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ValuEngine Free Weekly Newsletter December 23, 2010




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December 23, 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!
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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! 

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

VALUATION WATCH:  Our models find that overvaluation is approaching levels typically seen when a market correction is imminent. Overvalued stocks now make up almost 63% of our universe and 32% of the universe is calculated to be overvalued by 20% or more.  15 of 16 Sectors are now calculated to be overvalued.

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 Sonic Solutions (SNIC).  ValuEngine has issued a STRONG BUY recommendation for Sonic Solutions. Based on the information we have gathered and our resulting research, we feel that Sonic Solutions has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE expected EPS growth.

  Based on available data as of Dec. 23, 2010, we believe that SNIC should be trading at $8.11. This makes SNIC 38.20% 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 SNIC, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $0.04, forecasted EPS for the next four quarters of $0.19, and correlations to the 30- year Treasury bond yield of 4.45%.

 Sonic Solutions engages in the development of products and services that enable the creation and management of digital media content across various technology platforms.   Their product line includes brands/products such as Roxio, Toast, Scenarist, CineVIsion, and DVDit.

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

Weekly Subscribers can download a FREE Detailed Valuation Report on Sonic Solutions 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.

  ValuEngine Index Overview
Week Open
Wed. Close
% Change
11491.3 11559.5 68.2 0.59% 10.85%
2651.98 2671.48 19.5 0.74% 17.73%
779.51 790.59 11.08 1.42% 24.68%
S&P 500
1245.76 1258.84 13.08 1.05% 12.89%
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ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
Stocks Overvalued
Stocks Undervalued by 20%
Stocks Overvalued by 20%
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ValuEngine Sector Overview
Last 12-MReturn
P/E Ratio
Basic Materials -0.37% 6.23% 33.04% 29.38% overvalued 71.16% 37.57
Oils-Energy 0.44% 4.85% 18.64% 24.70% overvalued 38.24% 41.29
Industrial Products -0.32% 6.92% 24.85% 16.52% overvalued 32.68% 26.05
Auto-Tires-Trucks -0.88% 8.04% 60.27% 15.34% overvalued 53.55% 26.49
Multi-Sector Conglomerates 0.22% 3.91% 25.77% 14.56% overvalued 33.45% 29.34
Consumer Staples 0.27% 5.15% 13.27% 12.12% overvalued 20.34% 27.88
Transportation 0.34% 3.78% 26.16% 11.96% overvalued 28.46% 42.70
Retail-Wholesale -0.30% 2.71% 21.19% 10.75% overvalued 63.46% 22.35
Finance 0.97% 5.80% 21.28% 8.50% overvalued 19.00% 24.83
Utilities 0.16% 2.13% 7.11% 7.90% overvalued 13.91% 25.41
Aerospace -0.10% 3.20% 21.77% 7.84% overvalued 32.74% 19.63
Computer and Technology 0.15% 5.30% 32.12% 7.82% overvalued 35.92% 43.80
Construction 0.77% 9.98% 14.40% 7.51% overvalued 13.12% 38.12
Business Services -0.16% 5.74% 14.48% 7.13% overvalued 21.72% 29.90
Consumer Discretionary 0.07% 3.70% 23.16% 6.41% overvalued 27.32% 31.25
Medical 0.23% 7.80% 19.39% 2.41% undervalued 22.77% 37.70
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  Sector Talk--Consumer Staples


  Below, we present various top-five lists for the Consumer Staples Sector from our Institutional software package (Pending:VEI).  These results were filtered by market price and volume--no results below 3$/share or less than 100k shares/day.

Top-Five Consumer Staples Stocks--Short-Term Forecast Returns

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
MED MEDIFAST INC 31.01 -7.51 -4.82
SNMX SENOMYX INC 7.46 -40.6 114.37
SSP EW SCRIPPS CO 10.25 -18.58 50.74
DMND DIAMOND FOODS 54.4 27.71 57
HSY HERSHEY CO/THE 47.99 -8.93 36.45
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Top-Five Consumer Staples Stocks--Long-Term Forecast Returns

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
MED MEDIFAST INC 31.01 -7.51 -4.82
SNMX SENOMYX INC 7.46 -40.6 114.37
SSP EW SCRIPPS CO 10.25 -18.58 50.74
DMND DIAMOND FOODS 54.4 27.71 57
JOBS 51JOBS INC-ADR 50.7 60.5 192.56
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Top-Five Consumer Staples Stocks--Composite Score

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
CCE COCA-COLA ENTRP 25 -15.09 76.06
HSY HERSHEY CO/THE 47.99 -8.93 36.45
SSP EW SCRIPPS CO 10.25 -18.58 50.74
CPO CORN PROD INTL 47.04 -1.92 62.54
SNMX SENOMYX INC 7.46 -40.6 114.37
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Top-Five Consumer Staples Stocks--Most Overvalued

Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
DANOY GRP DANONE-ADR 12.51 300 6.29
CLMT CALUMET SPECLTY 20.96 178.69 28.91
BRFS BRF-BRASIL FOOD 16.35 87.03 30.28
CALM CAL-MAINE FOODS 33.8 69.48 18.18
DOLE DOLE FOOD CO 13.1 60.65 8.71
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  Subscribers can check out the latest valuation, forecast, and ratings figures on the Consumer Staples Sector from our Models HERE.

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


What's Hot
-- Suttmeier in the News

Suttmeier Warns of Downside Risk, Sees Commodity Bubble

  Our Chief Market Strategist made some media appearances over the past week.  Click the two images below to watch him discuss his views on the outlook for commodities in 2011 as well as the macro-themes he's watching for the New Year.  Suttmeier argues that with the recent moves upward, the risk right now is to the downside.  He continues to see trouble ahead for the housing and banking industries, and he warns that Fed policy is helping to create a speculative bubble in commodities as investors search for yield.  As always, Richard notes that investors must be aware that even in a muddled market environment there is money to be made.  For this reason he supports the idea of "Buy and Trade" in today's markets.

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Upcoming Suttmeier Appearance

ValuEngine Chief Market Strategist Richard Suttmeier On the Road in January

  ValuEngine Chief Market Strategist Richard Suttmeier is a financial analyst for media such as Fox News, CNBC,YahooFinance,the Wall Street Journal, New York Times, CNNfn, and Bloomberg, Suttmeier has long been one of ValuEngine's "power users," supporting his own technically-focused analysis with VE's fundamentally-based quant methods. 

   With all of the recent market uncertainties, making the correct stock decisions can be daunting.  ValuEngine Chief Market Strategist Richard Suttmeier will be appearing at the AAII Orlando Chapter meeting on January 19, 2011.  We invite all VE clients in Florida to attend.  At the meeting, Suttmeier will discuss the following topics:

  • How can help investors adapt to volatile and risky market conditions
  • How to implement a hedge fund-type strategy for your own stock investment portfolio
  • How ValuEngine’s research helped me call both the top and the bottom of the market over the past five years


   This meeting will take place at the University Club of Winter Park, 841 N. Park Ave. Winter Park, FL 32789.  It starts at 6:30pm.  Again, all VE clients are invited.  We place a special call out to those seeking individual investment advice, assistance, and portfolio management. 


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

Merry Christmas to All !

 An archive of this weekly newsletter is available here.

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