At www.ValuEngine.com we show that the Computer & Technology sector is 6.7% overvalued, but with only 10 or fewer stocks in both the Electrical Measuring Instruments and the Electrical Manufacturing Services industries, ValuEngine does not calculate industry valuations. 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.
Camtek Ltd. (CAMT) – has been below $5 for at least five years.
Celestica Inc. (CLS) – has only been below $10 since March 30, 2012.
Cascade Microtech Inc. (CSCD) – has been below $10 since the week of January 11, 2008.
Flextronics International Ltd. (FLEX) – has been below $10 since the week of July 4, 2008.
inTEST Corp. (INTT) – has been below $5 for at least five years.
LTX-Credence Corp. (LTXC) – has been below $10 since the week of July 2, 2010.
Nova Measuring Instruments Ltd. (NVMI) – has been below $10 since the week of July 22, 2011.
Perceptron, Inc. (PRCP) – has been below $10 since the week of May 23, 2008.
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 CAMT by 59.1%. The most overvalued stock is NVMI by 12.4%.
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. We have one Buy rated stock, and seven Hold rated stocks.
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 CSCD higher by 71.6%. The only loser is CAMT with a loss of 24.3%.
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 FLEX but only with a gain of 5.8%. The only loser is projected to be LTXC with a loss of just 2.3%.
P/E Ratios – Three stocks have single-digit twelve month trailing single-digit P/E ratios. Four have reasonable 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.