At www.ValuEngine.com we show that the Auto-Tires-Trucks sector is 10.5% overvalued. All 10 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Accuride Corp. (ACW) – has been below $10 since the week of August 13, 2011.
Commercial Vehicle Group Inc. (CVGI) – has been below $10 since the week of May 26, 2012.
Federal-Mogul Corp. (FDML) – was a $27 stock in April 2011 and has been below $10 since the week of October 20, 2012.
Fiat S.p.A. (FIATY) – was a $34 stock in July 2007 and has been below $10 since the week of August 6, 2011.
Iochpe-Maxion S.A. (IOCJY) – has been below $7 for at least five years.
Modine Manufacturing Co. (MOD) – was a $29 stock in August 2007 and has been below $10 since the week of March 3, 2012.
Motorcar Parts of America, Inc. (MPAA) – has been below $10 since the week of April 7, 2012.
Meritor, Inc. (MTOR) – was a $22 stock in January 2011 and has been below $10 since the week of November 12, 2011.
Spartan Motors, Inc. (SPAR) – has been below $10 since the week of August 1, 2009.
China Zenix Auto International Limited (ZX) – has been below $7 since May 2011.
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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 FIATY by 38.6%. The most overvalued stock is FDML by 276.6%.
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. We have three Hold rated stocks, six Sell rated stocks, and one Strong Sell rated stock (FDML).
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! All ten stocks were losers over the last twelve months led to the downside by FDML with a loss of 61.7%.
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. These stocks are projected to trade between a decline of 25.6% and a gain of 2.9% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios. Four of the eight stocks that have P/E ratios have single-digit P/E ratios (CVGI, FIATY, MTOR & ZX).
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.