At www.ValuEngine.com we show that the Transportation sector 25.6% overvalued with the Services industry 51.3% overvalued and the Truckers 24.5% overvalued. All five stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Covenant Transportation Group, Inc. (CVTI) – has been below $10 since the week of August 4, 2007. Tried to get above $10 between July 2010 and may 2011 but could not.
Pacer International, Inc. (PACR)– was a $33 stock in February 2007 – has been below $10 since the week of February 21, 2009.
Quality Distribution Inc. (QLTY) – has been below $10 since the week of October 6, 2012.
Student Transportation, Inc. (STB) – has been below $7.50 for at least five years.
USA Truck Inc. (USAK) – has been below $10 since the week of November 26, 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 USAK by 35.0%. The most overvalued stock is PACR by 19.5%.
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 Hold rated stocks, two Sell Rated stocks and two Strong Sell rated stocks.
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 CVTI up 65.1%. The biggest loser was USAK down by 40.7%.
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. CVTI expected to gain 2.8% over the next twelve months while QLTY is projected to lose 15.2%.
P/E Ratios – The twelve month trailing P/E ratios – STB has an extremely elevated P/E ratio.
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.