At www.ValuEngine.com we show that the Finance sector is 16.6% overvalued, with the Real Estate Investment Trust industry 24.9% 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.
Anworth Mortgage Asset Corp. (ANH) – has been below $10 since the week of March 1, 2008.
Cedar Realty Trust, Inc. (CDR) – has been below $10 since the week of October 25, 2008.
Corporacion Geo SAB de CV (CVGFY) – has been below $10 since the week of May 27, 2011.
DCT Industrial Trust Inc. (DCT) – had been below $10 since the week of May 9, 2008.
Diamondrock Hospitality Co. (DRH) – has only been below $10 since September 26, 2012.
Hersha Hospitality Trust (HT) – has been below $10 since the week of May 23, 2008.
Summit Hotel Properties, Inc. (INN) – has only been below $10 since February 29, 2012.
IRSA Investments and Representations Inc. (IRS) – has only been below $10 since April 3, 2012.
MPG Office Trust, Inc. (MPG) – has been below $10 since the week of September 26, 2008 after being a $44 stock in February 2007.
Supertel Hospitality, Inc. (SPPR) – has been below $8.50 since July 2007.
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 ANH by 10.2%. The most overvalued stock is MPG by 164.9%.
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 of ten stocks have Hold ratings, as MPG was downgraded to Sell this week.
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 DCT with a gain of 32.7%. The biggest loser was CVGFY with a loss of 28.0%.
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 ten stocks are projected to be down 7.4% (MPG) to up 4.6% (DCT & ANH) over the next twelve months.
P/E Ratios – Two stocks have single-digit twelve month trailing P/E ratios (CVGFY & IRS).
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.