At www.ValuEngine.com we show that the Construction sector is 20.1% overvalued, with the Building-Heavy Construction industry 24.8% overvalued and the Building-Residential/Commercial industry 26.2% overvalued.
All twelve 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.
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 SKY by 64.3%. The most overvalued stock is HW by 65.7%.
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 eight Hold rated stocks; three Sell rated stocks and two Strong Sell rated stock.
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 HW with a gain of 324.4%. The biggest loser is OESX with a loss of 33.3%.
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. There is not a single stock expected to be higher over the next twelve months. The two projected biggest losers are SKY with a loss of 16.5% and OESX with a loss of 18.9%.
P/E Ratios – Of the six stocks with P/E ratios all have elevated twelve month trailing P/E ratios between 33.5 and 364.0.
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.
GFA – has been below $10 since the week of September 9, 2011.
GLDD – has been below $10 since the week of June 29, 2007. The stock is currently approaching $10 again after being as low as $1.78 in March 2009.
HOV – has been below $10 since the week of May 16, 2008. Recent strength to $7.43 into 2013 came from a low of 52 cents in March 2009 and a high of $8.05 the week of May 7, 2010.
HW – has been below $10 since the week of November 14, 2008. the stock is attempting to get back to $10 in 2013 after being as low as $1.05 the week of October 7, 2011.
LYTS – has been below $10 since the week of October 3, 2008.
OESX – has been below $10 since the week of December 11, 2008.
ORN – has been below $10 since the week of June 17, 2011.
PGTI – has been below $10 since the week of September 28, 2007.
SKY – has been below $10 since the week of October 14, 2011.
SPF – has been below $10 since the week of September 28, 2007. Traded as low as 65 cents in March 2009 and set a multi-year high at $8.08 last week.
STRL – has been flirting with the $10 price as 2013 begins.
TINY – has been below $10 since the week of November 23, 2007.
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.
If you have any questions, please contact me at Rsuttmeier@gmail.com.
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