At www.ValuEngine.com we show that the Oils-Energy sector is 6.4% overvalued with the Oil & Gas Field Services industry 3.6% overvalued. All nine stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Blueknight Energy Partners, L.P. (BKEP) – was a $27 stock in July 2007 and has been below $10 since the week of January 16, 2010.
Deep Down, Inc. (DPDW) – was a $47 stock in October 2007 and has been below $10 since the week of October 18, 2008.
Cal Dive Intl, Inc (DVR) – has been below $10 since the week of November 7, 2009.
Key Energy Services Inc. (KEG) – has been below $10 since the week of June 30, 2012.
North American Energy Partners Inc. (NOA) – has been below $10 since the week of May 28, 2011.
Newpark Resources Inc. (NR) – has been below $10 since the week of January 21, 2012.
TGC Industries Inc. (TGE) – after being as low as a buck in November 2008 the stock was above $10 in 2013 until April Fools Day.
TETRA Technologies, Inc. (TTI) – after being as low as two bucks in March 2009 the stock moved above $10 in 2013 until April Fools Day.
Willbros Group Inc. (WG) – was a $47 stock in June 2008 and has been below $10 since the week of May 21, 2011 and tried to recapture $10 this week.
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 KEG by 23.2%. The most overvalued stock is TGE by 48.7%.
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. Seven ten stocks are rated Holds and two (DPDW & DVR) are rated Sells.
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 WG up 202.2%. The biggest loser is KEG down 52.1%.
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 range of losses to gains is between a loss of 7.7% (DPDW) and a gain of 4.2% (TGE).
P/E Ratios – The 12 month trailing P/E ratios – WG has an extremely elevated P/E ratio at 326.3.
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.