December 23, 2016

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VALUATION WARNING: Overvalued stocks now make up 65.59% of our stocks assigned a valuation and 34.38% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued.

Editor's Note: Starting Wednesday, December 21st, we will be on a limited publication schedule. We will resume our normal full publication schedule on Tuesday, January 3rd.

HAPPY HOLIDAYS FROM VALUENGINE!!!

ValuEngine Index Overview

Index	Week Open	Friday AM	Change	% Change	YTD
DJIA	19836.66	19919.3	82.64	0.42%	14.31%
NASDAQ	5441.2	5453.11	11.91	0.22%	8.90%
RUSSELL 2000	1364.78	1365.09	0.31	0.02%	20.18%
S&P 500	2259.24	2261.92	2.68	0.12%	10.66%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued	34.41%
Stocks Overvalued	65.59%
Stocks Undervalued by 20%	15.75%
Stocks Overvalued by 20%	34.38%

ValuEngine Sector Overview

Sector	Change	MTD	YTD	Valuation	Last 12-MReturn	P/E Ratio
Multi-Sector Conglomerates	-0.09%	2.20%	13.36%	22.15% overvalued	12.45%	19.12
Industrial Products	-0.59%	2.52%	27.62%	21.86% overvalued	23.36%	23.92
Oils-Energy	-0.05%	4.13%	33.85%	21.18% overvalued	30.58%	25.37
Finance	-0.35%	2.95%	17.63%	18.20% overvalued	13.70%	18.19
Transportation	-0.53%	2.09%	19.60%	17.48% overvalued	8.52%	18.59
Aerospace	-0.04%	-0.92%	11.80%	15.69% overvalued	13.90%	19.58
Computer and Technology	-0.17%	1.96%	22.98%	12.45% overvalued	11.40%	29.66
Construction	-0.90%	1.82%	37.12%	12.35% overvalued	22.30%	20.53
Business Services	-0.73%	2.14%	24.57%	12.23% overvalued	5.79%	23.96
Basic Materials	-0.58%	-0.58%	50.48%	12.21% overvalued	61.54%	26.52
Utilities	-0.31%	2.38%	15.56%	10.21% overvalued	17.13%	21.97
Retail-Wholesale	-2.19%	0.79%	3.81%	8.51% overvalued	5.75%	23.45
Auto-Tires-Trucks	-0.64%	1.60%	12.34%	8.38% overvalued	20.31%	14.81
Consumer Staples	-0.25%	2.58%	10.32%	6.56% overvalued	10.26%	24.09
Consumer Discretionary	-0.81%	1.81%	12.04%	6.48% overvalued	13.90%	23.92
Medical	-0.57%	-0.57%	-0.83%	5.18% undervalued	-11.28%	27.69

Sector Talk--Retail/Wholesale

Below, we present the latest data on Retail/Wholesale stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category. We applied some basic liquidity criteria--share price greater than $3 and average daily volume in excess of 100k shares.

Top-Five Retail/Wholesale Stocks--Short-Term Forecast Returns

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
ARCO	ARCOS DORADOS-A	5.45	-15.48%	75.81%
PCMI	PCMI INC	21.8	20.59%	140.88%
TLRD	TAILORED BRANDS	26.13	0.81%	69.57%
AAN	AARONS INC	32.13	13.23%	42.29%
BBY	BEST BUY	45.1	31.75%	49.54%

Top-Five Retail/Wholesale Stocks--Momentum

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
BEBE	BEBE STORES INC	5.09	N/A	792.98%
PCMI	PCMI INC	21.8	20.59%	140.88%
CNV	CNOVA NV	5.48	N/A	140.61%
TLYS	TILLYS INC	13.29	76.76%	116.80%
BURL	BURLINGTON STRS	85.79	20.41%	97.31%

Top-Five Retail/Wholesale Stocks--Composite Score

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
ARCO	ARCOS DORADOS-A	5.45	-15.48%	75.81%
URBN	URBAN OUTFITTER	28.58	-16.58%	21.88%
TLRD	TAILORED BRANDS	26.13	0.81%	69.57%
DKS	DICKS SPRTG GDS	52.85	4.90%	45.59%
HIBB	HIBBET SPORTS	37	-22.64%	18.86%

Top-Five Retail/Wholesale Stocks--Most Overvalued

Ticker	Name	Mkt Price	Valuation (%)	Last 12-M Return (%)
LL	LUMBER LIQUIDAT	16.44	300.00%	-5.63%
SSI	STAGE STORES	4.95	300.00%	-47.17%
CONN	CONNS INC	13.45	295.48%	-42.05%
FRED	FREDS INC	19.38	111.27%	19.26%
TLYS	TILLYS INC	13.29	76.76%	116.80%

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Professional Portfolio Management Services
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Strategies To Suit All Investor Types

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