July 31, 2015

If you no longer wish to receive this free newsletter, CLICK HERE to unsubscribe
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!

VALUATION WATCH: Overvalued stocks now make up 51.58% of our

stocks assigned a valuation and 20.72% of those equities are calculated to
be overvalued by 20% or more. Nine sectors are calculated to be
overvalued--with three at or near double digits.
MARKET OVERVIEW
Index

Started week

Friday AM

Change

Change %

ytd

DJIA

17561.78

17738.6

176.82

1.01%

-0.47%

NASDAQ

5055.92

5145.52

89.6

1.77%

8.86%

RUSSELL 2000

1219.21

1239.37

20.16

1.65%

2.88%

S&P 500

2078.19

2111.06

32.87

1.58%

2.53%

Summary of VE Stock Universe

Stocks Undervalued

48.42%

Stocks Overvalued

51.58%

Stocks Undervalued by 20%

20.72%

Stocks Overvalued by 20%

19.80%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

-0.27%

-0.92%

4.96%

14.17% overvalued

-1.93%

20.09

Auto-Tires-Trucks

-0.10%

-3.06%

-1.37%

2.07% undervalued

-9.79%

17.13

Basic Materials

-1.60%

-10.96%

-12.18%

19.60% undervalued

-36.29%

21.88

Business Services

0.17%

-1.40%

3.65%

5.58% overvalued

-3.00%

24.25

Computer and Technology

0.55%

-4.30%

-0.14%

4.43% overvalued

-1.89%

29.49

Construction

0.07%

-1.86%

0.43%

2.34% undervalued

0.47%

24.25

Consumer Discretionary

0.22%

-1.40%

6.68%

6.44% overvalued

-0.55%

28.24

Consumer Staples

0.18%

-1.42%

1.89%

10.43% overvalued

0.84%

22.69

Finance

0.06%

-0.87%

1.97%

4.09% overvalued

-0.88%

17.56

Industrial Products

0.15%

-5.16%

-1.94%

5.54% undervalued

-7.66%

19.34

Medical

-0.28%

-0.57%

15.19%

17.20% overvalued

15.33%

30.98

Multi-Sector Conglomerates

-0.30%

-3.44%

-0.91%

6.51% overvalued

-5.11%

25.23

Oils-Energy

-0.68%

-11.02%

-12.10%

12.95% undervalued

-44.67%

22.16

Retail-Wholesale

0.45%

-2.21%

-1.50%

4.25% overvalued

3.93%

25.7

Transportation

-1.12%

-2.48%

-4.45%

1.40% undervalued

-4.15%

16.93

Utilities

-0.47%

-2.44%

-2.68%

0.54% undervalued

-6.92%

20.28

ValuEngine Newsletters Latest Results

VE Newsletter

Current
Benchmark *
Month Total

Last Month
Total

Benchmark *

Since
Inception

Benchmark *

Forecast MNS

9.66

0.43

5.255118

-1.249992

141.99893

31.587685

Dividend Stock

0.5748747

2.2063668

-3.94

-2.30

7.415545

35.83386

Small Cap Stock

-1.7618796

-1.3755784

1.15

-0.51

35.743713

55.044983

View

-2.60

0.06

-5.739443

-0.7278043

119.742325

86.09077

*NOTE: Benchmark for Forecast MNS for last month and inception is the MLSAX Long/Short Fund.
Benchmark for Small Cap is the Russell 2000 Small Cap Index (RUT). Benchmark for current month
Forecast MNS and all other portfolios for all time frames is the S&P500.

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

MFLX

MULTI-FINELINE

17.48

-23.18%

74.63%

AVID

AVID TECH INC

11.88

-23.30%

58.40%

TSEM

TOWER SEMICOND

13.03

4.31%

24.33%

NSR

NEUSTAR INC -A

29.01

-25.82%

3.39%

WSTC

WEST CORP

28.66

N/A

9.51%

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

MFLX

MULTI-FINELINE

17.48

-23.18%

74.63%

AVID

AVID TECH INC

11.88

-23.30%

58.40%

TSEM

TOWER SEMICOND

13.03

4.31%

24.33%

NSR

NEUSTAR INC -A

29.01

-25.82%

3.39%

WSTC

WEST CORP

28.66

N/A

9.51%

Top-Five Technology Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

TSM

TAIWAN SEMI-ADR

22.7

-10.56%

9.56%

MFLX

MULTI-FINELINE

17.48

-23.18%

74.63%

AVID

AVID TECH INC

11.88

-23.30%

58.40%

NSR

NEUSTAR INC -A

29.01

-25.82%

3.39%

AVGO

AVAGO TECHNOLOG

127.65

-0.99%

81.04%

Top-Five Technology Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

DMD

DEMAND MEDIA

5.89

300.00%

-78.19%

BITA

BITAUTO HOLDNGS

39.78

175.65%

-29.00%

SUNE

SUNEDISON INC

25.63

147.24%

21.82%

ELLI

ELLIE MAE INC

69.13

107.26%

135.14%

SGMS

SCIENTIFIC GAME

15.08

93.04%

70.78%

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, 14 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 Stock Reports
Exxon Mobil Corporation's (XOM) principal business is energy, involving
exploration for, and production of, crude oil and natural gas, manufacturing of
petroleum products and transportation and sale of crude oil, natural gas and
petroleum products. Exxon Mobil is a major manufacturer and marketer of basic
petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics
and a wide variety of specialty products. Exxon Mobil is engaged in exploration for,
and mining and sale of coal, copper and other minerals.
VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD
recommendation on EXXON MOBIL CRP for 2015-07-30. Based on the information we
have gathered and our resulting research, we feel that EXXON MOBIL CRP has the
probability to ROUGHLY MATCH average market performance for the next year. The
company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Earnings Growth
Rate.

As a bonus to our Newsletter readers,

we are offering a FREE DOWNLOAD of one of our Stock Reports
Read our Complete Detailed Valuation Report on Exxon Mobil HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

83.13

0.14%

3-Month

84.87

2.24%

6-Month

86.20

3.84%

1-Year

84.39

1.67%

2-Year

86.53

4.25%

3-Year

93.11

12.16%

Valuation & Rankings

Valuation

2.45% overvalued

Valuation Rank(?)

1-M Forecast Return

0.14%

1-M Forecast Return Rank

12-M Return

-19.60%

Momentum Rank(?)

Sharpe Ratio

0.49

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

7.54%

5-Y Avg Annual Rtn Rank

Volatility

15.27%

Volatility Rank(?)

Expected EPS Growth

-22.86%

EPS Growth Rank(?)

Market Cap (billions)

351.51

Size Rank

Trailing P/E Ratio

14.49

Trailing P/E Rank(?)

Forward P/E Ratio

18.78

Forward P/E Ratio Rank

PEG Ratio

n/a

PEG Ratio Rank

Price/Sales

0.94

Price/Sales Rank(?)

Market/Book

1.98

Market/Book Rank(?)

Beta

0.87

Beta Rank

Alpha

-0.24

Alpha Rank

47
61
37
73
60
89
12
100
78
38
n/a
68
52
57
31

What's Hot

A Tale of Two Social Media Stocks

Twitter (TWTR) reported earnings this week, and the initial reaction was positive. While
the company is still not profitable, losses were pared to $137 million or $0.21/share
versus last year's loss of $145 million. They also made the claim that they expect to
turn a profit "soon," in 2018! Running some "magic" on the numbers-- once certain
expenses were excluded, the company claimed earnings of $0.07/share. That was
actually a beat--sort of--as analysts had expected a figure of only $0.04/share.
On that initial news, the stock had a little pop. However, after hours, once investors
had a chance to digest the news and dig down into the earnings data, things quickly
soured and the stock began to nose dive. Critical for a social media company like
Twitter is the strength of the its user base. And here we see a problem. The company is
NOT growing fast enough to provide the eyeballs needed to make money from
advertising. The company added only @eight million "monthly active users" (MAU) in
this quarter for a total of 312 million MAU.
That slow growth is a bad sign--and that bad sign was even noted by Twitter CEO
Jack Dorsey on the earnings call when he said This is unacceptable and were not
happy about it." Twitter is badly lagging Facebook, which has @ 1.4 billion MAUs. In
addition, the growth for Twitter is slowing rather than picking up. This also does not
bode well for the company.

VALUENGINE RECOMMENDATION: ValuEngine continues its SELL recommendation on

TWITTER INC for 2015-07-30. Based on the information we have gathered and our
resulting research, we feel that TWITTER INC has the probability to UNDERPERFORM
average market performance for the next year. The company exhibits UNATTRACTIVE
Price Sales Ratio and Book Market Ratio.
Things could have hardly have been more different for the other social media giant,
Facebook (FB). Facebook reported a far brighter earnings and growth picture with its
earnings for Q2. Facebook exceeded Wall St. expectations AND maintained good
user-base growth. For the quarter, revenue rose 39% to $4.04 billion--up from $2.91
billion a year ago. Net income was $719 million, or $0.25/share, compared to
$0.30/share a year ago. The company reported a profit of $0.50/share, which beat
analyst estimates of $0.47/share.
The company's "monthly active users" (MAU) in this quarter totaled 1.49 billion, and
increase of 13% year-over-year. Increases in users were within that range in all
categories. Those are the sort of numbers advertisers like to see, and the company's
advertising revenues increased accordingly--43% year-over-year.
Analysts note that the company growth and associated revenues have scaled up
nicely, and its rate of growth is similar to Google's when it was at its height. Mobile
growth has been very strong, and the stock price has responded in kind. Facebook's
performance stands in stark contrast to Twitter and other sites along the same "flight
path"--such as Yelp.
Despite this growth, our forecasts remain a bit flat long term. This may change as
price movements are digested and analysts increase their earnings estimates moving
forward. Facebook is expected to begin to monetize Instagram, the popular photo
sharing site, and if it can duplicate its success there, then revenues could
dramatically increase as well.
VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD recommendation
on FACEBOOK INC-A for 2015-07-30. Based on the information we have gathered and
our resulting research, we feel that FACEBOOK INC-A has the probability to ROUGHLY
MATCH average market performance for the next year. The company exhibits
ATTRACTIVE Company Size but UNATTRACTIVE Price Sales Ratio.
ValuEngine.com is an independent research provider, producing buy/hold/sell
recommendations, target price, and valuations on over 7,000 US and Canadian equities
every trading day.
Visit our website for more information and a free trial

ValuEngine.com Products and Services

With the ValuEngine Forecast

16 Market Neutral Strategy
Portfolio Newsletter, you can
run your own portfolio like a
hedge fund to manage risk
and profit in any market
environment.

Click HERE to
Sign Up for
ValuEngine's
Market Neutral
Newsletter

With ValuEngine.com's
Premium Website
Membership you get
forecasts, valuations, and
recommendations on more
than 7,000 stocks updated
every trading day!
NO OBLIGATION, 14-DAY FREE
TRIAL!

Click HERE to
Sign Up for a
FREE TRIAL