At www.ValuEngine.com we show that the Computer & Technology sector is 4.9% overvalued with the Computer – Software industry 13.5% overvalued. All thirteen 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.
American Software, Inc. (AMSWA) – has been below $10 since the week of September 21, 2007.
Avid Technology, Inc. (AVID) – has only been below $10 since September 20, 2012.
Actuate Corporation (BIRT) – has been below $9 for at least five years.
Cover-All Technologies Inc. (COVR) – has been below $3.50 for at least five years.
CounterPath Corporation (CPAH) – has been below $4.00 for at least five years.
The Descartes Systems Group Inc (DSGX) – has been below $9.50 for at least five years.
GlobalSCAPE, Inc. (GSB) – has been below $7.75 for at least five years.
GSE Systems Inc. (GVP) – has been below $10 since the week of March 14, 2008.
Magic Software Enterprises Ltd. (MGIC) – traded up to $9.74 a year ago. Before that “break-out” that began in November 2011, the stock was stuck below $3.20 for at least five years. It’s been below $7.50 in 2012.
NQ Mobile Inc. (NQ) – has only been below $10 since May 15, 2012.
NetSol Technologies, Inc. (NTWK) – was a $23 stock in February 2011, and has been below $10 since the week of July 29, 2011.
Simulations Plus Inc. (SLP) – has been below $8.75 for at least five years.
ServiceSource International, Inc. (SREV) – 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 GVP by 53.6%. The only overvalued stock is SLP by 23.9%.
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 thirteen stocks in the table are rated Hold according to www.ValuEngine.com.
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 SLP higher by 49.3%. The biggest loser is SREV with a loss of 61.5%.
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 thirteen stocks are expected to move sideways over the next twelve months from a loss of 4.1% to a gain of 3.0%.
P/E Ratios – We only have two stocks with twelve month trailing single-digit P/E ratios. Three have reasonable P/E ratios. Four have elevated P/E ratios with SPAH at 228.0.
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.
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