At www.ValuEngine.com we show that 64.0% of all stocks are overvalued with 15 of 16 sectors overvalued 13 by double-digit percentages. All 18 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Alcoa Inc. (AA) – was a $48 stock in July 2007, and has been below $10 since the week of May 12, 2012.
AK Steel Holding Corp. (AKS) – was a $73 stock in May 2008, and has been below $10 since the week of February 11, 2012.
Advanced Micro Devices, Inc. (AMD) – was a $20 stock at the end of 2006, and has been below $10 since the week of May 8, 2010.
Alpha Natural Resources, Inc. (ANR) – was a $119 stock in July 2008, and has been below $10 since January 24, 2013.
Boston Scientific Corp. (BSX) – has been below $10 since the week of October 31, 2009.
Frontier Communications Corp. (FTR) – has been below $10 since the week of October 18, 2008.
Huntington Bancshares Inc. (HBAN) – was a $24 stock in June 2007, and has been below $10 since the week of November 15, 2012.
Hudson City Bancorp, Inc. (HCBK) – was a $25 stock in September 2008, and has been below $10 since the week of April 16, 2008.
Janus Capital Group, Inc. (JNS) – was a $37 stock in November 2007, and has been below $10 since January 25, 2013.
LSI Corporation (LSI) – has been below $10 since the week of April 28, 2007.
Monster Worldwide, Inc. (MWW) – was a $54 stock in February 2007, and has been below $10 since the week of April 14, 2012.
Regions Financial Corp. (RF) – was a $38 stock in January 2007, and has been below $10 since the week of December 20, 2008.
Sprint Nextel Corp. (S) – was a $23 stock in June 2007, and has been below $10 since the week of February 23, 2008.
SUPERVALU Inc. (SVU) – was a $48 stock in July 2007, and has been below $10 since the week of June 11, 2011.
Tellabs Inc. (TLAB) – has been below $10 since the week of September 29, 2007.
MEMC Electronic Materials Inc. (WFR) – was a $96 stock in December 2009, and has been below $10 since the week of June 11, 2011.
Windstream Corp. (WIN) – has been below $10 since the week of October 27, 2012.
Xerox Corp. (XRX) – has been below $10 since the week of August 6, 2011.
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 MWW by 59.8%. The most overvalued stock is SVU by 223.4%.
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 11 Buy-Rated stocks, five Hold-Rated stocks, on Sell-Rated stock (ANR) and one Strong Sell-Rated stock (SVU).
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 Sprint up just 124.1%. The biggest loser was AMD down by 68.4%.
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. The range is between a projected loss of 13.8% to a projected gain of 14.3%.
P/E Ratios – The 12 month trailing P/E ratios – the only single-digit P/E ratio is 8.2 on XRX.
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.
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