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September 15, 2015

ATTENTION Advanced Investors and Finance Professionals:
If you are reading this you should subscribe to ValuEngine Professional Service to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

VALUATION WATCH: Overvalued stocks now make up 39.43% of our stocks assigned a valuation and 13.16% of those equities are calculated to be overvalued by 20% or more.  Three sectors are calculated to be overvalued--with one at or near doule digits.


--Winning (AGAIN!)

VE View Portfolio Rebounds

It has certainly been a rough Summer for the stock market due to the massive sell off in China and economic uncertainties surrounding the currency devaluation in that country. Paradoxically, the sell off comes at a time when US economic data continues to impress. We also note that almost every oft-cited campaign issue from the 2012 presidential cycle--unemployment, gas prices, deficit, housing prices, etc.--is in a far better place as well.

The issue now, short-term, is Fed action. The all important FOMC meeting this week will seal the fate of the stock market. Given the uncertainty world wide and the wage picture within the US, we don't expect a rate increase. But, there are some--many--officials at the US central bank who focus on only one portion of the institutional mandate--keep inflation under control--at the expense of the other portion--ensure full employment.

If the bank goes ahead with the long-predicted increase in short-term rates, we expect some rougher sledding for equities. If they hold off--the prudent and proper course in our view--then we could see a nice pop. But in any case, trying to time this move in tough. Better to stay focused on the big picture and keep working at your investment goals. Slow and steady is a better choice for most investors.

Selecting investment targets from the thousands of equities out there can be a difficult task. It becomes even more daunting in times of market volatility and uncertainty. Thankfully, with ValuEngine’s Premium Professional Service you can access ready-made portfolio strategies like our ValuEngine View and ValuEngine Forecast 16 Market Neutral Portfolio Newsletters—available only to VE Premium Professional subscribers.

The ValuEngine View has been our flagship newsletter-style portfolio for many years. As it is long-only, it can suffer in general market sell offs and under intense volatility but, in "normal" markets it turns in decent, steady performance. It is based on our best portfolio strategies combined in a hybrid form, with important proprietary data points combines with key factors such as company size, P/E Ratio, and momentum so that only the "best of the best" of our stock picks are included. It provides investors at all skill levels with a quality basket of stocks that is rebalanced once per month.

Currently, the VE View is up 8% vs. the S&Ps 5% return for the same time frame, and 13 of 15 selections are in positive territory. In fact, seven of the picks are up by double digits since August 26th.

Find Out More About the VE View Portfolio HERE
Please click HERE to subscribe. You may download a sample copy HERE.

Here are the current portfolio holdings and their performance for the current rebalance period:

 
Ticker 
       
Company Name 
Entry Price 8/26/15
Current Price
Change
%Change
AAWW
ATLAS AIR WORLDWIDE
39.21
39.38
0.17
0.43
ARR
ARMOUR RESIDENTIAL  REIT
20.80
20.17
-0.63
-3.03
AVGO
AVAGO TECHNOLOGIES
108.51
131.08
22.57
20.80
BLMN
BLOOMIN' BRANDS
18.82
20.15
1.33
7.07
CALM
CAL-MAINE FOODS
47.76
56.46
8.70
18.22
HII
HUNTINGTON INGALLS
104.87
115.54
10.67
10.17
LEA
LEAR CORPORATION
95.05
105.94
10.89
11.46
LUV
SOUTHWEST AIRLINES
36.52
38.54
2.02
5.53
MFLX
MULTI-FINELINE ELECTRONIX
15.71
15.74
0.03
0.19
MIK
MICHAELS COMPANIES
23.10
26.67
3.57
15.45
MYL
MYLAN NV
49.11
48.65
-0.46
-0.94
SKYW
SKYWEST INC
15.52
16.99
1.47
9.47
TNK
TEEKAY TANKERS
5.95
6.44
0.49
8.24
TSO
TESORO CORP
88.68
95.58
6.90
7.78
VLO
VALERO ENERGY
57.61
62.91
5.30
9.20
LONG PORTFOLIO
8.00
GSPC
S&P500
1867.61
1961.05
93.44
5.00

With the VE Premium Professional Service, you also get access to easy to use Advanced Screening tools with over 30 criteria based on our rankings for more than 5000 US and foreign stocks, ADRs, and Canadian equities. With VE Premium, all of our data-points and outputs are easily integrated via Microsoft Excel into your own work flow. Detailed Stock Valuation and Forecast Reports are also available in addition to the time-tested newsletter portfolios that can make your job much easier.

And, with VE Premium, the professional's choice, you can quickly and easily download any of our individual stock, industry, and sector reports for a complete ValuEngine analysis in an easily analyzed PDF format.

Find Out More About VE Premium Pro HERE

ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day. 
Visit our website for more information and a free trial.

Want To Know More About Our ValuEngine View Newsletter?

Looking for a monthly portfolio of stock picks which are objective and based on cutting-edge academic theory and Wall St.practice? Then subscribe to The ValuEngine View Newsletter.The ValuEngine View 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.

The ValuEngine View Newsletter is the product of a sophisticated stock valuation model that was first developed by ValuEngine's academic research team. It utilizes a three factor approach: fundamental variables such as a company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's future 12-month EPS, and the 30-year Treasury yield are all used to create a more accurate reflection of a company's fair value. A total of eleven additional firm specific variables are also used. In addition, the portoflio uses top picks from our Forecast Model. In essence, the portfolio is constructed with the best picks from our main propiretary models

Each month you will receive an electronic copy of our newsletter highlighting 15 potential long positions along with five alternate picks. Our investment strategies focus on dozens of fundamental and technical factors for over 8000 individual stocks, synthesize the data, and then come up with a portfolio. Each newsletter portfolio focuses on maximum potential returns so there are no diversity requirements. Each portfolio pick includes critical ValuEngine valuation and forecast data. These 20 total picks represent the most up-to-date equity assessments of our proprietary models.

Please click HERE to subscribe. You may download a sample copy HERE. After your subscription is approved, you will immediately receive access to download the current issue of newsletter as well as the previous issues, which are all available as PDF files. Each month when the latest issue of the newsletter is released, we will send you an email, informing you to download it from the site. The newsletter is released near the middle of each month.

 

  VE View vs. S&P 500 Index Past Five Years
VE View
S&P 500
Ann Return
 18.87% 12.51%
Ann Volatility
 21.97% 12.32%
Sharpe Ratio
 0.86 1.02
Sortino Ratio
 1.29 1.07
Max Drawdown
 -34.94% -12.15%

  The ValuEngine View Newsletter is derived from the ValuEngine Aggressive and Diversified Growth BenchmarkPortfolio Strategies. These strategies are the product of ValuEngine's academic research team and combine cutting-edge financial analysis and portfolio construction techniques with real-world Wall St. know how. 

CLICK HERE to Subscribe to the 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.

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued
60.57%
Stocks Overvalued
39.43%
Stocks Undervalued by 20%
25.14%
Stocks Overvalued by 20%
13.16%

ValuEngine Sector Overview

Sector
Change
MTD
YTD
Valuation
Last 12-MReturn
P/E Ratio
-0.17%
1.08%
9.86%
9.21% overvalued
10.37%
31.88
-1.23%
0.06%
-3.35%
8.29% overvalued
-7.61%
17.82
-0.72%
-1.21%
-5.32%
0.31% overvalued
-4.52%
23.12
-0.40%
-0.98%
-1.97%
0.69% undervalued
-2.63%
22.40
-0.44%
-1.39%
0.87%
0.80% undervalued
-5.47%
26.14
-0.78%
-0.47%
-6.43%
1.72% undervalued
-1.91%
22.92
-0.25%
-0.64%
-2.58%
2.04% undervalued
-4.70%
16.67
-0.55%
-0.88%
-4.24%
2.66% undervalued
-6.19%
28.06
-0.81%
-1.56%
-9.30%
2.69% undervalued
-4.03%
20.77
-0.40%
-0.55%
-0.25%
3.37% undervalued
-3.23%
21.61
-0.39%
-1.37%
-8.29%
5.83% undervalued
-11.28%
20.91
-0.66%
-0.97%
-9.23%
9.74% undervalued
-12.60%
14.64
-0.78%
-2.08%
-8.39%
11.10% undervalued
-13.43%
18.22
-0.73%
-2.07%
-12.61%
11.47% undervalued
-14.86%
15.42
-1.27%
-8.76%
-21.37%
16.40% undervalued
-51.06%
24.68
-1.16%
-3.41%
-17.09%
17.17% undervalued
-34.30%
20.48

 

 

 

 

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