Validea Joel Greenblatt Strategy Daily Upgrade Report

Validea's Earnings Yield Investor model, based on Joel Greenblatt's strategy, upgraded three stocks today. Rimini Street Inc. (RMNI) saw its rating jump significantly from 0% to 100%, indicating strong interest and a 'PASS' on the final ranking. Build-A-Bear Workshop, Inc. (BBW) and Pitney Bowes Inc. (PBI) also received upgrades to 80%, signifying 'some interest' from the model, though both still registered a 'FAIL' on their final rankings despite the improved scores.

Analysis

Validea's Earnings Yield Investor model, leveraging Joel Greenblatt's "Magic Formula," has issued upgrades for three small-cap stocks, with Rimini Street Inc. (RMNI) emerging as a key highlight. RMNI's rating surged from 0% to 100%, indicating "strong interest" and a "PASS" on its final ranking within the model. This signifies a strong fundamental and valuation alignment for the software and programming firm.

Build-A-Bear Workshop, Inc. (BBW) and Pitney Bowes Inc. (PBI) also received upgrades, moving to an 80% rating, which denotes "some interest" from the model. However, both BBW and PBI ultimately registered a "FAIL" on their final ranking, despite improved scores. This suggests that while their underlying fundamentals or valuations have improved, they still fall short of the model's comprehensive "PASS" criteria.

A notable observation is that all three upgraded stocks, including RMNI, were rated "NEUTRAL" for both Earnings Yield and Return on Tangible Capital. This indicates the model's final ranking incorporates additional, non-explicitly detailed criteria beyond these two specific metrics, as the article notes "Not all criteria... receive equal weighting or are independent." The overall sentiment surrounding these upgrades is moderately positive, largely driven by RMNI's significant re-rating.

Key Decisions for Investors

• Investors should conduct further due diligence on Rimini Street Inc. (RMNI) given its 100% rating and "PASS" from the Greenblatt-based model, which signals strong fundamental and valuation alignment.
• For Build-A-Bear Workshop, Inc. (BBW) and Pitney Bowes Inc. (PBI), despite their rating upgrades to 80%, the "FAIL" final ranking necessitates caution and a thorough review of the specific factors preventing a "PASS" before considering new positions.
• It is prudent to recognize that the model's "NEUTRAL" ratings for Earnings Yield and Return on Tangible Capital across all stocks, including RMNI, indicate that the final "PASS/FAIL" is based on a more complex, multi-factor assessment, requiring investors to look beyond just these two metrics.