October brings a brand new contest and sponsor to Value Investing News. This month we will be giving away three subscriptions to MagicDiligence. Here is what this great value investing service is all about.

Joel Greenblatt's Magic Formula Investing (MFI) strategy proved very successful over a 17 year period, earning an annual return in excess of 30%. But in practice, the strategy has provided uneven results to those who have implemented it. Some Magic Formula stocks in 2008 have proven disastrous. Since appearing in the MFI screen this year, BWLRF is down 79%, CROX down 78%, WON down 70%, and IAR down 68%, among others.

Through research and due diligence, MagicDiligence aims to steer Magic Formula investors clear of these losers and into MFI stocks with durable competitive advantages and wide moats, solidifying the "good companies at cheap prices" goal that is at the heart of the strategy. Since beginning in January of this year through the end of September, MagicDiligence picks have outperformed the market by about 7%, and have also outperformed the unaltered Magic Formula strategy. MagicDiligence also provides 1-2 "Quick Takes" a week on other Magic Formula stocks, giving the MFI investor in-depth reviews and opinions of stocks he/she may be considering. Find out more about the service, or have a look at some sample MFI stock research reports today!

 Here are the prizes we are giving away thanks to MagicDiligence. The top user point earner in October will win a 12-month subscription to MagicDiligence. The second highest point earner will get a six-month subscription. Finally, we will give a three-month subscription to one randomly selected active member of Value Investing News.

It is easy to enter the contest. Just register at Value Investing News. Then you earn points for voting up or down on stories, submitting new story links, commenting, and posting in the forum.