June 21, 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 67% of our universe and 29% of the universe is calculated to be overvalued by 20% or more. 15 of 16 sectors are calculated to be overvalued. MARKET OVERVIEW

Index
DJIA NASDAQ RUSSELL 2000 S&P 500

Week Open
15078.71 3449.97 987.4 1630.64

Thurs Close
14758.32 3364.64 960.52 1588.19

Change
-320.39 -85.33 -26.88 -42.45

% Change
-2.12% -2.47% -2.72% -2.60%

YTD
13.17% 13.38% 13.52% 11.98%

Summary of VE Stock Universe

Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 32.64% 67.36% 11.44% 29.06%

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
-2.48% -3.02% -3.78% -1.99% -2.22% -2.75% -2.12% -2.66% -2.01% -2.20% -2.23% -3.43% -3.21% -2.56% -2.35% -2.55%

MTD
-1.73% -1.29% -6.49% -1.42% -1.46% -3.10% -1.00% -2.06% -2.41% -2.41% -1.64% -5.46% -2.94% -1.98% -4.29% -3.54%

YTD
18.36% 24.65% -2.86% 13.76% 16.04% 21.56% 21.20% 8.96% 16.03% 19.77% 16.50% -0.15% 6.99% 24.25% 17.49% 5.61%

Valuation
21.55% overvalued 24.58% overvalued 7.35% undervalued 11.84% overvalued 23.87% overvalued 13.97% overvalued 15.63% overvalued 14.83% overvalued 16.52% overvalued 13.77% overvalued 15.75% overvalued 8.19% overvalued 9.72% overvalued 23.90% overvalued 20.71% overvalued 9.27% overvalued

Last 12MReturn
27.14% 29.86% -27.76% 23.48% 13.69% 35.17% 24.44% 16.71% 17.86% 22.13% 15.69% 15.95% 4.29% 31.70% 14.96% 8.27%

P/E Ratio
18.14 18.49 19.67 21.74 27.95 23.23 24.13 20.06 17.34 18.98 25.43 15.13 27.15 22.52 20.36 19.15

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 CIG IDT SBS

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

Mkt Price
13.4 12.13 8.61 19.71 10.23

Valuation(%)
-14.92 -11.65 N/A N/A -32.96

Last 12-M Retn(%)

15.42 64.81 -46.28 110.58 -17.92

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

Ticker
TEO PIKE CIG IDT SBS

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

Mkt Price
13.4 12.13 8.61 19.71 10.23

Valuation(%)
-14.92 -11.65 N/A N/A -32.96

Last 12-M Retn(%)

15.42 64.81 -46.28 110.58 -17.92

Top-Five Utilities Sector Stocks--Composite Score

Ticker
VIP TEO PIKE DTEGY SBS

Name
VIMPELCOM LTD TELECOM ARGENTI PIKE ELECTRIC DEUTSCHE TELEKM SABESP -ADR

Mkt Price
9.99 13.4 12.13 11.4 10.23

Valuation(%)
-21.58 -14.92 -11.65 -17.26 -32.96

Last 12-M Retn(%)

23.03 15.42 64.81 7.34 -17.92

Top-Five Utilities Sector Stocks--Most Overvalued

Ticker
XTEX LMOS AMRC BT CHT

Name
CROSSTEX EGY LP LUMOS NETWORKS AMERESCO INC-A BT GRP PLC-ADR CHUNGHWA TELECM

Mkt Price
19.86 16.2 9.31 46.88 31.08

Valuation(%)
79.05 62.07 52.53 52.24 45.67

Last 12-M Retn(%)

21.84 62.98 -20.22 47.01 1.37

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 our report on Microsoft (MSFT). Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company operates in five segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Its products include operating systems for personal computers, servers, phones; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games, and online advertising. It also designs and sells hardware, including the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 accessories, and Microsoft PC hardware products. Microsoft Corporation is based in Redmond, Washington. ValuEngine continues its HOLD recommendation on MICROSOFT CORP for 201306-20. Based on the information we have gathered and our resulting research, we feel that MICROSOFT CORP has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.

Read our Complete Detailed Valuation Report on Microsoft HERE. (LINK IS WORKING/NEW LINK SYSTEM DIRECT DOWNLOAD)

What's Hot-Suttmeier in the News

ValuEngine.com Chief Market Strategist Richard Suttmeier has been making the financial media rounds again. Suttmeier is often called upon to provide his analysis of the banking system and housing market. He was recently featured on Yahoo! Finance's Breakout. Click the images below to watch Suttmeier's latest appearances on Yahoo! Finance.

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

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--(2.412) Annual and semiannual value levels are 2.476 and 3.063 with daily and weekly pivots at 2.284 and 2.259 and monthly, annual and semiannual risky levels at 2.092, 1.981 and 1.413. Commodities and Forex Comex Gold ($1280.1) Daily and monthly pivots are $1325.2 and $1379.5 with weekly, annual, semiannual, quarterly and annual risky levels at $1412.2, $1599.9, $1719.2, $1808.3 and $1852.1. Nymex Crude Oil ($94.94) Monthly and quarterly value levels are $92.32 and $79.66 with daily, weekly and annual risky levels at $97.51, $102.71 and $115.23.

The Euro (1.3221) Weekly, semiannual and quarterly value levels are 1.3124, 1.2797 and 1.2169 with my annual pivot at 1.3257, and monthly and daily risky levels at 1.3322 and 1.3429. Major Indices Daily Dow: (14,758) Monthly, semiannual, quarterly and annual value levels are 14,739, 14,323, 13,755 and 12,696 with a daily pivot at 14,870, the May 22 all time high at 15,542.40, and weekly risky level at 15,667. S&P 500 (1588.2) Semiannual, quarterly and annual value levels are 1566.9, 1448.7 and 1348.3 with daily and monthly pivots at 1601.2 and 1602.8, the May 22 all time high at 1687.18, and weekly risky level at 1705.9. NASDAQ (3365) Monthly, quarterly and annual value levels are 3288, 3106 and 2806 with a daily pivot at 3374, the May 22 multi-year high at 3532.04, and semiannual and week risky levels at 3583 and 3644. NASDAQ 100 (NDX) (2890) Quarterly, monthly and annual value levels are 2819, 2784 and 2463 with a daily pivot at 2898, the May 22 multi-year high at 3053.51 and weekly risky level at 3141. Dow Transports (6142) Semiannual, annual and quarterly value levels are 5955, 5925, 5469 and 5324 with a daily pivot at 6195, the May 20 all time high at 6562.85, and weekly and monthly risky levels at 6612 and 6734. Russell 2000 (960.52) Annual and quarterly value levels are 860.25, 809.54 and 807.82 with daily, semiannual and monthly pivots at 967.37, 965.51 and 978.21, the May 22 high at 1008.23, and weekly risky level at 1038.6. The SOX (459.72) Monthly, quarterly and annual value levels are 458.41, 357.61 and 338.03 with a daily pivot at 459.59, a weekly risky level at 506.46, a semiannual risky level is 520.17 and the July 2007 high at 549.39. Dow Utilities: (465.57) No value level with daily, weekly and semiannual pivots at 474.55, 478.78 and 474.63, a monthly risky level at 978.21, a quarterly risky level at 524.16 and annual risky level at 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. PulteGroup (PHM) ($18.87) Pulte Corporation is a publicly held holding company whose subsidiaries engage in the homebuilding and financial services businesses. The company's significant subsidiaries include Pulte Financial Companies, Inc., Pulte Diversified Companies, Inc., and other subsidiaries which are engaged in the homebuilding business. Analysis Pulte has a Buy rating according to ValuEngine with fair value at $15.20, which makes the stock 36.5% overvalued, The ValuEngine one-year price target is $22.20.The daily chart for PHM shows rising momentum with the stock below its 21-day and 50- day simple moving averages at $21.22 and $21.22 and on the 200-day simple moving average at $18.87. My quarterly value level is $17.40 with a monthly risky level at $23.75.

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 HER Intelligent Investing with Richard Suttmeier Articles by Richard Suttmeier | Articles by Steve Hach

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