Stocks Under $10: Opportunities in Pharmaceutical Names

Richard Suttmeier |

Stocks Under $10: Opportunities in Pharmaceutical NamesAt www.ValuEngine.com we show that the Medical sector 12.6% overvalued with the Medical Drugs industry 16.2% overvalued. All 15 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.

ACRX – has been below $6 since the week of February 12, 2011.
ANAC – has been below $9.50 since the week of November 27, 2010.
ARQL – has been below $10.60 since the week of May 5, 2007.
CADX – has been below $10 since the week of May 15, 2010.
CEMP – has been below $9.60 since the week of February 4, 2012.
CPIX – has been below $10 since the week of May 22, 2010.
GALT – has been below $10 since the week of March 3, 2007.
LCI – has been below $9.75 for at least five years.
NPSP – has been below $10 since the week of December 15, 2012.
POZN – has been below $10 since the week of May 15, 2010.
PTIE – has been below $10 since the week of June 18, 2011.
QLTI – has been below $10 for at least five years.
RIGL – has been below $10 since the week of October 13, 2012.
SCLN – has been below $7.60 for at least five years.
SCMP – has been below $10 since the week of October 4, 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 ARQL by 58.1%. The most overvalued stock is LCI by 63.2%.

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 three Buy rated stocks (NPSP, SCLN & SCMP), then Hold rated stocks, and two Sell rated stocks (ACRX & ANAC).

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 LCI with a gain of 99.3%. The biggest loser was ARQL with a loss of 63.4%.

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 decline of 7.0% and a gain of 8.2% over the next twelve months.

P/E Ratios – The twelve month trailing P/E ratios. None have P/E ratios. Only three stocks have P/E ratios with on having a single-digit P/E (SCLN).
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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
ACRX AcelRx Pharmaceuticals Inc. 3.89 0.17 4.57 384,587
ANAC Anacor Pharmaceuticals Inc. n/a n/a n/a 0
ARQL ArQule Inc. 1.79 0.02 1.13 101,081
CEMP Cempra Inc. 24.20 0.32 1.34 1,656,807
CPIX Cumberland Pharmaceuticals Inc. 5.01 0.15 3.09 14,436
DSX.P.B Diana Shipping Inc. Perpetual Preferred Shares Ser 17.12 0.10 0.59 16,018
LCI Lannett Co Inc 26.57 -0.22 -0.82 945,375
POZN Pozen Inc. n/a n/a n/a 0
PTIE Pain Therapeutics 1.00 -0.01 -1.00 2,228,129
QLTI QLT Inc. 2.06 0.03 1.48 311,343
RIGL Rigel Pharmaceuticals Inc. 3.67 0.10 2.80 795,820
SCLN SciClone Pharmaceuticals Inc. 10.25 0.16 1.59 355,001
SCMP Sucampo Pharmaceuticals Inc. 12.31 0.01 0.08 291,483

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