At www.ValuEngine.com we show that the Transportation sector is 18.2% overvalued with the Airline industry 11.0% overvalued, the Air Freight industry 11.0% overvalued, the Equipment & Leasing industry 8.0% overvalued, the Services industry 30.9% overvalued and the Truck industry 3.2% overvalued.
All 12 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
ATSG – has been below $8.65 for at least five years.
CVTI – has been below $10 since the week of August 4, 2007 and traded as low as $1.36 in Nov 2008.
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 flying below $10 since the week of August 18, 2007.
PACR– was a $33 stock in Feb 2007, and has been below $10 since the week of Jan 24, 2009.
QLTY – was a $1.13 stock in November 2008 then up to $14.61 in April 2012 and has been below $10 since the week of October 6, 2012.
RLGT – has been below $2.75 for at least five years.
STB – has been below $7.50 for at least five years.
TEU – has been below $10 since the week of December 24, 2011.
USAK– has been below $10 since the week of November 26, 2011.
VTNC– was a $23 stock in June 2007 and has been below $10 since the week of August 13, 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 USAK by 45.7%. The most overvalued stock is GOL by 146.1%.
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. There are two Hold rated stocks (CVTI & HA), five Sell rated stocks and five Strong Sell rated stocks.
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 CVTI up 104.0%. The biggest loser is TEU down 46.1%.
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 18.3% (RLGT) and a loss of 1.0% (CVTI).
P/E Ratios – The 12 month trailing P/E ratios – We have three stocks with single-digit P/E ratios (ATSG, HA & TEU) with one extremely elevated P/E (STB).
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 [email protected].