Does the Magic Formula screen favor certain types of businesses? And if so, why? These are the questions we'll examine in this new series examining which business sectors most frequently appear in the Magic Formula screen.

Cherokee has 18 employees, about $190k in hard assets (less than most families), and yet produced close to 80 million in revenues last year! The company pays a 9% dividend and converts close to 50% of revenues to free cash flow. With it's place in the Magic Formula screen, the stock looks cheap as well. A closer look at Cherokee.

The hate e-mail can stop!! This blog has been investing real money in the magic formula for over 2 years. 2007's results and results since inception are now posted!

Commentary on mistakes made and lessons learned after investing for one year in Joel Greenblatt's Magic Formula, as detailed in "The Little Book that Beats the Market."