Stocks Under $10: Community Banks Rated Hold

Richard Suttmeier |

Mutual Funds Index ETFAt www.ValuEngine.com we show that the Finance sector is 15.6% overvalued, with the Banks-Northeast industry 21.4% overvalued and the Banks-Southeast industry 18.1% overvalued. All 12 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.

BPFH – has been only been below $10 since September 9, 2012.
BUSE – has been below $10 since the week of April 3, 2009.
CACB – has been below $10 since the week of September 9, 2011. Stock was above $300 at the end of 2006.
CRFN – had been below $10 since the week of December 28, 2007.
FCVA – has been below $10 since the week of February 12, 2010.
FUBC – has been below $10 since the week of May 16, 2008.
OSBC – has been below $10 since the week of January 23, 2009 after trading above $30 in 2007.
PKBK – has been below $10 since the week of May 28, 2010.
PSTB – has been below $10 since the week of November 14, 2008.
SBCF – had been below $10 since the week of October 17, 2008 after trading above $25 in May 2007.
STL – has only been below $10 since October 19, 2012.
XBKS – has been below $10 since the week of February 9, 2007.

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 OSBC by 59.4%. The most overvalued stock is XBKS by 48.3%.

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 eleven Hold rated stocks. CACB was Hold rated last week and has been upgraded to Buy.

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 CACB with a gain of 56.5%. The biggest loser was BUSE with a loss of 9.6%.

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. All twelve are projected to modest gains of 1.8% to 6.5% over the next twelve months.

P/E Ratios – Only PKBK has a single-digit twelve month trailing P/E ratios. Four have elevated P/E ratios of 23.3 to 50.7.

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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
SBCF Seacoast Banking Corporation of Florida 21.92 -0.06 -0.27 290,154
AEIS Advanced Energy Industries Inc. 53.49 -1.78 -3.22 319,996
FCVA First Capital Bancorp Inc (VA) n/a n/a n/a 0
PKBK Parke Bancorp Inc. 18.30 0.10 0.55 7,957
BPFH Boston Private Financial Holdings Inc. 16.20 0.20 1.25 470,773
BUSE First Busey Corporation 30.33 0.62 2.09 154,715
CACB Cascade Bancorp 7.95 0.14 1.79 342,020
PSTB Park Sterling Corporation 10.57 0.04 0.33 109,368
STL Sterling Bancorp 24.28 -0.13 -0.51 777,715
OSBC Old Second Bancorp Inc. 10.15 0.35 3.57 166,218
XBKS Xenith Bankshares Inc. 2.70 0.14 5.47 652,806

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