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 most of my Magic Hat articles can be found on the web page http://www.markcarter.me.uk/money/greenblatt.htm This will allow you to see, at a glance, what shares have been bought and sold in the past, as well as what shares have been rejected from consideration and why.
LAM is ejected from the portfolio by rotation, having lost about 5.6% since purchase. Stockopedia shows its EV/EBITDA to be 3.32, PBV 0.54, and value score to be 98, which makes it cheap. It may yet come good for holders. I imagine it been a drawn-out ride for most people. Analysts estimate a revenue of $416m for FY2017, which is less than half that reported for 2015.
STY (Styles and Wood Group) goes into the portfolio. It is ” engaged in providing property services to banking and finance, retail and leisure, commercial and public sector organizations.” It has a stock rank of 99, being the highest in the Greenblatt screen.
Stay safe out there.