Basic Materials Top-5 List From ValuEngine.com

Jul. 12, 2013 3:42 PM ETFBR, SLCA, PPP, KGC, GOLD, CHMT, BHP, AXLL, BZ-OLD, CDE

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Long/Short Equity, Long Only

Seeking Alpha Analyst Since 2010

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 quantitative models to create products and services for both individual investors, and institutional clients. Steve's research is distributed throughout such organizations as Wells Fargo, Fidelity Investments, Scotia Capital, Bank of New York, etc. His research reports are published on Yahoo Finance, Thomson/Reuters, Capital IQ, Bloomberg, and others. Hach developed the ValuEngine Forecast 16 MNS Portfolio Newsletter so that individual investors could access one of ValuEngine's most successful and well-researched hedge fund-type strategies. The newsletter relies on ValuEngine's Forecast Model-- which utilizes fundamental data along with complex mathematical modeling to pick stocks that outperform the markets. With both a long and a short side, the VE Forecast 16 MNS Portfolio provides a combination of high returns and low volatility in both good markets and bad. This newsletter is perfect for those seeking to take advantage of today's advanced stock forecasting and portfolio-construction techniques. Hach has a varied research background that includes military experience as an intelligence specialist, a Master’s degree in US History, and Doctoral work in US Diplomatic History and International Relations.

VALUATION WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks now make up 75% of our universe and 40.6% of the universe is calculated to be overvalued by 20% or more. 15 of 16 sectors are calculated to be overvalued.

MARKET OVERVIEW

Index	Week Open	Thurs. Close	Change	% Change	YTD
DJIA	14795.79	15460.92	665.13	4.50%	17.93%
NASDAQ	3326.38	3493.81	167.43	5.03%	15.23%
RUSSELL 2000	1007.7	1033.18	25.48	2.53%	21.78%
S&P 500	1634.2	1675.02	40.82	2.50%	17.30%

Summary of VE Stock Universe

Stocks Undervalued	24.96%
Stocks Overvalued	75.04%
Stocks Undervalued by 20%	10.06%
Stocks Overvalued by 20%	40.60%

SECTOR OVERVIEW

Sector	Change	MTD	YTD	Valuation	Last 12-MReturn	P/E Ratio
Aerospace	0.37%	3.56%	24.77%	20.13% overvalued	28.52%	17.76
Auto-Tires-Trucks	2.13%	6.20%	36.18%	24.94% overvalued	40.54%	17.81
Basic Materials	2.29%	4.23%	0.79%	11.39% undervalued	-25.78%	19.01
Business Services	0.85%	3.88%	69.32%	16.23% overvalued	18.79%	23.28
Computer and Technology	1.35%	4.94%	23.78%	20.32% overvalued	17.90%	30
Construction	1.71%	3.79%	27.75%	12.69% overvalued	33.27%	24.36
Consumer Discretionary	0.70%	3.99%	27.60%	24.40% overvalued	25.43%	24.21
Consumer Staples	0.96%	3.37%	14.61%	21.64% overvalued	15.09%	21.3
Finance	1.05%	5.22%	23.04%	17.97% overvalued	16.92%	17.65
Industrial Products	1.32%	4.58%	25.47%	17.14% overvalued	23.47%	20.21
Medical	0.97%	3.69%	199.17%	16.02% overvalued	15.21%	25.01
Multi-Sector Conglomerates	1.93%	3.75%	5.43%	11.49% overvalued	15.17%	15.81
Oils-Energy	1.32%	3.58%	11.46%	4.23% overvalued	5.38%	27.46
Retail-Wholesale	0.88%	4.49%	31.39%	25.60% overvalued	34.85%	22.72
Transportation	1.15%	2.56%	23.40%	16.07% overvalued	18.75%	21.48
Utilities	1.20%	3.81%	12.76%	8.65% overvalued	10.59%	20.41

Sector Talk-Basic Materials

Below, we present the latest data on leading Basic Materials Sector stocks from our Institutional software package (VEI). These results were filtered by market price and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Basic Materials Sector Stocks--Short-Term Forecast Returns

Ticker	Name	Mkt Price	Valuation(%)	Last 12-M Retn(%)
FBR	FIBRIA CELULOSE	11.34	-4.44	56.85
SLCA	US SILICA HOLDI	22.29	-7.07	119.39
PPP	PRIMERO MINING	4.54	-5.16	76.65
KGC	KINROSS GOLD	4.95	-64.84	-37.1
ABX	BARRICK GOLD CP	15.22	-60.72	-56.45

Top-Five Basic Materials Sector Stocks--Long-Term Forecast Returns

Ticker	Name	Mkt Price	Valuation(%)	Last 12-M Retn(%)
FBR	FIBRIA CELULOSE	11.34	-4.44	56.85
SLCA	US SILICA HOLDI	22.29	-7.07	119.39
PPP	PRIMERO MINING	4.54	-5.16	76.65
KGC	KINROSS GOLD	4.95	-64.84	-37.1
ABX	BARRICK GOLD CP	15.22	-60.72	-56.45

Top-Five Basic Materials Sector Stocks--Composite Score

Ticker	Name	Mkt Price	Valuation(%)	Last 12-M Retn(%)
SLCA	US SILICA HOLDI	22.29	-7.07	119.39
PPP	PRIMERO MINING	4.54	-5.16	76.65
KGC	KINROSS GOLD	4.95	-64.84	-37.1
FBR	FIBRIA CELULOSE	11.34	-4.44	56.85
ABX	BARRICK GOLD CP	15.22	-60.72	-56.45

Top-Five Basic Materials Sector Stocks--Most Overvalued

Ticker	Name	Mkt Price	Valuation(%)	Last 12-M Retn(%)
CHMT	CHEMTURA CORP	22.13	300	57.51
BHP	BHP BILLITN LTD	61.79	253.4	-2.51
AXLL	AXIALL CORP	42.76	68.55	57.03
BZ	BOISE INC	8.8	49.5	28.28
CDE	COEUR DALENE MI	12.21	47.64	-22.38

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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