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Steve Hach is the Senior Editor at ValuEngine.com, a Melbourne, Florida-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 8000 US, Canadian, and other foreign stocks. Hach utilizes ValuEngine's complex... More
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  • ValuEngine Ranks And Rates Materials Stocks And Looks At Apple

    VALUATION WATCH: Overvalued stocks now make up 41.26% of our stocks assigned a valuation and 13.27% of those equities are calculated to be overvalued by 20% or more. Four sectors are calculated to be overvalued--with one at or near double digits.

    ValuEngine Index Overview

     

     

     

     

     

    IndexWeek OpenFriday PMChange% ChangeYTD
    DJIA16459.7516618.5158.750.96%-6.76%
    NASDAQ4351.614811.26459.6510.56%1.79%
    RUSSELL 20001119.761154.5534.793.11%-4.16%
    S&P 5001965.151986.9421.791.11%-3.50%

     

    ValuEngine Market Overview

     

     


     

    Summary of VE Stock Universe
    Stocks Undervalued58.74%
    Stocks Overvalued41.26%
    Stocks Undervalued by 20%23.88%
    Stocks Overvalued by 20%13.47%
    ValuEngine Sector Overview

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SectorChangeMTDYTDValuationLast 12-MReturnP/E Ratio
    Aerospace1.77%-6.98%-2.20%9.81% overvalued-7.34%20.47
    Medical1.59%-6.49%8.13%8.89% overvalued7.64%31.13
    Consumer Staples1.32%-5.83%-4.35%3.57% overvalued-5.93%21.27
    Business Services1.55%-5.66%-0.99%1.85% overvalued-6.73%22.96
    Retail-Wholesale1.83%-5.41%-6.76%0.13% undervalued-0.98%23.16
    Consumer Discretionary1.48%-5.24%1.42%0.84% undervalued-7.14%26.98
    Computer and Technology1.91%-4.57%-4.61%2.33% undervalued-8.17%28.28
    Finance1.41%-4.45%-2.40%2.55% undervalued-5.20%17.00
    Utilities1.68%-4.65%-7.38%3.37% undervalued-10.26%20.44
    Multi-Sector Conglomerates1.86%-7.23%-8.43%3.53% undervalued-10.35%21.29
    Construction2.08%-5.26%-4.83%8.35% undervalued-5.70%22.80
    Industrial Products1.93%-7.25%-8.37%8.54% undervalued-15.33%18.16
    Auto-Tires-Trucks1.55%-6.96%-8.34%9.59% undervalued-14.66%14.74
    Transportation2.18%-8.83%-11.71%10.09% undervalued-15.46%16.56
    Oils-Energy5.30%-8.88%-20.59%18.29% undervalued-49.03%22.18
    Basic Materials3.24%-4.29%-15.34%18.96% undervalued-37.00%20.04

     

    Sector Talk--Basic Materials

    Below, we present the latest data on Basic Materials stocks from our Professional Stock Analysis Service Top five lists are provided for each category. We applied some basic liquidity criteria--share price greater than $3 and average daily volume in

    Top-Five Basic Materials Stocks--Short-Term Forecast Returns

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    MERCMERCER INTL SBI11.46-2.06%10.51%
    UFSDOMTAR CORP39.1318.11%4.54%
    IOSPINNOSPEC INC47.6919.86%11.58%
    CECELANESE CP-A59.31-13.46%-3.94%
    KRAKRATON PERFORM20.61-9.82%1.78%

    Top-Five Basic Materials Stocks--Long-Term Forecast Returns

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    MERCMERCER INTL SBI11.46-2.06%10.51%
    UFSDOMTAR CORP39.1318.11%4.54%
    IOSPINNOSPEC INC47.6919.86%11.58%
    CECELANESE CP-A59.31-13.46%-3.94%
    KRAKRATON PERFORM20.61-9.82%1.78%

    Top-Five Basic Materials Stocks--Composite Score

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    CECELANESE CP-A59.31-13.46%-3.94%
    LYBLYONDELLBASEL-A85.26-33.31%-24.95%
    EMNEASTMAN CHEM CO72.63-18.14%-10.76%
    MERCMERCER INTL SBI11.46-2.06%10.51%
    CMCCOMMERCIAL METL15.18-14.64%-12.91%

    Top-Five Basic Materials Stocks--Most Overvalued

     

     

     

     

     

     

    TickerNameMkt PriceValuation(%)Last 12-M Retn(%)
    AVDAMER VANGUARD12.8556.13%-2.95%
    SIALSIGMA ALDRICH139.6541.54%35.21%
    CYTCYTEC INDS INC73.8531.37%43.30%
    BVNBUENAVENTUR-ADR6.2128.73%-54.87%
    CHMTCHEMTURA CORP27.0727.94%10.22%

     

    Free Download for Readers

    As a bonus to our Free Weekly Newsletter subscribers,
    we are offering a FREE DOWNLOAD of one of our Stock Reports

    Apple Inc. (NASDAQ:AAPL) is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.

    ValuEngine continues its BUY recommendation on APPLE INC for 2015-08-27. Based on the information we have gathered and our resulting research, we feel that APPLE INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

    As a bonus to our Newsletter readers,
    we are offering a FREE DOWNLOAD of one of our Stock Reports

    Read our Complete Detailed Valuation Report on APPLE HERE.

    (click to enlarge)


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month114.051.00%
    3-Month114.901.75%
    6-Month116.613.26%
    1-Year126.4411.98%
    2-Year120.756.94%
    3-Year97.09-14.02%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Valuation & Rankings
    Valuation3.23% undervaluedValuation Rank(?) 48
    1-M Forecast Return1.00%1-M Forecast Return Rank 97
    12-M Return10.56%Momentum Rank(?) 80
    Sharpe Ratio0.99Sharpe Ratio Rank(?) 93
    5-Y Avg Annual Return23.88%5-Y Avg Annual Rtn Rank 92
    Volatility24.09%Volatility Rank(?) 67
    Expected EPS Growth8.17%EPSGrowth Rank(?) 41
    Market Cap (billions)657.73Size Rank 100
    Trailing P/E Ratio12.81Trailing P/E Rank(?) 81
    Forward P/E Ratio11.84Forward P/E Ratio Rank 72
    PEG Ratio1.57PEG Ratio Rank 29
    Price/Sales2.93Price/Sales Rank(?) 31
    Market/Book5.63Market/Book Rank(?) 21
    Beta0.89Beta Rank 50
    Alpha0.16Alpha Rank 84

    Aug 28 3:18 PM | Link | Comment!
  • Latest From FED Indicates Rate Hike Will Be Later Rather Than Sooner

    VALUATION WATCH: Overvalued stocks now make up 32.07% of our stocks assigned a valuation and 9.61% of those equities are calculated to be overvalued by 20% or more. Two sectors are calculated to be overvalued.

    Decisions, Decisions

    --Latest from FED Indicates Rate Hike will be Later Rather than Sooner

    This week's trading action has unsettled markets and investors, but it may have led to at least one positive outcome for stocks. At a briefing today for regional economic conditions, New York Fed Bank Chair--and FOMC member-- William Dudley told reporters that "at this moment, the decision to begin the normalization process at the September [FOMC] meeting seems less compelling to me than it did several weeks ago. But normalization could become more compelling by the time of the meeting as we get additional information."

    That statement is definitely of the "tea-leaves needing to be read" variety, but it indicates that US markets should continue to trade under the benefit of the Fed's zero-interest rate policy (ZIRP) for a while longer. US short-term rates have hovered near 0% for most of the past seven years now. This policy provided the only real boost for the US economy as the fiscal options, controlled by politicians in Washington DC, were focused on austerity in lieu of a robust stimulus program.

    It would seem quite premature to raise rates under the present circumstances, and with the Fed still responsible for a dual mandate--low inflation AND full employment--it appears cooler heads will prevail thanks to the "reality" provided by China and the global market pull back.

    Dudley referenced this in his remarks by noting that "incoming data suggest the economy continues to grow at a moderate pace sufficient to cause a gradual tightening of the U.S. labor market" but "international developments have increased the downside risk to U.S. economic growth."

    Again, as we have been noting for a while now, the US economy is recovering, and we see some pressures within the labor market--as evidenced by changes in employment practices on the part of Wal-Mart, McDonald's et al. We also see a low level of inflation--bolstered by the cratering of oil and other commodities pricing.

    Stocks, despite their recent gyrations, remain the only game in town where yields are concerned. We recommend investors with the means to weather this storm stay the course. We do not foresee a long-term issue for the US economy here, and we note that selling at the bottom of a down turn is often the worst move one can make. On the other hand, this is a time to tighten up those stop-losses and to stay attentive.

    We now calculate that 32.07% of stocks are overvalued and 9.61% of those stocks are overvalued by 20% or more. This is a huge reversal of where we have been for much of the year. In fact, to find stocks calculated to be this "cheap," you would have to go all the way back to November, 2012.

    We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters.

    For today's bulletin we searched for top-rated stocks in the S&P 500. These stocks are shown below, ranked according to their short-term forecast figures. They are all considered to be "5-Engine" STRONG BUY selections.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    TickerCompany NameMarket PriceValuationLast 12-M Return1-M Forecast Return1-Yr Forecast ReturnP/E RatioSector Name
    TSOTESORO CORP88.68-8.28%36.62%1.54%18.64%8.43Oils-Energy
    VLOVALERO ENERGY57.61-10.64%6.33%1.35%16.31%6.82Oils-Energy
    TRVTRAVELERS COS97.75-9.53%3.67%1.19%14.28%9.27Finance
    GTGOODYEAR TIRE27.8312.26%10.66%1.18%14.14%9.71Auto-Tires-Trucks
    AALAMER AIRLINES37.5-19.13%-4.87%1.17%14.05%4.77Transportation
    LUVSOUTHWEST AIR36.52-22.37%13.63%1.15%13.89%12.37Transportation
    HIGHARTFORD FIN SV44.6918.61%21.84%1.14%13.76%11.36Finance
    AVGOAVAGO TECHNOLOG108.51-16.92%43.21%1.14%13.75%14.07Computer and Technology
    GSGOLDMAN SACHS178.22-10.73%0.20%1.12%13.48%9.12Finance
    XLXL GROUP PLC36.640.57%7.99%1.08%13.02%10.83Finance
    MPCMARATHON PETROL43.77-5.67%-3.37%1.06%12.76%7.47Oils-Energy
    DALDELTA AIR LINES41.37-15.51%2.10%1.06%12.72%10.73Transportation
    MNKMALLINCKRODT PL78.66N/A5.58%1.03%12.38%10.72Medical
    WUWESTERN UNION17.81-3.77%1.89%1.00%11.98%10.73Business Services

    Below is today's data on TSO:

    Tesoro (NYSE:TSO) was founded in 1968 as a company primarily engaged in petroleum exploration and production. In 1969, Tesoro began operating Alaska's first refinery near Kenai. Today, Tesoro is a FORTUNE 500 company and one of the largest independent petroleum refiners and marketers in the Western United States.

    VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on TESORO CORP for 2015-08-25. Based on the information we have gathered and our resulting research, we feel that TESORO CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Sharpe Ratio and P/E Ratio.


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month90.051.54%
    3-Month90.862.46%
    6-Month92.684.51%
    1-Year105.2118.64%
    2-Year95.377.54%
    3-Year63.73-28.13%

     















    Valuation & Rankings
    Valuation8.28% undervaluedValuation Rank(?) 49
    1-M Forecast Return1.54%1-M Forecast Return Rank 100
    12-M Return36.62%Momentum Rank(?) 93
    Sharpe Ratio1.01Sharpe Ratio Rank(?) 94
    5-Y Avg Annual Return40.40%5-Y Avg Annual Rtn Rank 98
    Volatility40.01%Volatility Rank(?) 44
    Expected EPS Growth-10.96%EPSGrowth Rank(?) 17
    Market Cap (billions)11.20Size Rank 92
    Trailing P/E Ratio8.43Trailing P/E Rank(?) 93
    Forward P/E Ratio9.47Forward P/E Ratio Rank 83
    PEG Ration/aPEG Ratio Rank n/a
    Price/Sales0.33Price/Sales Rank(?) 88
    Market/Book1.81Market/Book Rank(?) 52
    Beta2.08Beta Rank 11
    Alpha0.28Alpha Rank 91

    ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.

    Aug 26 4:04 PM | Link | Comment!
  • ValuEngine: Market Declines Lead To "Cheap" Equities, Bulk Shippers Dominate Bargain List

    VALUATION WATCH: Overvalued stocks now make up 30.68% of our stocks assigned a valuation and 8.9% of those equities are calculated to be overvalued by 20% or more. Two sectors are calculated to be overvalued.

    Slow Boats to China

    --ValuEngine: Market Declines Lead to "Cheap" Equities, Bulk Shippers Dominate Bargain List

    ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities. When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

    We combine all of the equities with a valuation calculation to track market valuation figures and use them as a metric for making calls about the overall state of the market. Two factors can lower these figures-- a market pullback, or a significant rise in EPS estimates.

    With the big sell off yesterday, we now calculate that 30.68% of stocks are overvalued and 8.9% of those stocks are overvalued by 20% or more. This is a huge reversal of where we have been for much of the year. In fact, to find stocks calculated to be this "cheap," you would have to go all the way back to November, 2012. Given the state of the US economy, and the fact that this slide in prices makes the potential for a Fed rate-hike next month less likely in our view, we believe this dip represents a buying opportunity for investors.

    We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

    So, for today's bulletin we used our website's advanced screening functions to search for top-rated stocks that were significantly undervalued despite having strong forecast figures. These stocks are shown below, and presented in alphabetical order.

    The list is heavy with transportation firms of the bulk shipping variety. These can present a mixed bag for the investor. On the one hand, one could argue that a poor prognosis for China will hurt shippers, since they often carry commodities to or from that nation. A poor outlook for steel, copper, coal, oil, etc. can hurt these firms. On the other hand, speculators may use giant cargo ships to hold commodities in the hopes of securing more favorable pricing for their goods.

    Additional research is essential to discern how a particular shipper is positioned to deal with these sorts of issues. Many professional investors use indices such as the Baltic Dry Bulk Shipper Index (BDIY) as a leading indicator for the world economy--much as the DOW Transports are used for making calls about the future of the US economy and the overall DOW. It is worthwhile to note that the BDIY has been declining steeply over the past few weeks as shipping rates have declined significantly.

    Members can always screen for stocks using a variety of criteria and data points with our advanced screening page HERE or our 5-Engine Stock page HERE.

     

     

     

     

     

     

    TickerCompany NameMarket PriceValuationLast 12-M Return1-M Forecast Return1-Yr Forecast ReturnP/E RatioSector Name
    AVIDAVID TECH INC7.62-43.36%-2.81%1.03%12.39%10.21Computer and Technology
    DHTDHT HOLDINGS6.61-47.78%-8.58%1.02%12.21%7.96Transportation
    STRZASTARZ-LIB CAP-A35.66-42.15%17.34%1.13%13.60%13.41Consumer Discretionary
    TNKTEEKAY TANKERS5.5-55.76%31.89%1.76%21.40%5.31Transportation
    TNPTSAKOS EGY NAVG6.85-39.81%-9.75%1.07%12.85%5.41Transportation

    Below is today's data on AVID:

    Avid Technology, Inc. (OTCPK:AVID) develops, markets, sells and supports a wide range of software and systems for creating and manipulating digital media content. Digital media are media elements, whether video or audio or graphics, in which the image, sound or picture is recorded and stored as digital values, as opposed to analog signals. The company's systems are designed to improve the productivity of video and film editors by enabling them to edit moving pictures and sound in a faster, easier, and more cost-effective manner than traditional analog tape-based systems.

    VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation on AVID TECH INC for 2015-08-24. Based on the information we have gathered and our resulting research, we feel that AVID TECH INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Earnings Growth Rate and P/E Ratio.


     






    ValuEngine Forecast
     Target
    Price*
    Expected
    Return
    1-Month7.701.03%
    3-Month7.660.48%
    6-Month7.640.30%
    1-Year8.5612.39%
    2-Year6.29-17.50%
    3-Year6.52-14.47%

     















    Valuation & Rankings
    Valuation43.36% undervaluedValuation Rank(?) 89
    1-M Forecast Return1.03%1-M Forecast Return Rank 98
    12-M Return-2.81%Momentum Rank(?) 66
    Sharpe Ratio-0.02Sharpe Ratio Rank(?) 46
    5-Y Avg Annual Return-1.06%5-Y Avg Annual Rtn Rank 45
    Volatility55.79%Volatility Rank(?) 31
    Expected EPS Growth209.82%EPSGrowth Rank(?) 94
    Market Cap (billions)0.30Size Rank 51
    Trailing P/E Ratio10.21Trailing P/E Rank(?) 88
    Forward P/E Ratio3.29Forward P/E Ratio Rank 99
    PEG Ratio0.05PEG Ratio Rank 88
    Price/Sales0.60Price/Sales Rank(?) 77
    Market/Bookn/aMarket/Book Rank(?) n/a
    Beta2.01Beta Rank 12
    Alpha0.33Alpha Rank 92

    Aug 25 1:36 PM | Link | Comment!
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