My Magic Hat fantasy fund is on Stockopedia:
It is trailing the FTSE 350 over 1, 3 and 5 years, which is something I clearly didn’t want to happen.
The best performer so far is DTG (Dart Group), which has received considerable publicity on Stockopedia. INDV (Indivior) is another stock that is doing very well, despite the known clouds hanging over it. It’s StockRank is 99, and it scores highly on all the dimensions of value, quality and momentum. It also passes the screen of screens, including the Greenblatt Magic Formula screen. It is on an EV/EBITDA of 4.47, which is very low. What has turned everyone off this stock is the prospect of declining revenues. Despite the clear negatives on fundamentals, the stock has actually performed very well.
There are more than enough detractors in the portfolio. NPT is down 32%, and HNT is down 23%. Unfortunately, they were picked up by the fund before their steep declines in share prices. SHOS (Sears Hometown) was a foray into the world of net-nets. It’s something that you don’t see very often. Unfortunately, the shares are down 40% since purchasing, which is a clear disappointment.
RM was due to be kicked out of the portfolio this month, but seeings at it still qualifies for the Greenblatt screen, I’ll make no changes to the portfolio. The shares are down 6% since purchase, which is disappointing, but no disaster. It’s on a PE of 9.5 and an EV/EBITDA of 3.6. Earnings are expected to increase. So it looks in good shape, fingers crossed.
I wish you all well.