At www.ValuEngine.com we show that the Computer & Technology sector is 6.2% overvalued, with the Electrical Miscellaneous Components industry 20.7% overvalued. All 15 of the stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Cogo Group, Inc. (COGO) – has been below $10 since the week of July 4, 2008.
CTS Corporation (CTS) – has only been below $10 since October 4, 2012.
IEC Electronics Corp. (IEC) – has been below $10 for at least five years but nearly tested $10 in February 2011.
Intermolecular, Inc. (IMI) – has been below $10 since the week of December 2, 2011.
KEMET Corp. (KEM) – has only been below $10 since February 27, 2012.
Methode Electronics, Inc. (MEI) – has only been below $10 since November 5, 2012.
Maxwell Technologies Inc. (MXWL) – traded above $21 in February 2012, has been below $10 since May 1, 2012.
Power-One Inc. (PWER) – has been below $10 since the week of February 11, 2011.
RadiSys Corporation (RSYS) – has been below $10 since the week of November 19, 2010.
SMTC Corp. (SMTX) – has been below $8.50 at least five years.
Stoneridge Inc. (SRI) – has only been below $10 since April 4, 2012.
TTM Technologies Inc. (TTMI) – has only been below $10 since September 26, 2012.
Ultralife Corp. (ULBI) – has been below $10 since the week of January 30, 2009.
Exide Technologies (XIDE) – has been below $10 since the week of May 20, 2011.
ZAGG Inc. (ZAGG) – has only been below $10 since August 6, 2012.
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 in today’s table is SMTX by 71.3%. The most overvalued stock is KEM by 27.9%.
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 one Buy rated stock (SMTX), twelve Hold rated stocks and two Sell rated stocks (KEM & XIDE).
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 past twelve months is IEC higher by 40.9%. The biggest loser is MXWL with a loss of 51.5%.
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 best performer is expected to be SMTX but only with a gain of 6.2%. The biggest loser is projected to be KEM with a loss of 6.6%.
P/E Ratios – Five stocks have single-digit twelve month trailing P/E ratios. Three stocks have reasonable P/E ratios. MEI & MXWL 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 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.