Market Read®

  • Thursday, May 26 2016

This prediction has passed its maturity date!

This prediction was valid between April 04, 2013 and March 15, 2013. All information in this report is for reference only and should not be considered forward looking.

(NASDAQ: RRD)

R.R.
Donnelley
& Sons Company


Bearish

R.R. Donnelley & Sons Company enables organizations to communicate by creating, managing, producing, distributing, and processing content on behalf of its customers. The company operates through Publishing and Retail Services, Variable Print, Strategic Services, and International segments. Its product offerings primarily consist of magazines, catalogs, retail inserts, commercial and digital print, books, financial print, statement printing, direct mail, labels, office products, packaging, forms, manuals, and other related products. The company s service offerings primarily comprise logistics, EDGAR-related and eXtensible Business Reporting Language financial services, business outsourcing services, and digital and creative solutions. It also offers outsourcing capabilities, including product configuration, customized kitting, and order fulfillment for technology, medical device, and other companies. The company distributes its products to end-users through the United States or foreign postal services, as well as through retail channels, electronically, or by direct shipment to customer facilities. It has operations in Europe, Asia, and North America. R.R. Donnelley & Sons Company was formerly known as CMCo. The company was founded in 1864 and is based in Chicago, Illinois.

Investment Highlights

  • PATTERN SCAN predicts the price of RRD expected to move down in the coming weeks based on the appearance of a 'Trend Line Break(2)' pattern. Specifically, a ACT EOD variant of Trend Line Break(2) has been detected. The target is $8.89. more
  • SEASONALITY expects the price of RRD expected to move down to $9.75 by March 15, 2013. more
  • GATS predicts RRD will move down in the coming weeks. Target is $8.47. more
  • VALUATION RRD has a current calculated value of $9.74 which means the stock is overvalued compared to its price of $16.25.

Predictive Range January 15, 2013 - March 15, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$9.40 - $9.03

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Pattern Scan

 

Tracks "Trigger Events" that positively or negatively affect the value of a stock.

R.R. Donnelley & Sons Company (NASDAQ: RRD) is predicted to go down in coming weeks based on bearish technical trends that have appeared in the recent performance of the stock. RRD has demonstrated Trend Line Break(2) strategy ACT EOD with a strength of 5.0/5. The higher the strength, the higher the probability of an accurate prediction.

  • The price of RRD expected to move down in the coming weeks.
  • PatternScan has detected that a 'ACT EOD' pattern has appeared.
  • Specifically, a ACT EOD variant of Trend Line Break(2) has been detected.
  • This indicates a high probablity that RRD will move down in the coming weeks.

Seasonality

 

Predicts probability and percentage of stock movements based on seasonal factors.

R.R. Donnelley & Sons Company (NASDAQ: RRD) is predicted to go down in coming weeks based on bearish trends that appear around this time of the year. By identifying stocks that are poised to go up or down based on seasonal tendencies, traders can increase their odds of making money. RRD, currently trading at 16.25 expected to hit $9.75 by March 15, 2013.

  • The price of RRD expected to move down to $9.75 by March 15, 2013.
  • Expected loss of -6.02% from price at time of prediction (10.37).
  • This pattern has held 11.0 of the last 13.0 seasonal periods. (84.62%)

GATS

 

Reduces risk by selecting the highest probability trades across market indices.

R.R. Donnelley & Sons Company (NASDAQ: RRD) is expected to go down as bearish signals have been generated by top equity trading strategies. This trading system is designed to identify high probability reversion to mean trading candidates. It looks to go long immediately following strong sell-offs, and goes short after sharp run ups. Its trades are short term and hone in on the irrational decisions of emotional traders around these extreme moves.

  • The price of RRD expected to move down in the coming weeks.
  • Suggested stop level of 7.83 to limit potential trading losses.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for RRD is 15.86.

Date Short Volume Short Value SqueezeTrigger
2016-02-29 2416303 31985569.3322 13.2374
2016-01-31 7044222 94220695.7832 13.3756
2015-12-31 5748911 86857996.7346 15.1086
2015-11-30 8527251 140169246.488 16.4378
2015-10-31 5101057 82238730.8483 16.1219
2015-09-30 1720046 26528269.458 15.423
2015-08-31 3165924 55742107.2756 17.6069
2015-07-31 6111003 104943643.419 17.1729
2015-06-30 6627539 124259728.711 18.749
2015-05-31 6779050 126130326.395 18.6059
2015-04-30 4240686 82541560.4412 19.4642
2015-03-31 9511698 182169942.436 19.1522
2015-02-28 8062618 144932814.906 17.9759
2015-01-31 5409040 87469585.84 16.171
2014-12-31 6189571 100242578.173 16.1954
2014-11-30 1991502 34604737.0524 17.3762
2014-10-31 12539653 202201904.625 16.125
2014-09-30 869509 15439088.7549 17.7561
2014-08-31 7995731 137135581.954 17.1511
2014-07-31 10537365 173170002.674 16.4339

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused RRD's price to rise
  • If Friction Factor is negative, more selling than buying caused RRD's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2016-02-11 -0.39 467776 369340 98436 Bearish Bias
2016-02-10 -0.22 839134 469067 370067 Bearish Bias
2016-02-09 -0.17 402296 563353 -161057 -9473.941176
2016-02-08 -0.43 386126 324360 61766 Bearish Bias
2016-02-05 -0.08 392637 411445 -18808 -2351
2016-02-04 0.15 185634 230858 -45224 Bullish Bias
2016-02-03 -0.06 404561 317370 87191 Bearish Bias
2016-02-02 -0.31 202984 296561 -93577 -3018.612903
2016-02-01 -0.17 323100 295543 27557 Bearish Bias
2016-01-29 0.5 746568 441294 305274 6105.48
2016-01-28 0.12 381515 375453 6062 505.1666667
2016-01-27 -0.07 329811 283131 46680 Bearish Bias
2016-01-26 0.44 245331 295215 -49884 Bullish Bias
2016-01-25 -0.22 308646 289195 19451 Bearish Bias
2016-01-22 0.25 435437 391931 43506 1740.24
2016-01-21 0.0 399946 485436 -85490 Bullish Bias
2016-01-20 -0.63 395273 652925 -257652 -4089.714286
2016-01-19 -0.03 471436 607672 -136236 -45412
2016-01-15 -0.29 525635 812023 -286388 -9875.448276
2016-01-14 0.36 617266 541635 75631 2100.861111

Valuation

 

Value is a measure of a stock's current worth. RRD has a current value of 9.74 per share. Therefore, it is overvalued compared to its Price of $16.25 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease.

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 17.44 83.46 15312 704 95.60%
SqueezeTrigger 12.622 21.52 11201 796 93.37%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.292 15.17 59467 5442 91.62%
Group Correlation 7.192 14.94 10966 1294 89.45%
PatternScan 8.446 11.38 235467 35216 86.99%
Events 6.749 11.21 4709 725 86.66%
Earnings 8.557 10.34 25112 5050 83.26%
GATS 5.638 7.87 85133 18025 82.53%
Naked Shorts 13.784 10.98 3008 774 79.53%
Friction Factor 6.955 3.6 8591 2499 77.47%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$16.25
52 Week Range$14.66 - $21.20
1 Month Range$15.71 - $17.19
Avg Daily Volume2069900.0
PE Ratio19.19
 
Earnings Per Share
YearEPS
2016(E)$0.831
 
Capitalization
Shares Outstanding199MM
Market Capitalization$3164.00MM
 
 

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