Market Read®

  • Thursday, July 10 2014

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 provides integrated communication solutions to private and public sectors worldwide. The company s products and related service offerings include label and paperboard packaging products, as well as prime label, corrugated, and other packaging products; custom packaging comprising designing, printing, die cutting, finishing, and assembling; and digital content distribution, e-reading software, content conversion, and data analytics and business intelligence services. It also provides software for readers to select relevant content to be digitally produced as specialized publications; online tools for consumers to purchase online subscriptions from publishers; and online tools that allow real estate associates, brokers, multiple listing service associations, and other marketers to create customized communications materials. In addition, the company offers multi-channel marketing services to retail, technology, telecommunications, hospitality, and other customers; shareholder and marketing communication services; and magazines, catalogs, retail inserts, books, directories, financial printing and related services, forms, labels, office products, pre-media, and logistics services. Further, it operates an online community for publishers, catalogers, and other customers stock and custom content, as well as editorial solutions; provides business process outsourcing services, including transactional print and outsourcing services, statement printing, direct mail, and print management services; and offers outsourcing capabilities comprising 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. R.R. Donnelley & Sons 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 $15.99.

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 15.99 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 15.72.

Date Short Volume Short Value SqueezeTrigger
2014-05-31 3980724 66581987.6964 16.7261
2014-04-30 7559740 133317526.848 17.6352
2014-03-31 6668509 123906232.027 18.5808
2014-02-28 10200638 186504384.937 18.2836
2014-01-31 8018050 156070541.445 19.4649
2013-12-31 13034187 250935471.543 19.2521
2013-11-30 11357674 199860989.378 17.597
2013-10-31 8411433 140068023.459 16.6521
2013-09-30 9086754 147991419.021 16.2865
2013-08-31 10155586 184919003.24 18.2086
2013-07-31 12795588 203850351.104 15.9313
2013-06-30 1672936 21473806.496 12.836
2013-05-31 9253392 116734316.098 12.6153
2013-04-30 1943985 23123118.3795 11.8947
2013-03-31 12000356 133233952.49 11.1025
2013-02-28 16865234 163726005.149 9.7079
2013-01-31 18097209 165600320.675 9.1506
2012-12-31 22011680 200964437.232 9.1299
2012-11-30 13917149 132226832.649 9.501
2012-10-31 13596377 144416637.581 10.6217

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
2014-05-13 -0.47 755618 861300 -105682 -2248.553191
2014-05-12 -0.04 1153073 1032468 120605 Bearish Bias
2014-05-09 -0.11 758795 690710 68085 Bearish Bias
2014-05-08 0.09 1005410 1076902 -71492 Bullish Bias
2014-05-07 0.43 1386410 1262682 123728 2877.395349
2014-05-06 -0.55 1730173 1568292 161881 Bearish Bias
2014-05-05 0.01 1471914 1474392 -2478 Bullish Bias
2014-05-02 -0.04 1826779 1993583 -166804 -41701
2014-05-01 -1.11 2824010 2893988 -69978 -630.4324324
2014-04-30 0.38 1226082 1163232 62850 1653.947368
2014-04-29 -0.02 725807 600195 125612 Bearish Bias
2014-04-28 -0.07 847661 654001 193660 Bearish Bias
2014-04-25 -0.12 476730 563144 -86414 -7201.166667
2014-04-24 -0.25 540590 598165 -57575 -2303
2014-04-23 -0.34 791953 973911 -181958 -5351.705882
2014-04-22 0.26 544016 694090 -150074 Bullish Bias
2014-04-21 0.0 380374 424353 -43979 Bullish Bias
2014-04-17 0.23 923017 577043 345974 15042.34783
2014-04-16 0.26 763220 852721 -89501 Bullish Bias
2014-04-15 0.31 675505 609537 65968 2128

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 $15.99 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 15.127 73.12 9082 474 95.04%
SqueezeTrigger 12.737 22.37 7779 472 94.28%
Group Correlation 7.346 14.96 1308 88 93.70%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.458 15.2 42589 4126 91.17%
PatternScan 8.448 11.37 133305 19233 87.39%
Events 6.942 11.19 3387 543 86.18%
GATS 5.388 7.95 45028 8523 84.08%
Earnings 8.681 10.28 21679 4349 83.29%
Naked Shorts 14.491 10.83 2233 589 79.13%
Friction Factor 7.503 3.63 5599 1602 77.75%

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$15.99
52 Week Range$14.39 - $21.20
1 Month Range$15.71 - $17.19
Avg Daily Volume2258505.0
PE Ratio20.11
 
Earnings Per Share
YearEPS
2014(E)$0.831
 
Capitalization
Shares Outstanding199MM
Market Capitalization$3357.00MM
 
 

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