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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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  • ValuEngine Weekly September 17, 2010 0 comments
    Sep 17, 2010 2:51 PM | about stocks: FDX, FCX, UFS, DD, FSIN, BXC, LPX, MON, CBT, EMN, ASH, SSCC, POT, RTI, KS, AUQ, OSK, OLED, KBH, BC, MED, FOSL, COCO, GCI, APL, ENLK, WTNY, ZION, PDLI, MNK, CEG, KLIC, SMSC, AAL, UAUA

     

     

    Go to ValuEngine.com

     

    September 17, 2010

     

    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 FEDEX CORP (NYSE:FDX).  FEDEX CORP announced decent results this week with Q1 profits increasing more than 100%.  The company also raised its yearly earnings forecast.  As has been the case for many shippers, international business is powering profits as high-value items like iPods and other gadgets remain in high demand.  However, overall the company remains hampered by the slow domestic economy and weak business for its domestic truck shipping division. 

      ValuEngine has issued a BUY recommendation for FEDEX CORP. Based on the information we have gathered and our resulting research, we feel that FEDEX CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and price/sales ratio.  In terms of overall composite score, FEDEX CORP is in the top 15% of our universe.

     

    Weekly Subscribers can download a FREE Detailed Valuation Report on FEDEX CORP 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
    Index
    Week Open
    Thurs. Close
    Change
    % Change
    YTD
    DJIA 10458.6 10594.8 136.2 1.30% 1.57%
    NASDAQ 2263.8 2303.25 39.45 1.74% 0.39%
    RUSSELL 2000 641.4 647.81 6.41 1.00% 3.14%
    S&P 500 1113.38 1124.66 11.28 1.01% 0.73%
    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    65.61%
    Stocks Overvalued
    34.39%
    Stocks Undervalued by 20%
    33.44%
    Stocks Overvalued by 20%
    11.68%

     

    ValuEngine Sector Overview
    Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
    Energy -0.84% 2.93% -2.32% 0.89% overvalued 24.51% 24.59
    Basic Industries -0.01% 3.60% 18.69% 0.12% overvalued 30.42% 23.05
    Public Utilities -0.64% 0.68% -2.52% 2.31% undervalued 11.60% 17.96
    Transportation -0.32% 4.18% 7.83% 3.00% undervalued 12.16% 18.75
    Finance -0.45% 2.26% 9.79% 6.66% undervalued 3.19% 17.91
    Consumer Non-Durables -0.28% 2.51% 3.64% 7.32% undervalued 17.71% 16.56
    Consumer Services -0.43% 4.28% 5.53% 9.10% undervalued 11.31% 20.63
    Capital Goods -0.40% 2.98% 11.39% 9.44% undervalued 8.98% 20.09
    Technology -0.13% 4.92% 9.86% 12.46% undervalued 16.75% 23.67
    Consumer Durables -0.39% 3.40% 7.81% 14.20% undervalued 20.00% 18.36
    Health Care -0.35% 4.20% 15.62% 14.49% undervalued 0.93% 21.18

     

     

    Sector Talk--Basic Industries

       As you can see from the sector overview above, Basic Industries has been the leading sector for LTM return.  Below, we present various top-five lists for the Basic Industries Sector from our Institutional software package (Pending:VEI).  We used basic liquidity criteria of $2/share and volume of 100,000 shares/day to filter our results. 

    Top-Five Basic Industries Stocks--Short-Term Forecast Returns

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    CVVT CHINA VALVE TEC 8.21 -17.33 23.46
    FCX FREEPT MC COP-B 81.73 -3.41 14.23
    UFS DOMTAR CORP 64.02 -28.98 64.75
    DD DU PONT (EI) DE 43.38 -7.91 33.85
    FSIN FUSHI COPPERWLD 7.82 -11 -11.14

    Top-Five Basic Industries Stocks--Long-Term Forecast Returns

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    BXC BLUELINX HLDGS 3.39 -35.45 -28.63
    LPX LOUISIANA PAC 7.41 -42.56 -4.14
    MON MONSANTO CO-NEW 57.27 -25.41 -26.6
    DD DU PONT (EI) DE 43.38 -7.91 33.85
    FCX FREEPT MC COP-B 81.73 -3.41 14.23

    Top-Five Basic Industries Stocks--Composite Score

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    UFS DOMTAR CORP 64.02 -28.98 64.75
    CBT CABOT CORP 31.93 -31.93 39.13
    DD DU PONT (EI) DE 43.38 -7.91 33.85
    EMN EASTMAN CHEM CO 69.4 -14.75 29.67
    ASH ASHLAND INC 48.34 -35.7 11.36

    Top-Five Basic Industries Stocks--Most Overvalued

    Ticker Name Mkt Price Valuation(%) Last 12-M Retn(%)
    SSCC SMURFIT-STONE 19.58 300 23.53
    POT POTASH SASK 148.38 101.78 58.17
    RTI RTI INTL METALS 29.41 100.01 23.47
    KS KAPSTONE PAPER 12.32 75.93 49.88
    NXG NORTHGATE MNRLS 3.45 61.6 12.38

      VE Premium Website Stock Analysis subscribers can find complete valuation, forecast, and ratings data on every individual equity in our universe of more than 7000 equities HERE.

    --What's HOT
    The ValuEngine Forecast 22 Market Neutral Strategy Newsletter

        For a market neutral strategy with significant volatility-reducing benefits, our newsletter continues to perform remarkably well.  As of today's re-balancing, our Forecast 22 Market Neutral Strategy Newsletter portfolio posted a 2.67% gain versus the S&P 500's 4.2%. Since inception, our market neutral portfolio is up 39.33%. The trailing 12-Month gain is 19.21% while the S&P 500 is up 3.78% for the same time frame. 

      Leading sectors for our long side were Basic Industries and Consumer Services. Health Care was the only sector to post a loss. Big winners for our longs were Fossil, Corinthian, and Freeport McMoran. Our shorts provided a feast or famine situation for the month. The big gainer was Synutra which posted a 32% gain followed by Tech Sector firms Power-One and Zoran. However, gains there were wiped out by losses from Sauer-Danfoss, Biovail, 7 Days Group, and Terex.

      The chart below shows our long-side picks as well as their performance for the month.

    Ticker Company Name Entry Price 8-17-10 Exit Price Change %Change Sector
    UFS DOMTAR CORP 60.11 64.02 3.91 6.50 BASIC INDUSTRIES
    FCX FREEPT MC COP-B 70.63 81.73 11.1 15.72 BASIC INDUSTRIES
    OSK OSHKOSH CORP 27.41 26.91 -0.5 -1.82 CAPITAL GOODS
    PANL UNIVL DISPLAY 21.11 22.62 1.51 7.15 CAPITAL GOODS
    KBH KB HOME 10.29 11.27 0.98 9.52 CONSUMER DURABLES
    BC BRUNSWICK CORP 14.66 14.3 -0.36 -2.46 CONSUMER DURABLES
    MED MEDIFAST INC 28.14 26.42 -1.72 -6.11 CONSUMER NON_DURABLES
    FOSL FOSSIL INC 43.83 51.88 8.05 18.37 CONSUMER NON_DURABLES
    COCO CORINTHIAN COL 5.22 6.11 0.89 17.05 CONSUMER SERVICES
    GCI GANNETT INC 12.56 13.3 0.74 5.89 CONSUMER SERVICES
    APL ATLAS PIPLN PTR 16.88 18.35 1.47 8.71 ENERGY
    XTEX CROSSTEX EGY LP 12.52 12.3 -0.22 -1.76 ENERGY
    WTNY WHITNEY HLDG 7.78 8.18 0.4 5.14 FINANCE
    ZION ZIONS BANCORP 19.95 20.86 0.91 4.56 FINANCE
    PDLI PDL BIOPHARMA 5.14 5.2 0.06 1.17 HEALTH CARE
    QCOR QUESTCOR PHARMA 10.55 10.31 -0.24 -2.27 HEALTH CARE
    UUGRY UNITED UTILITIES GROUP PLC 18.43 18.05 -0.38 -2.06 PUBLIC UTILITIES
    CEG CONSTELLATN EGY 29.35 30.65 1.3 4.43 PUBLIC UTILITIES
    KLIC KULICKE & SOFFA 5.64 5.5 -0.14 -2.48 TECHNOLOGY
    SMSC STANDARD MICROS 19.49 20.16 0.67 3.44 TECHNOLOGY
    LCC US AIRWAYS GRP 9.21 9.12 -0.09 -0.98 TRANSPORT
    UAUA UAL CORP 21.74 22.22 0.48 2.21 TRANSPORT
      LONG PORTFOLIO     4.09  

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

     

     

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    Disclosure: No Positions
    Stocks: FDX, FCX, UFS, DD, FSIN, BXC, LPX, MON, CBT, EMN, ASH, SSCC, POT, RTI, KS, AUQ, OSK, OLED, KBH, BC, MED, FOSL, COCO, GCI, APL, ENLK, WTNY, ZION, PDLI, MNK, CEG, KLIC, SMSC, AAL, UAUA
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