January 10, 2012

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Glass is Greener
Owens Corning (OC,$OC) Leads ValuEngine Forecast 16 MNS Newsletter Long Side with 26% Return
Owens Corning is a world leader in building materials systems and composite solutions. Owens Corning people redefine what is possible each day to deliver high-quality products and services ranging from insulation, roofing, siding and stone, to glass composite materials used in transportation, electronics, telecommunications and other high-performance applications. Owens Corning has become a market-leading innovator of glass-fiber technology with sales. Owens Corning currently leads the primary long-side selections in our VE Forecast 16 Market Neutral Strategy Newsletter with a return of more than 26%. We saw some real agility with this pick, as the stock was selected while trading around the $26 level and it is currently near 32$. Recent reported Q3 earnings were good and beat expectations by $0.13/share. The model is not very sanguine about the longer-term prospects for the stock, but for the next 30 days decent returns are projected. ValuEngine has issued a HOLD recommendation for OWENS CORNING on Jan. 10, 2012. Based on the information we have gathered and our resulting research, we feel that OWENS CORNING has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE company size and 5-year annualized return, but UNATTRACTIVE market/book ratio and volatility.

Based on available data as of Jan. 10, 2012, we believe that OC should be trading at $37.58. This makes OC 14.97% undervalued. 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 OC, we base this on actual earnings per share (EPS) for the previous four quarters of $2.19, forecasted EPS for the next four quarters of $2.64, and correlations to the 30- year Treasury bond yield of 3.03%.

ValuEngine Forecast Target Price*

1-Month 3-Month 6-Month 1-Year 2-Year 3-Year 33.35 33.12 32.78 31.36 28.35 26.9

Expected Return
4.37% 3.68% 2.59% -1.84% -11.26% -15.82%

Valuation & Rankings

Valuation 1-M Forecast Return 12-M Return Sharpe Ratio 5-Y Avg Annual Return Volatility Expected EPS Growth Market Cap (billions) Trailing P/E Ratio Forward P/E Ratio PEG Ratio Price/Sales Market/Book Beta Alpha 14.97% undervalued 4.37% 1.69% 0.04 2.19% 61.23% 20.56% 3.94 14.57 12.09 0.71 0.74 2.53 2.17 0 Valuation Rank 1-M Forecast Return Rank Momentum Rank Sharpe Ratio Rank 5-Y Avg Annual Rtn Rank Volatility Rank EPS Growth Rank Size Rank Trailing P/E Rank Forward P/E Ratio Rank PEG Ratio Rank Price/Sales Rank Market/Book Rank Beta Rank Alpha Rank 55 9 66 73 76 37 55 87 64 57 58 64 35 12 66

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MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 74.44% 25.56% 37.21% 6.78%

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
0.03% 0.72% 0.12% -0.28% 0.45% 0.38% 0.47% 0.17% 0.09% 0.54% -0.20% 0.22% 0.10% 0.69% 0.40% -0.33%

MTD
-0.15% 3.49% 0.03% -0.44% 0.70% 1.23% 0.95% 0.28% -0.10% 1.48% 0.80% 0.08% 0.06% -0.41% 1.06% -1.53%

YTD
-0.15% 3.49% 0.03% -0.44% 0.70% 1.23% 0.95% 0.28% -0.10% 1.48% 0.80% 0.08% 0.06% -0.41% 1.06% -1.53%

Valuation
12.28% undervalued 16.98% undervalued 15.46% undervalued 13.88% undervalued 15.25% undervalued 15.22% undervalued 14.73% undervalued 11.23% undervalued 12.47% undervalued 12.17% undervalued 18.21% undervalued 11.86% undervalued 12.95% undervalued 5.17% undervalued 11.02% undervalued 5.12% undervalued

Last 12MReturn
-12.52% 25.34% -22.98% 1.95% -8.58% -19.32% -5.00% -4.77% -7.11% -8.56% 7.11% -9.81% -13.86% 2.54% -18.65% 0.92%

P/E Ratio
16.11 14.25 22.25 28.98 42.72 39.25 27.06 17.81 20.01 23.3 34.4 14.19 38.34 22.74 19.99 28.47