At www.ValuEngine.com we show that the Basic Materials sector 6.1% undervalued with the Miscellaneous Mining Industry 15.2% undervalued. All fourteen stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Denison Mines Corp. (DNN) – has been below $10 since the week of November 24, 2007.
General Moly, Inc. (GMO) – has been below $10 since the week of April 26, 2008.
McEwen Mining Inc. (MUX) – has been below $9.50 for at least five years.
New Gold, Inc. (NGD) – has only been below $10 since February 15, 2013.
North American Palladium Ltd. (PAL) – has been below $10 since the week of August 4, 2007.
Platinum Group Metals Ltd. (PLG) – has been below $5 for at least five years.
Polymet Mining Corp. (PLM) – has been below $4.50 for at least five years.
Silvercorp Metals Inc. (SVM) – was a $24 stock in October 2007, then traded as low as a buck in November 2008, then up to $16 in April 2011. Has been below $10 since the week of November 5, 2011.
Taseko Mines Ltd. (TGB) – has been below $7.25 for at least five years.
Uranium Energy Corp. (UEC) – has been below $9.50 for at least five years.
Uranium Resources, Inc. (URRE) – was a $149 in November 2007 and has been below $10 since the week of March 24, 2012.
Uranerz Energy Corp. (URZ) – has been below $7.75 for at least five years.
US Energy Corp. (USEG) – has been below $7.40 for at least five years.
Solitario Exploration & Royalty Corp. (XPL) – has been below $6.20 for at least five years.
Reading the Table
OV/UN Valued – The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. The most undervalued stock is URRE by 70.7%. The most overvalued stock is PLM by 27.1%.
VE Rating – A “1-Engine” rating is a Strong Sell, a “2-Engine” rating is a Sell, a “3-Engine” rating is a Hold, a “4-Engine” rating is a Buy and a “5-Engine” rating is a Strong Buy. We have three Buy rated stocks (PAL, SVM & USEG), four hold rated stocks, six Sell rated stocks, and one Strong Sell rated stock (URRE).
Last 12-Month Return (%) – Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage over the past twelve months! All but three stocks were losers over the last twelve months led to the downside by URRE with a loss of 70.3%.
Forecast 1-Year Return – Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. These stocks are projected to trade between a decline of 12.2% and a gain of 9.8% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios. USEG shows an extremely extended P/E ratio at 250.0.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that acts as a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Where to Buy and Where to Sell
A “Value Level” is a price at which buyers should add to positions on market price weakness. A “Risky Level” is a price at which sellers should reduce holdings on market price gains. A "Pivot" is a support or resistance (Value Level or Risky Level) that was violated in its time horizon, acting as a magnet during the remainder of that time horizon. These levels are calculated in weekly (W), monthly (M), quarterly (Q), semiannual (S) and annual (A) time horizons, based on the past nine closes in each time horizon. My theory is that the closes over a nine-year period are the summation of all bullish and bearish events for that market or specific stock. These levels are the most important element of my Buy and Trade Strategy.
Buy and Trade Guidelines
Investors should consider entering good until cancelled (GTC) orders to buy weakness to a value level, or to sell strength to a risky level.
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