MagicDiligence

Helping you find the best Magic Formula stocks.

[MagicDiligence @MagicDiligence]

MagicDiligence is back.

Back-to-basics: quick due diligence on the current Magic Formula top 50.

Fraud risk. Financial stress. Cyclicality. One-off boosts.

The goal is simple: keep bad Magic Formula stocks off your shortlist.

https://t.co/gnouU8xdjm

[MagicDiligence @MagicDiligence]

The bearish case on Altria is obvious: declining cigarette volumes, regulation, ZYN pressure, and NJOY execution risk. The part the market may be missing is how much cash the business still generates today. New article on $MO: https://t.co/DJK0DAXyXG

[MagicDiligence @MagicDiligence]

Cheap stocks are easy to find. Filtering out the traps is the harder part.

Screen update:
New this week: $EVER $GETY $MO $SIGA $UIS
Current screen: 50 stocks, 39 Pass/11 Fail.
Notable: $AFMJF flipped from Pass to Fail.

Full update:
https://t.co/JqdItWhoJo

[MagicDiligence @MagicDiligence]

Bath & Body Works isn’t exactly the kind of stock people brag about owning. That may be the opportunity. $BBWI trades at under 6x earnings and roughly 0.5x sales, while still throwing off meaningful cash. A good Magic Formula pick?

https://t.co/s48GDCI297

[MagicDiligence @MagicDiligence]

If you only check the Magic Formula screen once in a while, this is one of the weeks to pay attention.

New this week: $ANPMF $BCRX $BKE $BLKB
Notable downgrade: $CRNC

Full update + refreshed performance tracking:
https://t.co/Wr7x6N2vFI

[MagicDiligence @MagicDiligence]

Magic Formula stock $HPQ is up 14% today ahead of Q2 earnings on May 27. PC stabilization, Lenovo's AI momentum, and HP's reaffirmed $0.30 dividend are driving sentiment. Wall Street expects $0.63 EPS.

[MagicDiligence @MagicDiligence]

$CROX still looks mispriced. Core Crocs profits remain strong, but the market still seems fixated on HEYDUDE baggage instead of underlying earnings power. It looks like a good Magic Formula pick.

https://t.co/WjaQ7AQPzq

[MagicDiligence @MagicDiligence]

Can momentum substantially enhance Magic Formula returns?

We think it might.

New article:
Why we added relative strength, why a shorter holding period may improve results, and how we’re tracking the results live across every batch.

https://t.co/o454RxOmZ0

[MagicDiligence @MagicDiligence]

The Magic Formula just reshuffled again. New names in: $DBD $GTM $MNTN. Names out: $GEN $MO. But the bigger question is which of these actually survive a deeper check.

This week’s full screen update is live: https://t.co/8FdpcqBW7W

[MagicDiligence @MagicDiligence]

$DECK looks like the kind of stock Mr. Market misprices when growth anxiety outruns business reality.

HOKA + UGG, no debt, $2.09B cash, strong operating income, and a buyback behind the setup. The question is whether Deckers is slowing, or just cheaper.

Fallen compounder or value trap?

New article:
https://t.co/DGRMxdg2DO

[MagicDiligence @MagicDiligence]

Welp, the date has changed from 5/10/26 to 5/10/27 on Amazon, so who knows when it is coming out at this point. Probably end of 2026, early 2027?

[MagicDiligence @MagicDiligence]

Exciting news for Magic Formula investors! The third edition of "The Little Book that Beats the Market" is releasing in hardcover on May 10th at Amazon. Greenblatt has "meticulously updated and expanded" it for this 3rd release. Reserve your copy today!

Thanks to @OhSweeetNothing for the heads up!

[MagicDiligence @MagicDiligence]

Weekly Magic Formula refresh is live. 6 stocks joined the screen, 6 dropped off, and 1 of the new entrants already failed. New movers: $AKBA $DLX $MTCH $TNET $ODD. Removed: $BCRX $CPRX $EXEL $SIRI. Current screen: 50 stocks, 41 Pass / 9 Fail.

https://t.co/BzqrjU6NLg

[MagicDiligence @MagicDiligence]

@OhSweeetNothing I don't have exact data, but the few studies I've read have indicated that since 2010 the strategy has either matched the S&P or slightly underperformed it. Revived MagicDiligence to keep an eye on it going forward!

[MagicDiligence @MagicDiligence]

This week's Magic Formula refresh is live.

5 in. 5 out.

New adds: $DECK $EXEL $IT $ANPMF
$GCT made the list, but not as a Pass.

50 stocks now: 41 Pass / 9 Fail our diligence check.

https://t.co/ZTFpyUCYGz

[MagicDiligence @MagicDiligence]

@OhSweeetNothing Thanks for the heads up! Will look into that.

[MagicDiligence @MagicDiligence]

If you’re looking at the merger of Magic Formula stocks Getty+Shutterstock, the better question isn’t “is the deal interesting?” It’s “which side would you rather own?” My answer: $SSTK over $GETY.

Here’s why: https://t.co/nAJ1k09BJL

[MagicDiligence @MagicDiligence]

6 MagicDiligence screen names report today: $MO $CI $CROX $SIRI $TNET $OSPN

What I’m watching:

$MO: pricing vs volume + smoke-free momentum
$CI: Evernorth growth + medical cost discipline
$CROX: Crocs brand strength + HEYDUDE stabilization
$SIRI: subscriber/ARPU trends + free cash flow
$TNET: retention + margin/cash flow stability
$OSPN: subscription growth + profitability

I’m looking for thesis confirmation, not just a headline beat.

[MagicDiligence @MagicDiligence]

The Magic Formula is a great way to build a watchlist.
It is not a substitute for real diligence.

That is the core takeaway from my review of Joel Greenblatt's The Little Book That Still Beats the Market on MagicDiligence:
https://t.co/Wx813pL4ul

[MagicDiligence @MagicDiligence]

Cheap biotech usually means hidden damage.

Harmony Biosciences $HRMY looks different.

Real cash generation. Real balance sheet strength. Fewer red flags than most Magic Formula names. That is what makes this one interesting.

Read the full review:
https://t.co/Jlrp0aVFuG

[MagicDiligence @MagicDiligence]

That's what MagicDiligence is built for — a fast, structured due diligence pass on every stock in the top 50 before you commit capital.

Full piece here: https://t.co/nc10XRB4jZ

[MagicDiligence @MagicDiligence]

The Magic Formula is one of the best-tested stock strategies ever published.

But the list it produces has a blind spot that can seriously hurt your returns. 🧵

[MagicDiligence @MagicDiligence]

Greenblatt knew this. His whole argument is that the strategy works on average, across a diversified portfolio. Individual stocks will fail. The math survives because the hits outweigh the misses.

But why take avoidable risks?