October 25, 2013

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The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from In today's fast-moving and globalized financial markets, it is easy to get overloaded with information. The winners will adopt an objective, scientific, independent and unemotional approach to investing. If you are not yet a member of ValuEngine's stock analysis service, sign up now for a two-week free trial at www.valuengine.com! ValuEngine.com.

VALUATION WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks now make up 78% of our stocks assigned a valuation and 46.5% of those equities are calculated to be overvalued by 20% or more. 15 of 16 sectors are calculated to be overvalued15 of them by double digits. MARKET OVERVIEW

Index
DJIA NASDAQ RUSSELL 2000 S&P 500

Week Open
15401.32 3922.65 1115.66 1745.2

Thurs. Close
15,509.21 3,928.96 1,118.84 1,752.07

Change
107.89 6.31 3.18 6.87

% Change
0.70% 0.16% 0.29% 0.39%

YTD
18.55% 30.46% 31.32% 23.11%

Summary of VE Stock Universe

Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 21.93% 78.07% 8.86% 46.54%

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
-0.04% 0.65% 0.84% 0.45% 0.07% 0.44% 0.38% -0.19% 0.22% 0.70% 0.18% 0.44% 0.30% 0.50% 0.65% 0.28%

MTD
5.05% 2.07% 4.42% 3.93% 3.89% 5.48% 3.11% 6.29% 3.68% 4.00% 2.88% 3.99% 5.43% 2.66% 5.12% 4.66%

YTD
36.95% 50.71% 10.83% 33.21% 39.58% 38.17% 37.91% 26.07% 26.40% 37.69% 39.37% 15.65% 29.66% 37.67% 35.64% 20.91%

Valuation
24.09% overvalued 26.27% overvalued 3.85% undervalued 24.84% overvalued 23.86% overvalued 16.95% overvalued 24.61% overvalued 18.36% overvalued 20.24% overvalued 22.43% overvalued 21.23% overvalued 21.26% overvalued 10.19% overvalued 25.88% overvalued 26.05% overvalued 11.40% overvalued

Last 12MReturn
42.69% 56.62% -23.75% 39.04% 34.16% 33.52% 38.04% 25.20% 17.06% 41.12% 32.64% 22.42% 14.83% 40.90% 37.81% 16.48%

P/E Ratio
17.2 21.68 20.46 25.35 30.75 26.74 26.86 23.86 17.91 23.15 27.05 19.7 27.24 24.03 19.27 21.14

ValuEngine Newsletters Latest Results

VE Newsletter Forecast MNS Dividend Stock Small Cap Stock View Current Month Total
-1.56 -0.65 1.51 3.35

S&P 500
1.77 -0.15 0.42 1.09

Last Month Total

4.08 2.83 8.6 6.56

S&P 500
1.99 3.66 2.78 2.09

Since Inception
112.65 10.5 43.61 85.63

S&P 500
88.45 13.03 25.8 53.04

Sector TalkUtilities
Below, we present the latest data on leading Utilities 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 Utilities Sector Stocks--Short-Term Forecast Returns

Ticker
TEO PIKE IDT CIG PT

Name
TELECOM ARGENTI PIKE ELECTRIC IDT CORP-CL B CEMIG SA -ADR PORTUGAL TELCOM

Mkt Price
19.15 11.02 21.11 9.01 4.85

Valuation(%)
-7.75 0.7 N/A N/A -45.02

Last 12-M Retn(%)

85.56 35.71 100.28 -16.24 -4.53

Top-Five Utilities Sector Stocks--Long-Term Forecast Returns

Ticker
TEO PIKE IDT CIG PT

Name
TELECOM ARGENTI PIKE ELECTRIC IDT CORP-CL B CEMIG SA -ADR PORTUGAL TELCOM

Mkt Price
19.15 11.02 21.11 9.01 4.85

Valuation(%)
-7.75 0.7 N/A N/A -45.02

Last 12-M Retn(%)

85.56 35.71 100.28 -16.24 -4.53

Top-Five Utilities Sector Stocks--Composite Score

Ticker
TEO VIP DTEGY AES PT

Name
TELECOM ARGENTI VIMPELCOM LTD DEUTSCHE TELEKM AES CORP PORTUGAL TELCOM

Mkt Price
19.15 14.01 15.96 14.07 4.85

Valuation(%)
-7.75 -23.44 -17.09 4.15 -45.02

Last 12-M Retn(%)

85.56 30.45 40.25 34.13 -4.53

Top-Five Utilities Sector Stocks--Most Overvalued

Ticker
EGN XTEX SRE OGE TWTC

Name
ENERGEN CORP CROSSTEX EGY LP SEMPRA ENERGY OGE ENERGY CORP TW TELECOM INC

Mkt Price
83.02 26.73 90.07 36.98 31.16

Valuation(%)
66.61 60.89 51.74 43.93 40.92

Last 12-M Retn(%)

62.66 63.49 33.12 30.3 22.34

Find out what Wall Street Investment and Media Professionals already know, ValuEngine offers sophisticated stock valuation and forecast research as well as a variety of portfolio screening and creation tools. If you are reading this you should sign up for ValuEngine's award-winning To Sign Up for a stock valuation and forecast FREE TRIAL, service Please Click HERE NO OBLIGATION, 30 DAY FREE TRIAL!

Free Download for Readers

As a bonus to our Free Weekly Newsletter subscribers, we are offering a FREE DOWNLOAD of one of our Detailed Stock Valuation Reports--this report is normally $25.00 This week's free download is for AT&T (T). ValuEngine continues its BUY recommendation on AT&T INC for 2013-10-24. Based on the information we have gathered and our resulting research, we feel that AT&T INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Volatility. Read our Complete Detailed Valuation Report on AT&T HERE.

What's Hot
-- ValuEngine Small Cap Beats S&P
For September/October the stock market shrugged off the budget uncertainties in Washington DC and posted a decent leg up. Our ValuEngine Small Cap Stock Strategy Newsletter also prospered and posted another dominating performance. The SCSS Newsletter posted a gain of 8.6% vs. the SP 500 return of 2.7%. That's a huge beat of almost 600 bps. The return since inception of the VE Small Cap Stock Newsletter is 43.61% versus the S&P's gain of 25.8%. Here are the results from last month's portfolio. As you can see, the ValuEngine Small Cap Stock Newsletter continues to impress for 2013. We had a revolution this month with Revolution Lighting. The stock led our portfolio with a massive gain of 61.75%. We also banked double-digit gains from Inteliquent, Telenav, and Towerstream. Only three of our picks failed to provide positive returns. Symbol AXTI CLSN DXLG ENOC ENTR ERII IQNT MITK NNA PIKE PIP RLD RVLT TNAV TWER GSPC Company Name AXT INC CELSION CORP DESTINATION XL ENERNOC INC ENTROPIC COMMUNICATIONS ENERGY RECOVERY INTELIQUENT INC MITEK SYSTEMS NAVIOS MARINE ACQUISTIONS PIKE ELECTRIC PHARMATHENE INC REALD INC REVOLUTION LT TELENAV INC TOWERSTREAM CP LONG PORTFOLIO S&P500 Entry Price 9-25-13 2.34 1.18 6.6 15.04 4.31 7.03 9.19 5.24 3.74 11.17 2.03 7.09 2.51 6 2.51 1697.42 Exit Price 2.27 1.21 6.75 16.14 4.34 6.73 10.73 5.52 3.95 10.96 2.11 7.24 4.06 6.9 2.88 1744.66 Change %Change -0.07 0.03 0.15 1.10 0.03 -0.30 1.54 0.28 0.21 -0.21 0.08 0.15 1.55 0.90 0.37 47.24 -2.99 2.54 2.27 7.31 0.70 -4.27 16.76 5.34 5.61 -1.88 3.94 2.12 61.75 15.00 14.74 8.60 2.78

We have a more bullish outlook for the market at the moment, but it's no time to be complacent. Our Valuation Model continues to find the market in an extremely overvalued condition and we maintain our valuation warning. More than 78% of the equities we can assign a valuation remain calculated to be overvalued with almost 47% coming in overvalued at 20% or more. As always, we recommend prudent stoplosses, hedging to the downside, and taking some profits under these sorts of valuation levels. A 15% stop loss for all stocks would not have effected the return of our portfolio this month. At ValuEngine, our investment strategies focus on dozens of fundamental and technical factors for over 8,000 individual stocks, synthesize the data, and then come up with a portfolio. The ValuEngine Small Cap Stock Newsletter features 15 primary stock selection and five alternate stock picks derived from our award-winning stock forecast model. We focus on small-cap companies which can be more volatile, but also offer the potential of outsized returns for a given amount of investment capital. Investors can establish larger positions in these equities due to the fact that they often feature far-lower share prices than equities chosen for our other newsletters and investment strategies. These aren't "penny stocks"--all companies must be trading at more than $1.00 to be selected--but they do tend to be more affordable. CLICK HERE to Subscribe to the ValuEngine Small Cap Stock Newsletter at a Special Introductory Rate The ValuEngine Small Cap Newsletter portfolio has 15 stocks and is re-balanced once each month. An equal amount of capital is allocated to each stock. Each newsletter portfolio focuses on maximum potential returns so there are no diversity requirements. Since inception, performance has been good. It is designed for investor who like the outsized return possibilities of smaller-cap companies and who are comfortable with the fact that such stocks may be more volatile and present more risk than larger, more-established firms. So, prudent investors are careful to establish stop-losses and hedging strategies for every portfolio. Sign up now and you can access the current portfolio and you will receive next month's rebalanced portfolio as well!

Suttmeier Says
--Commentary and Analysis from Chief Market Strategist Richard Suttmeier
If you have any comments or questions, send them to Rsuttmeier@Gmail.com Treasury Yields 10-Year--(2.514) Monthly, weekly and semiannual value levels are 2.603, 2.621 and 3.227 with daily and annual pivots at 2.472 and 2.476, and quarterly and annual risky levels at 2.252 and 1.981. Commodities and Forex Comex Gold ($1345.8) Weekly and monthly value levels are $1266.6 and $1145.2 with a daily pivot at $1366.6, and quarterly and annual risky levels at $1435.6, $1599.9 and $1852.1. Nymex Crude Oil ($97.06) Monthly and daily pivots are $99.84 and $96.36 with weekly, semiannual, quarterly and annual risky levels at $102.80, $109.84, $114.36 and $115.23. The Euro (1.3801) Annual, quarterly, monthly and semiannual value levels are 1.3257, 1.2805, 1.2782, 1.2756 and 1.2477 with daily and weekly pivots at 1.3824 and 1.3554 and annual risky level at 1.4295. Major Indices Daily Dow: (15,509) Semiannual and annual value levels are 14,724 and 12,696 with daily and weekly pivots at 15,500 and 15,418, the Sept. 18 all time high at 15,709.59, and monthly, semiannual and quarterly risky levels at 15,932, 16,490 and 16,775. S&P 500 (1751.8) Weekly, semiannual and annual value levels are 1727.5, 1606.9, 1400.7 and 1348.3 with semiannual and monthly pivots at 1743.5 and 1746.4, the Oct. 22 all time high at 1759.33, and daily and quarterly risky levels at 1769.6 and 1853.8. NASDAQ (3929) Weekly, monthly, annual, semiannual and annual value levels are 3888, 3830, 3759, 3668 and 2806 with the Oct. 22 multi-year high at 3947.67, and daily and quarterly risky levels at 3968 and 4025.

NASDAQ 100 (NDX) (3362) Semiannual, weekly, monthly and annual value levels are 3304, 3226, 3254 and 2463 with the Oct. 22 multi-year high at 3384.35, and daily and quarterly risky levels at 3406 and 3477. Dow Transports (7023) Weekly and annual value levels are 6710, 5925 and 5469 with a monthly pivot at 6811, the Oct. 24 all time high at 7031.92, and daily, semiannual and quarterly risky levels at 7065, 7104 and 7205. Russell 2000 (1119.69) Weekly, semiannual, monthly and annual value levels are 1102.54, 1089.42, 1092.46, 860.25 and 809.54 with the Oct. 22 all time high at 1121.53, and daily and quarterly risky levels at 1126.93 and 1163.21. The SOX (494.15) My annual value level is 338.03 with the Oct. 22 multiyear high at 508.75, and daily, weekly, monthly, quarterly and semiannual risky level at 499.73, 516.84, 512.13, 514.87 and 533.56. Dow Utilities: (502.18) Daily, weekly and semiannual value levels are 497.68, 485.82 and 481.92 with monthly, quarterly, semiannual and annual risky levels at 512.80, 520.55, 523.33 and 540.37.

Stock of the Day One of the more popular features of Richard Suttmeier's Morning Briefing for investors is his stock of the day. In every issue, Suttmeier highlights one stock and provides VE data as well as his own proprietary technical data. Here is today's stock of the day from Richard Suttmeier's Morning Briefing Newsletter. Apple (AAPL) ($531.91) Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.

Analysis Apple has a hold rating according to ValuEngine with fair value at $474.71, which makes the stock 10.6% overvalued. The ValuEngine one-year price target is $535.47. The daily chart for Apple shows overbought momentum with the stock above its 21-day, 50- day and 200-day simple moving averages at $496.89, $491.39 and $455.27. My monthly value level is $448.14 with an annual pivot at $510.64 and semiannual risky level at $620.84.

Richard Suttmeier has been a professional in the US Capital Markets since 1972 transferring his engineering skills to the trading and investment world. He earned a Bachelor of Industrial Engineering degree from Georgia Institute of Technology in 1966, and a Master of Science, Operations Research, Systems Analysis degree from Brooklyn Polytechnic University in 1970. Over the years Richard appeared many times in the financial media, on networks such as CNBC, CNN, CNNfn, New York 1, Bloomberg TV and radio, Fox Business, Business News Network in Canada, Wall Street Week with Fortune, Yahoo Finance Breakout, and the Bill Mazer Radio Show. In 2002, he anchored his own show on Yahoo Finance Vision called, "Traders' Club with Richard Suttmeier." Richard has been frequently quoted in USA Today, The NY Times, Wall Street Journal, Reuters, and The Dow Jones Newswires. Richard has made numerous speaking appearances in recent years to groups such as the Market Technicians Associations, the American Association of Individual Investors, Wells Fargo Advisors, the Executive Forum at the National Arts Club, and the Investors Roundtable of Wilmington NC.

Now YOU can take advantage of the same market and trading expertise as the financial media with Richard Suttmeier's ValuTrader Model Portfolio The ValuTrader Portfolio Newsletter is based on ValuEngine Chief Market Strategist Richard Suttmeier's proprietary market analytics. Suttmeier combines his technical analysis expertise with ValuEngine's proprietary valuation, forecast, and ratings data for more than 4000 equities trading on US markets to come up with a 20 stock portfolio tailored to current market conditions. With ValuTrader, subscribers access Suttmeier's "Buy and Trade" strategy with a portfolio designed to function well in both up and down markets. Every edition of Richard Suttmeier's ValuTrader model portfolio includes technical risk, pivot, and value levels, as well as critical ValuEngine data points-ratings, valuation, and forecast--for the current portfolio. Whenever Suttmeier buys a new stock or sells a current holding, subscribers receive an email alert so that they can take advantage of Suttmeier's proven market-timing expertise. The portfolio may include long as well as short positions according to Suttmeier's read of the markets. Click HERE to Sign Up for Chief Market Strategist Richard Suttmeier's ValuTrader Model Portfolio

With Richard Suttmeier's Morning Briefing, you get daily analysis of US Treasury Yields, Gold, Crude Oil, and Currency Exchange Rates-Dollar, Yen, Pound, and Euro--as well as key technical indicators for the major equity averages.

Click HERE to Sign Up for Chief Market Strategist Richard Suttmeier's Morning Briefing!

ValuEngine.com Tools and Services

We provide a variety of means for accessing ValuEngine market analysis and other content. You can find us on some of the leading financial media websites as well as the more popular social media services. While our own website ValuEngine.com provides access to lots of analysis--and you can always sign up to receive email daily and weekly bulletins HERE, some users prefer to download PDF reports of content while others prefer to garner info while browsing the web. Our Chief Market Strategist Richard Suttmeier is a prolific market observer and you can find his content in a variety of places. His weekly column on Forbes provides insights into his "Buy and Trade" strategy while his daily market analysis can be followed and accessed at Scribd, Twitter, and Minyanville. Senior Editor Steve Hach re-posts PDFs and web-accessible copies of Daily and Weekly ValuEngine bulletins at Seeking Alpha and Scribd. In most cases, you can receive notification of VE content posting by Suttmeier and Hach by following the ValuEngine feed on twitter @ValuEngine. Links for this content are provided below, you may also find these links on our website HERE Intelligent Investing with Richard Suttmeier Articles by Richard Suttmeier | Articles by Steve Hach

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