January 24, 2014

VALUATION WARNING: Our models find that overvaluation is at levels typically seen when market pullbacks occur. Overvalued stocks now make up almost 84% of our stocks assigned a valuation and 50% of those equities are calculated to be overvalued by 20% or more. ALL sectors are again calculated to be overvalued by double digits.

ValuEngine Index Overview

ValuEngine Market Overview

ValuEngine Sector Overview

ValuEngine Newsletters Latest Results

ValuEngine's Newsletters Beat the Market

With our Investment Newsletters, Subscribers Harness the Power of all of ValuEngine.com's Extensively Tracked and Tested Portfolio Strategies in an Easy to Follow Format. 

Let ValuEngine Optimize your Portfolio and Provide Rational Advice for Smarter Investing

 Click HERE to Check Out ValuEngine's Investment Newsletters

Free Download for Readers

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

The Boeing Company (Boeing) is an aerospace company. The Company operates in five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), Global Services & Support (GS&S) and Boeing Capital Corporation (BCC). Boeing Defence, Space & Security (BDS) consists of three capabilities-driven businesses: BMA, N&SS and GS&S. Its Other segment includes the unallocated activities of engineering, operations and technology (EO&T) and Shared Services Group (SSG), as well as intercompany guarantees provided to BCC. EO&T provides Boeing with technical and functional capabilities, including information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. In February 2013, the Company acquired CPU Technology Inc.'s Acalis business.

ValuEngine continues its SELL recommendation on BOEING CO for 2014-01-23. Based on the information we have gathered and our resulting research, we feel that BOEING CO has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Book Market Ratio and Earnings Growth Rate.

Read our Detailed Valuation Report, a $25 value, for FREE HERE.

Sector Talk--Construction

  Below, we present the latest data on Construction stocks from our Institutional software package (VEI).    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. 

Please Click Here to Download a FREE Demo of ValuEngine's Professional VEI Software Package.

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

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

Top-Five Construction Stocks--Composite Score

Top-Five Construction Stocks--Most Overvalued

Find out what Wall Street Investment and Media Professionals already know,
ValuEngine offers sophisticated stock valuation and forecast research as well as a variety of portfolio screening and creation tools.

If you are reading this you should sign up for ValuEngine's award-winning stock valuation and forecast service  NO OBLIGATION, 30 DAY FREE TRIAL!

To Sign Up for a FREE TRIAL, Please Click HERE

What's Hot--Suttmeier Nominated for Award by TheStreet.com

ValuEngine Chief Market Strategist Richard Suttmeier is a prolific contributor to TheStreet.com. His work has been nominated for two Sigma Delta Chi awards as part of that financial portal's content from 2013. The Sigma Chi Delta Awards are presented annually by the Society of Professional Journalists. They recognize excellence in journalism and reporting.

You can check out Richard's nominated work by clicking the links below:

Investing from the Cradle to the Grave
Bad CEO: Let's Fire Bernanke
Obamacare Delay is Good for Health Stocks
Keep Your Toan Car, Trade in Ford Stock
The United States Does Not Need a Debt Ceiling
Apple's Turnover: 2013's Buying Opportunity

--VE Small Cap Stock Newsletter Performance

We rebalanced our Small Cap Stock Newsletter yesterday and had a great month. For January/December, the market lost some of its luster, but our portfolio responded remarkably well. Our portfolio posted a big return of 8.43% vs. SP 500 return of 1.95%. That's a beat of 648 bps The return since inception of the VE Small Cap Stock Newsletter is 45.69% versus the S&P's gain of 33.02%.

We had twelve out of fifteen winners this month, a hit ratio of 80%. The big boost to our return came from the three shipping companies we included from the Transportation Sector. Positive performance for shippers in generally viewed as a leading economic indicator for the global economy so this performance may be a harbinger of good things to come for the recovery. Tsakos Energy Navigation was the big winner, with a gain of more than 35%. We also got double-digit returns from Pharmathene, Knighstsbridge Tankers, Cross Country Health Care, Pike Electric, Diana Containerships, and Daqo New Energy. Our only substantial loss came from Energy Recovery.

  Here are the primary selections and their performance for the month.

FIND OUT MORE HERE

--VE Web Log (BLOG) Consolidates Content

We have added a blog to the VE Website. This new section consolidates all of our free content in one easily accessible location. Of special note is the work of our Chief Market Strategist Richard Suttmeier. Suttmeier, a prolific market analyst and commnetator, writes for forbes, thestreet.com, and many other investor websites. Check out our new blog page for one-stop access to all of his work as well as other bulletins and analysis based on ValUEngine's award-winning stock valuation and forecast services.

Check out our new blog page HERE

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--(2.775) Weekly and monthly value levels are 3.002 and 3.653 with a daily pivot at 2.800 and quarterly, annual and semiannual risky levels at 2.628, 2.263, 1.837 and 1.779.

Commodities and Forex

Comex Gold –(1262.0) Weekly and monthly value levels are $1228.6 and $1112.1 with a daily pivot at $1250.4 and quarterly and annual risky levels at $1385.0, $1710.6, $1747.4, $1818.8 and $1857.1.

Nymex Crude Oil – ($97.37) My quarterly value level is $93.35 with daily and weekly pivots at $96.91 and $96.64, and monthly, semiannual and annual risky levels at $104.80, $104.97 and $107.52.

The Euro – (1.3696) Quarterly, annual and semiannual value levels are 1.3482, 1.3382, 1.2642 and 1.2216 with daily and monthly pivots at 1.3580 and 1.3658 and weekly and annual risky levels at 1.3727 and 1.5512.

Major Indices

Daily Dow: (16,197) My annual value levels are 14,835 and 13,467 with monthly, daily, semiannual
and weekly pivots at 16,327, 16,238, 16,245 and 16,465, the Dec. 31 all-time intraday high at
16,588.25 and quarterly and semiannual risky levels at 16,761 and 16,860.

S&P 500 – (1828.5) Semiannual and annual value levels are 1797.3, 1764.4, 1539.1 and 1442.1 with
daily, weekly and monthly pivots at 1832.4, 1839.0 and 1847.0, the Jan. 15 all-time intraday high at
1850.84, and quarterly risky level at 1896.0.

NASDAQ – (4219) Semiannual and annual value levels are 3930, 3920, 3471 and 3063 with the Jan.
22 multiyear intraday high at 4246.55 and daily, weekly, monthly and quarterly risky levels at 4233,
4250, 4267 and 4274.

NASDAQ 100 (NDX) – (3614) Semiannual and annual value levels are 3458, 3456, 3078 and 2669
with the Jan. 22 multiyear intraday high at 3634.65 and daily, weekly, monthly and quarterly risky levels
at 3630, 3654, 3629 and 3714.

Dow Transports – (7570) Semiannual, monthly, quarterly and annual value levels are 7376, 7245,
7327, 7086, 6249 and 5935 with weekly and daily pivots at 7424 and 7504 and the Jan. 23 all-time
intraday high at 7591.43.

Russell 2000 – (1172.39) Semiannual and annual value levels are 1133.29, 1130.79, 966.72 and
879.39 with quarterly, daily and weekly pivots at 1180.35, 1174.62 and 1174.31, the Jan. 22 all-time
intraday high at 1182.04, and monthly risky level at 1200.55.

The SOX – (541.49) Quarterly, semiannual and annual value levels are 536.98, 490.52, 371.58 and
337.74 with weekly and monthly pivots at 544.30 and 544.70, the Jan. 22 multiyear intraday high at
547.92, and daily and semiannual risky levels at 546.88 and 548.36.

Dow Utilities: (496.88) Weekly and monthly value levels are 480.73 and 440.53 with daily, quarterly
and annual pivots at 493.68, 496.84 and 497.53, and semiannual and annual risky levels at 504.74,
524.37 and 548.70.

Stock of the Day

  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. 

Here is today's stock of the day from Richard Suttmeier's Morning Briefing Newsletter.

Caterpillar (CAT) – ($88.48) Caterpillar Inc is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is one of only a handful of U.S. companies that leads its industry while competing globally from a principally domestic manufacturing base. The company records more than half of its sales to overseas customers. Their products are used in the construction, road building, mining, forestry, energy, transportation and material-handling industries.

Analysis – Caterpillar has a hold rating according to ValuEngine with fair value at $73.68 which makes the stock 21.7% overvalued The one-year price target is $88.27. The daily chart shows declining momentum with the stock below its 21-day simple moving average at $90.30 and above its 50-day and 200-day simple moving averages at $87.19 and $85.39. Quarterly and monthly value levels are $87.52 and $85.71 with annual risky levels at $95.79 and $97.90.

Richard Suttmeier, Chief Market Strategist at ValuEngine.com & Contributor to TheStreet.com
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. In 2002, he anchored his own show on Yahoo Finance Vision called, "Traders' Club with Richard Suttmeier." Richard has been frequently quoted in USA Today, The NY Times, Wall Street Journal, Reuters, and The Dow Jones Newswires. Richard has made numerous speaking appearances in recent years to groups such as the Market Technicians Associations, the American Association of Individual Investors, Wells Fargo Advisors, the Executive Forum at the National Arts Club, and the Investors Roundtable of Wilmington NC.

Now YOU can take advantage of the same market and trading expertise as the financial media with Richard Suttmeier's ValuTrader Model Portfolio

 The ValuTrader Portfolio Newsletter is based on ValuEngine Chief Market Strategist Richard Suttmeier's proprietary market analytics. Suttmeier combines his technical analysis expertise with ValuEngine's proprietary valuation, forecast, and ratings data for more than 4000 equities trading on US markets to come up with a 20 stock portfolio tailored to current market conditions. With ValuTrader, subscribers access Suttmeier's "Buy and Trade" strategy with a portfolio designed to function well in both up and down markets.

Click HERE to Sign Up for Chief Market Strategist Richard Suttmeier's ValuTrader Model Portfolio

 

With Richard Suttmeier's Morning Briefing, you get 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.

Click HERE to Sign Up for Chief Market Strategist Richard Suttmeier's Morning Briefing!

If you no longer wish to receive this free newsletter, CLICK HERE to unsubscribe