Magic Recipe Spell Changes For Week Ending 11/20/2016

After a few weeks of rapid turnover through Q3 "earnings season" and the election, we are back to a more normal level of activity in our Magic Recipe Spell this week.

Only 4 positions turned over this week, and the only 2 10% movers were the two gun stocks, rebounding some after they got crushed immediately after the election.

I continue to be intrigued by some of the healthcare names in the Spell. All 3 of the major drug distributors (CAH, ABC, and MCK) are constitutents now, constituting the oligarchy of distribution in the USA (over 85% of total revenues). Given the continuing aging demographics in the US, this continues to look like an interesting space, and the valuations on these stocks are their lowest in years.

Here are the full list of changes for last week (for changes in the subscriber screens, click here):

Tickers dropping out:

Monster Beverage Corporation (MNST)
Insys Therapeutics, Inc. (INSY)
American Woodmark Corporation (AMWD)
DaVita HealthCare Partners Inc. (DVA)

Tickers entering:

Sturm, Ruger & Company, Inc. (RGR)
AmerisourceBergen Corporation (ABC)
West Corporation (WSTC)

10% Movers:

Smith & Wesson Holding Corporation (SWHC) 13.61%
Sturm, Ruger & Company, Inc. (RGR) 12.88%

Disclosure: Steve owns no stocks referenced here.

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