Magic Formula Stock Screen, Based On Next Fy Eps Estimates

"Magic Formula," based on Next Year's EPS Estimates Companies with high returns on capital employed, trading at high earnings yields (based on next FY EPS estimates) Move To Price

52-Week

MV





Next FY

EBIT/

Price to

EV

EV/

EPS

Capital

Tax

Tangible Book

Company / Ticker

($)

Low

High

($mn)

($mn)

Sales

Yield

Employed

Rate

1 Endo Pharma / ENDP

17.98

-23%

45%

2,107

2,146

1.6x

16%

261%

36%

13.7x

2 Pre-Paid Legal / PPD

43.46

-39%

5%

477

488

1.1x

15%

253%

38%

13.5x

3 China Sky One / CSKI

14.30

-56%

34%

237

188

1.8x

17%

134%

21%

2.7x

4 Net1 UEPS / UEPS

12.91

-36%

117%

719

602

2.4x

12%

326%

34%

5.0x

5 Safe Bulkers / SB

6.73

-60%

186%

367

719

3.6x

24%

95%

n/m

20.0x

6 Edison International / EIX

31.29

-26%

67%

10,195

21,368

1.5x

11%

infinite

30%

1.0x

7 GT Solar / SOLR

5.73

-85%

197%

821

714

1.3x

11%

infinite

38%

24.9x 12.6x

8 GameStop / GME

22.17

-24%

115%

3,650

3,915

.4x

14%

123%

37%

9 GigaMedia / GIGM

5.81

-55%

132%

317

234

1.3x

11%

infinite

3%

2.7x

10 Terra Industries / TRA

25.02

-55%

130%

2,495

1,833

.7x

12%

199%

26%

2.3x

11%

infinite

31%

1.3x

31%

3.1x

11 Am. Electric Power / AEP

28.61

-16%

45%

13,640

31,595

2.2x

12 PPL Corp. / PPL

32.80

-26%

64%

12,334

19,410

2.2x

11%

331%

13 NV Energy / NVE

10.77

-36%

22%

2,524

7,906

2.3x

11%

infinite

29%

.8x

14 Centene / CNC

20.49

-27%

20%

882

762

.2x

10%

infinite

38%

3.1x 10.4x

15 CenterPoint Energy / CNP

11.06

-23%

50%

3,863

14,269

1.3x

11%

272%

39%

16 DPL / DPL

23.30

-21%

18%

2,702

4,225

2.6x

11%

390%

28%

2.7x

17 Questcor Pharma / QCOR

4.96

-38%

98%

320

258

2.6x

12%

129%

31%

4.8x

18 * A-Power Energy / APWR

8.42

-64%

278%

284

223

.8x

16%

73%

0%

2.1x

19 Energen / EGN

40.30

-43%

97%

2,890

3,417

2.2x

10%

1079%

38%

1.4x

20 Allegheny Energy / AYE

25.98

-22%

99%

4,401

8,479

2.4x

11%

176%

39%

1.7x

21 El Paso Electric / EE

14.21

-18%

55%

638

1,379

1.4x

11%

255%

33%

.9x

22 TECO Energy / TE

11.73

-28%

86%

2,497

6,002

1.8x

10%

575%

37%

1.3x 1.4x

23 UniSource Energy / UNS

26.92

-22%

24%

959

2,799

2.0x

11%

141%

49%

24 Pepco Holdings / POM

13.39

-25%

95%

2,946

8,756

.8x

12%

102%

36%

1.1x

25 Cal-Maine Foods / CALM

25.31

-33%

93%

602

653

.7x

19%

58%

34%

2.1x

26 NetScout Systems / NTCT

9.14

-38%

76%

369

355

1.3x

10%

infinite

35%

9.7x

27 VSE Corp. / VSEC

26.23

-26%

85%

135

156

.1x

16%

60%

39%

2.6x

28 Delek US Holdings / DK

8.57

-59%

45%

460

722

.2x

10%

infinite

41%

1.0x

29 * Progress Software Co / PRGS

20.97

-30%

48%

837

688

1.4x

10%

infinite

39%

4.4x

30 OGE Energy / OGE

28.15

-31%

23%

2,703

5,138

1.4x

10%

4035%

30%

1.4x

31 NiSource / NI

11.46

-32%

61%

3,147

9,900

1.2x

10%

infinite

33%

4.3x

32 Hewlett-Packard / HPQ

37.61

-32%

31%

89,747

95,511

.8x

11%

124%

19%

208.7x 3.1x

33 Advanced Battery / ABAT

4.06

-71%

58%

235

201

4.4x

15%

60%

15%

34 * Foster Wheeler / FWLT

23.77

-46%

216%

3,005

2,436

.4x

10%

infinite

14%

8.6x

35 * Permian Basin / PBT

11.12

-34%

146%

518

517

5.5x

10%

infinite

n/m

431.9x

36 LHC Group / LHCG

22.22

-25%

66%

410

410

1.0x

11%

123%

31%

11.7x

37 Innophos / IPHS

16.23

-53%

156%

345

536

.6x

12%

88%

23%

2.0x

38 * Allied Healthcare / AHCI

2.28

-59%

27%

103

75

.3x

11%

104%

28%

2.5x

39 American Oriental / AOB

5.10

-35%

97%

399

452

1.7x

18%

50%

21%

2.6x

40 CMS Energy / CMS

11.98

-30%

26%

2,717

9,146

1.4x

11%

88%

32%

1.1x

41 * Portfolio Recovery / PRAA

37.15

-48%

42%

570

822

3.1x

9%

2397%

39%

2.2x

42 * CSG Systems / CSGS

13.53

-20%

49%

475

520

1.1x

11%

80%

34%

21.2x

43 Public Service / PEG

32.23

-31%

47%

16,308

24,477

1.8x

10%

216%

50%

2.0x

44 Continucare / CNU

2.49

-39%

7%

148

138

.5x

10%

115%

38%

5.4x

45 Southwest Gas / SWX

21.84

-22%

52%

976

2,205

1.1x

9%

infinite

40%

.9x

Criteria:  Market value > $100 million  ADRs and banks excluded MV = market value. EV = enterprise value. Number of insider transactions relates to most recent six-month period. * New additions are highlighted. © 10x45 Bargain Hunter ™

June 28, 2009

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10 Essential Stock Screens for Value Investors x 45 Stocks per Screen = up to 450 Investment Candidates

Dear Fellow ll Idea d Seekers, k We are pleased to bring you this week's 10x45 Bargain Hunter , based on stock prices as of June 26, 2009. –Your Manual of Ideas Team

This Week's Top p Bargain Hunter Screen Results

Price

Market Value

Contrarian: Shunned by the market, but not by insiders 1 Unico American / UNAM $7.50 $42mn

Enterprise p Value

n/m

Insider Buys $14mn

2 * Inland Real Estate / IRC

$6.78

$562mn

$1,360mn

$6mn

3 * Capital Bank / CBKN

$4.75

$54mn

n/m

$3mn

Contrarian: Biggest Losers (deleveraged & profitable) 1 ViroPharma / VPHM $5.88 $455mn

' Price YTD $344mn

-55%

2 Immucor / BLUD

$13.80

$972mn

$859mn

-48%

3 Questcor Pharma / QCOR

$4.96

$320mn

$258mn

-47%

On the Hunt for Value? Get the 10x45 Bargain Hunter now FREE with your subscription to Downside Protection Report

' Shares Q-Q

Value with Catalyst: Cheap Repurchasers of Stock 1 Societe Generale / SCGLY

$10.90

$30,378mn

n/m

-22%

2 QLT / QLTI

$2.16

$118mn

-$12mn

-18%

3 * Banco B Macro M / BMA

$14.78 $14 78

$899mn $899

n/m /

-15% 15%

$758mn

Div. Yield 17%

www.manualofideas.com Profitable Dividend Payors with Decent Balance Sheets 1 Anworth Mortgage / ANH $7.21 $733mn 2 TICC Capital / TICC

$4.58

$122mn

n/m

13%

3 Pioneer Southwest / PSE

$19.25

$578mn

$501mn

10%

$858mn

EV/Revenue .05x

Deep Value: Lots of Revenue, Low Enterprise Value 1 World Fuel Services / INT $39.81 $1,173mn

Standalone price of 10x45 Bargain Hunter: $99/year

* New addition to top 45 screen results.

10x45 BARGAIN HUNTER is published weekly by BeyondProxy LLC, P.O. Box 1375, New York, NY 10150. Website: www.manualofideas.com. Email: [email protected]. Please email or call if you have any subscription questions. Managing Editor: John Mihaljevic. Subscription $99 per year. © Copyright 2008 by BeyondProxy LLC. All rights reserved. Photocopying, reproduction, quotation, or redistribution of any kind is strictly prohibited without written permission from the publisher. This newsletter bases screening results on techniques and sources believed to be reliable in the past and cannot guarantee future accuracy and results. The stocks listed in this newsletter should not be construed as investment recommendations. BeyondProxy’s officers, directors, employees and/or principals (collectively “Related Persons”) may have positions in and may, from time to time, make purchases or sales of the securities or other investments listed or discussed in newsletter. John Mihaljevic, this newsletter Mihaljevic Chairman of BeyondProxy, is also a principal of Mihaljevic Capital Management LLC (“MCM”), which serves as the general partner of a private investment partnership. MCM may purchase or sell securities and financial instruments discussed in this newsletter on behalf of the investment partnership or other accounts it manages. Use of this newsletter and its content is governed by the Terms of Use described in detail at www.manualofideas.com/terms.html. Pictured in the top left corner is the Zeiss 10x45 Victory Binocular with built-in laser rangefinder.

2 Tech Data / TECD

$32.52

$1,634mn

$1,377mn

.06x

3 Ingram Micro / IM

$17.74

$2,872mn

$2,193mn

.07x

$485mn

$551mn

EV/GP .14x

Deep Value: Neglected Gross Profiteers 1 Kindred Healthcare / KND $12.42 2 RealNetworks / RNWK

$3.12

$419mn

$54mn

.15x

3 Humana / HUM

$31.71

$5,379mn

$1,221mn

.22x

-$12mn

NCAV / MV 174%

Activist Targets: Potential Sales, Liquidations or Recaps 1 QLT / QLTI $2.16 $118mn 2 Silicon Graphics / SGI

$4.58

$137mn

-$37mn

146%

3 * Audiovox / VOXX

$6.34

$145mn

$90mn

144%

-$106mn

LTM EBIT / EV infinite

"Magic Formula," Formula " based on Trailing Financials 1 KHD Humboldt Wedag / KHD $8.28 $253mn 2 i2 Technologies / ITWO

$12.23

$269mn

$218mn

51%

3 ePlus / PLUS

$15.13

$124mn

$101mn

28%

$2,146mn

EPS Yield FY0 15%

"Magic Formula," based on This Year's EPS Estimates 1 Endo Pharma / ENDP $17.98 $2,107mn 2 EarthLink / ELNK

$7.70 $

$816mn $

$527mn $

13%

3 Pre-Paid Legal / PPD

$43.46

$477mn

$488mn

15%

$2,146mn

EPS Yield FY1 16%

"Magic Formula," based on Next Year's EPS Estimates 1 Endo Pharma / ENDP $17.98 $2,107mn 2 Pre-Paid Legal / PPD

$43.46

$477mn

$488mn

15%

3 China Sky One / CSKI

$14.30

$237mn

$188mn

17%