screens. It has a Stockopedia Value score of 78, which doesn't put it in exceptional value territory. Despite this, it has a P/FCF of 5, which I regard as cheap. Apropos of nothing, I see that Mission (LON:TMG) has an average ROCE of 7%, which is pretty lacklustre, to put it mildly. The company returned 13% during its two-year tenure in the MHP, not too bad considering the upheaval in the markets.

Wynnstay (LON:WYN) enters the portfolio, having passed both the Screen Of Screens and possessing a StockRank in the 90's. In my personal portfolio, I ditched Rank (LON:RNK) at a loss of 39% (ouch), and bought some Wynnstay (LON:WYN).

Unrelatedly, I note that Cineworld (LON:CINE) is down a honking 40% to 24p as of writing. Unsurprisingly, it is the biggest faller in the FTSE-ALL. It comes as Cineworld (LON:CINE) issued news of a temporary suspension of US and UK cinema operations. Sky News…

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