At www.ValuEngine.com we show that the Basic Materials sector is 4.3% undervalued with the Mining – Non-Ferrous industry 16.7% undervalued and the Mining – Silver industry 17.5% overvalued. All nine of the stocks in today’s table have complete ValuEngine data and we have enough price data to have most value levels, risky levels and pivots.
Alcoa Inc. (AA) – has only been below $10 since May 2, 2012.
Alexco Resource Corp. (AXU) – traded up to $10.27 in April 2011, otherwise this stock has been below $10 for at least five years.
Endeavour Silver Corp. (EXK) – has only been below $10 since October 8, 2012.
Fortuna Silver Mines Inc. (FSM) – has been below $7.75 for at least five years.
Lundin Mining Corporation (LUNMF) – has been below $10 since the week of December 21, 2007.
Paramount Gold and Silver Corp. (PZG) – has been below $4.75 for at least five years.
Revett Minerals Inc (RVM) – has been below $6.50 for at least five years.
Thompson Creek Metals Company Inc. (TC) – has been below $10 since the week of July 29, 2011.
United States Antimony Corp. (UAMY) – has been below $5 for at least five years.
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 overvalued stock is EXK overvalued by 210.9%. The most undervalued is AA by 18.6%.
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. Today we have four Hold rated stocks, five Sell rated stocks and on Strong Sell rated stock, EXK.
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 only gainer of the past twelve months is LUNMF higher by 44.8%. The biggest loser is TC with a loss of 55.6%.
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. EXK is projected to lose 25.9% of its value over the next twelve months.
P/E Ratios – Only three stocks (EXK, FSM & LUNMF) have reasonable 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 should be 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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