April 22, 2011

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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 Chemtura Corporation (CHMT,
$CHMT). Chemtura is a global manufacturer and marketer of specialty chemicals,
crop protection and pool, spa and home care products.
A screen for undervalued/top-ranked one-month forecast stocks with market
prices in excess of $3.00 and average volume in excess of 100k shares/day performed
with our Institutional software package (VEI) found Chemtura Corporation near the
top of the list. Chemtura Corporation reports Q1 2011 earnings on May 5th after the
close.
ValuEngine has issued a STRONG BUY recommendation for Chemtura
Corporation on Apr. 21, 2011. Based on the information we have gathered and our
resulting research, we feel that Chemtura Corporation has the probability to
OUTPERFORM average market performance for the next year. The company exhibits
ATTRACTIVE P/E ratio, price/sales ratio and market valuation.
Based on available data as of Apr. 21, 2011, we believe that CHMT should be
trading at $70.08. This makes CHMT 75.00% undervalued. 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 CHMT, we base this on actual
earnings per share (EPS) for the previous four quarters of $18.17, forecasted EPS for the
next four quarters of $1.20, and correlations to the 30- year Treasury bond yield of
4.45%.
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MARKET OVERVIEW

Index started week Thursday Close 4 day change 4 day change % ytd
DJIA 12339.71 12506 166.29 1.35% 8.02%
NASDAQ 2731.22 2820.16 88.94 3.26% 6.31%
RUSSELL 2000 826.99 845.64 18.65 2.26% 7.91%
S&P 500 1313.35 1337.38 24.03 1.83% 6.34%

Summary of VE Stock Universe

Stocks Undervalued 40.37%
Stocks Overvalued 59.63%
Stocks Undervalued by 20% 16.81%
Stocks Overvalued by 20% 28.43%
SECTOR OVERVIEW
Sector Change MTD YTD Valuation Last 12- P/E
MReturn Ratio
Aerospace 0.42% -1.69% 13.98% 8.03% overvalued 16.03% 19.22
Auto-Tires-Trucks 1.68% -0.21% -2.61% 7.37% overvalued 29.12% 20.38
Basic Materials 0.74% -0.03% 1.00% 10.49% overvalued 46.56% 25.93
Business Services 0.46% 0.30% 6.06% 8.89% overvalued 9.65% 50.9
Computer and Technology 0.52% 0.43% 12.52% 8.67% overvalued 24.94% 45.93
Construction 0.18% -1.44% 1.00% 5.65% overvalued -0.55% 34.25
Consumer Discretionary 0.56% 1.73% 7.36% 5.66% overvalued 10.04% 33.27
Consumer Staples 0.30% -0.16% -0.65% 9.70% overvalued 12.48% 19.29
Finance 0.47% -0.91% 2.53% 6.83% overvalued 3.25% 25.94
Industrial Products 0.79% -0.59% 6.98% 9.44% overvalued 21.20% 30.34
Medical 0.27% 1.49% 13.97% 3.52% overvalued 11.35% 38.21
Multi-Sector Conglomerates -0.07% 0.11% 4.92% 15.12% overvalued 23.87% 30.25
Oils-Energy 0.71% -2.15% 11.19% 20.99% overvalued 37.15% 48.18
Retail-Wholesale 0.01% 0.83% 6.30% 7.32% overvalued 14.40% 29.32
Transportation 0.49% -1.90% -0.46% 12.11% overvalued 12.29% 21.77
Utilities 0.14% 0.24% 5.24% 11.26% overvalued 16.47% 21.54

Sector Talk—Computers and Technology

Below, we present the latest data on the Computers and Technology Sector
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 Computers and Technology Sector Stocks--Short-Term Forecast
Returns
Ticker Name Mkt Price Valuation(%) Last 12-M
Retn(%)
SONS SONUS NETWORKS 3.6 -8.06 28.11
SATS ECHOSTAR CORP 37.05 55.51 90.98
CALX CALIX INC 19.14 10.12 31.82
COMV COMVERGE INC 4 -64.76 -65.37
AMSC AMER SUPERCON 11.74 -53.92 -61.57
Top-Five Computers and Technology Stocks--Long-Term Forecast Returns
Ticker Name Mkt Price Valuation(%) Last 12-M
Retn(%)
SONS SONUS NETWORKS 3.6 -8.06 28.11
SATS ECHOSTAR CORP 37.05 55.51 90.98
COMV COMVERGE INC 4 -64.76 -65.37
AMSC AMER SUPERCON 11.74 -53.92 -61.57
CALX CALIX INC 19.14 10.12 31.82

Top-Five Computers and Technology Sector Stocks--Composite Score

Ticker Name Mkt Price Valuation(%) Last 12-M
Retn(%)
KLAC KLA-TENCOR CORP 42.6 -20.9 29.48
PWER POWER-ONE INC 7.69 -37.3 44.82
JBL JABIL CIRCUIT 19.91 -29.81 21.11
LRCX LAM RESEARCH 48.98 -10.39 22.48
STM STMICROELECTRON 11.91 -22.55 17.11

Top-Five Computers and Technology Sector Stocks--Most Overvalued

Ticker Name Mkt Price Valuation(%) Last 12-M
Retn(%)
SIGM SIGMA DESIGNS 12.63 300 0.96
IMN IMATION CORP 11.53 300 -3.68
ORCC ONLINE RES CORP 3.71 268.4 -17.56
MSPD MINDSPEED TECH 8.2 221.59 -4.87
COOL MAJESCO ENTMNT 3.68 206.16 318.18

Subscribers can check out the latest valuation, forecast, and ratings figures on
the Finance Sector from our Models HERE.
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What's Hot—ValuEngine Forecast 16 Market Neutral
Strategy Newsletter Provides Solid Returns Despite
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than the S&P 500. In addition, the ValuEngine Forecast Model MNS Portfolio
Newsletter beats the S&P 500's overall volatility and had a maximum draw down that
was @66% less.
We re-balanced and published the April edition of our newsletter earlier this
week. Once again the portfolio shrugged off the roiled markets and provided a very
good return in the midst of some market volatility and uncertainty. Our portfolio
posted a positive return of 3.69% this month but lagged the S&P 500 by 131 bps.
Thanks to a very strong performance from our long side, we had an overall gain
despite the challenging market environment for our shorts. The modified stop-lossed
strategy beat the standard MNS and outperformed the S&P by 95 bps.

Our long side provided superior results this month and handily beat the S&P 500.
It was bolstered by the massive 58% gain from GSI Commerce. Solid gains were also
racked up by Revlon, Manitowac, Mercer, Federal Mogul, and Ahold NV. This was
the third month in a row where one of the newsletter's picks provided a gain of 45% or
more.
Overall result along with long-side portfolio performance tables are below:

Standard Strategy Long-Bias MNS Short-Bias

No Stops (70-30) (60-40) (50-50) (40-60) (30-70)

50/50 Allocation 9.34 6.52 3.69 0.86 -1.97

Entry Price
Ticker Company Name Exit Price Change %Change Sector
03/17/2011
ATK ALLIANT TECHSYS 67.22 68.93 1.71 2.54 AEROSPACE
AUTO TIRES
FDML FEDERAL MOGUL-A 22.91 25.17 2.26 9.86
TRUCKS
MERC MERCER INTL SBI 12.36 13.68 1.32 10.68 BASIC MATERIALS
BUSINESS
GSIC GSI COMMERCE IN 18.65 29.45 10.8 57.91
SERVICES
COMPUTERS
ELNK EARTHLINK INC 7.76 8.14 0.38 4.90
TECHNOLOGY
CX CEMEX SA ADR 8.50 8.86 0.36 4.24 CONSTRUCTION
CONSUMER
H HYATT HOTELS CP 41.74 41.44 -0.3 -0.72
DISCRETIONARY
CONSUMER
REV REVLON INC-A 13.37 16.19 2.82 21.09
STAPLES
RDN RADIAN GRP INC 6.36 6.28 -0.08 -1.26 FINANCE
INDUSTRIAL
MTW MANITOWOC INC 18.83 21.11 2.28 12.11
PRODUCTS
ENZN ENZON PHARMA 10.21 11.04 0.83 8.13 MEDICAL
MULTI-SECTOR
LUK LEUCADIA NATL 33.65 35.81 2.16 6.42
CONGLOMERATES
LNG CHENIERE ENERGY 8.46 8.39 -0.07 -0.83 OILS ENERGY
RETAIL
AHONY AHOLD N V ADR 12.49 14.17 1.68 13.45
WHOLESALE
AMR AMR CORP 6.45 5.65 -0.8 -12.40 TRANSPORTATION
PT PORTUGAL TELCOM 11.13 11.85 0.72 6.47 UTILITIES

LONG PORTFOLIO 8.91

GSPC S&P500 1256.88 1319.68 62.8 5.00

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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-- (3.408) The 50-day simple moving average is 3.462 with
daily and weekly risky levels
at 3.302 and 3.271.

Commodities and Forex

Comex Gold-- ($1501.7) Traded to another new all time high at $1509.5 this morning
as the daily chart becomes more overbought. My semiannual value level is $1452.6
with the weekly pivot at $1497.0, and quarterly and monthly risky levels at $1523.7 and
$1559.9.

Nymex Crude-- ($111.35) After a low of $105.50 on Tuesday crude oil closed back
above my semiannual pivot at $107.14, and traded as high as $112.48 this morning.
Daily, annual and monthly value levels are $104.13, $101.92, $101.09 and $99.91 with
my semiannual pivot at $107.14, and quarterly and weekly risky levels at $114.27,
$120.52 and $125.22.

The Euro-- (1.4513) My monthly value level at 1.4170 held on Monday. The euro is
trading above my weekly and semiannual risky levels at 1.4620 and 1.4624 this
morning. My quarterly pivot is 1.4308 with weekly and semiannual pivots at 1.4620 and
1.4624, and semiannual risky level at 1.4989.
Major Indices

All the major equity averages I track are now above their 50-day simple moving
averages and their five-week modified moving averages. This delays the confirmation
of a “Double Top”. Since the mid-March lows there have been several false breakouts
as only the Dow Industrial Average reached a new 2011 high at 12,475.53 on
Wednesday. We may be setting investors up for that “Sell in May and Walk Away”?

Key Levels for the Major Equity Averages

Dow -- (12,454) This week’s value level is 12,023, the 50-day simple moving
average at 12,194 and the five-week modified moving average at 12,200.
Wednesday’s new 2011 high at 12,475.53 came within six points of my monthly
risky level is 12,481.

S&P 500 – (1330.4) My daily, weekly and quarterly value levels are 1308.7, 1287.7
and 1277.7 with the 50-day simple moving average at 1315, the five-week
modified moving average at 1314, and the February 18th high at 1344.07.

NASDAQ – (2803) Daily and weekly value levels are 2750 and 2670 with the 50-
day simple moving average at 2754, the five-week modified moving average
at 2753 and the February 18th high at 2840.51, and monthly risky level at 2898.

NASDAQ 100 – (2358) Daily and weekly value levels are 2315 and 2235 with the
50-day simple moving average at 2321, the five-week MMA at 2312, and the
February 16th high at 2403.52.

Dow Transports – (5259) My weekly value level is 5077 with annual and daily
pivots at 5179 and 5260, the 50-day simple moving average at 5174, the five-
week modified moving average at 5206, my monthly risky level at 5371, and the
April 1st high at 5404.33.

Russell 2000 – (8839.45) Daily and weekly value levels are 818.21 and 815.38 with
the 50-day simple moving average at 821.16, the five-week modified moving
average at 824.09, my monthly risky level at 856.67, and the April 6th high at
859.08.

The SOX – (4443.42) Daily and weekly value levels are 420.25 and 405.31 with
the 50-day simple moving average at 441.48, the five-week modified moving
average at 438.08, and monthly and quarterly risky levels at 452.34 and 498.75.
Happy Passover and Easter to All Clients!
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