January 4, 2013

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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
12938.19 2955.45 831.89 1402.43

Thurs Close
13391.36 3100.57 872.6 1459.37

Change
453.17 145.12 40.71 56.94

% Change
3.50% 4.91% 4.89% 4.06%

YTD
2.18% 1.02% 3.36% 2.45%

Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 44.16% 55.84% 16.68% 20.75%

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
0.38% 0.08% -0.76% -0.08% -0.23% 0.09% 0.44% -0.55% -0.08% 0.07% 0.10% -0.50% 1.03% 0.40% 0.24% -0.25%

MTD
2.40% 2.93% 2.53% 2.02% 2.63% 3.17% 2.37% 2.04% 2.03% 2.61% 2.12% 1.03% 4.06% 2.22% 3.24% 2.11%

YTD
2.40% 2.93% 2.53% 2.02% 2.63% 3.17% 2.37% 2.04% 2.03% 2.61% 2.12% 1.03% 4.06% 2.22% 3.24% 2.11%

Valuation
13.37% overvalued 5.30% overvalued 3.02% overvalued 14.16% overvalued 12.13% overvalued 24.75% overvalued 7.92% overvalued 19.54% overvalued 15.65% overvalued 18.06% overvalued 9.64% overvalued 3.56% overvalued 1.12% overvalued 15.53% overvalued 16.26% overvalued 9.58% overvalued

Last 12MReturn
10.89% 11.87% -16.07% 9.97% 7.46% 36.79% 11.42% 11.28% 18.64% 9.22% 13.92% 15.97% -8.73% 19.83% 7.76% 7.05%

P/E Ratio
15.06 14.34 23.38 25.03 35.84 49.09 26.23 19.18 20.23 21.46 39.42 14.02 31.32 25.92 20.35 18.72

Sector Talk—Computers and Technology
Below, we present the latest data on leading Computers and Technology 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 Computers and Technology Sector Stocks--Short-Term Forecast Returns
Ticker
ALLT CEL MLNX PERI PBI

Name
ALLOT COMM LTD CELLCOM ISRAEL MELLANOX TECH PERION NETWORK PITNEY BOWES IN

Mkt Price
13.85 8.51 50.7 9.17 11.09

Valuation(%)
-47.44 -21.18 -39.06 23.36 -28.3

Last 12-M Retn(%)
-12.45 -44.74 53.4 126.98 -34.3

Top-Five Computers and Technology Sector Stocks--Long-Term Forecast Returns
Ticker
HPQ GAME PBI DELL WDC

Name
HEWLETT PACKARD SHANDA GAME-ADR PITNEY BOWES IN DELL INC WESTERN DIGITAL

Mkt Price
15.14 3.1 11.09 10.94 43.02

Valuation(%)
-25.89 -42.65 -28.3 -29.31 11.45

Last 12-M Retn(%)
-41.5 -6.34 -34.3 -25.78 40.68

Top-Five Computers and Technology Sector Stocks--Composite Score
Ticker
GA AAPL CYOU CRUS WDC

Name
GIANT INTERACTV APPLE INC CHANGYOU.COM CIRRUS LOGIC WESTERN DIGITAL

Mkt Price
6.23 542.1 28.26 29.35 43.02

Valuation(%)
-27.01 -10.28 -11.89 -33.93 11.45

Last 12-M Retn(%)
61.4 32.99 41.37 82.07 40.68

Top-Five Computers and Technology Sector Stocks--Most Overvalued
Ticker
ACPW AMKR JDSU IDTI SEAC

Name
ACTIVE POWER AMKOR TECH INC JDS UNIPHASE CP INTEGR DEVICE SEACHANGE INTL

Mkt Price
3.46 4.44 13.86 7.69 9.94

Valuation(%)
300 300 300 300 300

Last 12-M Retn(%)
N/A -3.9 27.86 34.91 38.06

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Free Download for Readers
As a bonus to our Free Weekly Newsletter subscribers, we are offering a FREE DOWNLOAD of one of our Detailed Stock Valuation Reports--this report is normally $25.00 This week's free download is our report on Bank of America (BAC). Bank of America Corp. is one of the world's leading financial services companies. Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever, wherever and however they choose. Free Weekly Newsletter Subscribers can download a FREE Detailed Valuation Report on BAC HERE. Subscribers can check out the latest figures on BAC from our models HERE. Not a ValuEngine.com Premium Website member? Then please consider signing up for our no obligation, two-week free trial today. ValuEngine's awardwinning stock Valuation and Forecast Models continue to provide investors with accurate, objective, and timely information on US stocks, ADRs, and foreign equities that trade on US markets. Over the last few months, our stock picks have provided clients with many winners in both up and down periods. If you have not subscribed and want to be able to receive a FREE $ 25.00 Detailed Valuation Report, you can subscribe to our Free Weekly Newsletter HERE

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--(1.901) My annual and semiannual value levels are 1.981, 2.476 and 3.063 with daily, weekly, semiannual, monthly and quarterly risky levels at 1.788, 1.622, 1.413, 1.349 and 1.027. The first days of QE4 have been met with higher yields, which is not the intent of Federal Reserve policy. The high yield following QE4 is 1.911% set on Thursday.

Commodities and Forex Comex Gold –(($1664.8) My annual value level is $1599.9 with a monthly pivot at $1673.8 and daily, weekly, semiannual, quarterly, annual and semiannual risky levels at $1681.1, $1718.2, $1719.2, $1802.9, $1852.1 and $1939.4. Gold moved above my monthly pivot on the first day of the new year then back below on the second day. Nymex Crude Oil – ($92.71) Weekly and monthly value level is $91.29 and $74.23 with a daily pivot at $92.50, and quarterly, annual and semiannual risky levels at $95.85, $115.23, $115.42 and $130.42. Crude oil is trading between my weekly value level and quarterly risky level. The Euro – (1.3051) Semiannual, monthly and semiannual value levels are 1.2797, 1.2343 and 1.1197 with weekly and daily pivots at 1.3200 and 1.3100 and annual, quarterly and annual risky levels at 1.3257, 1.3334 and 1.4295. My annual pivot at 1.3257 was a magnet on the first trading day of 2013, and now it appears as a risky level as the dollar strengthens. Major Indices Daily DOW (13,391) Daily, weekly, monthly, annual and semiannual value levels are 13,083, 12,862, 12,818, 12,696, 12,509 and 10,788 with quarterly and semiannual risky levels at 13,668 and 14,323. The QE3 high is 13,661.87 on October 5 with the October 2007 high at 14,198.10. Note that the all time closing high is 14,164.53 set on October 9, 2007. S&P 500 – (1459.4) Daily, weekly, monthly, annual and semiannual value levels are 1424.0, 1392.9, 1397.6, 1400.7, 1348.3 and 1073.9 with a quarterly pivot at 1431.1 and semiannual risky level at 1566.9. The QE3 high is 1474.51 on September 14 with the October 2007 high at 1576.09. SPX remains above its quarterly pivot at 1431.1. NASDAQ – (3101) Daily, weekly, monthly, annual and semiannual value levels are 3017, 2935, 2934, 2806, 2790 and 2546 with a quarterly pivot at 3071 and semiannual risky level at 3583. The QE3 high is 3196.93 on September 21 is well above the November 2007 high at 2861.51. The NASDAQ remains above its quarterly pivot at 3071.

NASDAQ 100 (NDX) – (2732) Daily, weekly, monthly, annual and semiannual value levels are 2656, 2584, 2610, 2463, 2385 and 2249 with quarterly and semiannual risky levels at 2798 and 3196. The QE3 high is 2878.38 on September 21 is well above the November 2007 high at 2239.23. The NASDAQ 100 is below its quarterly risky level at 2798. Dow Transports – (5470) Daily, weekly, monthly, quarterly and semiannual value levels are 5335, 5152, 5012, 5094 and 4151 with an annual pivot at 5469, and semiannual risky levels at 5925 and 5955. The all time high at 5627.85 was set on July 7, 2011. Dow Transports moved above its annual risky level at 5469 so this level becomes a pivot for the remainder of 2013. Note that the all time closing high for Transports is 5618.25 set on July 7, 2011. Russell 2000 – (872.60) Daily, weekly, monthly, quarterly, annual and semiannual value levels are 851.74, 820.87, 813.37, 821.01, 809.54 and 697.55 with my annual pivot at 860.25 and semiannual risky level at 965.51. The Russell 2000 moved above its annual pivot at 860.25 to another new all time high at 878.43 on Thursday. The SOX – (397.54) Daily, weekly, monthly, quarterly, annual and semiannual value levels are 385.18, 376.36, 347.83, 371.62, 338.03, 274.16 and 325.99 with quarterly and semiannual risky levels at 440.36 and 520.17. The QE3 high is 410.82 on September 14 with the July 2007 high at 549.39. ValuTrader Performance Summary Calendar Year 2012 – We closed out 113 long positions and 18 short positions in 2012. Our hit percentage year to date is 83.19% on closed out longs and 83.33% on closed out shorts. On a trade-by-trade basis we are 1.06% ahead of like trades for the S&P 500 on longs and 1.19% up on shorts versus like trades for the S&P 500. The model portfolio is up 18.84% (on a $120,000 investment) for closed positions versus 11.5% for the S&P 500. Calendar Year 2012 – We closed out 113 long positions and 18 short positions in 2012. Our hit percentage year to date is 83.19% on closed out longs and 83.33% on closed out shorts. On a trade-by-trade basis we are 1.06% ahead of like trades for the S&P 500 on longs and 1.19% up on shorts versus like trades for the S&P 500. The model portfolio is up 18.84% (on a $120,000 investment) for closed positions versus 11.5% for the S&P 500.

Stock of the Day Wells Fargo (WFC) – ($34.76) Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Analysis – Wells Fargohas a Buy rating according to ValuEngine with fair value at $33.71, which makes the stock 4.0% overvalued. The ValuEngine one-year price target is $37.54. The daily chart for WFC shows rising momentum with the stock above its 21-day, 50-day and 200-day simple moving averages at $33.94, $33.45 and $33.52. My annual value level is $32.82 with my monthly pivot at $33.90 and annual pivot at $34.17. No risky levels.

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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