At www.ValuEngine.com we show that the Basic Materials sector 7.0% undervalued with the Mining Gold industry 32.7% undervalued. All 15 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
AZK – has been below $8.50 for at least five years.
BAA – has been below $10 since the week of April 5, 2008.
DRD – has been below $10 since the week of June 13, 2009.
GSS – has been below $6 for at least five years.
HMY – has been below $10 since the week of August 25, 2012.
IAG – broke below $10 on January 23, 2013.
KGC – has only been below $10 since December 12, 2012.
LODE – has been below $10 since the week of September 6, 2008.
NAK – was a $21 stock in February 2011 and has been below $10 since the week of September 17, 2011.
NG – has been below $10 since the week of December 17, 2011.
NSU – has been below $7.75 for at least five years.
PPP – has been below $8 for at least five years.
RBY – has been below $6.50 for at least five years.
RIC – has been below $10 since the week of March 17, 2012.
VGZ – has been below $9.50 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 VGZ by 72.9%. The only overvalued stock is PPP by just 1.7%.
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 (IAG, KGC & NSU), eight Hold rated stocks, two Sell rated stocks (BAA & VGZ), and two Strong Sell rated stocks (LODE & RIC).
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! The only winner over the last twelve months is PPP with a gain of 97.9%. The biggest loser was RIC with a loss of 74.8%.
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 15.7% and a gain of 7.6% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios. Four of the nine stocks that have P/E ratios have single-digit P/E ratios (DRD, IAG, KGC & NSU).
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.