March 1, 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!

VALUATION WATCH IS OFF: Overvalued stocks now make up 59% of our universe and almost 23% of the universe is calculated to be overvalued by 20% or more. 15 sectors are calculated to be overvalued. MARKET OVERVIEW

Index
DJIA NASDAQ RUSSELL 2000 S&P 500

Week Open
14000.57 3180.59 916.12 1515.6

Thurs Close
14054.5 3160.19 911.11 1514.68

Change
53.93 -20.4 -5.01 -0.92

% Change
0.39% -0.64% -0.55% -0.06%

YTD
7.25% 4.66% 7.27% 6.20%

Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 40.54% 59.46% 16.62% 23.18%

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
1.49% 0.86% 0.63% 0.68% 0.69% 1.55% 0.56% 0.39% 0.65% 1.17% 0.68% 1.51% 0.64% 0.96% 1.30% 0.63%

MTD
1.47% 0.30% -1.81% 1.07% 1.72% 0.32% 0.56% 0.80% 1.39% 2.32% 1.00% 0.35% -0.97% 2.40% 1.97% -1.10%

YTD
6.29% 6.41% 2.08% 7.67% 8.56% 8.83% 8.35% 5.82% 8.21% 8.35% 7.58% 4.01% 6.90% 10.50% 12.99% 4.68%

Valuation
5.17% overvalued 6.68% overvalued 5.22% undervalued 10.26% overvalued 12.43% overvalued 22.41% overvalued 6.82% overvalued 22.94% overvalued 17.40% overvalued 19.23% overvalued 12.14% overvalued 9.48% overvalued 1.77% overvalued 9.76% overvalued 20.00% overvalued 6.25% overvalued

Last 12MReturn
7.04% -1.93% -30.69% 8.72% -0.68% 22.35% 6.46% 8.85% 13.38% 2.70% 4.58% 10.21% -16.79% 12.72% 2.31% 6.59%

P/E Ratio
36.85 15.42 24.17 25.22 38.28 48.31 24.79 20.22 20.9 22.73 27.31 16.33 30.25 32.5 24.24 18.38

Sector Talk—Computers and Technology Stocks
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
PAY SYNC BSFT CALL GTI

Name
VERIFONE HLDGS SYNACOR INC BROADSOFT INC MAGICJACK VOCTC GRAFTECH INTL

Mkt Price
18.97 3.29 21 11.45 7.39

Valuation(%)
-61.77 -53.08 -40.88 -75 -40.95

Last 12-M Retn(%)
-61.06 -32.86 -42.69 -41.49 -42.36

Top-Five Computers and Technology Sector Stocks--Long-Term Forecast Returns
Ticker
PAY STX WDC CALL HPQ

Name
VERIFONE HLDGS SEAGATE TECH WESTERN DIGITAL MAGICJACK VOCTC HEWLETT PACKARD

Mkt Price
18.97 32.16 47.16 11.45 20.14

Valuation(%)
-61.77 28.7 19.81 -75 -0.48

Last 12-M Retn(%)
-61.06 23.88 21.3 -41.49 -20.9

Top-Five Computers and Technology Sector Stocks--Composite Score
Ticker
GA CYOU UIS MX CRUS

Name
GIANT INTERACTV CHANGYOU.COM UNISYS MAGNACHIP SEMI CIRRUS LOGIC

Mkt Price
6.2 29.86 22.98 15.75 24.04

Valuation(%)
-24.15 -4.86 -14.56 -1.17 -44.21

Last 12-M Retn(%)
56.57 38.95 20.76 33.02 2.12

Top-Five Computers and Technology Sector Stocks--Most Overvalued
Ticker
AMKR USMO CAMP SEAC JDSU

Name
AMKOR TECH INC USA MOBILITY CALAMP CORP SEACHANGE INTL JDS UNIPHASE CP

Mkt Price
4.06 11.62 10.95 11.52 14.15

Valuation(%)
300 300 300 300 300

Last 12-M Retn(%)
-38.86 -10.89 154.65 63.87 1.32

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 Please Click HERE NO OBLIGATION, 30 DAY FREE TRIAL!

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
Annie's, Inc. (BNNY). Annie's is a natural and organic food company, which offers consumers products in packaged food categories. The Company's product lines include macaroni and cheese, snack crackers, fruit snacks and graham crackers. Annie's, Inc. markets and sells its product through mainstream grocery, mass merchandiser and natural retailer. It sells products in three primary product categories: meals, snacks, dressings, condiments and other. Annie's, Inc. is headquartered in Berkeley, California.

Read our Complete Detailed Valuation Report on Annie's HERE. (LINK IS WORKING/NEW LINK SYSTEM DIRECT DOWNLOAD)

What's Hot—Valuation
The ValuEngine Valuation Model tracks more than 8000 US equities, ADRs, and foreign stock which trade on US exchanges. The model calculates a level of mispricing or valuation percentage for each equity based on what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Whenever we see levels in overvaluation levels in excess of @ 60% for the overall universe and/or 27.5% for the overvalued by 20% or more categories, we issue a valuation watch. With the markets pushing the sorts of levels not seen since the beginning of the financial crisis, we finally broke through the 60% barrier for overall market overvaluation last month and ValuEngine issued a market valuation watch on

January 28th. We then saw our overvaluation metrics briefly rise into Valuation Warning territory (65%) on February 4th and February 20th, remain elevated, and then recede below 60% on February 26th. Currently, they remain just below the threshold for our Valuation Watch. So, we will keep a close eye on these figures because In the past, market pull backs have correlated closely to these sorts of numbers. This is a time for investors to keep a close eye on the market and to consider booking some profits and perhaps hedging against a move to the downside. Subscribers Get FULL ACCESS to our Market and Sector Overviews The chart below tracks the valuation metrics from January 1, 2013 until today.

The chart below tracks the valuation metrics from June, 2012 until today. Note that levels never got this high back in September 2012--the last time we saw any overvaluation in excess of 50%.

The chart below tracks the valuation metrics from March 2010 until today. This chart encompasses two prior periods where we issued Valuation Watches and Warnings.

Valuation Watch is OFF (Barely)

Latest Small Cap Stock Newsletter Results
The ValuEngine Small Cap Newsletter portfolio has 15 stocks and is re-balanced once each month. An equal amount of capital is allocated to each stock. Each newsletter portfolio focuses on maximum potential returns so there are no diversity requirements. Since inception, performance has been good. It is designed for investor who like the outsized return possibilities of smaller-cap companies and who are comfortable with the fact that such stocks may be more volatile and present more risk than larger, more-established firms. So, prudent investors are careful to establish stop-losses and hedging strategies for every portfolio. This newsletter is now live on our website and available to new subscribers at a special introductory rate. Here are the results from our most recent rebalance. As you can see, the ValuEngine Small Cap Stock Newsletter continues to impress for 2013. Once again a majority of our picks were successful with five stocks giving double-digit gains. Pike Electric dominated with a gain of 40% while Metabolix contributed a 33% pick up and China Hydro returned almost 30%. Volatility was a factor though, with big gains hampered by significant losses from Timmins Gold, Raptor Pharma, Homeowners Choice, and Alaska Communications. Overall, our newsletter provided a return of 4.53% versus the S&P 500's gain of 1.30%. That's another significant beat of 326 bps beat for the month.
Symbol
ABCP ALSK CBEY CHC HCI HGSH KTOS

Company Name
AMBASE CORP ALASKA COMM SYS CBEYOND INC CHINA HYDRO-ADS HOMEOWNERS CHCE CHINA HGS REAL KRATOS DEFENSE

Entry Price 1-23-13
1.05 1.93 8.76 1.53 23.53 3.8 4.92

Exit Price
1.18 1.73 7.89 1.98 20.85 3.97 4.44

Change
0.13 -0.20 -0.87 0.45 -2.68 0.17 -0.48

%Change

12.38 -10.36 -9.93 29.41 -11.39 4.47 -9.76

Symbol
LIWA MBLX PIKE RPTP TGD UEPS WIBC YONG

Company Name
LIHUA INTL INC METABOLIX INC PIKE ELECTRIC RAPTOR PHARMACT TIMMINS GOLD NET 1 UEPS TECH WILSHIRE BCP YONGYE INTL INC

Entry Price 1-23-13
4.49 1.55 9.97 5.69 3.02 5.29 6.15 5.7

Exit Price
5.22 2.07 13.98 5 2.17 5.97 6.17 5.74

Change
0.73 0.52 4.01 -0.69 -0.85 0.68 0.02 0.04

%Change

16.26 33.55 40.22 -12.13 -28.15 12.85 0.33 0.70 4.56 1.30

LONG PORTFOLIO GSPC S&P500
1492.56 1511.95 19.39

ValuEngine is pleased to announce our latest investment tool, the ValuEngine Small Cap Stock Newsletter. Why Small Cap Stocks? Small cap stocks allow investors to establish larger positions on a share basis and thus benefit from the price swings and upward volatility of these sorts of equities. And savvy investors know that small cap stocks often lead rallies. Our investment strategies focus on dozens of fundamental and technical factors for over 8,000 individual stocks, synthesize the data, and then come up with a portfolio. The ValuEngine Small Cap Stock Newsletter features 15 primary stock selection and five alternate stock picks derived from our award-winning stock forecast model. We focus on small-cap companies which can be more volatile, but also offer the potential of outsized returns for a given amount of investment capital. Investors can establish larger positions in these equities due to the fact that they often feature far-lower share prices than equities chosen for our other newsletters and investment strategies. These aren't "penny stocks"--all companies must be trading at more than $1.00 to be selected--but they do tend to be more affordable.

CLICK HERE to Subscribe to the ValuEngine Small Cap Stock Newsletter at a Special Introductory Rate

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--(1.888) Annual, weekly, annual and semiannual value levels are 1.981, 2.173, 2.476 and 3.063 with a daily pivot at 1.862 and monthly and semiannual risky levels at 1.796 and 1.413. Commodities and Forex Comex Gold –($1579.2) My daily value is $1566.2 with my annual pivot at $1599.9 and weekly, semiannual, monthly, quarterly and annual and semiannual risky levels at $1624.2, $1737.6, $1793.7, $1802.9 and $1852.1. Nymex Crude Oil –($91.89) My daily value level is $90.48 with my quarterly pivot at $95.84 and monthly, weekly, annual and semiannual risky levels at $98.23, $99.09, $115.23, $115.42 and $130.42. The Euro – (1.3060) Daily and semiannual value levels are 1.2951 and 1.2797 with monthly, annual, quarterly, weekly and annual risky levels at 1.3249, 1.3257, 1.3334, 1.3430 and 1.4295. Major Indices Daily DOW (14,054) Quarterly and annual value levels are 13,668, 12,696 and 12,509 with daily and monthly pivots at 13,955 and 13,949, and semiannual risky level at 14,323. Set a new multi-year high at 14,149.15 on February 28, 2013. The October 2007 high is 14,198.10. The all time closing high is 14,164.53 set on October 9, 2007. S&P 500 – (1514.7) Quarterly and annual value levels are 1431.1 and 1348.3 with a daily pivot at 1500.4, and monthly and semiannual risky levels at 1528.6 and 1566.9. The October 2007 high is 1576.09.

NASDAQ – (3160) Daily, quarterly and annual value levels are 3119, 3071, 2806 and 2790 with monthly, weekly and semiannual risky levels at 3197, 3351 and 3583. NASDAQ 100 (NDX) – (2739) Daily and annual value levels are 2703, 2463 and 2385 with quarterly and monthly risky levels at 2798 and 2809. Dow Transports – (5993) Daily, monthly, annual and quarterly value levels are 5914, 5522, 5469 and 5094 with annual and semiannual pivots at 5925 and 5955, and weekly risky level at 6396. The February 19 close at 6020.67 was an all time closing high. To confirm a “Dow Theory Buy Signal” the Dow Industrials need to have a daily close above its all time closing high of 14,164.53 set on October 9, 2007. Russell 2000 – (911.11) Daily, annual, quarterly and annual value levels are 897.98, 860.25, 821.01 and 809.54 with a monthly pivot at 901.68, and weekly and semiannual risky levels at 943.46 and 965.51. The Russell 2000 set another new all time high at 932.00 on February 19. The SOX – (426.63) Daily, monthly, quarterly and annual value levels are 419.30, 404.22, 371.62 and 338.03 with quarterly, weekly and semiannual risky levels at 440.36, 456.56 and 520.17. The July 2007 high is 549.39. With 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 for the major equity averages. Click HERE to Sign Up for Chief Market Strategist Richard Suttmeier's Morning Briefing!

ValuEngine.com Tools and Services
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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