At www.ValuEngine.com we show that the Basic Materials sector is 4.6% overvalued, with the Mining Non Ferrous industry 5.0% undervalued and the Mining Silver industry 8.2% overvalued. All nine of the stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
AA – has only been below $10 since May 2, 2012. Tried to get back up to $10 in September but failed!
AXU – was a 50 cent stock in December 2008, then traded above $10 in April 2011, and has been below $10 since the week of May 6, 2011.
EXK – has only been below $10 since October 3, 2012.
FSM – was a 50 cent stock in October 2008 then traded as high as $7.67 in March 2012.
LUNMF – traded at 51 cents in February 2009 after being above $14.50 in July 2007. The stock traded as high as $9.83 in April 2011.
MGN – has been below $6.50 for at least five years, was a 50 cent stock in October 2008 and traded as high as $4.43 in January 2011.
PZG – was a 25 cent stock in November 2008 and traded as high as $4.52 in March 2011.
TC – after being a $27 stock in November 2007 the stock has been below $10 since the week of July 29, 2011.
UAMY – was a 10 cent stock in March 2009 and traded as high as $4.95 in June 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 in today’s table is TC by 29.5%. The most overvalued stock is EXK by 162.8%.
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 five 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 winner over the last twelve months is LUNMF with a gain of 27.5%. The biggest loser is MGN with a loss of 47.8%.
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. Only two stocks are projected to be higher over the next twelve months, but by meager gains of 1.0% AA and 2.1% LUNMF. The two projected biggest losers are EXK with a loss of 21.3% and MGN with a loss of 18.3%.
P/E Ratios – Of the five stocks with P/E ratios three have reasonable P/E’s and two have elevated P/E’s, 39.9 on AXU and 35.1 AA.
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.