Intersections is a provider of identity theft and credit monitoring products, the ones we've all been marketed to from our banks or credit card companies. With the loss of a major client and heavy scrutiny from the new Consumer Financial Protections Bureau, this stock has some major risks, despite the very cheap valuation.
The one "red flag" to look out for with Magic Formula® stocks, above all others, is the "one-time revenue effect". An explanation of this situation, how to identify it, and 4 current stocks that exhibit it.