At www.ValuEngine.com we show that the Retail-Wholesale sector 11.4% overvalued with the Apparel / Shoes industry 1.7% 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.
Bebe Stores, Inc. (BEBE) – has been below $10 since the week of May 7, 2010.
Body Central Corp. (BODY) – was a $30 stock in May 2012, and has only been below $10 since January 10, 2013.
Cache Inc. (CACH) – has been below $10 since the week of October 3, 2008.
Christopher & Banks Corp. (CBK) – has been below $10 since the week of May 28, 2010.
New York & Company Inc. (NWY) – has been below $10 since the week of October 3, 2008.
Pacific Sunwear of California Inc. (PSUN) – has been below $10 since the week of June 27, 2008.
Stein Mart Inc. (SMRT) – has been below $10 since the week of July 29, 2011.
Tandy Leather Factory, Inc. (TLF) – has been below $8.25 for at least the last five years.
Wet Seal Inc. (WTSLA) – has been below $6.75 for at least the last 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 PSUN by 45.8%. The most overvalued stock is CACH by 124.2%.
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. One stock (SMRT) is rated Buy, seven stocks are rated Hold and one stock is rated Strong Sell (CACH).
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 winner over the last twelve months is CRB with a gain of 188.1%. The biggest loser was BODY with a loss of 71.0%.
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. No big winners are projected with CACH expected to be lower by 13.0% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios range from 11.7 to 21.9.
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.