At www.ValuEngine.com we show that the Computer & Technology sector is 2.3% undervalued. The Internet Content industry is 0.6% undervalued. All eleven of the stocks in today’s table have complete ValuEngine data and most have enough price data to have value levels, risky levels and pivots.
Jiayuan.com Intl Ltd. (DATE) – has been below $10 since the week of November 25, 2011.
Dice Holdings, Inc. (DHX) – has only been below $10 since June 12, 2012.
Demand Media, Inc. (DMD) – has only been below $10 since October 19, 2012.
Giant Interactive Group, Inc. (GA) – has been below $10 since the week of September 15, 2008.
Shanda Games Limited (GAME) – has been below $10 since the week of September 5, 2008.
Global Sources Ltd. (GSOL) – has been below $10 since the week of June 17, 2011.
Kongzhong Corp. (KONG) – has been below $10 since the week of April 29, 2011.
Points Intl Ltd. (PCOM) – has only been below $10 since November 9, 2012.
Tucows Inc. (TCX)– has been below $1.75 for at least five years.
TechTarget, Inc. (TTGT) – has been below $10 since the week of August 1, 2008.
XO Group Inc. (XOXO) – has only been below $10 since April 10, 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 only overvalued stock in this table is TCX by 37.8%. The most undervalued stock is TTGT by 42.7%.
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. We have one Buy rated stock in GAME, ten are 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 biggest gainer over the past twelve months is TCX with a gain of 85.3%. The biggest loser was DATE with a loss of 41.4%.
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. All stocks in the table are expected to have modest gains over the next twelve months except TCX.
P/E Ratios – Four stocks in the table have single-digit P/E ratios, two have reasonable P/E ratios and the remainder have elevated P/E ratios.
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.