At www.ValuEngine.com we show that the Oils-Energy sector is 5.4% overvalued with the Oil & Gas Exploration and Production industry 3.0% overvalued. All 11 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
EPM – was trading at a buck in November 2008 and traded above $11 on February 13, 2013.
FST – was a $59 stock in July 2008 and has been below $5 since March 25, 2013.
HK – has been below $10 since the week of July 7, 2012.
HNR – was a $17 stock in March 2012 and has been below $5 since March 19, 2013.
KOG – traded below a buck in March 2009 and as high as $10.90 in February 2012, and has been below $10 since the week of April 14, 2012.
MTDR– has been below $10 since the week of October 13, 2012.
SARA – has been below $10 since the week of May 28, 2011.
SD – was a $69 stock in July 2008 and has been below $10 since the week of August 13, 2011.
SYRG – has been below $10 since the week of January 30, 2010.
WRES– has been below $10 since the week of October 11, 2008.
XCO – was a $37 stock in July 2008 and has been below $10 since the week of January 14, 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 HNR by 68.0%. The most overvalued stock is EPM by 242.8%.
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. There are two Buy-rated stocks (HNR & WRES), six Hold-rated stocks, and three Sell-rated stocks (EPM, SARA & SD).
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 SYRG up 97.3%. The biggest loser is SARA down 68.7%.
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 of losses to gains is between a loss of 11.3% (EPM) and a gain of 6.3% (WRES).
P/E Ratios – The 12 month trailing P/E ratios – We have one with a single-digit P/E ratio (HNR) and one with an extremely P/E ratio at 227.0.
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.
If you have any questions, please contact me at [email protected].