At www.ValuEngine.com we show that the Oils-Energy sector is 3.0% undervalued, with the Coal industry 10.5% overvalued. All five 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.
Arch Coal Inc. (ACI) – has only been below $10 since May 2, 2012.
Alpha Natural Resources, Inc. (ANR) – has only been below $10 since June 8, 2012. This was a $119 stock in July 2008.
Hallador Energy Company (HNRG) – has only been below $10 since November 7, 2012.
James River Coal Co. (JRCC) – has been below $10 since the week of November 18, 2011. Was a $62 stock in June 2008.
Oxford Resource Partners, L.P. (OXF) – has only been below $10 since October 31, 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 JRCC by 70.5%. The most overvalued stock is ACI by 25.8%.
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 two Hold rated stocks, two Sell rated stocks, and one strong sell rated stock in JRCC.
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 five stocks are lower over the last twelve months. The biggest loser is OXF with a loss of 63.4%.
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 best performer is expected to be HNRG but only with a gain of 2.7%. The biggest loser is projected to be JRCC with a loss of 24.6%.
P/E Ratios – Only two stocks have P/E ratios with HNRG having a favorable P/E and ACI having an extremely elevated P/E.
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.