At www.ValuEngine.com we show that the Consumer Discretionary sector 8.9% overvalued with the Schools industry 20.6% undervalued. All seven stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
ATAI – has been below $10 since the week of November 18, 2011.
CECO – was a $70 stock in 2004 and has been below $10 since the week of March 2, 2012.
CEDU – has been below $10 for at least five years.
COCO – has been below $10 since the week of August 6, 2010.
EDMC – was a $29 stock at the end of 2011 and below $10 since the week of May 25, 2012.
LINC – was a $28 stock in April 2010 and below $10 since the week of September 9, 2011.
NAUH – has been below $10 since the week of August 19, 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 COCO by 71.2%. The most overvalued stock is EDMC by 65.0%.
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. Four stocks are rated Hold and three stocks are rated Sell.
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! There were no big winners over the last twelve months¸ and the biggest loser was EDMU with a loss of 80.4%.
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. All seven are projected to be 1.5% to 9.9% (CECO) lower over the next twelve months.
P/E Ratios – Two stocks (COCO & EDMU) have single-digit twelve month trailing 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.