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Asymmetric Allocation: 3 Reasons Why SRCL/SMED Is A Great Long/Short Reversion To The Mean Story

Market-neutral trade: Longing Stericycle, Inc. at the same time shorting Sharps Compliance Corp.
Longing Stericycle: Current price as of 1/17/17 is $80.63. Morningstar's fair value estimate is $105.00.
Longing Stericycle: Magic Formula numbers are ROC of 56.22% and earnings yield of 5.40%.
Shorting Sharps Compliance Corp.: Magic Formula numbers are ROC -12.78% and earnings yield of -2.02%.


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