diff --git a/java/java-impl/src/com/intellij/codeInspection/magicConstant/MagicConstantInspection.java b/java/java-impl/src/com/intellij/codeInspection/magicConstant/MagicConstantInspection.java
index 66489d182f77..4de47ff3af08 100644
--- a/java/java-impl/src/com/intellij/codeInspection/magicConstant/MagicConstantInspection.java
+++ b/java/java-impl/src/com/intellij/codeInspection/magicConstant/MagicConstantInspection.java
@@ -35,6 +35,7 @@ import com.intellij.openapi.roots.JdkOrderEntry;
 import com.intellij.openapi.roots.OrderEntry;
 import com.intellij.openapi.roots.ProjectRootManager;
 import com.intellij.openapi.util.Comparing;
+import com.intellij.openapi.util.Key;
 import com.intellij.openapi.util.io.FileUtil;
 import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.openapi.vfs.LocalFileSystem;
@@ -50,6 +51,7 @@ import com.intellij.psi.util.*;
 import com.intellij.slicer.*;
 import com.intellij.util.Function;
 import com.intellij.util.Processor;
+import com.intellij.util.containers.ConcurrentSoftValueHashMap;
 import gnu.trove.THashSet;
 import org.intellij.lang.annotations.MagicConstant;
 import org.jetbrains.annotations.Nls;
@@ -284,6 +286,20 @@ public class MagicConstantInspection extends LocalInspectionTool {
       result = 31 * result + (canBeOred ? 1 : 0);
       return result;
     }
+
+    public boolean isSubsetOf(@NotNull AllowedValues other, @NotNull PsiManager manager) {
+      for (PsiAnnotationMemberValue value : values) {
+        boolean found = false;
+        for (PsiAnnotationMemberValue otherValue : other.values) {
+          if (same(value, otherValue, manager)) {
+            found = true;
+            break;
+          }
+        }
+        if (!found) return false;
+      }
+      return true;
+    }
   }
 
   private static AllowedValues getAllowedValuesFromMagic(@NotNull PsiModifierListOwner element,
@@ -480,7 +496,7 @@ public class MagicConstantInspection extends LocalInspectionTool {
                                         return value.getText();
                                       }
                                     }, ", ");
-    holder.registerProblem(argument, "Must be one of the: "+ values);
+    holder.registerProblem(argument, "Must be one of: "+ values);
   }
 
   private static boolean isAllowed(@NotNull final PsiElement scope,
@@ -499,9 +515,9 @@ public class MagicConstantInspection extends LocalInspectionTool {
   }
 
   private static boolean isGoodExpression(PsiExpression expression,
-                                          AllowedValues allowedValues,
-                                          PsiElement scope,
-                                          PsiManager manager) {
+                                          @NotNull AllowedValues allowedValues,
+                                          @NotNull PsiElement scope,
+                                          @NotNull PsiManager manager) {
     expression = PsiUtil.deparenthesizeExpression(expression);
     if (expression == null) return true;
     if (expression instanceof PsiConditionalExpression) {
@@ -515,18 +531,24 @@ public class MagicConstantInspection extends LocalInspectionTool {
     if (isOneOf(expression, allowedValues, manager)) return true;
 
     if (allowedValues.canBeOred) {
-      if (expression instanceof PsiPolyadicExpression &&
-          JavaTokenType.OR.equals(((PsiPolyadicExpression)expression).getOperationTokenType())) {
-        for (PsiExpression operand : ((PsiPolyadicExpression)expression).getOperands()) {
-          if (!isAllowed(scope, operand, allowedValues, manager)) return false;
-        }
-        return true;
-      }
-      //todo & ~(CONST | CONST)
-      PsiExpression zero = JavaPsiFacade.getElementFactory(manager.getProject()).createExpressionFromText("0", expression);
+      PsiExpression zero = getLiteralExpression(expression, manager, "0");
       if (same(expression, zero, manager)) return true;
-      PsiExpression mOne = JavaPsiFacade.getElementFactory(manager.getProject()).createExpressionFromText("-1", expression);
+      PsiExpression mOne = getLiteralExpression(expression, manager, "-1");
       if (same(expression, mOne, manager)) return true;
+      if (expression instanceof PsiPolyadicExpression) {
+        IElementType tokenType = ((PsiPolyadicExpression)expression).getOperationTokenType();
+        if (JavaTokenType.OR.equals(tokenType) || JavaTokenType.AND.equals(tokenType)) {
+          for (PsiExpression operand : ((PsiPolyadicExpression)expression).getOperands()) {
+            if (!isAllowed(scope, operand, allowedValues, manager)) return false;
+          }
+          return true;
+        }
+      }
+      if (expression instanceof PsiPrefixExpression &&
+          JavaTokenType.TILDE.equals(((PsiPrefixExpression)expression).getOperationTokenType())) {
+        PsiExpression operand = ((PsiPrefixExpression)expression).getOperand();
+        return operand == null || isAllowed(scope, operand, allowedValues, manager);
+      }
     }
 
     PsiElement resolved = null;
@@ -540,11 +562,26 @@ public class MagicConstantInspection extends LocalInspectionTool {
     AllowedValues allowedForRef;
     if (resolved instanceof PsiModifierListOwner &&
         (allowedForRef = getAllowedValues((PsiModifierListOwner)resolved, getType((PsiModifierListOwner)resolved), null)) != null &&
-        Comparing.equal(allowedValues, allowedForRef)) return true;
+        allowedForRef.isSubsetOf(allowedValues, manager)) return true;
 
     return PsiType.NULL.equals(expression.getType());
   }
 
+  private static Key<Map<String, PsiExpression>> LITERAL_EXPRESSION_CACHE = Key.create("LITERAL_EXPRESSION_CACHE");
+  private static PsiExpression getLiteralExpression(PsiExpression context, PsiManager manager, @NotNull String text) {
+    Map<String, PsiExpression> cache = LITERAL_EXPRESSION_CACHE.get(manager);
+    if (cache == null) {
+      cache = new ConcurrentSoftValueHashMap<String, PsiExpression>();
+      cache = manager.putUserDataIfAbsent(LITERAL_EXPRESSION_CACHE, cache);
+    }
+    PsiExpression expression = cache.get(text);
+    if (expression == null) {
+      expression = JavaPsiFacade.getElementFactory(manager.getProject()).createExpressionFromText(text, context);
+      cache.put(text, expression);
+    }
+    return expression;
+  }
+
   private static boolean isOneOf(@NotNull PsiExpression expression, @NotNull AllowedValues allowedValues, @NotNull PsiManager manager) {
     for (PsiAnnotationMemberValue allowedValue : allowedValues.values) {
       if (same(allowedValue, expression, manager)) return true;
diff --git a/java/java-tests/testData/inspection/magic/simple/expected.xml b/java/java-tests/testData/inspection/magic/simple/expected.xml
index 394de9a2ab2f..e247be988b90 100644
--- a/java/java-tests/testData/inspection/magic/simple/expected.xml
+++ b/java/java-tests/testData/inspection/magic/simple/expected.xml
@@ -14,7 +14,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -26,7 +26,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -38,7 +38,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -50,7 +50,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -62,7 +62,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -74,7 +74,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -86,7 +86,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
 
@@ -98,7 +98,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -110,7 +110,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -122,7 +122,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -134,7 +134,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -146,7 +146,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -158,7 +158,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -170,7 +170,7 @@
   
   
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -178,7 +178,7 @@
    <file>X.java</file>
    <line>81</line>
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+   <description>Must be one of: Const.X, Const.Y, Const.Z</description>
  </problem>
 
   
@@ -189,7 +189,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -201,7 +201,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -213,7 +213,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -225,7 +225,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -237,7 +237,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -249,7 +249,7 @@
     
     
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
   
   
@@ -257,14 +257,14 @@
     <file>X.java</file>
     <line>118</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+    <description>Must be one of: Const.X, Const.Y, Const.Z</description>
   </problem>
 
  <problem>
    <file>X.java</file>
    <line>119</line>
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+   <description>Must be one of: Const.X, Const.Y, Const.Z</description>
  </problem>
  
  
@@ -276,7 +276,7 @@
    
    
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+   <description>Must be one of: Const.X, Const.Y, Const.Z</description>
  </problem>
  
  
@@ -288,7 +288,7 @@
    
    
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+   <description>Must be one of: Const.X, Const.Y, Const.Z</description>
  </problem>
  
  
@@ -300,7 +300,7 @@
    
    
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+   <description>Must be one of: Const.X, Const.Y, Const.Z</description>
  </problem>
  
  
@@ -312,7 +312,7 @@
    
    
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+   <description>Must be one of: Const.X, Const.Y, Const.Z</description>
  </problem>
  
 
@@ -322,7 +322,7 @@
   <file>X.java</file>
   <line>173</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -331,7 +331,7 @@
   <file>X.java</file>
   <line>174</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -340,7 +340,7 @@
   <file>X.java</file>
   <line>175</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -349,7 +349,7 @@
   <file>X.java</file>
   <line>177</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
   
 
@@ -357,7 +357,7 @@
   <file>X.java</file>
   <line>178</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -366,7 +366,7 @@
   <file>X.java</file>
   <line>179</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
 
 
@@ -375,7 +375,7 @@
   <file>X.java</file>
   <line>180</line>
   <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-  <description>Must be one of the: Const.X, Const.Y, Const.Z</description>
+  <description>Must be one of: Const.X, Const.Y, Const.Z</description>
 </problem>
   
 
@@ -383,7 +383,7 @@
   <file>X.java</file>
    <line>193</line>
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y</description>
+   <description>Must be one of: Const.X, Const.Y</description>
  </problem>
 
 
@@ -391,14 +391,14 @@
    <file>X.java</file>
    <line>195</line>
    <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-   <description>Must be one of the: Const.X, Const.Y</description>
+   <description>Must be one of: Const.X, Const.Y</description>
  </problem>
 
   <problem>
     <file>X.java</file>
     <line>227</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y</description>
+    <description>Must be one of: Const.X, Const.Y</description>
   </problem>
 
 
@@ -406,7 +406,7 @@
     <file>X.java</file>
     <line>228</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y</description>
+    <description>Must be one of: Const.X, Const.Y</description>
   </problem>
 
 
@@ -414,7 +414,7 @@
     <file>X.java</file>
     <line>229</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y</description>
+    <description>Must be one of: Const.X, Const.Y</description>
   </problem>
 
 
@@ -422,28 +422,28 @@
     <file>X.java</file>
     <line>230</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y</description>
+    <description>Must be one of: Const.X, Const.Y</description>
   </problem>
 
   <problem>
     <file>X.java</file>
     <line>231</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">magic constant</problem_class>
-    <description>Must be one of the: Const.X, Const.Y</description>
+    <description>Must be one of: Const.X, Const.Y</description>
   </problem>
 
   <problem>
     <file>X.java</file>
     <line>238</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">Magic Constant</problem_class>
-    <description>Must be one of the: Calendar.JANUARY, Calendar.FEBRUARY, Calendar.MARCH, Calendar.APRIL, Calendar.MAY, Calendar.JUNE, Calendar.JULY, Calendar.AUGUST, Calendar.SEPTEMBER, Calendar.OCTOBER, Calendar.NOVEMBER, Calendar.DECEMBER</description>
+    <description>Must be one of: Calendar.JANUARY, Calendar.FEBRUARY, Calendar.MARCH, Calendar.APRIL, Calendar.MAY, Calendar.JUNE, Calendar.JULY, Calendar.AUGUST, Calendar.SEPTEMBER, Calendar.OCTOBER, Calendar.NOVEMBER, Calendar.DECEMBER</description>
   </problem>
 
   <problem>
     <file>X.java</file>
     <line>239</line>
     <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">Magic Constant</problem_class>
-    <description>Must be one of the: SwingConstants.LEFT, SwingConstants.CENTER, SwingConstants.RIGHT, SwingConstants.LEADING, SwingConstants.TRAILING</description>
+    <description>Must be one of: SwingConstants.LEFT, SwingConstants.CENTER, SwingConstants.RIGHT, SwingConstants.LEADING, SwingConstants.TRAILING</description>
   </problem>
 
 </problems>
diff --git a/java/java-tests/testData/inspection/magic/simple/src/X.java b/java/java-tests/testData/inspection/magic/simple/src/X.java
index b7cee434f219..84c3ea63651f 100644
--- a/java/java-tests/testData/inspection/magic/simple/src/X.java
+++ b/java/java-tests/testData/inspection/magic/simple/src/X.java
@@ -103,10 +103,10 @@ public class X {
     if (x == Const.X) {
       x = Const.Y;
       assert x != Const.Z;
-      f |= Const.Y;
+      f |= Const.Y;  f &= Const.X & ~(Const.Z | Const.X);
     }
     else {
-      f |= Const.X;
+      f |= Const.X;  f = f & ~(Const.X | Const.X);
     }
     f3(f);