At www.ValuEngine.com we show that the Finance sector is 13.3% overvalued. The Banks West industry is 4.2% overvalued. 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.
AMRB – was a $24 stock in January 2007 and has been below $10 since the week of August 8, 2009.
CACB – was a $319 stock in December 2006 and has been below $10 since the week of August 13, 2011.
COBZ – was a $22 stock in December 2006 and has been below $10 since the week of December 27, 2008.
CVCY – has been below $10 since the week of August 2, 2008.
FCAL – has been below $10 since the week of October 20, 2007.
GBNK – has been below $9.75 for at least five years.
HEOP – has been below $10 since the week of May 31, 2008.
HTBK – was a $27 stock in February 2007 and has been below $10 since the week of January 24, 2009.
SSBI – has been below $10 since the week of October 6, 2007.
WIBC –has been below $10 since the week of June 12, 2010.
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 GBNK by 47.8%. The most overvalued stock is FCAL by 27.1%.
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 Hold.
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 ten stocks were gainers over the last 12 months by 4.6% (AMRB) and 42.5% (FCAL).
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 expectations is between a loss of 2.3% (AMRB) and a gain of 5.0% (WIBC).
P/E Ratios – The 12 month trailing P/E ratios – WIBC has a single-digit 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.