At www.ValuEngine.com we show that the Finance sector 18.7% overvalued with the Banks Northeast industry 27.1% overvalued. All 10 in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Boston Private Financial Holdings, Inc. (BPFH) – was a $30 stock in mid-2007, then a $3 stock in February 2009 and then back above $10 in March 2012. BPFH has been below $10 since the week of September 29, 2012.
1st Constitution Bancorp (FCCY) – has been below $10 since the week of January 3, 2009.
First Commonwealth Financial Corp. (FCF) – has been below $10 since the week of May 2, 2009.
Lakeland Bancorp Inc. (LBAI) – had only been below $10 since January 29, 2013.
Provident New York Bancorp (PBNY) – has been below $10 since the week of April 16, 2011.
Parke Bancorp Inc. (PKBK) – has been below $10 since the week of May 29, 2010.
Shore Bancshares, Inc. (SHBI) – was a $31 stock at the end of 2006 and has been below $10 since the week of May 7, 2011.
Sun Bancorp Inc. (SNBC) – has been below $10 since the week of November 15, 2008.
TrustCo Bank Corp. NY (TRST) – has been below $10 since the week of January 3, 2009.
Xenith Bankshares, Inc. (XBKS) – has been below $10 since the week of May 19, 2007.
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 SNBC by 20.6%. The most overvalued stock is TRST by 270.6%.
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. We have two Buy rated stocks (SNBC & XBKS), six Hold rated stocks, one Sell rated stock (SHBI) and one Strong Sell rated stock (TRST).
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 twelve months is XBKS up 45.8%. The biggest loser is BPFH with a loss of 5.9%.
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 loss of 18.7% (TRST) and a gain of just 5.3% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios shows one with a single-digit P/E ratio of 6.6 (PKBK).
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.