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.
IBST leaves the portfolio by rotation, having gained 60% over the year. Those are the kinds of gains I like to see!
Metals & mining company FXPO enter the portfolio. It has a Stockopedia StockRank of 98, and is classified as a speculative mid-cap super stock.
It has a cracking chart:
Stockopedia shows that the price vs to 50dMA is 22.1% So the share price might be overbought at the moment, and due for a pullback. We shall see.
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