February 3, 2012

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The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from ValuEngine.com. 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!

Please Note: There will be no Free Weekly Published Next Week. We will Resume our Regular Publication Schedule on February 17, 2012 MARKET OVERVIEW

Index
DJIA NASDAQ RUSSELL 2000 S&P 500

started week
12659.32 2790.4 797.94 1316.16

Thursday Close
12707.1 2859.68 812.89 1325.54

4 day change
47.78 69.28 14.95 9.38

4 day change %
0.38% 2.48% 1.87% 0.71%

ytd
4.01% 9.77% 9.71% 5.40%

Summary of VE Stock Universe

Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 62.99% 37.01% 28.74% 11.48%

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
-0.45% 0.76% 0.60% -0.30% 0.57% 0.32% 0.46% 0.42% 0.48% 0.12% 0.08% -0.10% 0.49% 0.65% 0.14% 0.09%

MTD
-0.40% 0.79% 0.61% -0.06% 0.76% 0.37% 0.60% 0.57% 0.53% 0.23% 0.22% -0.06% 0.62% 0.78% 0.20% 0.14%

YTD
5.78% 14.76% 12.78% 7.58% 11.17% 11.60% 8.50% 5.41% 7.55% 10.65% 7.93% 9.89% 4.93% 7.63% 8.95% 1.59%

Valuation
8.41% undervalued 8.43% undervalued 5.08% undervalued 7.18% undervalued 7.26% undervalued 7.32% undervalued 9.53% undervalued 6.74% undervalued 6.08% undervalued 5.47% undervalued 11.67% undervalued 5.15% undervalued 10.54% undervalued 0.28% overvalued 4.13% undervalued 3.53% undervalued

Last 12MReturn
-10.55% 33.94% -17.51% 7.39% -3.94% -15.17% -3.03% -5.00% -3.47% -1.72% -6.08% 8.28% -15.76% 6.84% -12.46% 1.60%

P/E Ratio
16.51 15.85 24.37 30.86 45.69 40.46 25.67 18.7 21.14 25.85 36.39 15.2 38.92 24.27 21.21 29.17

Sector TalkConstruction
Below, we present the latest data on leading Tech 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 Construction Sector Stocks--Short-Term Forecast Returns

Ticker
KBH ORN LPX TOL MTH

Name
KB HOME ORION MARINE GP LOUISIANA PAC TOLL BROTHERS MERITAGE HOMES

Mkt Price
9.65 7.58 8.84 22.53 26.52

Valuation(%)
-33.86 -36.3 -14.67 9.8 13.97

Last 12-M Retn(%)

N/A N/A N/A N/A N/A

Top-Five Construction Stocks--Long-Term Forecast Returns

Ticker
KBH PHM LPX TOL BZH

Name
KB HOME PULTE GROUP ONC LOUISIANA PAC TOLL BROTHERS BEAZER HOMES

Mkt Price
9.65 7.75 8.84 22.53 3.25

Last 12-M Retn(%)

-33.86 -2.15 -14.67 9.8 -40.26

P/E Ratio
N/A 155 N/A N/A N/A

Top-Five Construction Stocks--Composite Score

Ticker
PHM LEN RYN TOL DHI

Name
PULTE GROUP ONC LENNAR CORP -A RAYONIER INC TOLL BROTHERS D R HORTON INC

Mkt Price
7.75 21.74 45.31 22.53 14.12

Last 12-M Retn(%)

-2.15 11.72 18.3 9.8 17.08

P/E Ratio
155 62.81 21.42 N/A 63.28

Top-Five Construction Stocks--Most Overvalued

Ticker
ORN NCS URI CX EXP

Name
ORION MARINE GP NCI BLDG SYSTEM UTD RENTALS INC CEMEX SA ADR EAGLE MATERIALS

Mkt Price
7.58 11.97 38.48 7.86 31.16

Last 12-M Retn(%)

-36.3 -12.11 34.08 -17.09 9.87

P/E Ratio
N/A N/A 24.42 N/A 93.95

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Free Report Download for Subscribers

As a bonus to our Free Weekly Newsletter subscribers, we are now offering a FREE DOWNLOAD of one of our $ 25.00 Detailed Valuation Reports.
This week's free download is our report on Amylin Pharma (AMLN, $AMLN) Amylin Pharmaceuticals is a biopharmaceutical company committed to improving lives through the discovery, development and commercialization of innovative medicines. Amylin has developed and gained approval for two first-in-class medicines for diabetes, SYMLIN injection and BYETTA injection. Amylin's research and development activities leverage the company's expertise in metabolism to develop potential therapies to treat diabetes and obesity. Amylin is located in San Diego, California with over one thousand five hundred employees nationwide. Amylin is the latest big winner for our Forecast Model and the Diversified Growth Strategy. It was selected for our Forecast 16 MNS Newsletter back in mid-December when it was trading at $10.14/share. The company closed yesterday at a very patriotic price of $17.76/share. The stock is now is up 75% since inclusion in our Forecast 16 newsletter. It has been a great Medical Sector pick for the long-side of our portfolio for the past two months. The model rates the stock a strong buy and the valuation remains strong even as the rest of our universe slowly loses the high levels of undervaluation we found back in November. Our Forecast Model outputs indicate that double-digit gains are currently predicted for all time horizons. They report Q4 and full year earnings on February 6, 2012.

Weekly Subscribers can download a FREE Detailed Valuation Report on AMLN HERE If you have not subscribed and want to be able to receive a FREE $ 25.00 Detailed Valuation Report, you can subscribe to our Free Weekly Newsletter HERE.

What's Hot--Suttmeier in the News

VE Chief Market Strategist on Yahoo! Finance
ValuEngine.com Chief Market Strategist Richard Suttmeier has been making the financial media rounds again this week. Suttmeier is often called upon to provide his analysis of the banking system and housing market. Yesterday he was featured on Yahoo! Finance's Breakout. In his first Yahoo! segment, Suttmeier discussed the latest Obama Administration policy statements vis-a-vis the housing market an proposed hi sown alternative plan calling for the Fed to use it's balance sheet in support of re-fis for homeowners. In the second segment, Rich advised investors that it is time to start taking some profits as stocks are no longer the bargain they were just a few months ago. Click the images below to watch Suttmeier's latest appearances on Yahoo! Finance.

Now YOU can take advantage of the same market and trading expertise as the financial media with Richard Suttmeier's ValuEngine Morning Briefing. Richard Suttmeier, Chief Market Strategist for ValuEngine.com, provides daily analysis of US Treasury Yields, Gold, Crude Oil, and Currency Exchange Rates--Dollar, Yen, Pound, and Euro--as well as key technical indicators for the major equity averages. The report also includes: Key Technical Indicators (Supports, Pivots, and Resistances) for 30-Year T-Bills, Gold, Crude Oil, the Euro, the Yen, the Pound, the Dollar, the Dow, the NASDAQ, and other major indices. Charts tracking the performance of all of the above. A ValuEngine Stock of the day which combines VE data and Suttmeier's technical analysis. With the VE Morning Briefing you get Suttmeier's latest thoughts on market trends delivered to your desktop every morning. Click HERE to Sign Up for Chief Market Strategist Richard Suttmeier's Morning Briefing

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--(1.823) My semiannual pivot is 1.903 with my annual value at 2.502. My weekly pivot is 1.841 with daily, quarterly, monthly and semiannual risky levels at 1.718, 1.687, 1.347 and 1.385. Commodities and Forex Comex Gold--($1762.2) Semiannual, annual and weekly value levels are $1659.5, $1635.8, $1575.8, $1388.4 and $1559.1 with quarterly pivots at $1725.5 and $1740.9, and daily and monthly risky levels at $1782.5 and $1816.4. Nymex Crude--($96.66) Monthly, semiannual and monthly value levels are $85.62, $79.83 and $75.53 with weekly, daily and quarterly pivots at $96.94, $97.21 and $99.87, and semiannual and annual risky levels at $104.84, and $103.58 and $117.00. The Euro--(1.3152) Semiannual, monthly, weekly and quarterly value levels are 1.2980, 1.2945, 1.2634 and 1.2499 with daily, annual and semiannual risky levels at 1.3220, 1.4239 and 1.4405. Major Indices Equity Technicals Day to day volatility has been benign as US stocks grind higher. Given where market levels are we may not have a big enough move in reaction to the payroll data to get stocks out of my overall neutral zone defined by my first quarter pivots; 12,478 Dow Industrials, 1305.4 S&P 500, 2777 NASDAQ, up to 5448 Dow Transports and 829.03 / 836.2 Russell 2000. The 2011 highs are the key to the upside on my topping out prediction; 12,876.00 Dow Industrials, 1370.58 SPX, 2887.75 NASDAQ, 5627.85 Dow Transports and 868.57 Russell 2000. Equity Fundamentals: 63.0% of all stocks are undervalued / 37.0% of all stocks are overvalued. On October 4th - 93.5% of all stocks were undervalued. Fifteen of sixteen sectors are undervalued; only two are undervalued by double-digit percentages (10.5% / 11.7%). Back in March 2009 the sectors were undervalued by 33% to 45%.

Stocks are not cheap enough to chase profits on a momentum basis.

Key Levels for the Major Equity Averages Dow --(12,705) Quarterly, annual, monthly and semiannual value levels are 12,478, 12,312, 11,557, 8,425 and 8,336 with daily, weekly and quarterly pivots at 12,679, 12,733 and 12,796, the May 2, 2011 high at 12,876, and annual risky level at 14,032. S&P 500--(1325.6) Monthly and semiannual value levels are 1176.1, 841.7 and 829.9 with daily, quarterly and weekly pivots at 1323.1, 1305.4 and 1314.1, and quarterly, and annual risky levels at 1331.7, 1363.2 and 1562.9. The May 2, 2011 high is 1370.58. NASDAQ (2860) Quarterly, weekly, annual, monthly and semiannual value levels are 2777, 2758, 2698, 2512, 2012 and 1952 with daily and quarterly pivots at 2865 and 2849, and annual risky level at 3232. The May 2, 2011 high is 2887.75. NASDAQ 100 (NDX) (2496) Quarterly, weekly, annual, monthly and semiannual value levels are 2422, 2412, 2300, 2280, 1851 and 1743 with daily and quarterly pivots at 2503 and 2471, and annual risky level at 2603. Dow Transports (5306) Monthly and semiannual value levels are 4522, 4407 and 3778 with a weekly pivot at 5309, and daily, quarterly, weekly and annual risky levels at 5366, 5448, 5543, 5861 and 6111. The all time high was set at 5627.85 on July 11, 2011. Russell 2000 (812.90) Weekly, monthly and semiannual value levels are 787.77, 662.90, 572.90 and 510.81 with a daily pivot at 816.11, and quarterly and annual risky levels at 824.46, 829.03, 836.15 and 969.09. The all time high was set at 868.57 on May 2, 2011. The SOX (420.56) Weekly, quarterly, monthly, annual and semiannual value levels are 394.61, 390.17, 323.52, 269.80, 277.90 and 194.47 with a daily pivot at 416.65, and quarterly and annual risky levels at 423.32 and 520.61. The 2011 high is 474.33 set on February 18, 2011.

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We provide a variety of means for accessing ValuEngine market analysis and other content. You can find us on some of the leading financial media websites as well as the more popular social media services. While our own website ValuEngine.com provides access to lots of analysis--and you can always sign up to receive email daily and weekly bulletins HERE, some users prefer to download PDF reports of content while others prefer to garner info while browsing the web. Our Chief Market Strategist Richard Suttmeier is a prolific market observer and you can find his content in a variety of places. His weekly column on Forbes provides insights into his "Buy and Trade" strategy while his daily market analysis can be followed and accessed at Scribd, Twitter, and Minyanville. Senior Editor Steve Hach re-posts PDFs and web-accessible copies of Daily and Weekly ValuEngine bulletins at Seeking Alpha and Scribd. In most cases, you can receive notification of VE content posting by Suttmeier and Hach by following the ValuEngine feed on twitter @ValuEngine. Links for this content are provided below, you may also find these links on our website HERE Intelligent Investing with Richard Suttmeier Articles by Richard Suttmeier | Articles by Steve Hach Newsletters, Articles and Other Research Pieces Articles by Richard Suttmeier | Articles by Steve Hach Get short, timely messages from ValuEngine Inc Daily Bulletin PDFs, Weekly Newsletter PDFs, and PDF Research Reports