Stocks Under $10: Are These Tech Stocks Still Attractive?

Andrew Klips  |

At www.ValuEngine.com we show that the Computer & Technology sector is 2.2% undervalued. All seven of the stocks in today’s table have complete ValuEngine data and we have enough price data to have limited value levels, risky levels and pivots.

Bitauto Holdings Ltd. (BITA) – has been below $10 since the week of May 20, 2011.
ChinaCache Intl. Holdings Ltd. (CCIH) – has been below $10 since the week of July 15, 2011.
 E-Commerce China Dangdang Inc. (DANG) – has only been below $10 since April 16, 2012.
Move, Inc. (MOVE) – has been below $10 since the week of July 29, 2011.
Monster Worldwide, Inc. (MWW) – has only been below $10 since April 3, 2012.
QuinStreet, Inc. (QNST) – has only been below $10 since July 23, 2012.
Renren Inc. (RENN) – has been below $10 since the week of August 12, 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 only overvalued stock in today’s table is BITA, overvalued by 29.9%. All other stocks in today’s table are undervalued with NWW the most undervalued by 61.2%.

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. All seven stocks are rated a Hold.

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. The biggest gainer over the past twelve months is BITA with a gain of just 62.6%. The biggest loser was QNST with a loss of 38.4%.

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. All seven stocks are projected to be up or down by less than 5% over the next twelve months.

P/E Ratios – Two stocks in the table do not have P/E ratios. BITA has a single-digit P/E ratio and QNST has a reasonable P/E ratio. The others have elevated 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 should be 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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BITA Bitauto Holdings Limited American Depositary Shares (each representing one) 19.87 0.37 1.90 287,511 Trade
JAZZ Jazz Pharmaceuticals plc 128.28 0.28 0.22 827,145 Trade
RENN Renren Inc. American Depositary Shares each representing fifteen Class A 1.70 0.00 0.00 49,390 Trade
QNST QuinStreet Inc. 18.55 0.24 1.31 485,279 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
DANG E-Commerce China Dangdang Inc. American Depositary Shares each representing five Class A n/a n/a n/a 0 Trade
CCIH ChinaCache International Holdings Ltd. 1.17 -0.02 -1.68 62,192 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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