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.

January 7, 2010

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued 49.18%
Stocks Overvalued 50.82%
Stocks Undervalued by 20% 24.13%
Stocks Overvalued by 20% 26.16%

SECTOR OVERVIEW

Last 12- P/E

Sector Change MTD YTD Valuation
MReturn Ratio
Basic Industries 1.82% 2.04% 2.04% 19.37% overvalued 73.41% 26.86
Capital Goods 0.52% 1.00% 1.00% 8.30% overvalued 34.62% 23.14
Consumer Durables 0.91% 0.99% 0.99% 14.77% overvalued 60.63% 24.28
Consumer Non-Durables 0.01% 0.25% 0.25% 5.52% overvalued 52.30% 20.21
Consumer Services 0.48% 0.54% 0.54% 2.44% overvalued 54.83% 23.8
Energy 1.87% 4.05% 4.05% 18.76% overvalued 48.10% 22.13
Finance -0.11% -0.08% -0.08% 0.18% overvalued 17.85% 18.39
Health Care -0.26% -0.36% -0.36% 5.50% undervalued 48.44% 20.32
Public Utilities 0.08% -0.08% -0.08% 4.00% overvalued 31.13% 17.75
Technology 0.32% 1.23% 1.23% 0.14% overvalued 64.68% 26.79
Transportation -0.40% 0.76% 0.76% 4.54% overvalued 21.50% 23.44
Flying the Friendly Skies
Below, we present the key ValuEngine data points for United Airlines (UAUA). United has
been a high-flying stock in our VE Forecast 22 Market Neutral Strategy portfolio for two
months now. Since it was first picked by our models back in mid-November, the stock has
rallied from 7.51$/share to its current 13.27$/share. That is an overall gain of @77%! This
represents a very good call from our Forecast model.
If we take a look at the overall industry however, we find that most tickers do not display
favorable forecast calculations. Only AMR, LCC, UAUA, DAL, RYAAY, and JBLU show
positive short-term forecast figures. There are only two stocks predicted to outperform the
market from this industry--PAC and GOL.
UAUA Valuation & Rankings
Valuation 16.07% overvalued Valuation Rank 31
1-M Forecast Return 1.71% 1-M Forecast Return Rank 99
12-M Return 10.03% Momentum Rank 34
Sharpe Ratio 0.23 Sharpe Ratio Rank 82
5-Y Avg Annual Return 47.41% 5-Y Avg Annual Rtn Rank 100
Volatility 203.95% Volatility Rank 1
Expected EPS Growth 80.73% EPS Growth Rank 74
Market Cap (billions) 2.22 Size Rank 82
Trailing P/E Ratio n/a Trailing P/E Rank 10
Forward P/E Ratio n/a Forward P/E Ratio Rank n/a
PEG Ratio n/a PEG Ratio Rank n/a
Price/Sales 0.12 Price/Sales Rank 94
Market/Book 1.07 Market/Book Rank 62
Beta 2.81 Beta Rank 5
Alpha -0.51 Alpha Rank 14

Courtesy Google Finance

 In addition to the United Airlines Stock Analysis, we present the key VE data points for the
airlines from our Institutional software package (VEI).
Last 12- Forecast Forecast
Mkt Valuation VE P/E
Ticker Name M 1-Month 1-Yr
Price (%) Rating* Ratio
Retn(%) Retn(%) Retn(%)
AMR AMR CORPORATION 8.11 -19.89 3 -30.92 2.36 15.55 N/A
LCC US AIRWAYS GROUP INC 5.09 -43.14 3 -43.82 1.74 2.23 N/A
UAUA UAL CORPORATION 13.27 16.07 3 10.03 1.71 7.79 N/A
DAL DELTA AIR LINES INC 12.11 22.94 3 -2.18 0.28 -0.92 N/A
RYAAY RYANAIR HOLDINGS PLC 27.91 -3.41 3 -5.71 0.26 1.64 18.54
JBLU JETBLUE AIRWAY CORP 5.73 -39.23 3 -21.51 0.17 -7.96 28.51
CAL CONTINENTAL AIRLINES INC 19.88 26.04 2 -4.15 -0.14 -9.5 N/A
LUV SOUTHWEST AIRLS CO 11.42 35.81 3 25.22 -0.42 -12.33 93.61
SKYW SKYWEST INC 16.71 -7.97 3 -9.04 -0.73 -16.49 10.92
EXPRESSJET HOLDINGS
XJT 4.64 -75 3 149.46 -0.75 -27.77 N/A
INC
EMPRESA BRASILEIRA DE
ERJ 22.44 73.7 2 17.55 -0.8 -20.49 20.93
AERONAUTIC
REPUBLIC AIRWAYS
RJET 7.56 -51.94 3 -23.48 -1.08 -24.31 7.31
HOLDINGS INC
AAI AIRTRAN HOLDINGS INC 5.07 -59.42 3 10.46 -1.33 -21.79 7.79
GRUPO AEROPORTUARIO
PAC 33.8 -18.81 4 56.26 -1.38 -9.17 23.2
DEL PACIFICO
ALK ALASKA AIR GROUP 36.45 7.52 3 18.5 -1.49 -17.38 13.93
LFL LAN AIRLINES SA 16.91 34.93 3 95.94 -1.78 -14.92 30.86
ALGT ALLEGIANT TRAVEL CO 49.75 20.61 3 22.06 -1.79 -13.59 13.41
ATLAS AIR WORLDWIDE
AAWW 38.63 20.13 3 76.15 -1.81 -20.79 14.15
HOLDINGS INC
GLS GENESIS LEASE LTD 9.73 3.39 3 155.38 -2.11 -27.04 19.08
GOL LINHAS AEREAS
GOL 15.49 -25.33 4 194.49 -2.25 -26.83 12.32
INTELIGENTES S
CPA COPA HOLDINGS SA 57.56 20.65 3 87.37 -2.29 -23.82 11.54
AYR AIRCASTLE LTD 9.96 29.28 3 96.45 -2.49 -39.54 7.63
HA HAWAIIAN HOLDINGS INC 6.94 14.09 3 12.48 -2.63 -33.76 5.35
TAM TAM SA 23.56 -4.89 3 131.43 -2.69 -27.21 8.11
AER AERCAP HOLDINGS NV 9.77 -13.27 3 82.62 -3.38 -45.52 4.96
AIR TRANSPORT SERVICES
ATSG 2.47 -53.71 3 782.14 -6.07 -62.82 4.41
GROUP INC

*The Engine Rating is an overall assessment of a stock's attractiveness. It combines the following five factors: valuation, risk-
return tradeoff, momentum, market capitalization and forecasted future returns. The 5-Engine tickers represent the top 2% of our
universe and over time have consistently out-performed the broader market. Always keep in mind that these rankings are relative
to the rest of the overall universe and are assigned on a hard bell curve on a daily basis.
--The VE Forecast 22 MNS Portfolio Newsletter

We recently re-balanced our ValuEngine Forecast 22 Market Neutral Strategy Newsletter.

Our portfolio posted a gain of 1.67% and beat the S&P benchmark by 179 bps. Our long picks
beat the S&P by 558 bps! The MNS approach serves to reduce volatility-- and we reaped
significant gains from our shorts back in the dark days of January-March. For a market
neutral strategy with significant volatility-reducing benefits, our newsletter continues to
perform remarkably well. In fact, this product has been so successful it was recently selected
by Forbes.com for inclusion into its stable of newsletter products. Forbes.com believes that
the VE Forecast 22 MNS Portfolio offers a sophisticated newsletter for investors seeking
access to hedge fund-type strategies without hefty performance fees and onerous qualified
investor requirements.

Our average monthly return is @1.5%, our Sortino Ratio--"good" volatility--beats the
S&P 500 by @50%, our max drawdown is 1/3 the S&P's, and our annual volatility is
@30% less than the S&P 500!

For more on the VE Forecast 22 Market Neutral Strategy Newsletter Portfolio, Click the
Logo Below