At www.ValuEngine.com we show that the Finance sector is 14.2% overvalued with the REITs industry 20.6% overvalued. All 10 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
BEE – was a $24 stock in July 2007, then traded as low as 61 cents in March 2009, after moving below $10 during the week of October 4, 2008.
DCT – has been below $10 since the week of May 10, 2008.
DRH – was a $21 stock in July 2007, then traded as low as $2.23 in November 2008 before moving back above $10 in March 2010 and has been below $10 since the week of October 6, 2012.
FCH – was a $29 stock in July 2007, then traded as low as 66 cents November 2008 and has been below $10 since the week of September 27, 2008.
HT – traded as low as $1.08 in March 2009 and has been below $10 since the week of May 24, 2008.
IRET– has been trading back and forth around $10 between $11.78 and $5.52 for the past five years and tested $10.02 on March 26, 2013.
LSE – traded as low as $1.40 in December 2008 and has been below $10 since the week of September 27, 2008.
MDH – has been below $10 since the week of November 10, 2007 and traded as low as 76 cents in February 2009.
MPG – was a $44 stock in February 2007 and has been below $10 since the week of September 27, 2008 with a low of 33 cents in March 2009.
SPPR– has been below $8.50 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 undervalued stock is FCH by 21.7%. The most overvalued stock is SPPR by 69.0%.
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 nine Hold-rated stocks and one Sell-rated stock (SPPR).
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 LSE up 56.7%. The only loser is DRH down 5.5%.
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 6.8% (SPPR) and a gain of 3.8% (MDH).
P/E Ratios – The 12 month trailing P/E ratios – We have one stock with a single-digit P/E ratio (MDH).
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.