At www.ValuEngine.com we show then Hold or Sell rated stocks in the S&P 500 that ended Monday trading below $10 per share. One is in the Basic Materials sector which is 9.0% undervalued. One is in the Computer & Technology sector which is 10.4% overvalued. One is in the Oils-Energy sector which is 3.3% overvalued. Six are in the Finance sector which is 15.2% overvalued. One is in the Retail-Wholesale sector which is 17.1% overvalued.
All ten stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
AA – was a $48 stock in July 2007 and has been below $10 since the week of May 12, 2012.
AMD – was a $20 stock at the end of 2006 and has been below $10 since the week of May 8, 2010.
ANR – was a $119 stock in July 2008 and has only been below $10 since January 24, 2013.
GNW – was a $37 stock in February 2007 and has been trading around $10 since early March 2013.
HBAN – was a $24 stock in February 2007 and has been below $10 since the week of November 15, 2008.
HCBK– has been below $10 since the week of April 16, 2011.
JNS – was a $37 stock in November 2007 and has been below $10 since January 25, 2013.
KEY – was a $39 stock in February 2007 and has been trading around $10 since early March 2013.
RF – was a $38 stock in January 2007 and has been below $10 since the week of December 20, 2008.
SVU – was a $49 stock in July 2007 and has been below $10 since the week of June 11, 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 in today’s table is AMD by 60.3%. The most overvalued stock is SVU by 300.0%.
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. Nine are rated Hold and SVU is rated Strong 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! The biggest gainer over the last 12 months is RF up by 25.6%. The biggest loser is AMD down 68.8%.
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. The range of expectations is between a loss of 15.6% (SVU) and a gain of 5.5% (AMD).
P/E Ratios – The 12 month trailing P/E ratios – GNW and RF have single-digit 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.