Stocks Under $10: Investment Banks With Hold Ratings

Richard Suttmeier |

Wall Street FinancialsAt www.ValuEngine.com we show that the Finance sector is 16.1% overvalued, with the Investment Bankers industry 13.4% overvalued and the Investment management industry 27.1% overvalued. All 10 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.

BGCP – has been below $10 since the week of March 11, 2011.
CLMS – has been trading back and forth around $10 so far in 2013, down from $10.97 on January 2nd to $9.59 on January 16th.
COWN – has been below $10 since the week of October 10, 2008.
FIG – had been below $10 since the week of October 10, 2008.
GCAP – has been below $10 since the week of February 4, 2011.
HEK – has been below $10 since the week of September 19, 2008.
ITG – has only been below $10 since May 4, 2012.
JMP – has been below $10 since the week of January 15, 2010.
NOAH – has been below $10 since the week of October 7, 2011.
OZM – has been trying to get back above $10 this month with a high of $9.97 on January 3rd.

Investment Banks Under 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 COWN by 52.8%. The most overvalued stock is FIG by 51.1%.

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 FIC with a gain of 52.7%. The biggest loser was BGCP with a loss of 35.6%.

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 3.1% to up 4.9% over the next twelve months.

P/E Ratios – Three stocks have single-digit twelve month trailing P/E ratios (BGCP, CLMS & OZM). ITG has an extremely elevated P/E ratio.

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.

If you have any questions, please contact me at Rsuttmeier@gmail.com.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BGCP BGC Partners Inc. 8.76 -0.03 -0.31 1,070,228
CLMS Calamos Asset Management Inc. 6.82 0.04 0.59 67,841
COWN Cowen Group Inc. 3.63 0.17 4.91 652,413
FIG Fortress Investment Group LLC Class A 4.95 0.05 1.02 251,546
GCAP GAIN Capital Holdings Inc 6.22 0.07 1.14 64,648
ITG Investment Technology Group Inc. 17.08 0.30 1.79 108,804
JMP JMP Group LLC 5.50 0.00 0.00 15,175
NOAH Noah Holdings Limited 26.09 -0.19 -0.72 30,176
OZM Och-Ziff Capital Management Group LLC Class A Shar 4.41 -0.08 -1.78 1,196,694
SGAED SGAED n/a n/a n/a 0

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