At www.ValuEngine.com we show that the Transportation sector is 14.0% overvalued with the Airline industry 7.4% overvalued and the Air Freight industry 9.5% overvalued. All nine stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
AAMRQ – was a $41 stock in Jan 2007 and has been below $10 since the week of March 20, 2010.
AFLYY – was a $52 stock in May 2007 has only been below $10 since March 26, 2013.
AIRT – has been below $10 since the week of February 19, 2011.
ALNPY – has been below $9 for at least five years.
ATSG – has been below $8.75 for at least five years.
GOL– was a $34 stock in June 2007 and has been below $10 since the week of August 6, 2011.
HA – has been below $10 since the week of October 4, 2008.
JBLU – has been below $10 since the week of August 18, 2007.
RLGT – has been below $2.75 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 in today’s table is AAMRQ by 32.8%. The most overvalued stock is GOL by 300.0%.
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. Two are rated Buy, one is rated Hold, four are rated Sell and two are rated Strong Sell.
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 AAMRQ up by 735.4%. The biggest loser is ALNPY down 29.8%.
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. The range of expectations is between a loss of 18.4% (RLGT) and a gain of 28.9% (AAMRQ).
P/E Ratios – The 12 month trailing P/E ratios – AAMRQ, ALNPY, ATSG and HA have 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.
If you have any questions, please contact me at Rsuttmeier@gmail.com.