January 5, 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 63% of our universe and 30% 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 This Bet Paid Off Forecast Model Pick Melco Crown Entertainment (MPEL,$MPEL) Up 20% in 19 Days Today we provide info on yet a recent success story from our Forecast Model. When we completed our last re-balance of the ValuEngine Forecast Model Market Neutral Strategy Portfolio Newsletter, subscribers received two picks from the Consumer Discretionary Sector. The first pick, Hyatt Hotels (H) is up more than 5%. The second pick,
Melco Crown Entertainment (MPEL) is an owner and developer of casino gaming and entertainment resort facilities focused on the market found in Macau. Since being selected as one of our top two stocks in the sector 19 days ago, Melco Crown Entertainment is up more than 21%. Currently, ValuEngine maintains its BUY recommendation for Melco Crown Entertainment. Based on the information we have gathered and our resulting research, we feel that Melco Crown Entertainment has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE momentum, company size and expected EPS growth. Based on available data as of Jan. 05, 2011, we believe that MPEL should be trading at $6.16. This makes MPEL 7.65% 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 MPEL, we base this on actual earnings per share (EPS) for the previous four quarters of -$0.15, forecasted EPS for the next four quarters of -$0.05, and correlations to the 30- year Treasury bond yield of 4.40%. Subscribers can check out the latest figures on MPEL from our models HERE. You can always screen for top-forecast stocks using our VE software package or our website. Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE Market Indices Data | | Latest | Change | YTD | Dow Jones | 11,733.90 | 42.76
| 1.35% | NASDAQ Composite | 2,697.01 | 15.76
| 1.66% | Russell 2000 | 791.51 | 5.68
| 1.00% | S&P 500 | 1,276.09 | 5.89
| 1.47% | ValuEngine Market Overview Summary of VE Stock Universe | Stocks Undervalued | 37.07% | Stocks Overvalued | 62.93% | Stocks Undervalued by 20% | 16.85% | Stocks Overvalued by 20% | 30.14% | ValuEngine Sector Overview | Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio | | Basic Materials | -1.74% | -1.62% | -1.62% | 32.03% overvalued | 63.36% | 37.73 | | Oils-Energy | -0.97% | -0.91% | -0.91% | 26.81% overvalued | 33.45% | 41.74 | | Industrial Products | -0.84% | -0.76% | -0.76% | 16.92% overvalued | 28.74% | 26.47 | | Multi-Sector Conglomerates | -0.75% | -0.71% | -0.71% | 16.45% overvalued | 31.28% | 30.10 | | Auto-Tires-Trucks | -0.27% | -0.17% | -0.17% | 15.67% overvalued | 47.56% | 26.33 | | Transportation | -0.67% | -0.61% | -0.61% | 13.89% overvalued | 27.09% | 42.85 | | Consumer Staples | -0.71% | -0.63% | -0.63% | 11.17% overvalued | 16.33% | 27.80 | | Retail-Wholesale | -1.53% | -1.42% | -1.42% | 10.14% overvalued | 59.31% | 22.14 | | Computer and Technology | -0.52% | -0.37% | -0.37% | 9.40% overvalued | 31.72% | 44.19 | | Aerospace | -0.36% | -0.32% | -0.32% | 9.33% overvalued | 31.14% | 19.95 | | Finance | -0.98% | -0.91% | -0.91% | 8.71% overvalued | 17.98% | 25.20 | | Utilities | -0.42% | -0.40% | -0.40% | 8.23% overvalued | 12.07% | 25.52 | | Business Services | -0.61% | -0.50% | -0.50% | 7.22% overvalued | 17.89% | 29.89 | | Construction | -1.55% | -1.47% | -1.47% | 7.16% overvalued | 10.29% | 38.15 | | Consumer Discretionary | -0.98% | -0.90% | -0.90% | 6.24% overvalued | 23.38% | 31.45 | | Medical | -0.58% | -0.49% | -0.49% | 2.63% undervalued | 17.35% | 37.72 | 
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