December 21, 2012

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The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from ValuEngine.com. In today's fast-moving and globalized financial markets, it is easy to get overloaded with information. The winners will adopt an objective, scientific, independent and unemotional approach to investing. If you are not yet a member of ValuEngine's stock analysis service, sign up now for a two-week free trial at www.valuengine.com!

MARKET OVERVIEW

Index
DJIA NASDAQ RUSSELL 2000 S&P 500

Week Open
13135.17 2975.5 825.14 1413.54

Thurs Close
13311.7 3050.39 852.49 1443.69

Change
176.53 74.89 27.35 30.15

% Change
1.34% 2.52% 3.31% 2.13%

YTD
8.96% 17.09% 15.06% 14.80%

Summary of VE Stock Universe

Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 49.92% 50.08% 18.51% 16.95%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
0.92% 0.12% 0.22% 0.53% 0.13% 1.07% 0.26% 0.31% 0.65% 0.32% 0.24% 0.69% 0.37% 0.50% 0.28% 0.50%

MTD
6.75% 3.56% 3.87% 4.03% 3.89% 3.61% 2.50% 1.34% 2.49% 3.78% 1.28% 4.39% 4.13% 2.05% 3.48% 3.43%

YTD
9.79% 17.98% 3.28% 13.33% 36.35% 72.54% 15.46% 16.17% 33.13% 12.41% 27.10% 14.66% -2.75% 22.40% 16.12% -3.08%

Valuation
9.89% overvalued 0.36% undervalued 2.02% undervalued 11.23% overvalued 10.30% overvalued 20.93% overvalued 4.54% overvalued 16.45% overvalued 12.95% overvalued 14.06% overvalued 6.67% overvalued 0.09% overvalued 1.57% undervalued 13.48% overvalued 11.55% overvalued 7.68% overvalued

Last 12MReturn
8.42% 13.98% -15.05% 10.65% 6.88% 40.29% 12.20% 12.42% 18.74% 8.38% 14.13% 16.31% -6.52% 21.10% 5.66% 7.13%

P/E Ratio
15.14 13.66 22.71 24.6 35.19 48.29 25.58 19.04 19.85 20.79 39.03 13.6 30.61 25.68 19.26 18.56

Sector TalkFinance
Below, we present the latest data on leading finance Sector stocks from our Institutional software package (VEI). These results were filtered by market price and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Finance Sector Stocks--Short-Term Forecast Returns

Ticker
FBC HGSH HCI ASPS BANR

Name
FLAGSTAR BANCP CHINA HGS REAL HOMEOWNERS CHCE ALTISOURCE PORT BANNER CORP

Mkt Price
19.42 3.25 21.23 89.26 30.87

Valuation(%)
-75 N/A 3.55 -17.39 -51.25

Last 12-M Retn(%)

280.78 316.67 180.08 78.88 85.29

Top-Five Finance Sector Stocks--Long-Term Forecast Returns

Ticker
FBC HGSH HCI ABR STC

Name
FLAGSTAR BANCP CHINA HGS REAL HOMEOWNERS CHCE ARBOR RLTY TRST STEWART INFO SV

Mkt Price
19.42 3.25 21.23 6.05 26.12

Valuation(%)
-75 N/A 3.55 -24.63 31.41

Last 12-M Retn(%)

280.78 316.67 180.08 86.73 129.93

Top-Five Finance Sector Stocks--Composite Score

Ticker
AIG C FBC STI AEG

Name
AMER INTL GRP CITIGROUP INC FLAGSTAR BANCP SUNTRUST BKS AEGON N V

Mkt Price
35.53 40.17 19.42 28.97 6.47

Valuation(%)
-75 -53.64 -75 -26.23 -23.81

Last 12-M Retn(%)

49.6 54.98 280.78 73.16 72.99

Top-Five Finance Sector Stocks--Most Overvalued

Ticker
FSP RSO AI BKMU TRST

Name
FRANKLIN ST PPT RESOURCE CAPITL ARLINGTON ASSET BANK MUTUAL CRP TRUSTCO BK -NY

Mkt Price
12.26 5.89 21.06 4.15 5.34

Valuation(%)
300 300 300 300 277.04

Last 12-M Retn(%)

26.92 20.2 16.29 31.33 1.14

Find out what Wall Street Investment and Media Professionals already know, ValuEngine offers sophisticated stock valuation and forecast research as well as a variety of portfolio screening and creation tools. If you are reading this you should sign up for ValuEngine's award-winning To Sign Up for a stock valuation and forecast FREE TRIAL, service at the low price of Please Click $19.95/month! HERE NO OBLIGATION, 30 DAY FREE TRIAL!

What's HotVE View Newsletter

For November/December, the ValuEngine View Newsletter once more beat the S&P 500 handily by posting a double-digit gain of 11.24% vs the benchmarks gain of 6.39%. We beat the S&P by almost 500 bps. The trailing 12 month percentage gain is 65.94% for the VE View compared to the S&P's 18.62% return. So, over the past year the VE View has more than tripled the return of the S&P 500. Our November-December ValuEngine View Newsletter picks were perfect for the end-of-year window dressing on Wall St. with 14 of 15 providing positive gains. Eight picks provided double-digit gains with Delta Airlines, Terex, and Western Refining gaining more than 20%. 13 of 15 picks beat the S&P for the month. Our only loser was gun manufacturer Smith and Wesson--of course, a quantitative model cannot predict a school massacre and the ensuing fallout as major investment groups dump gun stocks in anticipation of additional regulation, lawsuits, etc.

Return Comparison vs. S&P 500

Last 12 Months VE View S&P 500 Excess Return
65.94% 18.62% 47.32%

With the ValuEngine View Newsletter, you Receive 20 Carefully Selected Stock Picks which Represent the Most Up-to-Date Calculations of our Award-Winning Stock Valuation and Forecast Models

Here are the results for November-December 2012:

Ticker
AIG DAL HFC ICA LCC LPS MDC MOG.A OMX PDLI RF STX SWHC TEX WNR

Company Name
AMER INTL GRP DELTA AIR LINES HOLLYFRONTIER EMPRESAS ICA US AIRWAYS GRP LENDER PROC SVC MDC HLDGS MOOG INC A OFFICEMAX INC PDL BIOPHARMA REGIONS FINL CP SEAGATE TECH SMITH & WESSON TEREX CORP WESTERN REFING

Entry Price
31.80 9.33 42.36 8.82 11.76 23.70 33.96 34.22 9.22 7.21 6.31 26.76 9.43 21.36 25.08

Exit Price
35.50 11.53 46.57 10.28 12.95 25.70 36.80 39.11 10.03 7.45 7.05 29.36 7.79 27.20 30.65

Change
3.70 2.20 4.21 1.46 1.19 2.00 2.84 4.89 0.81 0.24 0.74 2.60 -1.64 5.84 5.57

%Change
11.64 23.58 9.94 16.55 10.12 8.44 8.36 14.29 8.79 3.33 11.73 9.72 -17.39 27.34 22.21 11.24

Sector
FINANCE TRANSPORTATION OILS-ENERGY CONSTRUCTION TRANSPORTATION BUSINESS SERVICES CONSTRUCTION AEROSPACE RETAIL-WHOLESALE MEDICAL FINANCE COMPUTER AND TECHNOLOGY CONSUMER DISCRETIONARY INDUSTRIAL PRODUCTS OILS-ENERGY

VALUENGINE VIEW PORTFOLIO GSPC S&P500 1,359.88 1,446.79 86.91

6.39

Looking for a monthly portfolio of stock picks which are objective and based on cutting-edge academic theory and Wall St.practice? Then subscribe to The ValuEngine View Newsletter.The ValuEngine View Portfolio is based on our highly-refined and tested ValuEngine Portfolio Strategies along with our proprietary quant-based composite scoring system. The ValuEngine View Newsletter is the product of sophisticated stock valuation and forecast models first developed by Yale Professor of Finance Zhiwu Chen.

VE View vs. S&P 500 Index Since Launch VE View Ann Return Ann Volatility Sharpe Ratio Sortino Ratio Max Drawdown 9.61% 30.96% 0.31 0.35 -72.02% S&P 500 5.01% 18.06% 0.28 0.31 -51.35%

The ValuEngine View Newsletter is derived from the ValuEngine Aggressive and Diversified Growth Benchmark Portfolio Strategies. These strategies are the product of ValuEngine's academic research team and combine cutting-edge financial analysis and portfolio construction techniques with real-world Wall St. know how. The ValuEngine View Newsletter portfolio has 15 primary stock picks and five alternates and is re-balanced once each month. The ValuEngine View Newsletter is published near the middle of each calendar month. An equal amount of capital is allocated to each stock. The monthly returns are calculated from the closing prices on date of publication. The performance calculation does not include any transaction costs.

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Suttmeier Says
--Commentary and Analysis from Chief Market Strategist Richard Suttmeier
If you have any comments or questions, send them to Rsuttmeier@Gmail.com Treasury Yields 10-Year--((1.794) Daily, semiannual, quarterly and annual value levels are 1.888, 1.853, 2.109 and 2.502 with weekly, semiannual and monthly risky levels at 1.565, 1.389 and 1.060. The 50-day and 200-day simple moving averages are 1.688 and 1.737. Commodities and Forex Comex Gold ($1649.3) My annual value level is $1575.8 with semiannual pivots at $1643.3 and $1702.5 and quarterly risky levels at $1844.9 and $1881.4. Set a 2012 high at $1798.1 on October 5. The 50-day and 200-day simple moving averages are $1716.7 and $1662.9. Nymex Crude Oil ($89.88) Weekly, monthly and semiannual value levels are $83.28, $78.18 and $76.71 with a daily pivot at $89.95 and annual and quarterly risky levels at $103.58 and $107.63. The 50-day and 200-day simple moving averages are $87.55 and $92.46. The Euro (1.3240) Quarterly, semiannual, weekly and monthly value levels are 1.3048, 1.2917, 1.2855 and 1.2203 with daily and annual risky levels at 1.3372 and 1.4239. The 50-day and 200-day simple moving averages are 1.2943 and 1.2783. Major Indices Daily Dow: (13,312) Monthly, weekly, annual and semiannual value levels are 12,826, 12,671, 12,312 and 10,738 with daily, annual and quarterly risky levels at 13,333, 14,032 and 14,192. The QE3 high is 13,661.87 on October 5 with the October 2007 high at 14,198.10. The 50-day and 200-day simple moving averages are 13,096 and 13,011.

S&P 500 (1443.7) Monthly, weekly, annual and semiannual value levels are 1378.6, 1374.9, 1363.2, and 1059.7 with daily, quarterly and annual risky levels at 1445.8, 1513.3 and 1562.9. The QE3 high is 1474.51 on September 14 with the October 2007 high at 1576.09. The 50-day and 200-day simple moving averages are 1413.6 and 1389.0. NASDAQ (3050) Weekly, monthly, annual and semiannual value levels are 2911, 2893, 2698 and 2527 with daily, annual and semiannual value levels at 3060, 3232 and 3295. The QE3 high is 3196.93 on September 21 is well above the November 2007 high at 2861.51. The 50-day and 200-day simple moving averages are 2987 and 2991. NASDAQ 100 (NDX) (2694) Annual, monthly, weekly, annual and semiannual value levels are 2603, 2596, 2578, 2300 and 2239, with daily and quarterly risky levels at 2705 and 2950. The QE3 high is 2878.38 on September 21 is well above the November 2007 high at 2239.23. The 50-day and 200-day simple moving averages are 2658 and 2674. Dow Transports (5358) Weekly, monthly, semiannual value levels are 5083, 4930, 4449 and 4129 with a daily pivot at 5330, and quarterly and annual risky levels at 5541 and 5861. The QE3 high is 5231.15 on September 14 with the all time high at 5627.85 set on July 7, 2011. The 50-day and 200- day simple moving averages are 5095 and 5114. Russell 2000 (852.49) Weekly, monthly and semiannual value levels are 800.74, 786.64 and 686.25 with annual and daily pivots at 836.15 and 851.05. The QE3 high is 868.50 on September 14 with the all time high at 868.57 set on May 2, 2011. The 50-day and 200-day simple moving averages are 816.99 and 807.06. The SOX (389.49) Weekly, monthly and semiannual value levels are 379.60, 326.94 and 326.30 with daily and quarterly risky levels at 391.78 and 439.97. The QE3 high is 410.82 on September 14 with the July 2007 high at 549.39. The 50-day and 200-day simple moving averages are 372.99 and 388.59.

Stock of the Day Intel Corp (INTC) Intel Corporation is one of the world's largest semiconductor chip maker. The Company develops advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. It also develops platforms, which it defines as integrated suites of digital computing technologies that are designed and configured to work together to provide an optimized user computing solution compared to components that are used separately. Intel designs and manufactures computing and communications components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate these components. The Company sells its products primarily to original equipment manufacturers, original design manufacturers, PC and network communications products users, and other manufacturers of industrial and communications equipment. Intel Corporation is based in Santa Clara, California. Analysis Intel ($21.03) has a Buy rating according to ValuEngine with fair value at $23.12, which makes the stock 8.7% undervalued. The ValuEngine one-year price target is $22.49. ValuEngine Profile The daily chart for INTC shows rising momentum with the stock above its 21-day simple moving average at $20.18, on the cusp of its 50-day SMA at $20.81 and below its 200-day SMA at $24.80. My weekly value level is $19.96 with a semiannual pivot at $21.14 and quarterly risky level at $27.25.

Richard Suttmeier's Morning Briefing, you get daily analysis of US Treasury Yields, Gold, Crude Oil, and Currency Exchange Rates--Dollar, Yen, Pound, and Euro-as well as key technical indicators.

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We provide a variety of means for accessing ValuEngine market analysis and other content. You can find us on some of the leading financial media websites as well as the more popular social media services. While our own website ValuEngine.com provides access to lots of analysis--and you can always sign up to receive email daily and weekly bulletins HERE, some users prefer to download PDF reports of content while others prefer to garner info while browsing the web. =Our Chief Market Strategist Richard Suttmeier is a prolific market observer and you can find his content in a variety of places. His weekly column on Forbes provides insights into his "Buy and Trade" strategy while his daily market analysis can be followed and accessed at Scribd, Twitter, and Minyanville. Senior Editor Steve Hach re-posts PDFs and web-accessible copies of Daily and Weekly ValuEngine bulletins at Seeking Alpha and Scribd. In most cases, you can receive notification of VE content posting by Suttmeier and Hach by following the ValuEngine feed on twitter @ValuEngine. Links for this content are provided below, you may also find these links on our website HERE

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