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January 28, 2013

ATTENTION Investors and Finance Professionals:If you are reading this you should sign up for ValuEngine's award-winning stock valuation and

forecast service at the low price of $19.95/month!NO OBLIGATION, 30 Day FREE TRIAL!

VALUATION WATCH: Our models find that overvaluation is

approaching levels typically seen when a market pullback mayoccur. Overvalued stocks now make up almost 62% of our

universe and 24% of the universe is calculated to be overvalued

by 20% or more. ALL sectors are calculated to be overvalued.

Valuation Watch is ON

ValuEngine Issues Market Valuation Watch

The ValuEngine Valuation Model tracks more than 8000 US equities, ADRs, and

foreign stock which trade on US exchanges. The model calculates a level ofmispricing or valuation percentage for each equity based on 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.

We track market valuation figures and use them as a metric for making calls

about the overall state of the market. As of last night's close, our overall market

overvaluation and overvalued by 20% or more figures have reaches levels which

have been correlated with market pull backs in the past. We now calculate that

61.67% of stocks are overvalued and 24.2% of stocks are overvalued by 20% or more.

Whenever we see levels in overvaluation levels in excess of @ 60% for theoverall universe and/or 27.5% for the overvalued by 20% or more categories, we issue

a valuation watch. ValuEngine has issued a market valuation watch as of today,

January 28th. This is a time for investors to keep a close eye on the market and to

consider booking some profits and perhaps hedging against a move to the

downside.

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Subscribers Get FULL ACCESSto our Market and Sector Overviews

The chart below tracks the valuation metrics from June 2012 until today.

This chart shows overall universe valuation in excess of 60% vs the S&P 500 from

the end of March 2010 to the present. Here you can see the market metrics from our

last series of Valuation Watches and Warnings.

http://www.valuengine.com/pub/VeSubscribeInfohttp://www.valuengine.com/pub/VeSubscribeInfohttp://www.valuengine.com/ve/MarketViewhttp://www.valuengine.com/ve/ResearchSectorhttp://www.valuengine.com/images/newsletter/weekly/130128medval.pnghttp://www.valuengine.com/images/newsletter/weekly/130128shrtval.pnghttp://www.valuengine.com/pub/VeSubscribeInfohttp://www.valuengine.com/ve/MarketViewhttp://www.valuengine.com/ve/ResearchSector

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In addition to the overall valuation metrics, we see that on a sector basis ALL

sectors are calculated to be overvalued. Eight of them are calculated to be

overvalued by 10% or more with four of them calculated to be more than 20%

overvalued. In the past, our Chief Market Strategist Richard Suttmeier has used thesector valuation figures to buttress his macro market calls.

We are keeping a close eye on our overvaluation metrics

Market Overview

Summary of VE Stock Universe

Stocks Undervalued 38.33%

Stocks Overvalued 61.67%

Stocks Undervalued by 20%14.95%

Stocks Overvalued by 20% 24.20%

Sector Overview

Sector Change MTD YTD Valuation Last 12-MReturn

P/ERatio

Aerospace 0.64% 5.10% 5.10% 7.28% overvalued 11.48% 14.6

Auto-Tires-Trucks 0.84% 6.39% 6.39% 7.37% overvalued 4.37% 15.36

Basic Materials -0.53% 3.74% 3.74% 6.41% overvalued -20.39% 31.57

Business Services0.02% 6.18% 6.18% 9.96% overvalued 8.31% 30.77

Computer and Technology 0.37% 7.26% 7.26% 15.36% overvalued 4.03% 39.95

Construction 0.85% 8.67% 8.67% 24.48% overvalued 28.22% 43.61

Consumer Discretionary 0.08% 6.87% 6.87% 8.52% overvalued 9.33% 27.62

Consumer Staples 0.03% 4.17% 4.17% 27.37% overvalued 12.37% 23.75

Finance 0.25% 5.91% 5.91% 15.57% overvalued 16.81% 22.5

Industrial Products 0.12% 5.95% 5.95% 20.55% overvalued 4.00% 24.84

Medical 0.21% 6.98% 6.98% 15.58% overvalued 10.61% 31.72

Multi-Sector Conglomerates 1.09% 4.47% 4.47% 8.98% overvalued 15.22% 14.97

Oils-Energy 0.36% 7.47% 7.47% 6.59% overvalued -10.42% 41.19

Retail-Wholesale 0.65% 7.09% 7.09% 16.32% overvalued 18.68% 37.07

Transportation 0.52% 10.37% 10.37% 24.13% overvalued 8.80% 25.82

Utilities 0.14% 4.28% 4.28% 6.67% overvalued 8.07% 17.75