September 15, 2011

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The West is the Best

ValuEngine Forecast Model Pick Westport Innovations (WPRT,$WPRT) Scores Big
WESTPORT INNOVATIONS INC. is a leading global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas, liquefied natural gas, hydrogen, and biofuels such as landfill gas. Cummins Westport Inc., Westport's joint venture with Cummins Inc., manufactures and sells the world's broadest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses. BTIC Westport Inc., Westport's joint venture with Beijing Tianhai Industry Co. Ltd., manufactures and sells LNG fuel tanks for vehicles. Despite unimpressive earnings, Westport continues to sign deals with major auto and truck manufacturers such as Cummins, Caterpillar, GM, etc. Westport's main business allows gasoline engines to run on natural gas and thus it is a major player in any discussion of going "green"--even if some doubt that natural gas is the environmental panacea depicted by supporters. Major delivery companies like UPS utilize Westport's technology as they convert more of their fleets to run on natural gas.

For the most recent re-balance period, Westport provided the biggest gain for our ValuEngine Forecast 16 Market Neutral Strategy Portfolio Newsletter. Since August 17th, the stock returned a big gain of 30.5%. ValuEngine has issued a BUY recommendation for WESTPORT INNOVATIONS on Sep. 15, 2011. Based on the information we have gathered and our resulting research, we feel that WESTPORT INNOVATIONS has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE 5-year annualized return, momentum and risk. Based on available data as of Sep. 15, 2011, we believe that WPRT should be trading at $14.69. This makes WPRT 110.25% overvalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For WPRT, we base this on actual earnings per share (EPS) for the previous four quarters of -$1.20, forecasted EPS for the next four quarters of -$0.36, and correlations to the 30- year Treasury bond yield of 3.31%.

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MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 84.16% 15.84% 52.49% 5.06%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
0.93% 2.42% 0.57% 1.50% 1.67% 1.67% 1.88% 1.34% 0.99% 1.51% 1.02% 0.48% 0.64% 1.15% 1.41% 1.18%

MTD
-4.92% -3.80% -2.82% -0.99% -0.32% -4.05% -1.48% -2.34% -2.15% -2.97% -1.91% -3.60% -3.78% -0.15% -2.48% -2.59%

YTD
1.77% -30.40% -15.39% -7.41% -8.98% -26.28% -11.29% -14.86% -10.89% -15.06% -4.53% -15.00% -17.12% -2.52% -15.18% -4.13%

Valuation
20.48% undervalued 24.33% undervalued 19.89% undervalued 20.32% undervalued 21.17% undervalued 27.49% undervalued 20.04% undervalued 16.01% undervalued 20.45% undervalued 22.02% undervalued 23.81% undervalued 17.79% undervalued 20.39% undervalued 16.79% undervalued 18.35% undervalued 6.76% undervalued

Last 12MReturn
5.56% 14.61% 21.66% 4.94% 10.46% -11.43% 9.12% 3.89% -0.72% 11.34% 8.59% 6.08% 22.62% 16.45% -4.49% 8.11%

P/E Ratio
16.5 17.14 30.49 38.59 32.69 35.36 24.84 15.92 23.59 22.65 24.79 21.07 36.27 24.49 21.05 24.41