July 18, 2013

ATTENTION Investors and Finance Professionals: If you are reading this you should sign up for ValuEngine's award-winning stock valuation and forecast service NO OBLIGATION, 14 Day FREE TRIAL!

Click HERE to Download a FREE Sample of the ValuEngine View VALUATION WATCH: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks now make up almost 75% of our stocks assigned a valuation and 41% of those equities are calculated to be overvalued by 20% or more. 15 of 16 sectors are calculated to be overvalued--14 of them by double digits.

Nice View
--ValuEngine View Continues S&P 500 Domination
So far, this has not been a Summer to Sell in May and Go Away. Markets continue to impress with record levels being set. Economic data continues to improve--with the housing market numbers reaching pre-crisis levels in terms of home builder confidence, and the Fed continues to make noises about pulling back on various support programs. This should be good news, but we have seen bad reactions to the realization that ZIRP must one day come to an end in the past. If only the labor market would improve, that seems to be the last piece of the puzzle. Of course, with sequestration and austerity still ruling the day in Washington DC, that may not be an easy piece to put into place. Strong markets have meant very strong performance from our various long portfolios. Currently, our best performing newsletter over the past twelve months is the ValuEngine View. We re-balanced the VE this week and once again the results were impressive. For this edition of the ValuEngine View, the portfolio returned almost 6.5% versus the S&P's gain of 1.48%. We quadrupled the benchmark return and beat it by

499 bps. Thirteen of our fifteen picks provided positive returns with six picks returning double-digits. The trailing 12 month gain of the VE View is 69% versus the S&P 500 return of 24.25%. The return since inception of the View is 75.27% versus the S&P's gain of 48.02% Here are the results from the latest edition of the ValuEngine View:

Symbol
AAMRQ BPOP CADX CBD CBK CVI ENOC FBC FSLR GA GILD ICA NMR PIKE TEO

Company Name
AMR CORP POPULAR INC CADENCE PHARMA PAO ACUCAR-GDR CHRISTOPHER & BANKS CVR ENERGY INC ENERNOC INC FLAGSTAR BANCORP FIRST SOLAR INC GIANT INTERACTIVE GILEAD SCIENCES EMPRESAS ICA NOMURA HLDG-ADR PIKE ELECTRIC TELECOM ARGENTINA

Entry Price 6/19/13

4.7 28.69 6.89 45.67 6.42 54.82 12.96 13.88 45.96 7.75 51.94 6.71 7.97 12.72 14.45

Exit Price
5.32 32.05 7.41 46.19 7.2 47.29 15.21 14.5 48.91 7.71 57.14 7.85 8.23 12.94 15.23

Change
0.62 3.36 0.52 0.52 0.78 -7.53 2.25 0.62 2.95 -0.04 5.20 1.14 0.26 0.22 0.78

%Change
13.19 11.71 7.55 1.14 12.15 -13.74 17.36 4.47 6.42 -0.52 10.01 16.99 3.26 1.73 5.40

LONG PORTFOLIO GSPC S&P500 1651.81 1676.26 24.45

6.47 1.48

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The ValuEngine View newsletter is the product of a sophisticated stock valuation model that was first developed by ValuEngine's academic research team. It utilizes a three factor approach: fundamental variables such as a company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's future 12month EPS, and the 30-year Treasury yield are all used to create a more accurate reflection of a company's fair value. A total of eleven additional firm specific variables are also used. Investors subscribe to our newsletter because of the quality of our research and the success of our portfolios. Our newsletter is relatively new but

we have been providing our investment research to many investment professionals on Wall Street for years. The newsletter is edited by ValuEngine's team of research analysts, led by Steve Hach. The ValuEngine models make the initial stock selections, then editors review those selections and eliminate any stocks they feel are not appropriate or too risky. An analyst then writes up the newsletter each month and publishes to the website. FIND OUT MORE AND SUBSCRIBE HERE

Market Overview
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 24.71% 75.29% 9.87% 41.14%

Sector Overview
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
0.27% 0.62% -0.11% -0.01% 0.36% 0.42% 0.04% 0.17% 0.30% 0.48% 0.37% 0.47% 0.56% 0.00% 0.58% -0.30%

MTD
3.52% 7.23% 4.28% 3.99% 7.36% 4.35% 4.75% 3.78% 6.62% 5.42% 7.16% 4.37% 5.21% 4.80% 3.34% 5.46%

YTD
24.72% 37.33% 0.94% 68.50% 26.57% 31.02% 28.15% 14.99% 24.65% 26.34% 202.56% 6.00% 13.28% 31.92% 24.61% 15.52%

Valuation
20.09% overvalued 24.90% overvalued 7.58% undervalued 16.05% overvalued 22.21% overvalued 13.79% overvalued 25.17% overvalued 21.50% overvalued 18.66% overvalued 17.71% overvalued 17.94% overvalued 11.58% overvalued 4.75% overvalued 25.61% overvalued 15.27% overvalued 10.06% overvalued

Last 12MReturn
30.08% 43.64% -23.06% 20.18% 23.77% 32.32% 26.64% 16.94% 17.84% 26.70% 18.85% 18.08% 7.56% 37.44% 19.32% 10.22%

P/E Ratio
17.82 18.46 20.14 23.47 30.12 24.85 24.55 21.59 17.91 20.52 25.03 17.13 27.28 22.91 21.57 21.06