At www.ValuEngine.com we show that the Computer & Technology sector is 0.3% undervalued with the Internet Software Industry 20.0% undervalued. All seven of the stocks in today’s table have complete ValuEngine data and we have enough price data to have limited value levels, risky levels and pivots.
TeleCommunication Systems Inc. (TSYS) – has been below $10 since the week of January 29, 2010.
Support.com, Inc. (SPRT) – has been below $7.25 for at least five years.
eGain Communications Corp. (EGAN) – has been below $9.50 for at least five years.
Responsys, Inc. (MKTG) – has only been below $10 since October 16, 2012.
RealNetworks Inc. (RNWK) – has only been below $10 since April 9, 2012.
ClickSoftware Technologies Ltd. (CKSW) – has only been below $10 since May 4, 2012.
Sonic Foundry Inc. (SOFO) – has been below $10 since the week of November 18, 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. There are two overvalued stock in today’s table with TSYS 36.8% overvalued and SPRT 38.3% overvalued. All other stocks in today’s table are undervalued with EGAN the most undervalued by 60.2%.
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 seven stocks are rated a Hold.
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. The biggest and only gainer over the past twelve months is SPRT with a gain of 102.9%. The biggest loser was MKTG with a loss of 30.1%.
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 seven stocks are projected to be up or down by less than 3.5% over the next twelve months.
P/E Ratios – Three stocks in the table do not have P/E ratios. TSYS has a reasonable P/E ratio and the others have 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.
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