At www.ValuEngine.com we show that the Consumer Discretionary sector is 2.4% overvalued with the Leisure & Recreation Products & Services industries 28.1% overvalued on the product side and 18.3% overvalued on the services side. All nine stocks have complete ValuEngine data and enough data to have a complete set of value levels, risky levels and pivots.
Black Diamond, Inc. (BDE) – was above $10 on October 17, 2012.
Ballantyne Strong, Inc (BTN) – has been below $10 for at least five years.
ClearOne Communications Inc. (CLRO) – has been below $10 for at least five years.
Dover Motorsports Inc. (DVD) – has been below $3 for at least five years.
Ambassadors Group Inc. (EPAX) – has been below $10 since May 16, 2011.
LeapFrog Enterprises Inc. (LF) – has been below $10 since September 10, 2012.
LRAD Corporation (LRAD) – has been below $3.50 for at least five years.
Marine Products Corp. (MPX) – has been below $10 for at least five years.
Rick’s Cabaret International Inc. (RICK) – has been below $10 since February 16, 2012.
Reading the Table
V / 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. BZH is the most undervalued by 59.1%. GFA is the most overvalued by 65.7%.
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. <P/> 3 stocks are rated Strong Sell, 5 are rated Sell, six are rated Hold, and only one, CX, is rated 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. The best performer over the past twelve months is HOV with a gain of 262.1%. The worst performer over the past twelve months is SKY with a loss of 43.2%.
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 projected gain is 6.8% CX. The worst projected loss is SKY 19.6%.
P/E Ratios: Only ICA has a reasonable P/E ratio, while the others don’t have one, or the P/E ratio is extremely elevated.
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.