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Steve Hach
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Steve Hach is the Senior Editor at, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • Weekly Newsletter November 5, 2010 0 comments
    Nov 5, 2010 2:19 PM | about stocks: EXAS, VE, SAY, LDK, JASO, DGWIY, BP, TOT, HQCL, TEO, BFR, ARMH, GGAL, VIT, RDY, SQM



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    November 5, 2010
    The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from ValuEngine. 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!


    ATTENTION Investors and Finance Professionals:
    If you are reading this you should sign up for ValuEngine's award-winning stock valuation and forecast service at the low price of $19.95/month! 


    If the tables in this email do not display properly, please CLICK HERE to download the newsletter.

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

    Bonus for Readers
    --Free Individual Stock Report for Weekly Newsletter Subscribers

     As a bonus to our Free Weekly Newsletter subscribers, we are now offering a FREE DOWNLOAD of one of our $ 25.00 Detailed Valuation Reports.  

      This week's free download is our report on EXACT SCIENCES (EXAS.)   The stock is currently a big gainer for our ValuEngine Forecast 22 Market Neutral Strategy.  Since our last rebalance on October 15th, EXACT SCIENCES--a short pick--has seen a share price decline of almost 30%.  Shares were down despite some good news for the company's colorectal screening test as well as the announcement that they received a grant from the US Federal Government to further support the research program.  The stock had shown strong momentum over the past 6 months and thus the model was quite astute in timing the short call.

      ValuEngine has issued a HOLD recommendation for EXACT SCIENCES for the longer term because the one-year forecast target price remains in positive territory.  However, it ranks near the bottom of our database in terms of composite score, fair value, p/e ratio, and the one year target price. 

      Based on the information we have gathered and our resulting research, we feel that EXACT SCIENCES has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE momentum and 5-year annualized return, but UNATTRACTIVE expected EPS growth.

      As of today, we believe that EXACT SCIENCES should be trading at $3.34. This makes EXACT SCIENCES 82.86% overvalued. 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 EXACT SCIENCES, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of -$0.25, forecasted EPS for the next four quarters of -$0.48, and correlations to the 30- year Treasury bond yield of 3.92%.

      EXACT SCIENCES uses applied genomics to develop screening technologies for use in the detection of cancer. Certain of its technologies have been licensed to Laboratory Corporation of America Holdings for a stool-based DNA screening assay for colorectal cancer in the average-risk population.

      Subscribers can check out the latest figures on EXACT SCIENCES from our models HERE.

    Weekly Subscribers can download a FREE Detailed Valuation Report on EXAS 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.

    For more on the VE Forecast 22 Market Neutral Strategy Newsletter Portfolio, Click the Logo Below


    ValuEngine Index Overview
    Week Open
    Thurs. Close
    % Change
    11120.3 11434.84 314.54 2.83% 9.57%
    2520.45 2577.34 56.89 2.26% 13.56%
    RUSSELL 2000
    706.13 733.46 27.33 3.87% 15.98%
    S&P 500
    1185.71 1221.06 35.35 2.98% 9.72%
    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    Stocks Overvalued
    Stocks Undervalued by 20%
    Stocks Overvalued by 20%


    ValuEngine Sector Overview
    Last 12-MReturn
    P/E Ratio
    Basic Industries 2.78% 4.55% 30.42% 14.61% overvalued 51.92% 26.34
    Energy 2.19% 4.48% 13.29% 14.02% overvalued 35.46% 26.80
    Transportation 0.69% 2.64% 23.59% 4.48% overvalued 36.09% 20.25
    Public Utilities 1.45% 2.66% 4.69% 4.40% overvalued 20.86% 20.40
    Capital Goods 2.10% 5.17% 27.09% 2.94% overvalued 27.71% 22.48
    Consumer Non-Durables 1.67% 2.89% 13.85% 1.04% overvalued 26.72% 17.48
    Technology 1.26% 2.84% 26.01% 0.70% overvalued 35.76% 25.78
    Finance 1.57% 3.03% 16.02% 1.43% undervalued 17.26% 18.53
    Consumer Services 1.39% 3.43% 18.97% 1.43% undervalued 24.77% 21.77
    Consumer Durables 2.20% 3.89% 20.48% 1.81% undervalued 37.29% 21.02
    Health Care 1.27% 2.63% 25.87% 7.40% undervalued 15.12% 21.09
      Foreign Stock Talk--ADRs

      Below, we present various top-five lists for the more than 400 ADRs we cover from our Institutional software package (Pending:VEI).  

    Top-Five ADRs--Short-Term Forecast Returns

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    VE VEOLIA ENVIRON 30.15     N/A -8.25
    LDK LDK SOLAR CO 12.89 -31.85 131.42
    JASO JA SOLAR HOLDGS 9.23 -31.4 136.06
    DGW DOUYUAN GLOBAL 13.14 -40.31 -64.11

    Top-Five ADRs--Long-Term Forecast Returns

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    LDK LDK SOLAR CO 12.89 -31.85 131.42
    BP BP PLC 43.91 -26.43 -20.16
    JASO JA SOLAR HOLDGS 9.23 -31.4 136.06
    TOT TOTAL FINA SA 57.65 -5.79 -0.55

    Top-Five ADRs--Composite Score

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    JASO JA SOLAR HOLDGS 9.23 -31.4 136.06
    SOLF SOLARFUN POWER 10.64 -28.35 120.29
    LDK LDK SOLAR CO 12.89 -31.85 131.42
    TEO TELECOM ARGENTI 25.6 -11.01 54.4
    BFR BANCO FRANC-ADR 13.61 1.17 128.74

    Top-Five ADRs--Most Overvalued

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    ARMH ARM HOLDNGS ADR 16.66 122.64 127.93
    GGAL GRUPO GALIC ADR 16.24 107.11 181.46
    VIT VANCEINFO TECH 37.68 65.5 129.9
    RDY DOCTOR REDDYS 39.81 61.02 76.85
    SQM SOC QUIMICA MIN 52.55 58.71 43.27

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

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


     An archive of this weekly newsletter is available here.

    Close this window - Rational advice, smarter investing.

    Disclosure: no positions
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