At www.ValuEngine.com we show that the Finance sector is 18.2% overvalued, with the Investment Bankers industry 17.7% overvalued and the Banks Northeast Industry 25.5% overvalued. All 10 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
ART – has been below $10 since the week of August 12, 2011.
CSFS – has been below $10 since the week of November 4, 2011.
EJ – has been below $10 since the week of June 10, 2011.
GFIG – had been below $10 since the week of September 19, 2008.
KCG – has only been below $10 since August 2, 2012.
MIG – has been below $10 since the week of April 27, 2012.
MPG – has been below $10 since the week of September 26, 2008.
SHBI – has been below $10 since the week of May 6, 2011.
SWS – has been below $10 since the week of July 9, 2010.
TRST – has been below $10 since the week of January 2, 2009.
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 only undervalued stock is ART by 36.9%. The most overvalued stocks are TRST by 276.4% and SHBI by 271.5%.
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. Six of ten stocks have Sell ratings, and for have Strong Sell ratings.
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 only winner over the last twelve months is MPG with a gain of 24.4%. The biggest loser was KCG with a loss of 71.8%.
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 ten stocks are projected to be down 5.4% (EJ) to down 19.8% (KCG) over the next twelve months.
P/E Ratios – Two stocks have single-digit twelve month trailing P/E ratios (ART & KCG).
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.