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Daily Bulletin Pick $SNIC, SNIC Provides Big Gain

|Includes:ROVI, Sonic Solutions (SNIC)
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January 4, 2010
ATTENTION Advanced Investors and Finance Professionals:
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VALUATION WATCH: Our models find that overvaluation is approaching levels typically seen when a market correction is imminent. Overvalued stocks now make up almost 64% of our universe and 31% of the universe is calculated to be overvalued by 20% or more.  15 of 16 Sectors are now calculated to be overvalued.

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Super Sonic

Daily Bulletin Pick $SNIC, SNIC Provides Big Gain

  Yesterday we mentioned the high-flying status of Daily Bulletin pick Satcon Technology.  Today, we provide even better news for our readers.  On the 21st of December we screened for top short-term forecast tickers using our VE Institutional software package.  Leading our results at that time was the 5-Engine rated STRONG BUY Sonic Solutions (SNIC, $SNIC). 

  Our Forecast Model's timing could not have been better.  Within two days, a deal was announced whereby Sonic was to be acquired by digital software entertainment maker Rovi/Macrovision (NASDAQ:ROVI) for $14/share.  Share prices since the 23rd have shot up more than 35% and SNIC closed yesterday at $15.   Of course, if one checks the Valuation Model calculations, fundamentally the company is only worth @ $8.10, so it is significantly overvalued and Rovi is paying a premium for the shares..

  In any case, that was a quick score!

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

Market Indices Data
  Latest Change YTD
Dow Jones
11,673.30 2.57 0.83%
NASDAQ Composite
2,694.36 2.84 1.56%
Russell 2000
801.01 2.45 2.22%
S&P 500
1,270.96 -0.93 1.06%

 

ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
36.37%
Stocks Overvalued
63.63%
Stocks Undervalued by 20%
16.69%
Stocks Overvalued by 20%
31.46%

 

ValuEngine Sector Overview
Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Basic Materials 0.63% 0.00% 0.00% 33.82% overvalued 70.28% 38.34
Oils-Energy 1.00% -0.10% -0.26% 27.22% overvalued 38.69% 42.08
Industrial Products 1.41% 0.00% 0.00% 17.70% overvalued 32.75% 26.76
Multi-Sector Conglomerates 2.20% 0.00% 0.00% 16.71% overvalued 35.97% 30.37
Auto-Tires-Trucks 1.66% 0.00% 0.00% 15.20% overvalued 51.58% 26.36
Transportation 1.46% 0.00% 0.00% 14.04% overvalued 29.65% 43.19
Consumer Staples 0.50% 0.00% 0.00% 11.66% overvalued 18.54% 28.01
Retail-Wholesale 1.24% 0.02% 0.03% 11.08% overvalued 58.12% 22.48
Finance 1.73% 0.04% 0.07% 9.45% overvalued 20.54% 25.43
Computer and Technology 1.45% -0.01% 0.03% 9.41% overvalued 35.14% 44.49
Aerospace 1.08% 0.00% 0.00% 8.98% overvalued 33.38% 20.11
Construction 2.10% 0.00% 0.00% 8.07% overvalued 13.94% 38.71
Utilities 1.10% 0.00% 0.00% 8.05% overvalued 13.72% 25.69
Business Services 1.34% 0.08% 0.04% 7.99% overvalued 20.44% 30.28
Consumer Discretionary 1.37% 0.00% 0.00% 6.86% overvalued 26.98% 31.88
Medical 1.36% 0.00% 0.00% 2.45% undervalued 19.71% 37.98

 

 
 
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Stocks: SNIC, ROVI