At www.ValuEngine.com we show that the Medical sector is 5.5% overvalued. The Medical-Biomed/genetics industry is 13.5% overvalued. All eight of the stocks in today’s table have complete ValuEngine data and most have enough price data to have enough value levels, risky levels and pivots.
BioDelivery Sciences Intl, Inc. (BDSI) – has been below $8.50 for at least five years.
Cambrex Corporation. (CBM) – moved above $10 on August 2, 2012 to a high of $14.33 on October 17 then broke below $10 again on November 6.
IFinix Corp. (INIX) – moved above $10 on January 9, 2012 to a high of $15.25 on January 19 then broke below $0 again on August 1.
Isis Pharmaceuticals, Inc. (ISIS) – moved above $10 on May 30, 2012 to a high of $15.61 on September 21 then broke below $10 again on October 17.
Neogenomics Inc. (NGNM) – has been below $3.50 for at least five years but has moved above $2.00 mid-year 2012.
PDL BioPharma, Inc. (PDLI) – has been below $10 since the week of May 16, 2008.
Repligen Corp. (RGEN) – has been between $2.50 and $7.50 for at least five years.
RTI Biologics, Inc. (RTIX) – has been below $10 since the week of October 3, 2008.
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 overvalued stock in this table is NGNM by 70.8%. The most undervalued stock is IDIX by 31.0%.
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 four buy rated stocks and four 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. The best performer over the past twelve months is BDSI with a gain of 324.5%. The biggest loser was IDIX with a loss of 33.6%.
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 biggest potential gainer is PDLI with a projected gain of 10.1%. The potential biggest loser is expected to be NGNM with a projected decline of 4.0%.
P/E Ratios – PDLI has a P/E ratio of just 5.5 while NGNM has an extremely elevated P/E of 284.0.
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.