Top 45 Magic Formula Stocks (based On Next Fy Eps Ests)

"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

▼

▼

Next FY

EBIT/

Price to

MV

EV

EV/

EPS

Capital

Tax

Tangible Book

Company / Ticker

($)

Low

High

($mn)

($mn)

Sales

Yield

Employed

Rate

1 China-Biotics / CHBT

11.46

-53%

43%

196

144

2.7x

21%

218%

21%

3.0x

2

4.99

-50%

146%

110

99

.5x

13%

6971%

17%

13.3x

4.92

-46%

162%

268

186

1.0x

13%

infinite

3%

2.3x

* PRG-Schultz / PRGX

3 GigaMedia / GIGM 4 Centene / CNC

18.25

-18%

35%

828

673

.2x

12%

infinite

38%

2.7x

5 Pre-Paid Legal / PPD

46.68

-43%

13%

512

520

1.1x

14%

227%

38%

10.0x

6 Endo Pharma / ENDP

21.11

-34%

24%

2,474

2,388

1.7x

14%

247%

39%

10.1x

7 China Sky One / CSKI

14.37

-56%

33%

238

189

1.8x

17%

134%

21%

2.7x

8 Edison International / EIX

31.80

-27%

49%

10,361

20,793

1.6x

11%

infinite

n/m

1.1x

9 H&R Block / HRB

16.96

-19%

65%

5,667

5,153

1.3x

11%

infinite

39%

33.4x

10 PPL Corp. / PPL

29.45

-18%

55%

11,090

18,438

1.9x

12%

218%

27%

2.7x

11 Safe Bulkers / SB

8.01

-66%

138%

437

788

4.0x

21%

95%

n/m

23.9x

12 * Sepracor / SEPR

17.41

-44%

13%

1,932

1,715

1.3x

17%

103%

19%

2.9x

13 Energen / EGN

42.73

-46%

36%

3,064

3,696

2.5x

10%

infinite

37%

1.5x

14 * Sempra Energy / SRE

50.60

-32%

17%

12,414

19,413

2.2x

10%

infinite

22%

1.6x 14.3x

15 GameStop / GME

25.16

-33%

90%

4,142

4,407

.5x

12%

123%

37%

16 Delek US Holdings / DK

8.12

-57%

53%

436

697

.2x

10%

infinite

41%

1.0x

17 DPL / DPL

24.50

-24%

12%

2,841

4,325

2.7x

10%

328%

30%

2.8x

18 UniSource Energy / UNS

28.79

-27%

16%

1,025

2,866

2.1x

11%

162%

43%

1.5x

19 Am. Electric Power / AEP

31.19

-23%

33%

14,871

31,543

2.2x

10%

infinite

32%

1.2x

20 NetScout Systems / NTCT

9.64

-41%

66%

389

366

1.4x

10%

infinite

36%

8.4x

21 CenterPoint Energy / CNP

12.34

-31%

34%

4,509

14,435

1.5x

10%

327%

38%

8.3x

22 Allegheny Energy / AYE

24.72

-18%

91%

4,190

8,267

2.5x

11%

151%

40%

1.6x 6.5x

23 Net1 UEPS / UEPS

16.85

-51%

66%

938

821

3.3x

10%

326%

34%

24 A-Power Energy / APWR

9.86

-70%

138%

332

272

1.0x

14%

73%

0%

2.5x

25 * Southern Union / SUG

18.50

-43%

43%

2,295

6,097

2.4x

9%

infinite

25%

1.0x 20.0x

26 GT Solar / SOLR

6.50

-86%

150%

932

771

1.4x

9%

infinite

38%

27 Pepco Holdings / POM

13.91

-28%

88%

3,072

9,240

.9x

12%

84%

33%

1.1x

28 Questcor Pharma / QCOR

6.34

-51%

55%

408

347

3.5x

10%

129%

31%

6.2x

29 Dell / DELL

13.20

-41%

97%

25,793

18,165

.3x

9%

infinite

27%

14.3x

30 Allied Healthcare / AHCI

2.34

-60%

24%

105

77

.3x

11%

104%

28%

2.6x

31 NV Energy / NVE

11.98

-42%

1%

2,811

8,315

2.4x

10%

265%

29%

.9x

32 Public Service / PEG

31.67

-30%

32%

16,025

24,849

1.8x

10%

146%

41%

1.9x

33 OGE Energy / OGE

31.07

-37%

12%

3,000

5,567

1.7x

9%

1484%

30%

1.5x

34 * Permian Basin / PBT

10.44

-29%

148%

487

485

5.2x

9%

infinite

n/m

405.5x

35 EarthLink / ELNK

8.47

-35%

12%

899

525

.6x

9%

417%

n/m

2.2x

36 El Paso Electric / EE

15.78

-26%

39%

710

1,469

1.6x

10%

194%

34%

1.0x

37 America's Car-Mart / CRMT

20.55

-67%

13%

241

271

.9x

10%

173%

36%

1.5x 1.4x

38 TECO Energy / TE

13.33

-37%

36%

2,849

6,345

1.9x

9%

428%

37%

39 * APAC Customer / APAC

5.71

-84%

12%

296

286

1.1x

11%

89%

1%

7.3x

40 Progress Software / PRGS

22.99

-36%

35%

922

774

1.5x

9%

infinite

39%

4.9x

41 VSE Corp. / VSEC

31.50

-38%

54%

162

183

.2x

13%

60%

39%

3.2x

42 Terra Industries / TRA

29.91

-63%

75%

2,985

2,322

1.0x

10%

102%

22%

2.4x

43 * American Oriental / AOB

5.18

-36%

86%

406

458

1.7x

17%

50%

21%

2.6x

44 SmartHeat / HEAT

7.65

-71%

5%

185

187

5.2x

10%

89%

17%

10.4x

45 Advanced Battery / ABAT

4.76

-75%

8%

275

242

5.3x

13%

60%

15%

3.6x

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 ™

August 9, 2009

www.manualofideas.com

Page 11 of 11

10x45 Bargain Hunter

Brought To You By

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 August 7, 2009. –Your Manual of Ideas Team

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

This Week's Top p Bargain Hunter Screen Results

Price

Market Value

Contrarian: Shunned by the market, but not by insiders 1 GHL Acquisition / GHQ $9.82 $476mn

Enterprise p Value

n/m

Insider Buys $3mn

2 Ideation Acquisition / IDI

$7.75

$97mn

n/m

$2mn

3 TFS Financial / TFSL

$11.88

$3,670mn

n/m

$2mn

Contrarian: Biggest Losers (deleveraged & profitable) 1 Cardionet / BEAT $7.07 $168mn

 Price YTD $118mn

-71%

2 CryoLife / CRY

$5.15

$146mn

$128mn

-47%

3 Celera / CRA

$5.91

$484mn

$1,749mn

-47%  Shares Q-Q

Value with Catalyst: Cheap Repurchasers of Stock 1 Banco Macro / BMA

$18.77

$1,142mn

n/m

-15%

2 QLT / QLTI

$3.86

$211mn

$76mn

-11%

3 Yucheng Y h Technologies T h l i / YTEC

$8.22 $8 22

$145mn $145

$132mn $132

-10% 10%

n/m

Div. Yield 12%

www.manualofideas.com Profitable Dividend Payors with Decent Balance Sheets 1 TICC Capital / TICC $5.20 $138mn 2 Pioneer Southwest / PSE

$19.36

$581mn

$518mn

10%

3 BP Prudhoe Bay / BPT

$70.25

$1,503mn

n/m

9%

$1,721mn

EV/Revenue .06x

Deep Value: Lots of Revenue, Low Enterprise Value 1 Ingram Micro / IM $16.69 $2,702mn

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 this newsletter. newsletter John Mihaljevic, 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

$34.97

$1,757mn

$1,500mn

.07x

3 Winn-Dixie Stores / WINN

$14.10

$768mn

$629mn

.09x

Deep Value: Neglected Gross Profiteers 1 * WellCare Health / WCG $23.50

$992mn

$51mn

EV/GP .05x

2 RealNetworks / RNWK

$2.97

$400mn

$49mn

.14x

3 Kindred Healthcare / KND

$15.26

$595mn

$661mn

.17x

-$83mn

NCAV / MV 136%

Activist Targets: Potential Sales, Liquidations or Recaps 1 Trident Microsystems / TRID $1.67 $105mn 2 Silicon Graphics / SGI

$5.32

$159mn

-$15mn

126%

3 Opnext / OPXT

$2.14

$190mn

$74mn

110%

"Magic Formula," Formula " based on Trailing Financials 1 KHD Humboldt Wedag / KHD $10.80 $330mn

-$29mn

LTM EBIT / EV infinite

2 i2 Technologies / ITWO

$14.36

$316mn

$265mn

42%

3 * PRG-Schultz / PRGX

$4.99

$110mn

$99mn

25%

"Magic Formula," based on This Year's EPS Estimates 1 EarthLink / ELNK $8.47 $899mn

$525mn

EPS Yield FY0 12%

2 Pre-Paid Legal g / PPD

$46.68 $

$512mn $

$520mn $

14%

3 China-Biotics / CHBT

$11.46

$196mn

$144mn

14%

"Magic Formula," based on Next Year's EPS Estimates 1 China-Biotics / CHBT $11.46 $196mn

$144mn

EPS Yield FY1 21%

2 * PRG-Schultz / PRGX

$4.99

$110mn

$99mn

13%

3 GigaMedia / GIGM

$4.92

$268mn

$186mn

13%