At www.ValuEngine.com we show that the Basic Materials sector is 5.0% undervalued with the Miscellaneous Mining industry 17.1% undervalued. All 11 of the stocks in today’s table have complete ValuEngine data and we have enough price data to have most value levels, risky levels and pivots.
Golden Minerals Company (AUMN) – has only been below $10 since February 10, 2012.
Avalon Rare Metals Inc. (AVL) – traded up to $10.10 April 2011, otherwise this stock has been below $10 for at least five years.
Denison Mines Corp. (DNN) – has been below $10 since the week of November 23, 2007.
General Moly, Inc. (GMO) – has been below $10 since the week of April 25, 2008.
North American Palladium Ltd. (PAL) – has been below $10 since the week of August 3, 2007.
Silvercorp Metals Inc. (SVM) – has been below $10 since the week of November 4, 2011.
Taseko Mines Ltd. (TGB) – has been below $7.50 for at least five years.
Uranium Energy Corp. (UEC) – has been below $9.50 for at least five years.
Uranerz Energy Corp. (URZ) – has been below $7.75 for at least five years.
US Energy Corp. (USEG) - has been below $7.50 for at least five years.
Solitario Exploration & Royalty Corp. (XPL) – has been below $6.25 for at least five years.
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. Ten of eleven stocks are undervalued led by AUMM as the most undervalued stock by 72.7%.
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. Today we have eight Hold rated stocks and three 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 gainer is GMO up 19.8%. The biggest loser is PAL with a loss of 49.8%.
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. Nine of eleven stocks are projected to be lower twelve months from now.
P/E Ratios – The three stocks with a P/E ratio show this data point to be 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.
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.