At www.ValuEngine.com we show that the Retail-Wholesale sector is 10.9% overvalued with the Internet Commerce industry 5.1% overvalued, and the Retail-Mail Order industry 25.1% overvalued. All eight stocks in today’s table have complete ValuEngine data and enough data to have most value levels, risky levels and pivots.
Autobytel Inc. (ABTL) – has been below $10 since the week of June 6, 2008.
1-800-Flowers.com Inc. (FLWS) – has been below $10 since the week of December 14, 2007.
Gaiam Inc. (GAIA) – has been below $10 since the week of October 10, 2008.
hhgregg, Inc. (HGG) – has been below $10 since July 11, 2012.
PC Mall Inc. (MALL) – has been below $10 since the week of May 6, 2011.
Nautilus Inc. (NLS) – has been below $10 since the week of August 17, 2007.
Orbitz Worldwide, Inc. (OWW) – has been below $10 since the week of December 28, 2007.
World Energy Solutions, Inc. (XWES) – has been below $10 since the week of July 18, 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. There most overvalued stock in this table is XWES by 30.0%. The most undervalued stock is GAIA by 71.3%.
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 one Buy rated stock (HGG) and seven hold rated stocks in the table.
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. The best performer over the past twelve months is NLS with a gain of 51.4%. The worst performer is HGG with a loss of 53.3%.
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. None of these stocks are projected to be big winners over the next twelve months.
P/E Ratios – HGG as a favorable P/E ratio, two reasonable P/P ratios (MALL & NLS), the remainder have elevated P/E ratios.
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 should be 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].