5 Midcap Magic Formula Stocks For Total Return

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EBIX Inc. (EBIX)

Company Profile courtesy Seeking Alpha

“Ebix, Inc. provides on-demand software and e-commerce services and solutions to insurance, financial, healthcare, and e-learning industries in the United States and internationally. It develops and deploys insurance and reinsurance exchanges; provides Software-as-a-Service (SaaS) enterprise solutions in the area of customer relationship management, and front-end and back-end systems; and offers outsourced administrative and risk compliance solutions.

The company operates P&C exchanges primarily in Australia, New Zealand, the United Kingdom, and the United States, which facilitates the exchange of insurance data between brokers and insurance carriers with a focus on the areas of personal and commercial lines. Its exchange related products and services include travel exchanges and money transfer services; foreign exchange and outward remittance services; consumer bill payment services; gift cards for consumers that can be redeemed at various merchants; and technology services for various providers in the areas of lending, wealth and asset management, travel, and logistics.

The company’s insurance exchanges related products and services include SaaS platform and related services; licensing of software; and professional services comprising setting up, customization, training, or consulting. Its risk compliance solutions cover and certificates of insurance creation and tracking; consulting services comprising project management and development; and business process outsourcing services, including domain intensive project management, time, and material based consulting engagements. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.”

HP Inc. (HPQ)

Company Profile courtesy Seeking Alpha

“HP Inc., together with its subsidiaries, provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments.

The Personal Systems segment offers commercial and consumer desktop and notebook personal computers, workstations, thin clients, commercial mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services.

The Printing segment provides consumer and commercial printer hardware, supplies, solutions, and services, as well as scanning devices.

The Corporate Investments segment includes HP Labs and business incubation projects. It serves individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors.

The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.”

Supernus Pharmaceuticals Inc. (SUPN)

Company profile courtesy Seeking Alpha

“Supernus Pharmaceuticals, Inc., a pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States.

It offers Oxtellar XR, an extended-release oxcarbazepine for use in the treatment of epilepsy; and Trokendi XR, an extended-release topiramate, which is used for the treatment of epilepsy and migraine.

The company’s product candidates comprise SPN-812, a viloxazine hydrochloride, which is in Phase III clinical trial that is used for the treatment of attention deficit hyperactivity disorder (ADHD); SPN-810, a molindone hydrochloride that is in Phase III clinical trial for the treatment of impulsive aggression in patients with ADHD; SPN-809, a viloxazine hydrochloride, which is in Phase II ready clinical trial for the treatment of depression; SPN-604 extended release oxcarbazepine for bipolar; and SPN-817 that is in phase I clinical trial for treating epilepsy.

The company markets its products through wholesalers and distributors. Supernus Pharmaceuticals, Inc. was founded in 2005 and is based in Rockville, Maryland.”

Summary and Conclusions

Joel Greenblatt’s “The Little Book That Beats The Market” has been and continues to be a bestseller in the financial sector – and for good reason.  The logic underpinning the methodology for picking stocks makes sense and has produced a good track record of beating the market over time.  Although that is not necessarily an investment strategy that is suitable for every investor, there are many who are motivated to build stock portfolios capable of doing just that.  Perhaps these 5 small and midcap selections can provide opportunities for those of you that are interested in this course of action. Regardless, I have a lot of fun and found it fascinating and educational to re-read Joel Greenblatt’s book.  I especially found it interesting to be able to identify companies that were attractively valued in today’s bifurcated market.  Although the market in general appears very high to me, there is also many stocks that appear attractively valued.  This offering is for the total return investor.  However, I also ran this exercise on larger blue-chip companies with great histories.  As one of the co-founders of The Dividend Kings’ marketplace service here on seeking Alpha, I will be providing subscribers an opportunity to review dividend growth stock selections based on Joel Greenblatt’s magic formula.

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Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

Article by F.A.S.T. Graphs

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