November 5, 2007

Update on Magic formula Stocks

Originaly posted 01 march 2007

With the market going down as fast as it is right now I guess a lot of you are wondering how the Magic Formula is holding up.


How are my picks doing? How are the Dogs of Euronext?


Maybe this is strange to say, but I would not mind having falling markets for a longer period. I would really like to see how the Magic Formula works during these periods. I believe a great investor or method is made during the bad years, not the good ones. If you can keep performing better then the market during those hard years and minimize your loss, then you are in the front row to profit from a rising market.


Underneath are the tables.


My stock picks



















































































































































































Name Date bought Number Price payed Price 01/03/2007 Difference
Hci capital 18/10/2006 363 13,87 € 15,56 € 12,18%
salzgitter 18/10/2006 63 79,89 € 94,38 € 18,14%
Belgacom 17/11/2006 108 27,90 € 32,50 € 16,49%
Mittal 17/11/2006 100 29,36 € 41,00 € 39,65%
Brederode 17/11/2006 105 29,00 € 28,85 € -0,52%
fornix bioscience 17/11/2006 140 22,34 € 21,00 € -6,00%
Unibail 14/12/2006 17 180,70 € 215,50 € 19,26%
Innoconcepts 14/12/2006 255 11,75 € 12,35 € 5,11%
Tomtom 18/01/2007 91 33,13 € 31,43 € -5,13%
GL Trade 18/01/2007 73 41,45 € 39,00 € -5,91%
Rio Tinto 16/02/2007 70 42,97 € 40,91 €
Total Portfolio 59.303,38 €
Stocks 40.483,95 €
Cash 18.819,43 €
Increase since 01/01/2007 1,56%
58.390,45 €
Increase since start
57.335,76 € 3,43%

The Magic Formula Stocks



























































































































































































Name Buy date Number Buying price Price 01/03/2007 Difference
arques industries 17/11/2006 260 11,57 € 16,35 € 41,31%
Aleo Solar NA 17/11/2006 517 5,81 € 11,03 € 89,85%
GCI management 17/11/2006 320 9,38 € 8,08 € -13,86%
HCI Capital 17/11/2006 216 13,94 € 15,56 € 11,62%
Salzgitter 17/11/2006 36 84,71 € 94,38 € 11,42%
VEM Aktienbank 17/11/2006 546 5,50 € 4,57 € -16,91%
GL Trade GLT 14/12/2006 80 37,50 € 39,00 € 4,00%
Innoconcepts NV 14/12/2006 255 11,79 € 12,35 € 4,75%
BT Group 18/01/2007 636 4,72 € 4,38 € -7,20%
Burren Energy 18/01/2007 271 11,23 € 11,64 € 3,65%
Absolute Capital Management Holdings 15/02/07 432 6,95 € 6,50 € -6,47%
Total Virtual Portfolio 60.866,57 €
Cash 24.204,49 €
Stocks 36.662,08 €
Increase since 01/01/2007
59.650,21 € 2,04%
Increase since start
57.335,76 € 6,16%

The Benchmarks



































































Start 01/01/07 01/03/07 Change Start Change 01/01
Europe (MSCI) 1.468,70 1.493,51 1493,55 1,69% 0,00%
Euronext 100 942,47 968,55 950,13 0,81% -1,90%
Dax 6.412,36 6.596,92 6640,24 3,55% 0,66%
FTSE 100 6.155,19 6.310,93 6116 -0,64% -3,09%
Euronext For Dogs 957,92 950,13 -0,81%
Average 1,36% -1,08%

I did not include the list of the Dogs of Euronext because that would make this post way to long. But I can tell you that the are now worth 29 601,13 € meaning a decline of -1,4% since the start.


This means both my own stock picks and the Magic Formula stocks are still doing better then the market. They are both still plus 1,5% and 2% against a -1% from the markets. That is the way I want it. However to be honest I must say that this time the part in cash works in our advantage.


The Dogs of Euronext are doing worse then the market.

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