At www.ValuEngine.com we show that the Consumer Staples sector is 14.8% undervalued with the Publishing – Newspapers industry 16.0% overvalued. All seven of the stocks in today’s table have complete ValuEngine data and we have enough price data to have most value levels, risky levels and pivots.
A. H. Belo Corporation (AHC) – has been below $10 since the week of May 9, 2008.
The Dolan Company (DM) – has only been below $10 since February 24, 2012.
Journal Communications Inc. (JRN) – has been below $10 since the week of October 19, 2007.
Lee Enterprises Inc. (LEE) – has been below $10 since the week of April 18, 2008.
The McClatchy Company (MNI) – has been below $10 since the week of May 16, 2008.
Martha Stewart Living Omnimedia Inc. (MSO) – has been below $10 since the week of December 28, 2007.
The New York Times Company (NYT) – traded as high as $11.06 on October 18, 2012 and moved back below $10 on October 25, 2012.
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 only overvalued stock in today’s table is JRN overvalued by 21.9%. The most undervalued is DM by 67.4%.
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. Today we have two Buy rated stocks and five Hold 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 past twelve months is MNL higher by 186.3%. The biggest loser is DM with a loss of 62.4%.
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 risk / reward over the next twelve months is a projected loss of 3.3% for DM to a gain of 6.5% for MNI.
P/E Ratios – LEE & MNI have extremely low trailing twelve month P/E ratios. AHC has an extremely elevated twelve month trailing 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.