This is Stockopedia's version of the Magic Formula as defined in Joel Greenblatt's bestselling book "The Little Book that Beats the Market". The is the Rank stated as a percentage.
Joel Greenblatt's Little Book that Beat the Market became a financial publishing phenomenon.
In a simple writing style, the successful hedge fund investor showed how picking 'good' stocks at 'cheap' prices was enormously profitable. He claims that a portfolio of the top 30 Magic Formula stocks has averaged a 17-year annual return of 30.8% and beats the S&P 500 96% of the time. It should be noted that these returns are volatile and require a fully diversified portfolio.
Greenblatt suggests sticking to A+ stocks (in the top 10%) for the best chance of outperformance and ideally to a basket of the top 50 ranked stocks in the market.
| Ticker | Name | Magic Formula Score | StockRank™ |
|---|---|---|---|
| LON:KOO | Kooth | 99.6% | 91 |
| LON:POW | Power Metal Resources | 99.6% | 48 |
| LON:ARCM | ARC Minerals | 99.3% | 42 |
| LON:STAF | Staffline | 99.0% | 90 |
| LON:ARC | Arcontech | 99.0% | 57 |