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Steve Hach
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Steve Hach is the Senior Editor at ValuEngine.com, a Melbourne, Florida-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 8000 US, Canadian, and other foreign stocks. Hach utilizes ValuEngine's complex... More
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  • Exxon-Mobil (XOM,$XOM) Reports Major Gulf Discovery, ValuEngine.com Rates Energy Giant a Buy
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    June 8, 2011

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    Oil that is, Black Gold, Texas Tea

    Exxon-Mobil (XOM,$XOM) Reports Major Gulf Discovery, ValuEngine.com Rates Energy Giant a Buy

      Another down day for stocks was tempered by news of a major Gulf of Mexico discovery by Exxon-Mobil (NYSE:XOM).  While stocks were down, oil prices rose on news that OPEC has declined to increase production.  With the hot days of Summer upon us, crude over $100/barrel on the New York Mercantile Exchange-- yet again-- could make travel to the shore a more expensive proposition.  The news seems destined to keep major oil producers profits pegged to record levels.

      ValuEngine has issued a BUY recommendation for Exxon-Mobil on Jun. 08, 2011. Based on the information we have gathered and our resulting research, we feel that Exxon-Mobil has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and risk.

     Based on available data as of Jun. 08, 2011, we believe that XOM should be trading at $84.83. This makes XOM 5.69% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For XOM, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $7.49, forecasted EPS for the next four quarters of $9.19, and correlations to the 30-year Treasury bond yield of 4.26%.

      Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. Exxon Mobil is a major manufacturer and marketer of basic petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Exxon Mobil is engaged in exploration for, and mining and sale of coal, copper and other minerals.

      Subscribers can check out the latest valuation, forecast, and ratings figures on XOM from our Models HERE. 

    Market Indices Data
    Index
    Latest
    Change
    YTD
    Dow Jones
    12,072.50
    1.70
    4.28%
    NASDAQ Composite
    2,682.17
    -19.39
    1.10%
    Russell 2000
    788.55
    -9.00
    0.63%
    S&P 500
    1,283.25
    -1.69
    2.04%

     

    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    56.47%
    Stocks Overvalued
    43.53%
    Stocks Undervalued by 20%
    23.05%
    Stocks Overvalued by 20%
    16.01%
     
    ValuEngine Sector Overview
    Sector
    Change
    MTD
    YTD
    Valuation
    Last 12-MReturn
    P/E Ratio
    Multi-Sector Conglomerates
    -0.23%
    -1.17%
    0.05%
    14.81% overvalued
    36.73%
    25.05
    Utilities
    0.14%
    -1.27%
    3.69%
    4.45% overvalued
    27.48%
    23.83
    Transportation
    0.00%
    -2.61%
    -6.50%
    4.04% overvalued
    22.10%
    20.18
    Oils-Energy
    0.26%
    -3.22%
    -1.80%
    2.99% overvalued
    44.42%
    56.32
    Consumer Staples
    0.11%
    -1.66%
    -7.28%
    0.95% overvalued
    20.50%
    31.60
    Business Services
    0.66%
    -1.72%
    1.42%
    0.53% undervalued
    20.62%
    26.62
    Medical
    0.07%
    -2.70%
    12.16%
    1.94% undervalued
    22.09%
    31.28
    Aerospace
    0.56%
    -0.12%
    11.90%
    2.06% undervalued
    30.12%
    17.95
    Computer and Technology
    0.11%
    -2.72%
    5.61%
    2.79% undervalued
    37.65%
    37.79
    Finance
    0.20%
    -1.65%
    -0.28%
    2.81% undervalued
    13.00%
    27.65
    Retail-Wholesale
    0.04%
    -2.83%
    2.15%
    2.87% undervalued
    26.21%
    33.55
    Construction
    -0.87%
    -4.63%
    -9.70%
    4.89% undervalued
    6.79%
    29.05
    Consumer Discretionary
    -0.08%
    -2.86%
    0.53%
    5.25% undervalued
    18.68%
    29.87
    Industrial Products
    0.11%
    -2.88%
    -2.95%
    5.32% undervalued
    31.76%
    28.16
    Auto-Tires-Trucks
    -0.16%
    -2.12%
    -11.65%
    6.01% undervalued
    44.60%
    18.48
    Basic Materials
    0.48%
    -2.92%
    -7.81%
    6.86% undervalued
    50.30%
    34.71

     

      Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

     
     
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    ValuEngine.com - Rational advice, smarter investing.
    2
     
     
     
    Tags: XOM, oil, energy
    Jun 08 2:57 PM | Link | Comment!
  • June 7, 2011 Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE Sole Survivor ING Group (ING,$ING) the Lone Finance Bright Spot in ValuEngine.com Stock Screen
    Go to ValuEngine.com
    June 7, 2011

    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

    Sole Survivor

    ING Group (ING,$ING) the Lone Finance Bright Spot in ValuEngine.com Stock Screen

      While finance stocks have not made the grade from our proprietary models as of late, ING GROEP (NYSE:ING) turned up highly-rated in a screen for liquid stocks with low p/e ratios, high undervaluation ranks, and high short-term forecast figures.  In fact, out of 17 stocks in a recent screen, ING was the only Finance stock in a sea of Basic Materials tickers.  Analysts attribute the recent upswing in its share price to positive news about a possible prompt sale of its US operations--which was a requirement imposed by European regulators due to bailout funding.

     ValuEngine has issued a BUY recommendation for ING GROEP on Jun. 07, 2011. Based on the information we have gathered and our resulting research, we feel that ING GROEP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, market valuation and P/E ratio.

      Based on available data as of Jun. 07, 2011, we believe that ING should be trading at $22.99. This makes ING 49.36% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For ING, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $1.65, forecasted EPS for the next four quarters of $2.51, and correlations to the 30- year Treasury bond yield of 4.26%.

      ING GROEP is a global financial institution of Dutch origin offering banking, insurance and asset management to
    over 50 million private, corporate and institutional clients in 65 countries.

    Market Indices Data
    Index
    Latest
    Change
    YTD
    Dow Jones
    12,162.60
    72.62
    5.05%
    NASDAQ Composite
    2,715.54
    12.98
    2.36%
    Russell 2000
    802.60
    7.28
    2.42%
    S&P 500
    1,293.78
    7.61
    2.87%

     

    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    57.09%
    Stocks Overvalued
    42.91%
    Stocks Undervalued by 20%
    23.12%
    Stocks Overvalued by 20%
    15.52%
     
    ValuEngine Sector Overview
    Sector
    Change
    MTD
    YTD
    Valuation
    Last 12-MReturn
    P/E Ratio
    Multi-Sector Conglomerates
    -0.82%
    -0.96%
    -0.02%
    14.44% overvalued
    34.02%
    24.96
    Utilities
    -0.88%
    -1.43%
    3.57%
    4.39% overvalued
    26.43%
    23.77
    Transportation
    -1.74%
    -2.66%
    -6.59%
    4.05% overvalued
    18.97%
    20.22
    Oils-Energy
    -2.59%
    -3.52%
    -2.19%
    3.07% overvalued
    42.28%
    56.89
    Consumer Staples
    -0.55%
    -1.82%
    -7.47%
    0.92% overvalued
    18.88%
    31.56
    Business Services
    -2.01%
    -2.51%
    0.82%
    0.62% undervalued
    18.64%
    26.58
    Medical
    -1.72%
    -2.82%
    12.10%
    2.23% undervalued
    18.79%
    31.33
    Aerospace
    -0.32%
    -0.71%
    11.19%
    2.35% undervalued
    27.22%
    17.91
    Retail-Wholesale
    -1.48%
    -2.95%
    1.93%
    2.98% undervalued
    23.54%
    33.64
    Computer and Technology
    -1.66%
    -2.87%
    5.50%
    3.05% undervalued
    34.33%
    37.81
    Finance
    -1.25%
    -1.90%
    -0.57%
    3.08% undervalued
    10.96%
    27.58
    Construction
    -1.76%
    -4.59%
    -9.75%
    4.81% undervalued
    3.99%
    29.11
    Consumer Discretionary
    -1.77%
    -2.85%
    0.57%
    5.01% undervalued
    15.40%
    30.11
    Industrial Products
    -1.51%
    -3.05%
    -3.23%
    5.30% undervalued
    28.80%
    28.20
    Auto-Tires-Trucks
    -1.83%
    -2.00%
    -11.54%
    5.74% undervalued
    41.33%
    18.49
    Basic Materials
    -2.40%
    -3.44%
    -8.32%
    7.11% undervalued
    48.42%
    34.60

     

      Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

     
     
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    Tags: ING, finance
    Jun 07 2:07 PM | Link | Comment!
  • ValuEngine Weekly June 3, 2011

     

     

    Go to ValuEngine.com
    June 3, 2011


    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE
    ValuEngine Index Overview
    Index
    Week Open
    Thurs. Close
    Change
    % Change
    YTD
    DJIA
    12443.4
    12248.5
    -194.9
    -1.57%
    5.80%
    NASDAQ
    2824.25
    2773.31
    -50.94
    -1.80%
    4.54%
    RUSSELL 2000
    843.32
    820.69
    -22.63
    -2.68%
    4.73%
    S&P 500
    1331.1
    1312.94
    -18.16
    -1.36%
    4.40%
    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    50.64%
    Stocks Overvalued
    49.36%
    Stocks Undervalued by 20%
    21.20%
    Stocks Overvalued by 20%
    20.47%

    .

    ValuEngine Sector Overview
    Sector
    Change
    MTD
    YTD
    Valuation
    Last 12-MReturn
    P/E Ratio
    Utilities
    -0.05%
    -0.04%
    5.04%
    8.72% overvalued
    25.03%
    23.51
    Oils-Energy
    -0.22%
    -0.19%
    1.11%
    8.01% overvalued
    45.12%
    48.24
    Multi-Sector Conglomerates
    0.80%
    0.91%
    2.40%
    7.58% overvalued
    33.10%
    27.44
    Business Services
    0.24%
    0.40%
    3.53%
    4.42% overvalued
    16.38%
    36.89
    Consumer Staples
    -0.42%
    -0.36%
    -6.13%
    3.75% overvalued
    18.81%
    20.95
    Computer and Technology
    0.11%
    0.16%
    8.82%
    2.40% overvalued
    34.92%
    44.47
    Retail-Wholesale
    -0.66%
    -0.57%
    4.19%
    2.33% overvalued
    22.80%
    34.68
    Medical
    -0.04%
    0.02%
    15.42%
    2.22% overvalued
    19.79%
    34.71
    Industrial Products
    -0.39%
    -0.31%
    -0.45%
    2.05% overvalued
    26.93%
    31.62
    Transportation
    0.40%
    0.45%
    -3.51%
    1.59% overvalued
    18.90%
    19.66
    Consumer Discretionary
    -0.05%
    0.09%
    3.47%
    0.76% overvalued
    15.71%
    29.09
    Aerospace
    0.18%
    0.20%
    11.65%
    0.67% overvalued
    24.64%
    18.44
    Finance
    -0.16%
    -0.10%
    1.24%
    0.48% overvalued
    8.99%
    24.80
    Auto-Tires-Trucks
    0.22%
    0.30%
    -9.40%
    0.98% undervalued
    46.91%
    18.62
    Basic Materials
    -0.01%
    0.04%
    -5.46%
    2.29% undervalued
    48.14%
    23.84
    Construction
    -0.30%
    -0.27%
    -5.57%
    5.36% undervalued
    3.26%
    48.33
      Sector Talk--Finance

       Bad news for financial stocks this week as the Moody's Investors Service reported that the era of "Too Big to Fail" may be over for some large institutions.  According to the Wall Street Journal, Moody's has warned that it may issue a credit-rating cut for Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC).    The reasons for the potential downgrades would include the removal of support from the Federal Government as the Dodd-Frank financial reform bill is implemented.

      Our proprietary valuation, forecast, and ratings for these three banks are below.  Of the three, only Wells Fargo avoids a Sell rating.  All three banks show negative long-term forecast figures--with Wells Fargo again at the top of the heap at just slightly negative.  On a valuation basis, Bank of America and Wells Fargo are far more attractive than Citigroup, which has pegged our overvaluation metric at 300%.  For our fundamentally-based quantitative systems, Wells Fargo is not as problematic as Citigroup or Bank of America.

     
    Ticker 
          
    Company Name 
    Mkt Price
    Valuation(%)
    VE Rating
    Forecast 1-Mon Retn(%)
    Forecast 1-Yr Retn(%)
    Last 12-Mon Retn (%)
    5-Yr Avg Retn (%)
    P/E Ratio
    BAC
    BANK OF AMER CP
    11.24
    -33.1
    2
    0.5
    -8.26
    -26.97
    -26.78
    14.88
    C
    CITIGROUP INC
    39.65
    300
    1
    -2.61
    -23.8
    3.01
    -2.98
    126.39
    WFC
    WELLS FARGO-NEW
    26.94
    -21.77
    3
    1.58
    -0.2
    -3.68
    -3.34
    10.87

      Below, we present the latest data on the rest of the Finance Sector from our Institutional software package (Pending:VEI).  We applied some basic liquidity criteria--share price greater than $3 and average daily volume in excess of 100k shares. 

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

    Ticker
    Name
    Mkt Price
    Valuation(%)
    Last 12-M Retn(%)
    MI MARSHALL&ILSLEY 7.85 -37.51 -2.73
    FAF FIRST AMER FINL 15.43 -2.78 7.83
    SNBC SUN BANCORP/NJ 3.75 -62.87 -18.48
    SFE SAFEGUARD SCTFC 18.83 -75 66.64
    NCT NEWCASTLE INV 5.29 -70.85 84.32

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

    Ticker
    Name
    Mkt Price
    Valuation(%)
    Last 12-M Retn(%)
    MI MARSHALL&ILSLEY 7.85 -37.51 -2.73
    SNBC SUN BANCORP/NJ 3.75 -62.87 -18.48
    FAF FIRST AMER FINL 15.43 -2.78 7.83
    MIM MI DEVLPMNTS -A 30.62 N/A 139.97
    SFE SAFEGUARD SCTFC 18.83 -75 66.64

    Top-Five Finance Sector Stocks--Composite Score

    Ticker
    Name
    Mkt Price
    Valuation(%)
    Last 12-M Retn(%)
    UBS UBS AG 19.18 -41.18 43.13
    ING ING GROEP-ADR 11.84 -37.73 48.56
    MCO MOODYS CORP 39.69 -13.87 102.71
    AMP AMERIPRISE FINL 58.99 -15.7 48.51
    SFE SAFEGUARD SCTFC 18.83 -75 66.64

    Top-Five Finance Sector Stocks--Most Overvalued

    Ticker
    Name
    Mkt Price
    Valuation(%)
    Last 12-M Retn(%)
    C CITIGROUP INC 40.01 300 2.09
    XL XL GROUP PLC 22.85 192.21 34.17
    GRT GLIMCHER REALTY 9.91 179.72 51.53
    SLG SL GREEN REALTY 86.42 143.99 40.77
    TRAD TRADESTATION GP 9.72 125.56 28.91


    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

    Free Report Download for Subscribers

    As a bonus to our Free Weekly Newsletter subscribers, we are offering a FREE DOWNLOAD of one of our Detailed Valuation Reports--this report is normally $25.00.  

      This week's free download is our report on Las Vegas Sands Corp (NYSE:LVS).  Las Vegas Sands Corp is a hotel, gaming, and retail mall company headquartered in Las Vegas, Nevada. The company owns The Venetian Resort Hotel Casino, the Sands Expo and Convention Center, Venetian Interactive, an internet based venture, and Venetian Macao Limited, a developer of multiple casino hotel resort properties in The People's Republic of China's Special Administrative Region of Macao.

    Weekly Subscribers can download a FREE Detailed Valuation Report on LVS HERE.

    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


    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

     An archive of this weekly newsletter is available here.

     
     
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    ValuEngine.com - Rational advice, smarter investing.
     
     
     
    Tags: LVS, BAC, C, WFC, MI, FAF, SNBC, SFE, NCT, GRP.U, UBS, ING, MCO, AMP, XL, WPG, SLG, TRAD, finance
    Jun 03 10:25 AM | Link | Comment!
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