At www.ValuEngine.com we show that the Industrial Products sector is 7.8% overvalued with the Electrical industry 14.1% undervalued and the General Industrial industry 3.7% overvalued. All seven 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.
AETI – has been below $10 since the week of August 3, 2007.
ARTW – has been below $10 since the week of April 22, 2011.
FLOW – has been below $10 since the week of August 22, 2008.
HDNG – has only been below $10 since November 8, 2012.
KWHIY – has only been below $10 since July 31, 2012.
MNTX – moved from below $4 to above $10 in 2012, but moved back below $10 on June 8, 2012.
TRIT – has been below $10 since the week of May 27, 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. We have five stocks in today’s table that are undervalued by 17.7% (MNTX) to 59.1% (TRIT).
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. Today we have one Buy rated stock, four Hold rated stocks and two Sell rated stocks.
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 past twelve months is MNTX higher by 74.3%. The biggest loser is TRIT with a loss of 55.2%.
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 projected biggest gainer is TRIT with a gain of 10.6%. The projected biggest loser is AETI with a loss of 10.1%.
P/E Ratios – ARTW, HDNG and TRIT have single-digit P/E ratios AETI and KWHIY have extremely elevated 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 should be 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.