At www.ValuEngine.com we show that the Medical sector 12.6% overvalued with the medical Products industry 10.4% undervalued. All 12 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
AtriCure, Inc. (ATRC) – was a $14.75 stock in June 2011, and has been below $10 since the week of April 7, 2012.
Boston Scientific Corp. (BSX) – was an $18 stock in February 2007 and has been below $10 since the week of October 31, 2009.
Chembio Diagnostics, Inc. (CEMI) – has been below $7.50 for at least five years.
Cerus Corp. (CERS) – has been below $10 since the week of October 27, 2007.
Cardica Inc. (CRDC) – has been below $10 since the week of September 27, 2008.
InfuSystem Holdings, Inc. (INFU) – has been below $6 for at least five years.
LeMaitre Vascular, Inc. (LMAT) – has been below $7.75 for at least five years.
Nordion Inc. (NDZ) – was a $22 stock in November 2007 and has been below $10 since the week of September 15, 2012.
Omeros Corp. (OMER) – has been below $10 since the week of November 3, 2012.
Rockwell Medical, Inc. (RMTI) – was a $16 stock in June 2011 and has been below $10 since the week of June 30, 2012.
TranS1, Inc. (TSON) – was a $26 stock in November 2007 and has been below $10 since the week of December 25, 2008.
Unilife Corp. (UNIS) – has been below $10 since the week of February 27, 2010.
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 TSON by 53.3%. The most overvalued stock is UNIS by 145.7%.
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. Three stocks (ATRC, BSX & NDZ) are rated Buy, seven stocks are rated Hold, one is rated Sell (RMTI), and one is rated Strong Sell (UNIS).
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 BSX with a gain of 21.4%. The biggest loser was RMTI with a loss of 50.8%.
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. These stocks are projected to be between 17.6% lower (UNIS) and 7.2% higher (BSX) over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios; of the four stocks with a P/E ratios, NDX has a single-digit P/E at 9.5.
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.