At www.ValuEngine.com we show that Consumer Staples sector is 26.1% overvalued with the Food-Misc/Diversified industry 26.8% overvalued, and the Food-Meat Products industry 14.7% 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.
Feihe International, Inc. (ADY) – was a $43 stock in July 2009 and has been below $10 since the week of June 4, 2011.
Chiquita Brands International Inc. (CQB) – was a $25 stock in June 2008, then a $4.25 stock in March 2009 and has been below $10 since March 10, 2012.
Crumbs Bake Shop, Inc. (CRMB) – has been below $10 since the week of August 20, 2011.
JBS S.A. (JBSAY) – has been below $10 since the week of August 14, 2010.
Pilgrim’s Pride Corp. (PPC) – has been below $10 since the week of May 15, 2010.
Inventure Foods, Inc. (SNAK) – has been below $10 for at least five years.
SunOpta Inc. (STKL) – has been below $10 since the week of January 26, 2008 and trade as low as $0.79 in March 2009.
Swisher Hygiene Inc. (SWSH)– has been below $10 since the week of April 30, 2011.
Synutra International Inc. (SYUT) – was a $52 stock in September 2008 and has been below $10 since the week of July 23, 2011.
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 JBSAY by 75.0%. The most overvalued stock is SNAK by 30.2%.
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 five Buy-Rated stocks, and four 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 last 12 months is ADY up 128.3%. The biggest loser was SWSH down by 60.4%.
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. The range is between a loss of just 0.5% and a gain of 10.5%.
P/E Ratios – The 12 month trailing P/E ratios – ADY has a single-digit P/E ratio.
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.