At www.ValuEngine.com we show that the Retail-Wholesale sector is 10.9% overvalued with the Retail-Apparel / Shoes industry 0.9% undervalued. All seven stocks in today’s table have complete ValuEngine data and enough data to have most value levels, risky levels and pivots.
Bebe Stores, Inc. (BEBE) – has been below $10 since the week of May 7, 2010.
BioScrip Inc. (BIOS) – has been below $10 for at least the past five years.
Casual Male Retail Group, Inc. (CMRG) – has been below $10 since the week of October 5, 2007.
H&M Hennes & Mauritz AB (HNNMY) – has been below $10 for at least the past five years.
China Nepstar Chain Drugstore Ltd. (NPD) – has been below $10 since the week of July 4, 2008.
Stein Mart Inc. (SMRT) – has been below $10 since the week of July 29, 2011.
Tandy Leather Factory, Inc. (TLF) – has been below $10 for a least the past five years.
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 BIOS by 60.2%. The most undervalued stock is BEBE by 60.2%.
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 (HNNMY & TLF) and five 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 BIOS with a gain of 38.5%. The worst performer is BEBE with a loss of 43.2%.
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. HNNMY is projected to gain 10.6% over the next twelve months.
P/E Ratios – TLF is the only stock with a favorable P/E ratio with BIOS showing 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 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.