January 8, 2016

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VALUATION WATCH: Overvalued stocks now make up 31.36% of our

stocks assigned a valuation and 9.85% of those equities are calculated to
be overvalued by 20% or more. One sector is calculated to be overvalued.
MARKET OVERVIEW
Index

Started week

Friday PM

Change

Change %

ytd

DJIA

17405.48

16460.1

-945.38

-5.43%

-7.65%

NASDAQ

4897.65

4677.74

-219.91

-4.49%

-1.04%

RUSSELL 2000

1134.08

1057.68

-76.4

-6.74%

-12.20%

S&P 500

2038.2

1935.92

-102.28

-5.02%

-5.97%

Summary of VE Stock Universe

Stocks Undervalued

68.64%

Stocks Overvalued

31.36%

Stocks Undervalued by 20%

34.16%

Stocks Overvalued by 20%

9.85%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

-1.71%

-3.04%

-3.04%

3.56% undervalued

-4.66%

19.71

Auto-Tires-Trucks

-4.14%

-8.73%

-8.73%

20.02% undervalued

-14.93%

11.71

Basic Materials

-2.71%

-4.42%

-4.44%

16.71% undervalued

-24.66%

23.16

Business Services

-2.71%

-5.41%

-5.41%

5.25% undervalued

-11.93%

22.48

Computer and Technology

-2.42%

-4.84%

-3.54%

5.03% undervalued

-6.08%

27.72

Construction

-2.92%

-5.43%

-5.43%

13.91% undervalued

-7.57%

18.38

Consumer Discretionary

-2.24%

-4.30%

-4.30%

10.73% undervalued

-7.84%

23

Consumer Staples

-1.93%

-3.87%

-3.87%

1.16% overvalued

-4.30%

22.72

Finance

-2.05%

-3.67%

-3.67%

5.83% undervalued

-6.63%

15.6

Industrial Products

-2.45%

-4.46%

-4.46%

10.67% undervalued

-14.39%

17.06

Medical

-3.55%

-5.58%

-5.58%

7.62% undervalued

-10.25%

27.04

Multi-Sector Conglomerates

-2.07%

-4.92%

-4.92%

8.30% undervalued

-15.68%

16.03

Oils-Energy

-4.07%

-7.97%

-7.97%

23.50% undervalued

-38.20%

21.9

Retail-Wholesale

-1.57%

-3.81%

-3.81%

11.59% undervalued

-12.71%

22.42

Transportation

-3.48%

-6.84%

-6.84%

25.10% undervalued

-28.74%

12.6

Utilities

-2.42%

-3.51%

-3.51%

4.25% undervalued

-9.92%

22.02

Sector TalkOils and Energy

Below, we present the latest data on leading Oils and Energy Sector stocks
from our Professional Stock Analysis Service. These results were filtered by market
price and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Oils and Energy Sector Stocks--Short-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation(%)

Last 12-Mon
Retn(%)

PZE

PETROBRAS EGY

5.69

n/a

26.44

JASO

JA SOLAR HOLDGS

8.5

-42.28

10.61

JKS

JINKOSOLAR HLDG

20.85

-19.15

19.69

TSO

TESORO CORP

107.03

-4.26

51.58

BAK

BRASKEM SA

13.48

n/a

14.63

Top-Five Oils and Energy Sector Stocks--Long-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation(%)

Last 12-Mon
Retn(%)

PZE

PETROBRAS EGY

5.69

n/a

26.44

JASO

JA SOLAR HOLDGS

8.5

-42.28

10.61

JKS

JINKOSOLAR HLDG

20.85

-19.15

19.69

TSO

TESORO CORP

107.03

-4.26

51.58

BAK

BRASKEM SA

13.48

n/a

14.63

Top-Five Oils and Energy Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation(%)

Last 12-Mon
Retn(%)

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Top-Five Oils and Energy Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation(%)

Last 12-Mon
Retn(%)

NOG

NORTHRN OIL&GAS

3.37

300.00

-37.36

YGE

YINGLI GREEN EN

3.43

300.00

63.33

BCEI

BONANZA CREEK

4.43

174.27

-79.69

GLF

GULFMARK OFFSHR

3.23

145.26

-84.91

SN

SANCHEZ ENERGY

3.79

115.76

-52.45

Find out what Wall Street Investment and Media Professionals already know,
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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
Ford Motor Company (F) produces cars and trucks. The company and its
subsidiaries also engage in other businesses, including manufacturing automotive
components and systems and financing and renting vehicles and equipment. The
company is divided up into the following four operating segments: Automotive,
Visteon Automotive Systems, Ford Motor Credit Company, and The Hertz Corporation.
ValuEngine continues its BUY recommendation on FORD MOTOR CO for 201601-07. Based on the information we have gathered and our resulting research, we
feel that FORD MOTOR CO has the probability to OUTPERFORM average market
performance for the next year. The company exhibits ATTRACTIVE Company Size and
P/E Ratio.
Read our Complete Detailed Valuation Report on Ford Motor Company HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

12.78

0.64%

3-Month

12.99

2.25%

6-Month

12.96

2.08%

1-Year

13.67

7.63%

2-Year

12.84

1.09%

3-Year

13.06

2.86%

Valuation & Rankings

Valuation

18.74% undervalued

Valuation Rank(?)

1-M Forecast Return

0.64%

1-M Forecast Return Rank

12-M Return

-15.56%

Momentum Rank(?)

46

65
91

Sharpe Ratio

-0.14

Sharpe Ratio Rank(?)

46

5-Y Avg Annual Return

-3.51%

5-Y Avg Annual Rtn Rank

48

Volatility

24.90%

Volatility Rank(?)

Expected EPS Growth

19.88%

EPS Growth Rank(?)

Market Cap (billions)

48.88

Size Rank

Trailing P/E Ratio

7.89

Trailing P/E Rank(?)

Forward P/E Ratio

6.58

Forward P/E Ratio Rank

PEG Ratio

0.40

PEG Ratio Rank

Price/Sales

0.34

Price/Sales Rank(?)

Market/Book

1.78

Market/Book Rank(?)

Beta

1.28

Beta Rank

Alpha

-0.09

Alpha Rank

64
57
99
93
91
64
85
50
29
43

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AAII officials specifically praised ValuEngine for its unique analysis of individual
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ValuEngine provides a wide range of services for individual investors and is
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Valuations On The Cheap Side As 2016 Begins

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which
trade on US exchanges as well as @1000 Canadian equities. When EPS estimates are
available for a given equity, our model calculates a level of mispricing or valuation
percentage for that equity based on earnings estimates and what the stock should
be worth if the market were totally rational and efficient--an academic exercise to be
sure, but one which allows for useful comparisons between equities, sectors, and
industries. Using our Valuation Model, we can currently assign a VE valuation
calculation to more than 2800 stocks in our US Universe.

We combine all of the equities with a valuation calculation to track market

valuation figures and use them as a metric for making calls about the overall state of
the market. Two factors can lower these figures-- a market pullback, or a significant
rise in EPS estimates. Vice-versa, a significant rally or reduction in EPS can raise the
figure. Whenever we see overvaluation levels in excess of @ 65% for the overall
universe and/or 27% for the overvalued by 20% or more categories, we issue a
valuation warning.
We now calculate that 31.36% of the stocks we can assign a valuation are
overvalued and 9.85% of those stocks are overvalued by 20% or more. These numbers
have decreased significantly since the last time we published our monthly valuation
study. We are now showing stocks that are cheaper from our Valuation Model's
perspective. Certainly not as cheap as we have seen, but more of a bargain than we
saw back in November.
Investors remained concerned by the world-wide growth picture even as the
US continues to post decent economic data. As we noted when the Fed announced
their rate hike, we feel this move was a bit premature and should have been
postponed in the midst of falling and/or volatile oil prices, Middle East unrest, the
Chinese stock slide and economic downturn, wage stagnations for US workers, etc.
Those factors may have a contagion effect for the US markets, even as the US
remains the economy of last resort and the US dollar remains a safe haven. You can
see their effects on the market so far this year, as 2016 is proving to be a bit of a
downer so far with investors selling off positions due to short-term fears over China and
share-price declines in their markets.
The chart below tracks the valuation metrics from January 2015. It shows levels in
excess of 40%.

This chart shows overall universe over valuation in excess of 40% vs the S&P 500 from
January 2013

This chart shows overall universe under and over valuation in excess of 40% vs the S&P
500 from March 2007*

*NOTE: Time Scale Compressed Prior to 2011.

ValuEngine Capital
We are pleased to announce the formation of ValuEngine Capital, a registered
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