At www.ValuEngine.com we show that the Consumer Discretionary sector 7.8 percent overvalued with the Audio / Video Home Products industry 3.55 percent overvalued, the Furniture industry 45.9 percent overvalued and the Textile Apparel Manufacturing industry 2.0 percent 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.
Ballantyne Strong, Inc (BTN) – has been below $10 for at least five years.
Crown Crafts, Inc. (CRWS) – has been below $6.75 for at least five years.
The Dixie Group, Inc. (DXYN) – has been below $10 since the week of December 7, 2007.
Furniture Brands International Inc. (FBN) – has been below $10 since the week of October 17, 2008.
Joe's Jeans Inc. (JOEZ) – has been below $3.60 for at least five years.
LRAD Corp. (LRAD) – has been below $5 for at least five years.
Skullcandy, Inc. (SKUL) – has only been below $10 since November 6, 2012.
Stanley Furniture Co. Inc. (STLY) – has been below $10 since the week of May 15, 2010.
Quiksilver Inc. (ZQK) – has been below $10 since the week of July 11, 2008.
Sealy Corporation (ZZ) – has been below $10 since the week of March 7, 2008.
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 CRWS by 45.5%. The most overvalued stock is ZQK by 72.7%.
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. Eight stocks are rated Hold, one (DXLN) is rated Sell and one (FBN) is rated Strong Sell.
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 JOEZ with a gain of 77.5%. The biggest loser was SKUL with a loss of 55.1%.
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. The upside is limited to 0.8% for CRWS with the downside risk of 12.9% for FBN.
P/E Ratios – Only one (SKUL) has a single-digit twelve month trailing P/E ratio. Two (ZQK & ZZ) have extremely 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 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.
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