At www.ValuEngine.com we show that the Autos-Tires-Trucks sector 17.3% overvalued. All eight stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
ACW – has been below $10 since the week of August 13, 2011.
CVGI– has been below $10 since the week of May 26, 2012.
FDML – was a $27 stock in April 2011. Has been below $10 since the week of October 20, 2012, and has tried to get back above $10 in February 2013 but failed.
FIATY – has been below $10 since the week of August 6, 2011.
MOD – has been below $10 since the week of March 3, 2012.
MPAA– has been below $10 since the week of April 7, 2012 after being as high as $15 in June 2011.
MTOR– was a $22 stock in January 2011, and has been below $10 since the week of November 5, 2012.
SPAR – has been below $10 since the week of August 1, 2009.
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 FDML by 285.3%. The most overvalued stock is FIATY by 32.7%.
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. Best rated stocks are ACW & FIATY with Hold ratings. We have three Sell-rated stocks and three 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 only gainer over the last twelve months is MOD up just 3.9%. The biggest loser was FDML down by 64.2%.
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 gains are expected and FDML is projected to lose 27.7%.
P/E Ratios – The twelve month trailing P/E ratios – CVGI and MTOR 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