This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The SOX May Provide Another Warning

Applied Materials (AMAT) ($11.35 vs. $11.28 on Aug. 7): AMAT was downgraded to hold on Aug. 7 according to ValuEngine, has a reasonable P/E ratio and is just below its 200-day SMA at $11.55. Employ a "buy and trade" strategy between the value level and risky level. AMAT was a $57 stock in April 2000 as the tech bubble was popping.

Advanced Micro Devices (AMD) ($3.46 vs. $4.01 on August 7): AMD was downgraded to hold on August 7, but now it's a speculative buy, has a favorable P/E ratio and is well below its 200-day SMA at $5.96. Employ a "buy and trade" strategy between the value level and risky level. AMD was the victim of two bubbles; was a $48 price in June 2000 and a $42 stock in March 2006.

Avago Technologies (AVGO) ($34.60 vs. $37.07 on Aug. 7): AVGO was downgraded to hold from buy on Aug. 7, but is now rated a buy again according to ValuEngine, has a reasonable P/E ratio and is above its 200-day SMA at $34.37. Employ a "buy and trade" strategy between the value level and the pivot and risky level.

Cirrus Logic (CRUS) ($40.18 vs. $37.53 on Aug. 7): CRUS set a multi-year high at $45.49 on Sept. 19. CRUS has been rated a Hold according to ValuEngine, has an elevated P/E ratio and is well above its 200-day SMA at $27.00. Employ a "buy and trade" strategy between the value level and risky level. CRUS was a $74 stock in October 2000, fell to $1.50 in October 2002, and is now in deflating from a 2012 bubble.

KLA-Tencor (KLAC) ($47.13 vs. $52.03 on Aug. 7): KLAC was downgraded to hold on Aug. 7, but it's back to a buy rating according to ValuEngine, has a favorable P/E ratio and is below its 200-day SMA at $49.84. Employ a "buy and trade" strategy between the value level and risky level. KLAC was a $97 stock in April 2000 before the tech bubble popped.

Marvell Technology (MRVL) ($9.48 vs. $11.12 on Aug. 7): MRVL was a buy-rated stock on August 7, but is now rated a hold, has a reasonable P/E ratio and is below its 200-day SMA at $13.36. Sell strength to my semiannual pivot at $10.02. Note that Monday's close was just below my weekly value level, now a pivot at $9.51. MRVL was a $36 stock in January 2006.

NVIDIA (NVDA) ($13.66 vs. $14.01 on Aug. 7): NVDA was downgraded to hold on Aug. 7 and is now buy-rated according to ValuEngine, has a reasonable P/E ratio and is below its 200-day SMA at $13.90. Employ a "buy and trade" strategy between the value level and pivot and risky level. NVDA was a $39 stock in October 2007.

Sandisk (SNDK) ($45.15 vs. $41.48 on Aug. 7): SNDK was downgraded to hold on Aug. 7 and is still hold-rated according to ValuEngine, has a reasonable P/E ratio and is above its 200-day SMA at $42.85. Employ a "buy and trade" strategy between the value level and risky level. SNDK had a double bubble with a high of $84 in March 2000 and a high of $79 in January 2006.

Texas Instruments (TXN) ($28.68 vs. $28.24 on Aug. 7): TXN was downgraded to hold on Aug. 7 and is now buy-rated again according to ValuEngine, has a reasonable P/E ratio and is below its 200-day SMA at $30.30. Employ a "buy and trade" strategy between the value level and risky level. TXN was a $99 stock in March 2000 as the tech bubble was popping.

Xilinx (XLNX) ($34.36 vs. $33.15 on Aug. 7): XLNX was downgraded to hold on Aug. 7 and remains hold-rated again according to ValuEngine, has a slightly elevated P/E ratio and is on the cusp of its 200-day SMA at $34.04. Employ a "buy and trade" strategy between the value level and risky level. XLNX was a $98 stock in June 2000 as the tech bubble was popping.



Seven of the 10 stocks profiled here are undervalued fundamentally, with ADM undervalued by 46.2%. SNDK is the most overvalued by 21.3%. Six of the 10 stocks traded higher by 7.0% (SNDK) to 157.4% (CRUS) over the past 12 months. AMD was the biggest loser over the past 12 months down 43.9%. All 10 have upside over the next 12 months, but only by single-digit percentages.



At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SOXX $97.54 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs