September 3, 2010

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As a bonus to our Free Weekly Newsletter subscribers, we are now offering a FREE
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This week's free download is our report on MICRON TECH (MU). MICRON TECH
together with its subsidiaries, engages in the manufacture and marketing of
semiconductor devices worldwide. Its products include dynamic random access
memory (DRAM) products that provide data storage and retrieval, which include
DDR, DDR2, DDR3, and other specialty DRAM memory products, such as SDRAM,
mobile DRAM, pseudo-static RAM, and reduced latency DRAM. The company also
offers NAND flash memory products, which are electrically re-writeable and non-
volatile semiconductor devices that retain content when power is turned off. Micron
is the only US-based manufacturer of DRAM.
MICRON TECH scores extremely well on both short and long-term forecast
calculations, is significantly undervalued, and may represent a bargain for investors
looking to pick up some beat down companies in the Technology Sector. Micron is
trading below both its 50 day and 200 day moving averages. However, analysts have
lowered expectations for the company recently due to an expected slow down in
demand for computers that use Micron's memory products.
 ValuEngine has issued a STRONG BUY recommendation for MICRON TECH.
Based on the information we have gathered and our resulting research, we feel that
MICRON TECH has the probability to OUTPERFORM average market performance for
the next year. The company exhibits ATTRACTIVE market valuation, P/E ratio and
company size.
The VE Detailed Valuation Report features advanced academic research that
brings you superior investment strategies in an actionable format. The most
comprehensive and useful report available.
Weekly Subscribers can download a FREE Detailed Valuation Report on MU HERE.
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MARKET OVERVIEW
Index started week Thursday Close 4 day change 4 day change % ytd
DJIA 10145.58 10320.1 174.52 1.72% -1.06%
NASDAQ 2145.76 2200.01 54.25 2.53% -4.11%
RUSSELL 2000 614.27 632.26 17.99 2.93% 0.66%
S&P 500 1062.9 1090.1 27.2 2.56% -2.37%

Summary of VE Stock Universe

Stocks Undervalued 72.01%
Stocks Overvalued 27.99%
Stocks Undervalued by 20% 39.62%
Stocks Overvalued by 20% 9.43%

SECTOR OVERVIEW
Sector Change MTD YTD Valuation Last 12- P/E Ratio
MReturn
Basic Industries 0.91% 1.01% 16.89% 6.15% undervalued 39.59% 24.2
Capital Goods 0.85% 0.95% 8.28% 12.62% undervalued 13.98% 19.96
Consumer Durables 1.51% 1.58% 6.13% 17.65% undervalued 26.28% 17.06
Consumer Non-Durables 0.89% 0.95% 1.84% 8.86% undervalued 20.23% 16.28
Consumer Services 1.35% 1.46% 1.86% 16.92% undervalued 14.05% 20.15
Energy 0.71% 0.70% -3.88% 5.14% undervalued 35.46% 25.56
Finance 0.21% 0.26% 6.02% 11.81% undervalued 6.24% 17.36
Health Care 0.62% 0.66% 12.19% 20.43% undervalued 3.86% 19.4
Public Utilities 0.10% 0.11% -2.92% 7.08% undervalued 14.72% 18.21
Technology 1.07% 1.17% 5.43% 17.69% undervalued 20.61% 23.96
Transportation 0.97% 1.01% 4.54% 10.32% undervalued 17.48% 17.02
--UNIVERSE LEADERS
Below, we present various top-five lists for our stock universe from our
Institutional software package (VEI). We filtered the results for liquidity by only
including tickers with an average daily volume in excess of 100k shares/day and a
market price greater than $2/share.
Top-Five Stocks--Short-Term Forecast Returns
Mkt Valuation Last 12-M
Ticker Name Industry
Price (%) Retn(%)
WTNY WHITNEY HLDG 7.94 -19.42 -5.14 BANKING
ZION ZIONS BANCORP 19.71 23.92 21.29 BANKING
FCH FELCOR LODGING 4.33 75.83 16.4 INVESTMENTS
HOME
KBH KB HOME 11.66 -47.16 -29.93
BUILDING
HOME
TOL TOLL BROTHERS 17.93 -16.26 -15.82
BUILDING

Top-Five Stocks--Long-Term Forecast Returns

Mkt Valuation Last 12-M
Ticker Name Industry
Price (%) Retn(%)
WTNY WHITNEY HLDG 7.94 -19.42 -5.14 BANKING
ZION ZIONS BANCORP 19.71 23.92 21.29 BANKING
FCH FELCOR LODGING 4.33 75.83 16.4 INVESTMENTS
MI MARSHALL&ILSLEY 6.98 -28.91 11.86 BANKING
HOME
KBH KB HOME 11.66 -47.16 -29.93
BUILDING

Top-Five Stocks--Composite Score

Mkt Valuation Last 12-M
Ticker Name Industry
Price (%) Retn(%)
STR QUESTAR 16.89 -42.38 60.86 GAS UTILITIES
GCI GANNETT INC 13.48 -39.38 71.94 COMMUN
ALTERNATIVE
JASO JA SOLAR HOLDGS 6.45 -45.83 86.96
ENERGY
TELEPHONE
TEO TELECOM ARGENTI 19.25 -36.44 39.59
UTILITIES
OTHER
XRTX XYRATEX LTD 13.18 -55.36 106.26
COMPUTERS
Top-Five Stocks--Most Overvalued
Mkt Valuation Last 12-M
Ticker Name Industry
Price (%) Retn(%)
CLMT CALUMET SPECLTY 18.22 300 48.49 OIL
KCAP KOHLBERG CAPITL 5.28 300 32.66 INVESTMENTS
SERVICES TO
CNU CONTINUCARE CRP 3.34 300 19.71
MEDICAL PROF
FOREST
SSCC SMURFIT-STONE 17.87 300 23.53
PRODUCTS
TELEPHONE
S SPRINT NEXTEL 4.34 300 23.3
UTILITIES

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forecast, and ratings data on every individual equity in our universe of more than
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--What's HOT
Universe Valuations

Below, we provide some historical valuation figures for our overall universe so
that they may be compared to today's. As you can see from the table and charts, as
the S&P has settled into its trading range recently, we have seen some robust top
calls by the overvalued by 20% or more metric while the bottom calls are more
problematic. We see this phenomenon in the longer term historical studies as well.
 The overvalued by 20% or more figure correlates very closely to tops, so much
so that we based our correction warning on it back in April--we issued a valuation
watch/warning when the overvaluation by 20% calculation exceeded 27.5%. But, the
undervalution figure is not as robust because we can go for long periods with an
elevated reading and no break out to the up side.
Date 10/12/2007 5/7/2008 9/15/2008 3/6/2009 1/20/2010 2/9/2010 4/26/2010 7/2/2010 8/11/2010 9/3/2010
Undervalued 47.93% 69.32% 80.29% 89.89% 47.71% 65.23% 38.54% 77.44% 64.61% 72.01%
Overvalued 52.07% 30.68% 19.71% 10.11% 52.29% 34.77% 61.46% 22.56% 35.39% 27.99%
Undervalued
19.01% 33.39% 48.28% 78.49% 23.76% 32.83% 18.00% 46.70% 31.61% 39.62%
by 20%
Overvalued
22.97% 11.25% 6.89% 6.05% 26.11% 14.90% 33.01% 8.37% 11.42% 9.43%
by 20%
SP500 1554.51 1,418.26 1,220.76 686.39 1,135.51 1072.07 1217.28 1027.37 1121.06 1090.1
--The ValuEngine Forecast 22 Market Neutral
Strategy Newsletter
Our Forecast 22 Market Neutral Strategy Newsletter portfolio recently posted a
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The monthly chart below perfectly illustrates the performance of our portfolio as
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term effects are very beneficial to the bottom line.

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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-- (2.628) My weekly value level is 2.648 with monthly,

quarterly and daily pivots at 2.562, 2.495 and 2.514 and my
semiannual risky level at 2.249. My annual value levels are 2.813
and 2.999. Note that the decline in yield is no longer overdone on
the daily chart. The yield on the 10-Year US Treasury is above my
new monthly pivot at 2.562, which is a sign favoring stocks.

Commodities and Forex

Comex Gold--($1253.10) Semiannual, weekly, quarterly and annual value levels are
$1218.7, $1211.5, $1140.9 and $1115.2 with daily, semiannual and monthly risky levels
at $1259.9, $1260.8 and $1263.8. Gold’s is between my semiannual pivots at $1218.7
and $1260.8. Gold is still overbought on its daily chart.

Nymex Crude--($74.99) My daily pivot is $74.32 with a monthly pivot at $74.45, and
annual, weekly and semiannual risky levels at $77.05, $81.35 and $83.94. Crude oil is
above my monthly pivot at $74.45. Crude oil is no longer oversold on the daily chart
profile.
The Euro--(1.2822) Daily, quarterly and monthly value levels are 1.2799, 1.2167, 1.1721
and 1.1424 with weekly and semiannual risky levels at 1.3170 and 1.4733. Note that
the euro is no longer oversold on its daily chart. The euro could be the negative
divergence for stocks as my quarterly value level lags at 1.2167.

Major Indices

The major equity averages straddle monthly pivots at 10,164 on Dow Industrials,
1074.9 S&P 500, 2196 NASDAQ, 4364 Dow Transports and 652.82 on Russell 2000.

The Dow--

Daily: (10,320) Daily and quarterly value levels are 10,086 and 7,812 with a monthly
pivot at 10,164, and annual, semiannual, weekly and annual risky levels at 10,379,
10,558, 10,904 and 11,235. My annual risky level at 11,235 was tested at the April 26th
high of 11,258.01. The 50-day simple moving average is 10,261 with the 21-day at
10,300, and 200-day simple moving average as resistance at 10,451.

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