At www.ValuEngine.com we show that the Finance sector 18.2 percent overvalued with the Banks Southeast industry 14.0 percent overvalued. All eleven in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
BNC Bancorp (BNCN) – has been below $10 since the week of October 16, 2010.
Crescent Financial Bancshares, Inc. (CRFN) – has been below $10 since the week of January 9, 2008.
CenterState Banks, Inc. (CSFL) – has been below $10 since the week of July 24, 2010.
First Bancorp (FBP) – has been below $10 since the week of August 7, 2010.
First Community Corporation (FCCO) – has been below $10 since the week of November 15, 2008.
First Security Group, Inc. (FSGI) – has been below $10 since the week of February 26, 2011.
1st United Bancorp, Inc. (FUBC) – has been below $10 since the week of May 17, 2008.
Park Sterling Corporation (PSTB) – has been below $10 since the week of November 1, 2008.
Seacoast Banking Corp. of Florida (SBCF) – has been below $10 since the week of October 18, 2008.
Southern National Bancorp of Virginia Inc. (SONA) – was a $3.25 stock in March 2009, trades above $10 in February 2013 and closed last week below $10.
Yadkin Valley Financial Corp. (YAVY) – has been below $10 since the week of February 14, 2009.
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 FBP by 75.0%. The most overvalued stock is YAVY by 49.9%.
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 two Buy rated stocks (CSFL & FBP), seven Hold rated stocks, one Sell rated stock (YAVY) and one Strong Sell rated stock (FSGI).
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 twelve months is YAVY up 76.8%. The biggest loser is FSGI with a loss of 17.2%.
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 loss of 26.9% (FSGI) and a gain of 6.6% (FBP) over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios shows one with a extremely extended P/E ratio of 127.8 (CRFN).
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.