At www.ValuEngine.com we show that the Oils-Energy sector is 2.7% undervalued, with the Chemicals – Diversified industry 11.4% overvalued and the Chemicals – Specialty industry 47.0% overvalued. All seven 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.
ACET – has only been below $10 since December 4, 2012 after being as low as $4.51 on August 9, 2011.
FOE – has been below $10 since the week of August 12, 2011.
FSI – has been below $4.50 for at least five years.
LNDC – has only been below $10 since December 13, 2012 after being as low as $4.85 on October 5, 2011.
OMN – has been below $9.50 for at least five years.
PENX – was a $40 stock in October 2007, and has been below $10 since the week of May 7, 2010.
ZOLT – was a $50 stock in August 2007, and has only been below $10 since May 4, 2012 after a high of $15 on February 6, 2012 and a low of $5.60 on October 4, 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 most undervalued stock in today’s table is FSI by 60.4%. The most overvalued stock is FOE by 116.5%.
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 five Hold rated stocks, on Sell rated stock (FSI), and one Strong Sell rated stock (FOE).
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 winner over the last twelve months is LNDC with a gain of 69.2%. The biggest loser is FSI with a loss of 47.3%.
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 biggest gainer over the next twelve months is projected to be ZOLT with a gain of just 4.8%. The biggest loser is projected to be FOE with a loss of 20.5%.
P/E Ratios – Four stocks have favorable P/E ratios and FOE has an extremely elevated P/E ratio.
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.