ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

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June 6, 2014 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 WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks now make up 74% of our stocks assigned a valuation and 32% of those equities are calculated to be overvalued by 20% or more. ALL sectors are calculated to be overvalued--fourteen by double digits. MARKET OVERVIEW Index Started week Ended week 4 day change 4 day change % ytd DJIA 16836.11 16872.9 36.79 0.22% 1.79% NASDAQ 4247.96 4307.32 59.36 1.40% 3.13% RUSSELL 2000 1136.37 1153.94 17.57 1.55% -0.83% S&P 500 1923.87 1944.06 20.19 1.05% 5.18% Summary of VE Stock Universe Stocks Undervalued 25.89% Stocks Overvalued 74.11% Stocks Undervalued by 20% 8.26% Stocks Overvalued by 20% 32.30%

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This week, we provide top-five ranked VE data for our Consumer Discretionary Stocks. We get the latest on technical levels for Google,Treasuries,Gold,Oil,the euro,and major indices from our Chief Market Strategist Richard Suttmeier. We also provide a link to download a free copy of our report on Lannett Inc. Our Valuation Warning continues.

Transcript of ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

Page 1: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

June 6, 2014

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 toinvesting 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 andunemotional 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 WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks now makeup 74% of our stocks assigned a valuation and 32% of those equities are calculated to be overvalued by 20% or more. ALL sectors are calculated tobe overvalued--fourteen by double digits.

MARKET OVERVIEW

Index Started week Ended week 4 day change 4 day change % ytd

DJIA 16836.11 16872.9 36.79 0.22% 1.79%

NASDAQ 4247.96 4307.32 59.36 1.40% 3.13%

RUSSELL 2000 1136.37 1153.94 17.57 1.55% -0.83%

S&P 500 1923.87 1944.06 20.19 1.05% 5.18%

Summary of VE Stock UniverseStocks Undervalued 25.89%

Stocks Overvalued 74.11%

Stocks Undervalued by 20% 8.26%

Stocks Overvalued by 20% 32.30%

Page 2: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

SECTOR OVERVIEW

Sector Change MTD YTD Valuation Last 12-MReturn

P/ERatio

Aerospace 1.46% 0.64% 2.78% 16.82% overvalued 33.64% 19.85

Auto-Tires-Trucks 1.10% 1.31% 5.19% 22.30% overvalued 24.74% 17.22

Basic Materials 1.18% 0.81% 2.06% 0.66% overvalued -3.10% 24.04

Business Services 1.48% 0.57% -1.25% 10.42% overvalued 25.19% 25.4

Computer and Technology 1.24% 0.81% 2.02% 13.16% overvalued 19.25% 30.81

Construction 1.15% 0.16% 0.28% 4.56% overvalued 16.25% 22.95

Consumer Discretionary 0.97% 0.02% -3.47% 11.06% overvalued 19.98% 28.74

Consumer Staples 0.73% 0.08% 3.84% 20.96% overvalued 18.51% 24.52

Finance 0.98% 1.05% 2.80% 12.43% overvalued 9.95% 17.98

Industrial Products 1.43% 1.61% 0.19% 11.90% overvalued 21.74% 23.26

Medical 1.05% 0.65% 7.06% 13.89% overvalued 32.64% 30.02

Multi-Sector Conglomerates 1.09% 0.96% 3.30% 15.51% overvalued 12.06% 19.17

Oils-Energy 0.66% 0.12% 7.49% 16.54% overvalued 20.88% 29.28

Retail-Wholesale 0.74% 0.57% -4.06% 12.90% overvalued 11.44% 24.96

Transportation 1.05% 0.90% 4.54% 22.42% overvalued 26.91% 23.48

Utilities 1.00% 0.51% 5.72% 12.05% overvalued 16.48% 20.55

ValuEngine Newsletters Latest Results

VE Newsletter CurrentMonth Total

S&P500

Last MonthTotal

S&P500

SinceInception

S&P500

Forecast MNS 1.06 2.08 -3.98 2.28 90.44 106.35

Dividend Stock 1.68 1.87 -2.54 0.91 15.75 21.91

Small Cap Stock -0.12 2.11 -3.02 0.86 26.48 36.13

View 5.44 2.94 -0.24 0.56 101.10 65.38

Page 3: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

Sector Talk—Consumer DiscretionaryBelow, we present the latest data on leading Consumer Discretionary 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 Consumer Discretionary Sector Stocks--Short-Term Forecast Returns

Ticker Name Mkt Price Valuation(%) Last 12-MRetn(%)

STRZA STARZ-LIB CAP-A 31.08 -42.75 43.62

RGR STURM RUGER&CO 60.71 -13.05 25.18

TTWO TAKE-TWO INTER 19.67 -5.38 23.09

SWHC SMITH & WESSON 16.6 N/A 83.02

BYI BALLY TECH INC 57.48 -20.9 2.26

Top-Five Consumer Discretionary Sector Stocks--Long-Term Forecast Returns

Ticker Name Mkt Price Valuation(%) Last 12-MRetn(%)

STRZA STARZ-LIB CAP-A 31.08 -42.75 43.62

RGR STURM RUGER&CO 60.71 -13.05 25.18

TTWO TAKE-TWO INTER 19.67 -5.38 23.09

SWHC SMITH & WESSON 16.6 N/A 83.02

BYI BALLY TECH INC 57.48 -20.9 2.26

Top-Five Consumer Discretionary Sector Stocks--Composite Score

Ticker Name Mkt Price Valuation(%) Last 12-MRetn(%)

STRZA STARZ-LIB CAP-A 31.08 -42.75 43.62

TTWO TAKE-TWO INTER 19.67 -5.38 23.09

RGR STURM RUGER&CO 60.71 -13.05 25.18

MPEL MELCO CROWN ENT 33.47 -6.38 46.48

CMCSK COMCAST CLA SPL 52.21 -1.64 34.84

Page 4: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

Top-Five Consumer Discretionary Sector Stocks--Most Overvalued

Ticker Name Mkt Price Valuation(%) Last 12-MRetn(%)

CKEC CARMIKE CINEMA 35.65 102.06 99.94

SNE SONY CORP ADR 16.24 97.87 -14.53

CLUB TOWN SPORTS INT 5.73 85.74 -47.33

DISH DISH NETWORK CP 58.45 83.58 52.61

CVC CABLEVISION SYS 17.55 79.28 18.42

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Lannett, Inc. manufactures and distributes pharmaceutical products sold under generic names and historically has manufactured and distributed pharmaceutical products sold under its trade or brand names. In addition, the Company contract manufactures and private labels pharmaceutical products for other companies.

Lannett has been a component of our ValuEngine View Newsletter for two months now. When initially selected in April, it was trading at $32.95/share. It is now at $46.21 and has thus gained a whopping 40%. The View remains our best-performing investment newsletter.

ValuEngine continues its BUY recommendation on LANNETT INC for 2014-06-05. Based on the information we have gathered and our resulting research, we feel that LANNETT INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and Sharpe Ratio.

As a bonus to our Weekly Newsletter readers, we are offering a FREE DOWNLOAD ofone of our Stock Reports Read our Complete Detailed Valuation Report on Lannett

HERE.

Page 5: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

What's Hot--ValuEngine View

So far, this has not been a Summer to “Sell in May and Go Away.” Markets are at or near all-time highs and investors are getting back into stocks in a big way. ValuEngine's Stock Valuation and Forecasting Models are ready to help you achieve your investment goals. ValuEngine offers numerous ready to trade portfolios and newsletters designed for every risk/reward profile and every investment style. Out top investment newsletter is the ValuEngine View.

Our Investment Strategies Focus on Dozens of Fundamental andTechnical Factors for over 7,000 Individual Stocks, Synthesize the Data,

and then Come Up with a Portfolio

Looking for a monthly portfolio of stock picks which are objective and based oncutting-edge academic theory and Wall St. practice? Then subscribe to The ValuEngine View Newsletter. The ValuEngine View's monthly portfolio is based on our highly-refined and tested ValuEngine Portfolio Strategies along with our proprietary quant-based composite scoring system. The ValuEngine View Newsletter is the product of sophisticated stock valuation and forecast models first developed by Yale Professor of Finance Zhiwu Chen.

VE View vs. S&P 500 Index Since Launch

VE View S&P 500

Ann Return 13.27% 7.32%

Ann Volatility 28.86% 16.82%

Sharpe Ratio 0.46 0.44

Sortino Ratio 0.49 0.46

Max Drawdown-72.02% -51.35%

Yearly Comparison 1-Year 3-Year 5-Year

VE View 22.19% 77.73% 190.39%

S&P 500 13.47% 40.47% 115.18%

Excess Return 8.72% 37.25% 75.21%

Click HERE for a FREE SAMPLE ISSUE

Page 6: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

The ValuEngine View Newsletter is derived from the ValuEngine Aggressive and Diversified Growth Benchmark Portfolio Strategies. These strategies are the product of ValuEngine's academicresearch team and combinecutting-edge financialanalysis and portfolioconstruction techniques withreal-world Wall St. know how.

CLICK HERE to Subscribe tothe ValuEngine View

The ValuEngine View Newsletter portfolio has 15 primary stock picks and five alternates and is re-balanced once each month. The ValuEngine View Newsletter is published near the middle of each calendar month. An equal amount of capital is allocated to each stock. The monthly returns are calculated from the closing prices on date of publication. The performance calculation does not include any transaction costs.

Suttmeier Says--Commentary and Analysis from Chief Market StrategistRichard Suttmeier

If you have any comments or questions, send them [email protected]

Treasury Yields

10-Year--(2.586) A monthly value level is 2.708 with daily, weekly,quarterly, annual and semiannual risky levels at 2.531, 2.428, 2.333, 2.263, 1.837 and 1.779.

30-Year Bond – (3.436) A monthly value level is 3.492 with daily, quarterly, annual, weekly and semiannual risky levels at 3.365. 3.305, 3.283, 3.223, 3.114, 3.107 and 2.624. Commodities and Forex

Comex Gold –($1253.3) Daily, quarterly and monthly value levels are $1211.1, $1215.7 and $1209.6 with weekly, semiannual and annual risky levels at $1272.7, $1710.6, $1747.4, $1818.8 and $1857.1.

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Nymex Crude Oil – ($102.50) Monthly and quarterly value levels are $96.59 and $89.40with a daily pivot at $101.40, and weekly, semiannual and annual risky levels at $103.45, $104.97 and $107.52.

The Euro – (1.3663) Annual, quarterly and semiannual value levels are 1.3382, 1.3185 and 1.2642 with a daily pivot at 1.3619, and weekly, monthly and annual risky levels at1.3758, 1.3833 and 1.5512.

Major Indices

Daily Dow: (16836) Weekly, quarterly, semiannual and annual value levels are 16571, 16462, 16245, 14835 and 13467 the June 5 all-time intraday high at 16845.81 and daily,semiannual and monthly risky levels at 16861, 16860 and 17471.

S&P 500 – (1940.5) Weekly, quarterly, semiannual and annual value levels are 1896.9, 1853.5, 1797.3, 1764.4, 1539.1 and 1442.1 with the June 5 all-time intraday high at 1941.74 and daily and monthly risky levels at 1949.1 and 2020.7.

NASDAQ – (4296) Weekly, quarterly, semiannual and annual value levels are 4123, 4039, 3930, 3920, 3471 and 3063 with a daily risky level at 4318, the March 6 multiyear intraday high at 4371.71 and monthly risky level at 4532.

NASDAQ 100 (NDX) – (3777) Weekly, semiannual, quarterly and annual value levels are 3660, 3456, 3424, 3078 and 2669 with the June 5 multiyear intraday high at 3782.00, and daily and monthly risky levels at 3804 and 3966.

Dow Transports – (8140) Weekly, quarterly, semiannual, and annual value levels are 7994, 7407, 7376, 7245, 6249 and 5935 with the June 5 all-time intraday high at 8154.92and daily and monthly risky levels at 8213 and 8463.

Russell 2000 – (1153.94) Weekly and annual value levels are 1092.51, 966.72 and 879.39with semiannual and daily pivots at 1133.29, 1130.29 and 1151.05 and quarterly risky level at 1169.22, the March 4 all-time intraday high at 1212.82 and monthly risky level at 1213.68.

The SOX – (614.30) Weekly, semiannual, quarterly and annual value levels are 582.48, 548.36, 507.19, 490.52, 371.58 and 337.74 with the June 5 multiyear intraday high at 615.77 and daily and monthly risky levels at 619.93 and 621.90.

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Dow Utilities: (551.60) Quarterly, semiannual and annual value levels are 528.10, 524.37, 504.74 and 497.53, with annual and weekly pivots at 548.70 and 551.61, and daily and monthly risky levels at 556.49 and 557.32 and the April 30 all-time intraday high at 558.29.

Stock of the Day

Google Inc (GOOG) – ($564.93) Google Inc. is a technology company that provides a web based search engine through its website. The Company offers a wide range ofsearch options, including web, image, groups, directory, and news searches. It serves corporate clients, including advertisers, content publishers and site managers with cost-effective advertising and a wide range of revenue generating search services. Google Inc. is headquartered in Mountain View, California.

Analysis – Google has a Strong Buy rating according to ValuEngine and is 16.2% undervalued with fair value at $660.78 and a one-year price target is $632.90. The daily chart shows declining stochastics with the stock above its 21-day, 50-day and 200-day simple moving averages at $548.08, $547.21 and $530.44. Annual value levelsare $522.17 and $489.53 with a quarterly pivot at $562.40 and monthly risky level at $611.62.

Page 9: ValuEngine Weekly:Google,Lannett,Discretionary Stocks,VE View,and Suttmeier

Richard Suttmeier has been a professional in the US Capital Markets since 1972 transferring his engineering skills to the trading and investment world. He earned a Bachelor of Industrial Engineering degree from Georgia Institute of Technology in 1966, and a Master of Science, Operations Research, Systems Analysis degree from Brooklyn Polytechnic University in 1970. Over the years Richard appeared many times in the financial media, on networks such as CNBC, CNN, CNNfn, New York 1, Bloomberg TV and radio, Fox Business, Business News Network in Canada, Wall Street Week with Fortune, Yahoo Finance Breakout, and the Bill Mazer Radio Show. Richard has been frequently quoted in USA Today, The NY Times, Wall Street Journal, Reuters, and The Dow Jones Newswires.

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