At www.ValuEngine.com we show that the Computer & Technology sector is 4.2% overvalued with the Computer – Integrated Systems industry 6.5% overvalued. All eight 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.
Agilysys Inc. (AGYS) – has been below $10 since the week of May 7, 2010.
Concurrent Computer Corporation (CCUR) – has been below $10 since the week of December 14, 2007.
Echelon Corporation (ELON) – has been below $10 since the week of July 15, 2011.
Iteris, Inc. (ITI) – has been below $4.25 for at least five years.
Orbotech Ltd. (ORBK) – has only been below $10 since June 4, 2012.
PAR Technology Corporation (PAR) – has been below $10 since the week of May 11, 2007.
VASCO Data Security International Inc. (VDSI) – has only been below $10 since August 23, 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 ELON by 52.6%. The most overvalued stock is CCUR by 297.9%.
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. All stocks in today’s table are rated Hold according to ValuEngine.
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 CCUR higher by 67.9%. The biggest loser is ELON with a loss of 48.5%.
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. All stocks in the table are expected to essentially move sideways over the next twelve months between a gain of just 2.4% to a loss of 4.3%.
P/E Ratios – The only stock with a reasonable P/E ratio is VDSI with a 15.5 twelve month trailing 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 should be 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.