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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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  • Daily Bulletin Pick $SNIC, SNIC Provides Big Gain 0 comments
    Jan 4, 2011 10:24 AM | about stocks: SNIC, ROVI
    Go to ValuEngine.com
    January 4, 2010
    ATTENTION Advanced Investors and Finance Professionals:
    If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

    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.

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

    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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    ValuEngine.com - Rational advice, smarter investing.
     
     
     
    Stocks: SNIC, ROVI
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