At www.ValuEngine.com we show that the Utilities sector is 12.9% undervalued. 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.
Cincinnati Bell Inc. (CBB) – has been below $6.25 for at least five years.
Edenor SA (EDN) – was a $25 stock in October 2007 and has been below $10 since the week of August 13, 2011.
Frontier Communications Corp. (FTR) – has been below $10 since the week of October 18, 2008.
Maxcom Telecomunicaciones S.A.B. de C.V. (MXT) – has been below $10 since the week of August 9, 2008.
Oi SA (OIBR) – has been below $10 since the week of June 18, 2011.
Pampa Energia SA (PAM)– was a $19 stock in January 2011 and has been below $10 since the week of March 24, 2012.
Sprint Nextel Corp. (S) – was a $23 stock in June 2007 and has been below $10 since the week of February 23, 2008.
Tata Communications Limited (TCL) – was a $40 stock in December 2007 and has been below $10 since the week of March 3, 2012.
Vonage Holdings Corp. (VG) – has been below $7.25 for at least five years.
Windstream Corp. (WIN) – has been below $10 since the week of October 27, 2012 and tested $10 on January 14, 2013.
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 EDN by 56.1%. The most overvalued stock is Sprint by 46.1%.
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. All ten stocks are rated Buys.
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 Sprint up 119.4%. The biggest loser is OIBR down 55.4%.
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. The range of gains is between 8.4% and 21.4%.
P/E Ratios – The 12 month trailing P/E ratios – OIBR & VG 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.