Top 45 "magic Formula" Stocks, June 1, 2009

10x45 Bargain Hunter

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

Dear Fellow Idea Seekers, We are pleased to bring you this week's 10x45 Bargain Hunter , based on stock prices as of May 29th 29th, 2009 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 Bargain Hunter Screen Results

Price

Market Value

Contrarian: Shunned by the market, but not by insiders 1 Unico American / UNAM $7.48 $42mn

Enterprise Value

Price to Tangible Book

n/m

.5x

2 GTx / GTXI

$8.57

$312mn

$230mn

17.5x

3 O.I. O I Corp. Corp / OICO

$7 59 $7.59

$18mn

$14mn

1 1x 1.1x

Contrarian: Biggest Losers (deleveraged & profitable) 1 Emergent BioSolution / EBS $10.94 $331mn

$326mn

1.6x

2 Questcor Pharma / QCOR

$4.26

$274mn

$213mn

4.2x

3 CryoLife / CRY

$4.69

$133mn

$115mn

1.4x

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

$11.62

$32,385mn

n/m

.8x

2 China TransInfo Tech / CTFO

$4.99

$111mn

$103mn

2.6x

3 QLT / QLTI

$2.27

$124mn

-$6mn

.5x

www.manualofideas.com Profitable Dividend Payors with Decent Balance Sheets 1 Anworth Mortgage / ANH $6.66 $677mn

$702mn

1.0x

2 Am. Capital Agency / AGNC

$18.99

$285mn

$256mn

1.0x

3 TICC Capital / TICC

$4 38 $4.38

$116mn

n/m

.6x 6

$936mn

2.7x

Deep Value: Lots of Revenue, Low Enterprise Value 1 World Fuel Services / INT $42.44 $1,251mn

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

2 Tech Data / TECD

$32.01

$1,604mn

$1,347mn

.9x

3 Ingram Micro / IM

$16.52

$2,674mn

$1,995mn

1.0x

Deep Value: Neglected Gross Profiteers 1 Kindred Healthcare / KND $13.13

$512mn

$578mn

.6x

2 Humana / HUM

$31.33

$5,314mn

$1,157mn

2.2x

3 Winn-Dixie Stores / WINN

$15.26

$831mn

$692mn

1.3x

Activist Targets: Potential Sales, Liquidations or Recaps 1 QLT / QLTI $2.27 $124mn 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. John 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 built-in Vi t Bi l with ith b ilt i llaser rangefinder. fi d

-$6mn

.5x

2 Trident Microsystems / TRID

$1.72

$108mn

-$94mn

.6x

3 TomoTherapy / TOMO

$2.29

$119mn

-$39mn

.6x

"Magic Formula," based on Trailing Financials 1 KHD Humboldt Wedag / KHD $8.22 $251mn

-$107mn

1.0x

2 i2 Technologies / ITWO

$12.28

$270mn

$219mn

34.6x

3 ePlus / PLUS

$14.30

$115mn

$114mn

.8x

"Magic Magic Formula, Formula " based on This Year Year's s EPS Estimates 1 Endo Pharma / ENDP $15.93 $1,866mn

$1,906mn

12.1x

2 Pre-Paid Legal / PPD

$42.36

$465mn

$476mn

13.1x

3 EarthLink / ELNK

$7.84

$831mn

$542mn

2.2x

$1,906mn

12.1x

"Magic Formula," based on Next Year's EPS Estimates 1 Endo Pharma / ENDP $15.93 $1,866mn 2 GigaMedia / GIGM

$6.05

$327mn

$242mn

2.9x

3 Pre-Paid Legal / PPD

$42.36

$465mn

$476mn

13.1x

"Magic Formula," based on Trailing Financials Companies with high returns on capital employed, trading at high trailing EBIT-to-enterprise value yield Move To Price Company / Ticker

52-Week

MV

EV

EV/

▼

▼

Trailing

EBIT/

EBIT/

Capital

Price to Tax

Tangible Book

($)

Low

High

($mn)

($mn)

Sales

EV

Employed

Rate

1 KHD Humboldt Wedag / KHD

8.22

-21%

335%

251

(107)

n/m

infinite

infinite

>99%

1.0x

2 i2 Technologies / ITWO

12.28

-55%

19%

270

219

.9x

50%

infinite

7%

34.6x

3 ePlus / PLUS

14.30

-45%

5%

115

114

.2x

28%

infinite

43%

.8x 2.2x

4 EarthLink / ELNK

7.84

-30%

30%

831

542

.6x

29%

640%

n/m

5 PDL BioPharma / PDLI

6.95

-25%

30%

830

1,148

3.7x

23%

3152%

8%

n/m

6 KBR / KBR

18.42

-47%

109%

2,956

2,035

.2x

26%

338%

38%

2.2x 2.7x

7 CF Industries / CF

77.64

-51%

123%

3,758

2,923

.7x

35%

230%

36%

8 Hawaiian Holdings / HA

5.26

-59%

111%

271

276

.2x

64%

207%

22%

n/m

9 Foster Wheeler / FWLT

26.52

-52%

199%

3,353

2,783

.4x

19%

infinite

14%

9.6x

10 Centene / CNC

18.18

-17%

36%

783

663

.2x

19%

infinite

38%

2.8x

11 Terra Industries / TRA

27.79

-60%

107%

2,771

2,110

.8x

33%

199%

26%

2.5x

12 Hugoton Royalty / HGT

13.88

-47%

173%

555

553

5.5x

18%

infinite

n/m

3.8x

13 Dell / DELL

11.57

-32%

125%

22,574

14,946

.3x

18%

infinite

27%

12.5x

14 GT Solar / SOLR

6.42

-86%

165%

919

811

1.5x

18%

infinite

38%

27.9x

15 Universal Travel / UTA

7.90

-88%

7%

110

86

1.0x

25%

205%

23%

3.2x

16 Pre-Paid Legal / PPD

42.36

-38%

8%

465

476

1.0x

21%

253%

38%

13.1x

17 Accenture / ACN

29.93

-17%

44%

21,485

18,495

.7x

17%

infinite

29%

13.3x

18 Permian Basin / PBT

11.42

-35%

140%

532

531

5.7x

17%

infinite

n/m

443.6x

19 MicroStrategy / MSTR

46.80

-35%

74%

557

394

1.1x

17%

infinite

41%

3.9x

20 Administaff / ASF

21.50

-38%

45%

547

351

.2x

17%

119800%

37%

2.7x

21 Gentiva Health / GTIV

15.91

-19%

88%

460

615

.5x

34%

163%

17%

n/m

22 Terra Nitrogen / TNH

123.51

-47%

27%

2,308

2,191

2.5x

17%

4047%

n/m

12.8x

23 USA Mobility / USMO

11.18

-37%

21%

253

188

.5x

37%

156%

57%

2.2x

24 Endo Pharma / ENDP

15.93

-13%

64%

1,866

1,906

1.5x

20%

261%

36%

12.1x

25 Ambassadors Group / EPAX

12.33

-50%

62%

232

126

1.3x

22%

199%

34%

4.5x

26 Energen / EGN

37.22

-38%

114%

2,669

3,196

2.1x

17%

1079%

38%

1.3x

27 Georgia Power / GPW

24.49

-27%

4%

227

8,261

1.0x

19%

266%

35%

.0x

28 Primoris Services / PRIM

5.30

-39%

63%

172

123

.2x

28%

152%

20%

3.0x 2.9x

29 GigaMedia / GIGM

6.05

-56%

196%

327

242

1.3x

16%

infinite

3%

30 Interpublic Group / IPG

5.24

-51%

93%

2,507

3,482

.5x

16%

infinite

34%

n/m

31 Questcor Pharma / QCOR

4.26

-27%

130%

274

213

2.1x

28%

129%

31%

4.2x

32 NutriSystem / NTRI

13.70

-27%

66%

421

347

.5x

21%

169%

43%

3.7x

33 AmSurg / AMSG

18.68

-35%

55%

573

819

1.3x

26%

128%

40%

n/m

34 Net1 UEPS / UEPS

12.22

-33%

140%

680

564

2.3x

17%

326%

34%

4.7x 7.2x

35 EMCOR Group / EME

22.47

-50%

60%

1,479

1,283

.2x

25%

125%

39%

36 Corporate Executive / EXBD

17.39

-29%

165%

593

522

1.0x

15%

infinite

43%

n/m

37 TiVo / TIVO

7.00

-43%

30%

731

516

2.1x

15%

infinite

1%

4.8x

38 VAALCO Energy / EGY

4.56

-23%

97%

266

183

1.2x

39%

102%

72%

1.7x

39 Herbalife / HLF

29.21

-59%

67%

1,798

1,949

.9x

16%

346%

32%

n/m

40 Korn/Ferry / KFY

11.09

-32%

85%

496

276

.4x

20%

153%

49%

1.6x

41 Solutia / SOA

4.90

-79%

267%

462

1,776

.6x

93%

94%

15%

n/m

42 True Religion / TRLG

23.06

-66%

38%

584

508

1.3x

19%

164%

38%

3.9x

43 China Sky One / CSKI

14.74

-57%

30%

244

196

1.9x

20%

134%

21%

2.8x

44 Comfort Systems USA / FIX

9.33

-34%

70%

361

262

.2x

30%

97%

38%

2.0x

45 Innophos / IPHS

15.59

-51%

166%

331

523

.5x

63%

88%

23%

1.9x

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. © 10x45 Bargain Hunter ™

June 1, 2009

www.manualofideas.com

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