At www.ValuEngine.com we show that the Retail-Wholesale sector 11.2% overvalued with the Food & Restaurant industry 13.9% overvalued. All nine stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Country Style Cooking Restaurant Chain Co., Ltd. (CCSC) – has been below $10 since the week of April 6, 2012.
Denny’s Corp. (DENN) – is trading at a multi-year high at $5.65 as of last week.
Jamba, Inc. (JMBA) – has been below $10 since the week of June 22, 2007.
Kona Grill Inc. (KONA) – has been below $10 since the week of March 7, 2008.
Luby’s, Inc. (LUB) – has been below $10 since the week of February 15, 2008.
Ruby Tuesday, Inc. (RT) – has been below $10 since the week of July 29, 2011. This was a $30 stock in February 2007 and below a buck in February 2009.
Ruth’s Hospitality Group Inc. (RUTH) – has been below $10 since the week of December 7, 2007.
Carrols Restaurant Group, Inc. (TAST) – was a 50 cent stock in November 2008 and traded above $6.50 in January 2013.
The Wendy’s Company (WEN) – was a $20 stock in early 2007 and traded as low as $2.75 November 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 only undervalued stock is CCSC by 30.1%. The most overvalued stock is TAST by 73.6%.
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. One stock (KONA) is rated Buy and eight 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 TAST with a gain of 80.6%. The biggest loser was CCSC with a loss of 23.4%.
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. These stocks are projected to gains between 1.3% and 5.8% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios range from 14.8 to 39.5 (LUB).
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.