ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

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September 19, 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 Valuation WARNING is back ON. Overvalued stocks now make up 68.08% of our stocks assigned a valuation and 27.27% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued--seven by double digits. MARKET OVERVIEW Index Started week Friday AM Change Change % ytd DJIA 16988.76 17318 329.24 1.94% 4.47% NASDAQ 4567.45 4598.32 30.87 0.68% 10.10% RUSSELL 2000 1159.98 1157.27 -2.71 -0.23% -0.55% S&P 500 1986.04 2015.62 29.58 1.49% 9.05% Summary of VE Stock Universe Stocks Undervalued 31.92% Stocks Overvalued 68.08% Stocks Undervalued by 20% 9.92% Stocks Overvalued by 20% 27.27%

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This week, we return to our regular newsletter publication schedule and provide top-five ranked VE data for our Basic Materials Stocks. We get the latest on technical levels for United Technologies,Treasuries,Gold,Oil,the euro,and major indicies. We provide subscribers with a link for our Stock Report on Oracle. Our Valuation Warning is back ON.

Transcript of ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

Page 1: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

September 19, 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 Valuation WARNING is back ON. Overvalued stocks now make up 68.08% of our stocks assigned a valuation and 27.27% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued--seven by double digits.

MARKET OVERVIEW

Index Started week Friday AM Change Change % ytd

DJIA 16988.76 17318 329.24 1.94% 4.47%

NASDAQ 4567.45 4598.32 30.87 0.68% 10.10%

RUSSELL 2000 1159.98 1157.27 -2.71 -0.23% -0.55%

S&P 500 1986.04 2015.62 29.58 1.49% 9.05%

Summary of VE Stock UniverseStocks Undervalued 31.92%

Stocks Overvalued 68.08%

Stocks Undervalued by 20% 9.92%

Stocks Overvalued by 20% 27.27%

Page 2: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

SECTOR OVERVIEW

Sector Change MTD YTD Valuation Last 12-MReturn

P/ERatio

Aerospace 0.21% 1.49% 1.40% 12.90% overvalued 23.86% 19.91

Auto-Tires-Trucks 0.27% -2.45% 3.28% 9.72% overvalued 8.71% 17.59

Basic Materials -0.13% -3.67% 4.68% 1.67% undervalued 0.57% 25.92

Business Services 0.52% -0.68% 0.87% 7.16% overvalued 14.99% 24.35

Computer and Technology 0.25% -0.58% 6.52% 15.10% overvalued 11.39% 32.4

Construction 0.13% -1.89% 1.06% 6.49% overvalued 10.63% 25.02

Consumer Discretionary 0.22% -1.47% -1.81% 9.40% overvalued 9.08% 29.26

Consumer Staples 0.50% -0.79% 4.70% 17.05% overvalued 12.50% 25.2

Finance 0.25% -0.19% 4.66% 9.73% overvalued 8.65% 17.74

Industrial Products -0.08% -1.51% -0.77% 7.26% overvalued 8.68% 23.02

Medical 0.09% -1.31% 11.03% 13.13% overvalued 18.96% 30.4

Multi-Sector Conglomerates 0.28% -0.72% 4.13% 14.57% overvalued 10.51% 21.96

Oils-Energy -0.54% -4.63% 14.16% 9.14% overvalued 15.43% 26.04

Retail-Wholesale -0.31% -0.77% -3.39% 11.28% overvalued 2.96% 24.58

Transportation 0.05% 1.10% 8.91% 16.69% overvalued 22.75% 21.09

Utilities 0.27% -0.96% 8.37% 7.33% overvalued 14.39% 20.33

ValuEngine Newsletters Latest Results

VE Newsletter Current Month Total S&P 500 Last Month Total S&P 500 SinceInception

S&P500

Forecast MNS -1.04 0.88 -0.62 0.63 80.52 117.19

Dividend Stock -3.02 0.18 0.49 0.73 25.88 28.70

Small Cap Stock -1.66 0.76 2.88 0.65 32.81 43.23

View 0.28 0.13 -0.53 0.88 129.11 76.52

Page 3: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

Sector Talk—Basic MaterialsBelow, we present the latest data on leading Basic Materials 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 Basic Materials Sector Stocks--Short-Term Forecast Returns

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

SBGL SIBANYE GLD-ADR 8.44 N/A 66.47

USEG US ENERGY CP-WY 3.77 -21.8 88.5

SLCA US SILICA HOLDI 71.4 -16.54 183.11

HCLP HI-CRUSH PTNRS 62.7 N/A 142.18

KRA KRATON PERFORM 18.2 -24.93 -9.18

Top-Five Basic Materials Sector Stocks--Long-Term Forecast Returns

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

SBGL SIBANYE GLD-ADR 8.44 N/A 66.47

USEG US ENERGY CP-WY 3.77 -21.8 88.5

SLCA US SILICA HOLDI 71.4 -16.54 183.11

HCLP HI-CRUSH PTNRS 62.7 N/A 142.18

KRA KRATON PERFORM 18.2 -24.93 -9.18

Top-Five Basic Materials Sector Stocks--Composite Score

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

LYB LYONDELLBASEL-A 113.75 7.83 55.04

GPRE GREEN PLAINS 38.04 8.16 145.42

SLCA US SILICA HOLDI 71.4 -16.54 183.11

TX TERNIUM SA-ADR 26.38 -3.62 4.52

KS KAPSTONE PAPER 29.87 2.15 36.49

Page 4: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

Top-Five Basic Materials Sector Stocks--Most Overvalued

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

RKT ROCK-TENN CO 50.02 109.03 -10.96

ROC ROCKWOOD HLDGS 82.11 57.02 19.54

CF CF INDUS HLDGS 259.71 49.08 25.46

HUN HUNTSMAN CORP 28.43 47.58 45.79

STLD STEEL DYNAMICS 24.95 46.8 43.32

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Oracle Corporation (ORCL) is one of the world's leading suppliers of software for information management. The company develops, manufactures, markets and distributes computer software that helps corporations manage and grow their businesses. The company's software products can be categorized into two broad areas: Systems software and Internet business applications software.

ValuEngine updated its recommendation from BUY to HOLD for ORACLE CORP on 2014-09-18. Based on the information we have gathered and our resulting research, we feel that ORACLE 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.

As a bonus to our Newsletter readers, we are offering a FREE DOWNLOAD of one of our Stock Reports

Read our Complete Detailed Valuation Report on Oracle HERE.

Page 5: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

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--(2.627) Daily and quarterly value levels are 2.695 and 3.048 with weekly, monthly and semiannual risky levels at 2.441, 2.263, 2.071, 1.999 and 1.779.

30-Year Bond – (3.357) Daily and quarterly value levels are 3.419 and 3.971 with a annual pivot at 3.283 and annual, semiannual and weekly risky levels at 3.107, 3.082 and 3.079, and monthly and semiannual risky levels at 2.791 and 2.487.

Commodities and Forex

Comex Gold –($1225.8) A daily value level is $1216.7 with quarterly and weekly pivots at $1234.6 and $1251.6 and monthly, semiannual and annual risky levels at $1372.2, $1613.0, $1738.7, $1747.4 and $1818.8.

Nymex Crude Oil – ($93.01) A weekly value level is $88.41 with a daily pivot at $93.19 and monthly, semiannual, annual and quarterly risky levels at $101.21, $106.48, $107.52 and $107.70.

The Euro – (1.2922) A semiannual value level is 1.2203 with daily and weekly pivots at 1.2958 and 1.2899 and monthly, annual and quarterly risky levels at 1.3340, 1.3382 and1.4079.

Major Indices

Daily Dow-- (17266) Daily, weekly, monthly, semiannual and annual value levels are 17104, 16852, 16615, 16310, 14835 and 13467 with the Sept. 18 all-time intraday high at 17275.37 and quarterly and semiannual risky levels at 17753 and 18552.

Page 6: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

S&P 500 – (2011.4) Daily, weekly, monthly, weekly, semiannual and annual value levels are 1992.8, 1968.6, 1978.2, 1789.3, 1539.1 and 1442.1 with the Sept. 18 all-time intraday high at 2012.34, and quarterly and semiannual risky levels at 2052.3 and 2080.3.

NASDAQ – (4593) Daily, monthly, semiannual and annual value levels are 4545, 4469, 3972, 3471 and 3063 with weekly and quarterly pivots at 4562 and 4569, the Sept. 3 multiyear intraday high at 4610.14 and semiannual risky level at 4642.

NASDAQ 100 (NDX) – (4103) Daily, monthly, quarterly, semiannual and annual value levels are 4059, 3972, 3894, 3515, 3078 and 2669 with a weekly pivot at 4079, a semiannual pivot at 4105 and the Sept. 9 multiyear intraday high at 4110.86.

Dow Transports – (8676) Daily, weekly, semiannual, monthly, quarterly, semiannual and annual value levels are 8590, 8381, 8447, 8447, 8410, 8256, 7423, 6249 and 5935 with the Sept. 17 all-time intraday high at 8695.41.

Russell 2000 – (1159.27) Daily, semiannual and annual value levels are 1144.66, 1139.81, 966.72 and 879.39 with weekly and monthly pivots at 1150.31 and 1149.70, the July 1 all-time intraday high at 1213.55 and semiannual and quarterly risky levels at 1285.37 and 1293.11.

The SOX – (657.36) Daily, quarterly, weekly, semiannual and annual value levels are 640.60, 626.96, 617.28, 608.02, 512.94, 371.58 and 337.74 with the Sept. 18 multiyear intraday high 657.41 and monthly risky level at 662.59.

Dow Utilities: (552.80) Daily, weekly, annual, quarterly, semiannual and annual value levels are 545.80, 546.59, 548.70, 536.44, 523.72 and 497.53, with the June 30 all-time intraday high at 576.98 and monthly and semiannual risky levels at 598.26 and 612.49.

Page 7: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

Stock of the Day

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.

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.

United Technologies (UTX) – ($108.52) United Technologies Corporation provides a broad range of high technology products and services to the building systems and aerospace industries. Those products include Pratt & Whitney aircraft engines, space propulsion systems and industrial gas turbines; Carrier heating, air conditioning and refrigeration; Otis elevator, escalator and people movers; Hamilton Sundstrand aerospace and industrial products; Sikorsky helicopters and International Fuel Cells power systems.

Analysis – United Technologies has a Hold rating according to ValuEngine and is 0.30% overvalued with fair value at $107.71 and one-year price target at $112.30. The daily chart shows rising stochastics with the stock below its 21-day, 50-day and 200-day simple moving averages at $108.90, $108.75 and $113.33. Semiannual and annual value levels are $105.86 and $103.38, respectively, with a semiannual risky level at $122.52.

Page 8: ValuEngine Weekly:Oracle,United Technologies,Basic Materials Stocks,and Suttmeier

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