At www.ValuEngine.com we show that the Consumer Staples sector is 14.6 percent overvalued. 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.
Feihe International, Inc. (ADY) – was a $43 stock in July 2009 and has been below $10 since the week of June 4, 2011.
A. H. Belo Corp. (AHC) – has been below $10 since the week of May 10, 2008.
Chiquita Brands International Inc. (CQB) – was a $25 stock in June 2008 and has been below $10 since the week of March 10, 2012.
The Dolan Company (DM) – was a $31 stock in December 2007 and has been below $10 since the week of March 3, 2012.
The Female Health Co. (FHCO) – has been below $8.50 for at least five years.
Journal Communications, Inc. (JRN) – has been below $10 since the week of October 13, 2007.
Martha Stewart Living Omnimedia, Inc. (MSO) – has been below $10 since the week of December 29, 2007.
The New York Times Co. (NYT) – was a $26 stock in June 2007 and has been below $10 since March 28, 2013.
Pilgrim’s Pride Corp. (PPC) – has been below $10 since the week of May 15, 2010.
REEDS, Inc. (REED) – has been below $10 since the week of August 11, 2007.
Inventure Foods, Inc. (SNAK)– has been below $8 for at least five years.
Senomyx Inc. (SNMX) – has been below $10 since the week of November 10, 2007.
Stewart Enterprises Inc. (STEI) – has been below $10 for at least five years.
SunOpta Inc. (STKL) – has been below $10 since the week of January 26, 2008.
Synutra International Inc. (SYUT) – was a $52 stock in September 2008 and has been below $10 since the week of July 23, 2011.
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 DM by 57.5%. The most overvalued stock is AHC by 29.6%.
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. There are four Buy-rated stocks, ten Hold-rated stocks and one Strong Sell-rated stock (REED).
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 biggest gainer over the last 12 months is ADY up 122.1%. The only loser is DM down 77.2%.
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. The range of losses to gains is between a loss of 23.2% (REED) and a gain of 9.8% (DM).
P/E Ratios – The 12 month trailing P/E ratios – We have three stocks with a single-digit P/E ratios.
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.