October 2018 – Top Stock Bargains Watch List

Author: Asgeir The average Market Adjusted Total Score (MATS) by Oct. 8th: 90,7

As always, I run the Magic Formula Investing screener to pick the 50 top companies with a minimum market cap of 300 Mill. USD. I intentionally exclude companies above 8.000 Mill. USD (the watch list is limited to small/medium cap companies). This month (by October 8th) the screener provided a portfolio of 33 companies. These companies from the screener all together gave an average MATS score of 90,7. The companies that ended up with higher than average score, are the top bargain companies listed in the table below.

You can take a look at the previous lists from earlier this year here: Top Bargains Watch Lists, 2018

Here is the list – 11 top bargain stocks with calculations and scores:

All companies listed here are the stocks that got an above average MATS (Market Adjusted Total Score). You can read more about how the numbers and scores are calculated and how the model works here: “The Market Adjusted Total Score – MATS”.

(You will find a further explanation of the parameters just below the table.)

PS: You need to scroll down a little… (the list will otherwise get in conflict with the right side-bar).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

Market Adjusted Total Score*

High last 3 Yrs Closing Price Dividend paid* Percent of High Added Value (if >50 % discount from High last 3 Years)* Financial Score* Total Score S&P, Percent of High Market Discount* Date Quarter Data:

UIS

264,9

20,75 19,37 93,3 262,4 262,4 98,4 5,1 2018-10-08 2018-06-30

CJREF

247,8

11,32 3,38 0,27 32,2 17,8 197 223,6 98,4 48,4 2018-10-08 2018-05-31

EVC

180,3

9,26 4,89 0,05 53,3 157,8 157,8 98,4 45,1 2018-10-08 2018-06-30

GME

166,6

46,82 14,98 0,38 32,8 17,2 116,6 142,4 98,4 48,4 2018-10-08 2018-08-04

ACOR

139,6

42,95 17,65 41,1 8,9 102 115,4 98,4 48,4 2018-10-08 2018-06-30

FTSI

114,3

21,92 12,38 56,5 93,3 93,3 98,4 41,9 2018-10-08 2018-06-30

PETS

104,2

53,24 30,38 0,27 57,6 83,8 83,8 98,4 40,8 2018-10-08 2018-06-30

HRB

99,3

37,26 26,51 0,25 71,8 86 86,0 98,4 26,6 2018-10-08 2018-07-31

SGH

93,8

50,61 30,71 60,7 74,9 74,9 98,4 37,7 2018-10-08 2018-05-25

INVA

93,6

17,59 15,36 87,3 88,1 88,1 98,4 11,1 2018-10-08 2018-06-30

TUP

92,7

72,81 32,53 0,68 45,6 4,4 61,9 68,5 98,4 48,4 2018-10-08 2018-06-30

S&P 500

2931 2884 98,4 98,4 1,6 2018-10-08
*Market Discount: If the stock has fallen (or risen) more than the market, compared to the highest levels in three years, a factor of 0,5 is used into the “Market Adjusted Total Score” area to adjust for the difference.
*MATS: Market Adjusted Total Score. A score which aims to discover stocks with the best combination of financial performance and historical prices.
*Added Value: If >50 % discount from the highest price last 3 years, a factor of 1,5 is added to this difference into the “Total Score” area.
*Dividend paid: Dividend paid after the last quarter’s results.
*Financial Score: A company’s Earnings Yield (EY) + Return On Invested Capital (ROIC). If Net Working Capital makes up 50 % or more of the Market Cap Value, the score is adjusted for this: (EY+ROIC)+(NWC%/MCV%)+50. The last available numbers from the last quarter are used (data from Yahoo Finance).
Disclaimer: The Market Adjusted Total Score (MATS) calculated above, is only a result of my own calculations, and must not be interpreted as “market signals” in any way. I am not an investment advisor. Even though I do my best to avoid mistakes, wrong calculations may occur.