Today, I am profiling 13 Consumer Staples that trade between a buck and ten bucks a share. We have three Food-Dairy Products stocks, three Food-Misc/Diversified stocks, two Beverages – Soft Drink stocks, two Publishing-Newspaper stocks, one Funeral Services stock, one Publishing-Periodicals stock and one Cosmetics & Toiletries stock.
At www.ValuEngine.com we show that the Consumer Staples sector is 13.1% overvalued. All 13 stocks have complete ValuEngine data and enough data to have a complete set of value levels, risky levels and pivots.
Reading the Table
V / 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. BZH is the most undervalued by 59.1%. GFA is the most overvalued by 65.7%.
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. <P/> 3 stocks are rated Strong Sell, 5 are rated Sell, six are rated Hold, and only one, CX, is rated Buy.
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 HOV with a gain of 262.1%. The worst performer over the past twelve months is SKY 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. The best projected gain is 6.8% CX. The worst projected loss is SKY 19.6%.
P/E Ratios: Only ICA has a reasonable P/E ratio, while the others don’t have one, or the P/E ratio is extremely elevated.
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.
Feihe International, Inc. (ADY) – was above $10 until the week of June 3, 2011.
A. H. Belo Corporation (AHC) – was above $10 until the week of May 9, 2008.
Cott Corp. (COT) – broke below $10 during the week of September 28, 2007.
The Dolan Co. (DM) – was above $10 until the week of March 2, 2012.
The Female Health Company (FHCO) – has bee below $10 for at least five years.
Journal Communications Inc. (JRN) – was above $10 until the week of October 19, 2007.
Coffee Holding Co.Inc. (JVA) – was a bubble stock with a high of $30.98 in July 2011, and has been below $10 since the week of April 13, 2012.
Lifeway Foods Inc. (LWAY) – was above $10 until the week of September 7, 2012.
Omega Protein Corp. (OME) – was above $10 until the week of November 18, 2011.
Inventure Foods, Inc. (SNAK) – has been below $10 for at least five years.
Stewart Enterprises Inc. (STEI) – has been below $10 for at least five years.
SunOpta Inc. (STKL) – was above $10 until the week of January 25, 2008.
Synutra International Inc. (SYUT) – was above $10 until the week of July 22, 2011.
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.
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.
