At www.ValuEngine.com we show that the Computer & Technology sector is 4.9% overvalued with the Computer – Services industry 0.7% overvalued, and Computer – Storage Devices industry 1.6% undervalued. All 14 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.
CIBER, Inc. (CBR) – has been below $9 for at least five years.
Dynamics Research Corp. (DRCO) – has only been below $10 since February 24, 2012.
Datalink Corp. (DTLK) – has only been below $10 since June 22, 2012.
GSI Technology Inc. (GSIT) – traded above $10 briefly in January and February 2011, then traded down to $4.35 in 2012.
Hutchinson Technology Inc. (HTCH) – has been below $10 since the week of January 29, 2010.
Imation Corp. (IMN) – has been below $10 since the week of May 13, 2011.
Innodata Inc. (INOD) – has been below $9 for at least five weeks.
Lionbridge Technologies Inc. (LIOX) – has been below $6.75 for at least five weeks.
Mattersight Corp. (MATR) – has been below $10 since the week of July 10, 2009.
NCI, Inc. (NCIT) – has only been below $10 since January 20, 2012.
OCZ Technology Group, Inc. (OCZ) – has only been below $10 since February 8, 2012.
Silicon Graphics International Corp. (SGI) – has only been below $10 since April 30, 2012.
Scientific Games Corp. (SGMS) – has only been below $10 since May 14, 2012.
Super Micro Computer, Inc. (SMCI) – has only been below $10 since October 10, 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 HTCH by 48.3%. The most overvalued stock is IMN by 132.0%.
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 one Buy rated stock, nine Hold rated stocks, three Sell rated stocks and one Strong Sell rated stock.
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 LIOX higher by 82.7%. The biggest loser is OCZ with a loss of 75.2%.
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 NCIT with a gain of 5.6%. The biggest loser is projected to be HTCH with a loss of 25.0%.
P/E Ratios – We only have one stock with a twelve month trailing single-digit P/E ratios. Four have reasonable P/E ratios between 10.9 and 11.9. Tow have elevated P/E ratios with GSIT at 47.4.
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.
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