At www.ValuEngine.com we show that the Consumer Discretionary sector 8.0% overvalued with the Gaming industry 5.0% overvalued. All nine stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Asia Entertainment & Resources Ltd. (AERL) – has been below $10 since the week of August 12, 2011.
Boyd Gaming Corp. (BYD) – has been below $10 since the week of May 27, 2011.
Century Casinos Inc. (CNTY) – has been below $10 since the week of March 23, 2007.
Dover Downs Gaming & Entertainment Inc. (DDE) – has been below $10 since the week of February 1, 2008.
Full House Resorts Inc. (FLL) – has been below $5 for at least five years.
Gaming Partners Intl Corp. (GPIC) – has been below $10 since the week of November 23, 2007.
Isle of Capri Casinos, Inc. (ISLE) – has been below $10 since the week of January 28, 2011.
MTR Gaming Group, Inc. (MNTG) – has been below $10 since the week of September 28, 2007.
Zynga, Inc. (ZNGA) – has only been below $10 since April 20, 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 most undervalued stock is MNTG by 23.6%. The most overvalued stock is ZNGA by 57.1%.
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. Eight stocks are rated Hold, and one stock (ZNGA) is rated Sell.
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 winner over the last twelve months is MNTA with a gain of 49.1%. The biggest loser was ZNGA with a loss of 76.8%.
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 upside is limited to 2.3% for AERL with the downside risk of 7.9% for ZNGA.
P/E Ratios – Only one (AERL) has a single-digit 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 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.