At www.ValuEngine.com we show that the Finance sector is 16.8% overvalued, with the Finance-SBIC & Commercials industry 31.1% 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.
CISG – has been below $10 since the week of September 23, 2011.
FULL – has been below $10 since September 2010.
GAIN – has been below $10 since the week of March 28, 2008.
GLAD – had been below $10 since the week of June 10, 2011.
GNW – has been below $10 since the week of July 22, 2011.
HALL – has been below $10 since the week of August 20, 2010.
MCGC – has been below $10 since the week of April 4, 2008.
NGPC – has been below $10 since the week of March 18, 2011.
SILU – has been below $3.25 for at least five years.
UAM – opened above $10 on January 25, but then fell back below $10.
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 CISG by 31.9%. The most overvalued stock is MCGC by 28.2%.
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. All ten stocks have Hold ratings.
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 HALL with a gain of 27.8%. The biggest loser was CISG with a loss of 16.5%.
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 0.7% to up 4.5% over the next twelve months.
P/E Ratios – Two stocks have elevated twelve month trailing P/E ratios (HALL & SILU).
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.
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