ATTENTION Advanced Investors and Finance Professionals:

If you are reading this you should download ValuEngine Institutional Software to see
how VE's powerful quantitative tools can increase your productivity and effectiveness.

September 25, 2009

MARKET OVERVIEW

Thursday 4 day 4 day

Index started week ytd
close change change %
DJIA 9818.61 9707.44 -111.17 -1.13% 10.66%
NASDAQ 2121.34 2107.61 -13.73 -0.65% 33.49%
RUSSELL 2000 614.51 601.75 -12.76 -2.08% 20.47%
S&P 500 1067.14 1050.78 -16.36 -1.56% 16.37%

Summary of VE Stock Universe

Stocks Undervalued 52.00%
Stocks Overvalued 48.00%
Stocks Undervalued by 20% 25.87%
Stocks Overvalued by 20% 26.94%

SECTOR OVERVIEW

Sector Change MTD YTD Valuation Last 12- P/E Ratio

MReturn
Basic Industries -2.60% 9.99% 60.27% 17.53% overvalued -1.85% 24.83
Capital Goods -0.95% 9.19% 34.08% 21.51% overvalued -10.74% 20.09
Consumer Durables -1.46% 5.84% 56.79% 8.71% overvalued -15.04% 23.81
Consumer Non-Durables -1.25% 5.39% 43.37% 7.69% overvalued -0.46% 20.87
Consumer Services -1.46% 8.33% 57.33% 3.91% overvalued -3.75% 21.73
Energy -2.92% 14.27% 37.39% 13.53% overvalued -23.48% 17.07
Finance -1.25% 4.37% 24.12% 7.38% overvalued -11.40% 18.92
Health Care -1.66% 8.44% 58.92% 6.21% undervalued 8.45% 18.72
Public Utilities -0.92% 5.00% 17.38% 3.49% undervalued -3.55% 16.44
Technology -1.33% 11.80% 67.35% 0.43% overvalued 3.19% 25.2
Transportation -1.58% 8.13% 26.60% 9.54% overvalued -13.28% 15.86
 Sector Talk—Technology
As you can see from our sector overview chart above, the big winner so far this year is the
Technology Sector. The huge jump in the tech-heavy NASDAQ leads the other main indices,
and Technology is having a banner year with YTD gains of almost 70%. If we take a look at
the industry components of the sector, we find that the leader has been the Other Computers
Industry which has more than DOUBLED In value YTD. This is closely followed by Computer
Manufacturing, which has also almost doubled.
Last 12-M
Industry Change MTD YTD Valuation P/ERatio
Return
OTHER COMPUTERS -1.09% 17.82% 101.83% 3.68% undervalued 10.85% 23.67
COMPUTER MFRS -0.39% 10.27% 99.28% 18.34% overvalued 22.95% 21.66
SEMICONDUCTORS/COMPO -2.14% 11.06% 84.62% 1.47% overvalued 4.89% 31.02
PHOTO-OPTICAL EQUIPM -2.48% 17.39% 76.76% 30.94% overvalued -11.41% 42.22
ELECTRONICS -0.29% 10.75% 58.40% 1.93% overvalued 3.40% 28.78
SOFTWARE & EDP SERVI -0.87% 8.88% 53.61% 1.28% overvalued 2.13% 23.49
UNDESIGNATED TECHNOL -1.25% 12.05% 51.02% 12.27% overvalued 11.02% 21.95
OFFICE/COMM EQUIP -1.99% 8.70% 43.92% 9.82% undervalued 1.92% 21.99
ELECTRONIC SYST/DEVI -1.50% 9.28% 36.75% 0.96% undervalued -9.26% 27.55

Below we provide a list of the buy-rated tickers within the Tech Sector that possess the
highest 1-Month Forecast Return Figures. As you can see, these names are concentrated in
the Software, Office Comm Equipment, and Other Computers Industries. Many of these
tickers are still calculated to be undervalued-- and they have positive short and long-term
forecast figures, so these names would be likely investment targets if one is convinced that
the sector still has room to run.
This quarter's report is now available for purchase via our website. In addition to the
valuable VE and FDIC data, the report also contains critical ValuEngine data points on the
home building industry, technical levels for a variety of banking and housing indices, policy
prescriptions, and other analysis. To find out more or subscribe to the ValuEngine Quarterly
FDIC Report, click the cover below.

Last 12- Forecast Forecast

Mkt Valuation P/E
Ticker Name M 1-Month 1-Yr Industry
Price (%) Ratio
Retn(%) Retn(%) Retn(%)
SEMICONDUCTORS
OVTI OMNIVISION TECHNOLOGIES 16.28 -2.35 44.07 4.86 8.52 N/A
COMPONENT
UNDESIGNATED
CSR CHINA SECURITY & SURVEILLANCE 7 -45.14 -49.53 1.76 13.22 4.06
TECHNOLOGY
FNSR FINISAR CORPORATION 1.33 -27.29 18.75 1.16 -2.03 75.28 ELECTRONIC SYST
Ticker Name Mkt Valuation Last 12- Forecast Forecast P/E Industry
Price (%) M 1-Month 1-Yr Ratio
Retn(%) Retn(%) Retn(%)
DEVICES
SOFTWARE AND
UNTD UNITED ONLINE INC 8.08 -29.82 -13.68 0.49 3.04 5.92
EDP SERVICES
OTHER
BBOX BLACK BOX CORPORATION 25.15 -32.19 -29.33 0.42 0.15 8
COMPUTERS
SOFTWARE AND
SYMC SYMANTEC CORPORATION 15.29 -21.44 -22.11 0.32 1.19 10.3
EDP SERVICES
SOFTWARE AND
ELNK EARTHLINK INC 8.45 -4.16 5.62 0.22 -0.09 7.17
EDP SERVICES
SOFTWARE AND
CSGS CSG SYSTEMS INTERNATIONAL INC 15.75 -16.48 -10.76 0.16 -2.19 8.78
EDP SERVICES
OFFICE COMM
HRS HARRIS CORPORATION DEL 37.2 -16.18 -19.32 0.15 0.52 9.82
EQUIP
OFFICE COMM
DISH DISH NETWORK CORP 18.09 -36.75 -24.18 0.12 -0.48 10.58
EQUIP
SOFTWARE AND
DST DST SYSTEMS INC 45.7 -22.95 -20.06 0.11 -2.31 12.34
EDP SERVICES
OFFICE COMM
LLL L-3 COMMUNICATION HOLDINGS INC 78.92 -12.67 -19.31 0.11 0.72 10.41
EQUIP
OTHER
COMS 3COM CORPORATION 5.06 28.19 132.11 0.07 -4.96 12.81
COMPUTERS
ELECTRONIC SYST/
PAY VERIFONE HOLDINGS INC 15.06 -67.26 -9.82 0.06 -2.66 18.59
DEVICES
OTHER
LXK LEXMARK INTERNATIONAL INC 22.02 -12.45 -31.87 0.05 2.05 8.15
COMPUTERS

What's HOT--The VE Stock of the Day

Straight from Chief Market Strategist Richard Suttmeier's Morning Briefing, here is the
VE Stock of the Day.

Investors Bancorp (ISBC) – Investors Bancorp, Inc. operates as the holding company for
Investors Savings Bank, which provides banking services to customers in New Jersey. The
Bank is in the business of attracting deposits from the public through its branch network and
borrowing funds in the wholesale markets to originate loans and to invest in securities.
ISBC is rated a SELL according to ValuEngine with fair value at $10.12, which makes the
stock 5.2% overvalued. This is an $8.1 billion S&L, which--unlike many banks, is not
overexposed to C&D or CRE loans. However, our models still take issue with some of the
stocks fundamentals, hence the poor engine rating.
Analysis – The daily chart for Investors Bancorp shows overbought momentum with the 21-
day simple moving average at $9.94. My weekly value level is $9.71 with quarterly risky level
at $11.47.

Courtesy Google Finance

--The ValuEngine View Portfolio Newsletter

Have you watched the market's performance over the past six months and felt like you were
missing out on the action? If you feel ready to take advantage of the best stock market
performance in more than 70 years, then please consider The ValuEngine View newsletter.

The ValuEngine View newsletter is the product of some of ValuEngine's most sophisticated
academic research. It is based on our award-winning stock valuation model. Our model
relies on a multi-faceted approach and considers 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, the 30-year Treasury yield, and eleven additional firm-
specific variables to create a more accurate reflection of a company's fair value
The ValuEngine View newsletter strategy integrates the outputs of our Valuation Model with
some basic share price, market cap, and industry diversification rules to create an initial
portfolio that is carefully analyzed and refined by hedge fund manager and investment advisor
Eric Stokes--author of "Market Neutral Investing." With the ValuEngine View, Stokes
provides subscribers with an equally-allocated portfolio of 15 stocks that is re-balanced once
each month. He provides additional charting and analysis of each selection so that you garner
further insights into each stock pick.
 Below, you can see some recent results--June-July 2009:

Click here for a free sample edition of the ValuEngine View or Click HERE to subscribe!

Suttmeier Says
--Commentary and Analysis from Chief Market Strategist Richard Suttmeier

If you have any comments or questions, send them to Rsuttmeier@Gmail.com

Treasuries
The weekly chart for the yield on the 10-Year US Treasury favors lower
yields, but monthly resistance at 3.223 is a formidable barrier. This
week’s pivot has been a magnet at 3.367. Risk aversion has been
trumping huge supply.
Commodities

The weekly chart for Comex Gold is positive, but the price rise has been held back by
monthly and semiannual pivots at $994.1 and $991.7. Rally attempts to take out the March
2008 high of $1033.9 has been blocked by weekly and daily pivots at $1002.5 and $1,014.3.
Semiannual resistance is $1,102.9.

The weekly chart for Comex Copper is overbought as rally attempts fail between its 200-
week simple moving average at $291.48 and monthly resistance at 295.88. A weekly close
below the five-week modified moving average at 272.45 will shift the weekly chart to negative
with declining MOJO targeting my annual pivot at 240.20.

The weekly chart for Nymex Crude Oil shifts to negative on a close today below my annual
pivot at $68.81. The 200-week simple moving average at $74.96 has been the barrier since
mid-June.

Weak copper and crude oil in the face of a weak dollar is a strong challenge to the global
growth story.

Housing and Banking

The Housing Sector Index (HGX) peaked at 116.81 on September 17th, and is now below its
21-day simple moving average at 107.97. With the daily chart negative the key support is the
50-day at 102.06.

The America’s Community Bankers index (ABAQ) peaked at 158.75 back on August 10th.
Community banks are the source of bank failures, and today is Bank Failure Friday. ABAQ is
down 20.9% year to date and sits just above the 50-day and 200-day simple moving
averages, which are important supports at 148.29 and 147.85.
The Regional Banking Index (BKX) has been lagging the major averages, up just 4.9% year
to date. The BKX peaked at $48.94 on September 17th within my $46.50 to $50.50 resistance
zone. If the BKX closes below its 21-day simple moving average at $46.43 the next support
is the 50-day at $43.83.
Housing and banking problems are harbingers of the return of the multi-year bear
market.
The Dow
The daily chart for the Dow will lose its overbought status today or Monday. A lower close
today confirms Wednesday’s key reversal day. A close below the 21-day simple moving
average at 9,600 will be the first warning that the multi-year bear market has returned.

Courtesy Google Finance

The weekly chart for the Dow remains overbought with a MOJO reading of 9.2. It will take a
weekly close below the five-week modified moving average at 9,456 before this chart
confirms the return of the bear.
It seems like the Dow will confirm a peak between my annual levels at 9,750 and 1,012.

--Canadian Stock Reports Now Live on Scotia iTRADE

ValuEngine has added the Canadian stock market to its coverage universe and entered into a
partnership with Canada’s Scotia iTRADE. ValuEngine will provide Scotia iTRADE’s online
stock-trading service with access to individual stock reports for more than 500 Canadian
equities and 4,000 US equities. The addition of Canadian equities coverage further expands
ValuEngine's stock universe to @ 4,500 individual stocks trading on US and Canadian
markets and is part of ValuEngine's effort to be the world leader in total market coverage.
Scotia iTRADE is owned by Scotiabank, one of North America's premier financial institutions
and Canada's most international bank. In March of 2009, Scotiabank completed a rebranding
to Scotia iTRADE from E*TRADE Canada, which the Bank purchased in 2008. With close to
69,000 employees, Scotiabank Group and its affiliates serve approximately 12.8 million
customers in some 50 countries around the world. Scotiabank offers a diverse range of
products and services including personal, commercial, corporate and investment banking.
--VE Now Available on Bloomberg Terminal
ValuEngine has long been a provider of independent research to both retail and institutional
clients. In addition to our retail website and software package, we have contracts with major
banks and investment advisors such as UBS, Deutsche Bank, Wachovia Securities, and
others.
In an effort to further our reach into the professional finance space, we have now partnered
with Bloomberg LP and have made our proprietary model data, stock reports, and premium
newsletter content available for download via the Bloomberg terminal. This effort will bring our
rating, valuation, and forecast data on over over 5000 US, Canadian, and Japanese stocks to
an even larger audience of investment professionals.
To access ValuEngine on any Bloomberg terminal, just hit VLUE <GO> or contact
ValuEngine at Support@ValuEngine.com or (800) 381-5576

Steve Hach
Senior Analyst
ValuEngine.com