At www.ValuEngine.com we show that Consumer Staples sector is 25.9% overvalued with the Agricultural Operations industry 64.5% overvalued, the Alcoholic Beverage industry 24.5% overvalued, the Soft Drink industry 8.1% overvalued, the Cosmetics and Toiletries industry 2.9% overvalued, and the Funeral Services industry 20.6% overvalued.
All seven stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Adecoagro S.A. (AGRO) – has been below $10 since the week of October 13, 2012.
Craft Brew Alliance, Inc. (BREW) – traded at $0.85 in March 2009, then above $10 in mid-2001, and has been below $10 since the week of June 25, 2011.
Cott Corp. (COT) – has been below $10 since the week of June 29, 2007.
The Female Health Company (FHCO) – has been below $8.50 for at least five years.
Primo Water Corp. (PRMW) – has been below $10 since the week of August 20, 2011.
REEDS, Inc. (REED)– was a $1.10 at the end of 2011 and as high as $8.82 in October 2012.
Stewart Enterprises Inc. (STEI) – has been below $10 for at least five years with a low of $1.67 in March 2009.
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 PRMW by 52.4%. The most overvalued stock is COT by 42.5%.
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. We have four Buy-Rated stocks, and three Hold-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 last 12 months is REED up 165.9%. The biggest loser was PRMW down by 41.6%.
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. The range is between no change and a gain of 7.2%.
P/E Ratios – The 12 month trailing P/E ratios – BREW and REED have 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.