At www.ValuEngine.com we show that the Medical sector 13.6% overvalued with the medical Instruments industry 2.0% undervalued. All 12 stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Accuray Inc. (ARAY) – was a $30 stock in February 2007, and has been below $10 since the week of March 11, 2011.
Bioanalytical Systems, Inc. (BASI) – has been below $9.50 for at least five weeks.
BSD Medical Corp. (BSDM) – has been below $9.25 for at least five years.
CryoLife Inc. (CRY) – has been below $10 since the week of December 19, 2008.
Electromed, Inc. (ELMD) – has been below $4.50 since the week of August 13, 2010.
Hansen Medical, Inc. (HNSN) – was a $39 stock inn October 2007, and has been below $10 since the week of November 21, 2008.
MELA Sciences, Inc. (MELA) – has been below $10 since the week of February 26, 2010.
Opko Health, Inc. (OPK) – has been below $7.25 for the last five years, but has been challenging the high so far in 2013 after below a buck in March 2009.
Pacific Biosciences of California, Inc. (PACB) – has been below $10 since the week of August 12, 2011.
Solta Medical, Inc. (SLTM) – has been below $10 since the week of March 2, 2007.
Synergetics USA, Inc. (SURG) – has been below $7.60 since the week of January 7,201.
Vermillion, Inc. (VRML) – was a $34 stock in March 2010 and has been blow $10 since the week of August 20, 2010.
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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 HNSN by 56.5%. The only overvalued stock is OPK by 47.7%.
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. Two stocks (CRY & SURG) are rated Buy, seven stocks are rated Hold, and three stocks are rated Sell (MELA, PACB & VRML).
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 BASI with a gain of 41.7%. The biggest loser was MELA with a loss of 63.2%.
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. These stocks are projected to be between 11.0% lower (VRML) and 7.7% higher (SURG) over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios; SLTM has an extremely elevated P/E at 106.7.
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.