At www.ValuEngine.com we show that the Medical sector 7.8% overvalued. The Nursing Homes industry is 53.8% overvalued. The Dental Supplies industry is 13.7% overvalued. The Outpatient/Home Care industry is 10.5% 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.
AdCare Health Systems Inc. (ADK) – has been below $6.10 for at least five years.
Alphatec Holdings, Inc. (ATEC) – has been below $7.65 for at least five years.
Concord Medical Services Holdings Limited (CCM) – has been below $10 since the week of February 6, 2010.
China Cord Blood Corporation (CO) – has been trading below $6.75 since January 2010.
Five Star Quality Care Inc. (FVE) – has been below $10 since the week of November 17, 2007.
LCA-Vision Inc. (LCAV) – was a $50 stock in July 2007 and has been below $10 since the week of May 17, 2008.
Medical Action Industries Inc. (MDCI) – was a $25 stock in 2007 and has been below $10 since the week of August 21, 2010.
Patient Safety Technologies, Inc. (PSTX) – has been below $2.50 for at least five years.
RadNet, Inc. (RDNT) – has been below $10 since the week of January 12, 2008.
Select Medical Holdings Corp. (SEM) – has only been below $10 since December 18, 2012.
Skilled Healthcare Group, Inc. (SKH) – has been below $10 since the week of July 23, 2011.
STAAR Surgical Company (STAA) – has been below $10 since the week of May 26, 2012.
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 LCAV by 49.9%. The most overvalued stock is FVE by 127.9%.
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 three Buy rated stocks (CCM, RDNT & SEM), seven Hold rated stocks, and two Sell rated stocks (FVE & LCAV).
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 FVE with a gain of 107.9%. The biggest loser was LCAV with a loss of 60.2%.
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. These stocks are projected to trade between a decline of 8.6% and a gain of 9.3% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios. Three of the nine stocks that have P/E ratios have single-digit P/E ratios (CCM, SEM & SKH). STAA has an extremely elevated P/E of 228.9.
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.