At www.ValuEngine.com we show that the Business Services sector is 8.7% overvalued with the Advertising industry 1.5% overvalued, the Business Information Services industry 0.2% undervalued, and the Business Services industry 22.7% overvalued and the Consulting industry 1.5% undervalued. All 14 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
AH – was a $32 stock in August 2011 and has only been below $10 since April 3, 2013.
CBZ – has been below $10 for at least five years.
CCO – was a $31 stock in January 2007 and has been below $10 since the week of March 24, 2012.
CHRM – has been below $10 since the week of May 26, 2012.
ESSX – has been below $8 for at least five years.
FRM– has been below $10 since the week of October 11, 2008.
GGS – has been below $10 since the week of April 14, 2012.
HCKT – has been below $6.75 for at least five years.
HHS – was a $28 stock in February 2007 and has been below $10 since the week of February 11, 2012.
HIL – was a $19 stock in September 2008 has been below $10 since the week of November 1, 2008.
III– has been below $8.30 for at least five years.
INTX– was a $2 stock in November 2008, then a $23 stock in July 2011, and has only been below $10 since March 19, 2013.
ISIG – has been below $7.75 for at least five years.
MM – has only been $10 since February 20, 2013.
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 ISIG by 67.7%. The most overvalued stock is GGS by 94.9%.
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. There are two Strong Buy rated stocks (INTX & MM), six Buy-rated stocks, five Hold-rated stocks and one Sell-rated stock (GGS).
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 III up 47.3%. The biggest loser is GGS down 77.1%.
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 5.5% (GGS) and a gain of 17.4% (MM).
P/E Ratios – The 12 month trailing P/E ratios – We have two stocks with a single-digit P/E ratios (CBZ & INTX) and one with a triple-digit P/E (AH).
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.