All seven stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Black Diamond, Inc. (BDE) – was below $4 in January 2009, and above $10.50 in July 2012.
Dover Motorsports Inc. (DVD) – has been below $7.75 for at least five years.
Callaway Golf Co. (ELY) – has been below $10 since the week of May 7, 2010 after a high above $19 in 2007.
Ambassadors Group Inc. (EPAX) – was a $40 stock in October 2007 and has been below $10 since the week of February 27, 2011.
Marine Products Corp. (MPX) – has been below $10 since the week of April 6, 2007.
Rick's Cabaret International Inc. (RICK) – was a $29 stock in December 2007 and has been below $10 since the week of February 24, 2012.
Smith & Wesson Holding Corp. (SWHC) – was above $20 in 2007 and as low as $1.53 in November 2008 and has been trading back and forth around $10 since July 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 is EPAX by 62.9%. The most overvalued stock is ELY by 39.4%.
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 seven 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! The biggest winner over the last twelve months is SWHC with a gain of 75.4%. The biggest loser was Rick with a loss of 62.9%.
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 upside is limited to 3.7% for SWHC with the downside risk of 4.7% for ELY.
P/E Ratios – Three stocks (EPAX, RICK & SWHC) have single-digit twelve month trailing P/E ratios.
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