December 3, 2010

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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 Northrop Grumman Corporation

(NOC). ValuEngine has issued a STRONG BUY recommendation for Northrop
Grumman. Based on the information we have gathered and our resulting research,
we feel that Northrop Grumman has the probability to OUTPERFORM average market
performance for the next year. The company exhibits ATTRACTIVE company size,
volatility and P/E ratio.
Based on available data as of Dec. 03, 2010, we believe that NOC should be
trading at $68.46. This makes NOC 6.47% 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 NOC, we base this on actual
earnings per share (EPS) for the previous four quarters of $6.06, forecasted EPS for the
next four quarters of $6.45, and correlations to the 30- year Treasury bond yield of
4.27%.
Northrop Grumman Corporation is a high technology company providing
innovative solutions in systems integration, defense electronics and information
technology for its U.S. and international military, government and commercial
customers, as a prime contractor, principal subcontractor, team member or preferred
supplier.
 Weekly Subscribers can download a FREE Detailed Valuation Report on NOC HERE.
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MARKET OVERVIEW
Index started week Thursday Close 3 day change 3 day change % ytd
DJIA 11083.75 11362.4 278.65 2.51% 8.72%
NASDAQ 2522.24 2579.35 57.11 2.26% 13.69%
RUSSELL 2000 732.71 751.2 18.49 2.52% 18.17%
S&P 500 1189.08 1221.53 32.45 2.73% 9.23%

Summary of VE Stock Universe

Stocks Undervalued 44.18%
Stocks Overvalued 55.82%
Stocks Undervalued by 20% 20.88%
Stocks Overvalued by 20% 24.76%

SECTOR OVERVIEW

Sector Change MTD YTD Valuation Last 12- P/E

MReturn Ratio
Aerospace 0.70% 0.74% 18.66% 4.88% overvalued 31.51% 19.67
Auto-Tires-Trucks 1.76% 1.87% 48.12% 10.08% overvalued 53.23% 36.03
Basic Materials 1.32% 1.39% 28.99% 23.68% overvalued 59.52% 35.33
Business Services 1.25% 1.39% 10.35% 2.84% overvalued 22.07% 30.27
Computer and Technology 1.13% 1.21% 25.65% 3.83% overvalued 33.49% 41.33
Construction 2.75% 2.91% 6.41% 2.44% undervalued 9.27% 38.56
Consumer Discretionary 0.45% 0.52% 19.80% 0.56% overvalued 27.36% 31.07
Consumer Staples 0.46% 0.53% 8.37% 3.46% overvalued 17.80% 22.1
Finance 1.19% 1.25% 15.82% 2.75% overvalued 15.63% 29.91
Industrial Products 1.29% 1.37% 22.84% 6.78% overvalued 29.28% 28.09
Medical 0.35% 0.41% 12.08% 6.29% undervalued 16.42% 33.78
Multi-Sector Conglomerates 0.99% 1.02% 22.14% 11.95% overvalued 32.59% 33.31
Oils-Energy 1.51% 1.59% 15.08% 22.48% overvalued 44.15% 43.85
Retail-Wholesale 0.31% 0.39% 17.70% 6.31% overvalued 59.94% 26.4
Transportation 0.98% 1.03% 23.13% 7.77% overvalued 28.40% 40.05
Utilities 0.33% 0.38% 5.22% 4.06% overvalued 14.80% 27.83
Sector Talk-- Retail-Wholesale
Below, we present various top-five lists for the Retail-Wholesale 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 Retail-Wholesale Stocks--Short-Term Forecast Returns

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
SVU SUPERVALU INC 8.66 -37.06 -37.97
AHONY AHOLD N V ADR 12.33 -59.26 -8.94
NSIT INSIGHT ENTRPRS 12.93 -21.79 21.29
WMT WAL-MART STORES 54.75 3.19 2.59
JACK JACK IN THE BOX 20.62 -33.25 8.7

Top-Five Retail-Wholesale Stocks--Long-Term Forecast Returns

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
AHONY AHOLD N V ADR 12.33 -59.26 -8.94
WMT WAL-MART STORES 54.75 3.19 2.59
EBAY EBAY INC 29.91 5.07 25.88
TGT TARGET CORP 59.65 -5.3 27.02
CVS CVS CAREMARK CP 31.98 -6.02 3.9

Top-Five Retail-Wholesale Stocks--Composite Score

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
M MACYS INC 25.54 -9.99 58.34
DPZ DOMINOS PIZZA 14.87 -25.77 90.89
TLB TALBOTS INC 11.43 -39.57 69.33
AHONY AHOLD N V ADR 12.33 -59.26 -8.94
RVI RETAIL VENTURES 16.48 -21.96 111.01
Top-Five Retail-Wholesale Stocks--Most Overvalued

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
BKS BARNES & NOBLE 13.06 99.09 -40.61
BJRI BJ'S RESTAURANT 38.1 87.32 111.9
CHUX OCHARLEYS INC 7.06 86.65 3.07
NFLX NETFLIX INC 193.42 75.58 227.83
IACI IAC/INTERACTIV 29.35 75.36 52.71

Subscribers can check out the latest valuation, forecast, and ratings figures on
the Retail-Wholesale Sector from our Model HERE.

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What's Hot
-- Suttmeier to Appear at Florida Investment Conference
With all of the recent market uncertainties, making the correct stock decisions
can be daunting. ValuEngine Chief Market Strategist Richard Suttmeier will be
appearing at the AAII Orlando Chapter meeting on January 19, 2011. We invite all VE
clients in Florida to attend.
At the meeting, Suttmeier will discuss the following topics:
• How ValuEngine.com can help investors adapt to volatile and risky market
conditions
• How to implement a hedge fund-type strategy for your own stock investment
portfolio
• How ValuEngine’s research helped me call both the top and the bottom of the
market over the past five years
This meeting will take place at the University Club of Winter Park, 841 N. Park
Ave. Winter Park, FL 32789. It starts at 6:30pm. Again, all VE clients are invited. We
place a special call out to those seeking individual investment advice, assistance,
and portfolio management.

Suttmeier Says
--Commentary and Analysis from Chief Market Strategist
Richard Suttmeier
ValuEngine Chief Market Strategist Richard Suttmeier is a financial
analyst for media such as Fox News, CNBC,YahooFinance,the Wall
Street Journal, New York Times, CNNfn, and Bloomberg, Suttmeier
has long been one of ValuEngine's "power users," supporting his
own technically-focused analysis with VE's fundamentally-based
quant methods.
If you have any comments or questions, send them to
Rsuttmeier@Gmail.com
Treasury Yields
10-Year-- (3.000) My semiannual value level is 3.479 with my annual pivot at 2.999, and
daily, annual and weekly risky levels at 2.884, 2.813 and 2.816, and quarterly,
semiannual and monthly risky levels at 2.265, 2.249 and 1.949.A weekly close cheaper
than my annual value level at 2.999 for the 10-Year yield would be a blow for QE2, as
QE2 was intended to bring down US Treasury yields.
Commodities and Forex

Comex Gold-- ($1388.3) Quarterly, semiannual and annual value levels are $1306.4,
$1260.8, $1218.7 and $1115.2 with daily, weekly and monthly risky levels at $1399.3,
$1401.6 and $1443.5. Gold nearly tested my weekly risky level at $1401.6 again on
Thursday.

Nymex Crude-- ($87.96) Semiannual, annual and monthly value levels are $83.94,
$77.05 and $75.50 with a daily pivot at $87.49, and semiannual and annual risky levels
at $96.53 and $97.29.Crude oil above my semiannual pivot at $83.94 signals inflation
expectations and some say that’s a positive. Not me as higher gasoline prices spook
Main Street.

The Euro--(1.3221) Daily and monthly value levels are 1.2808 and 1.2500 with a
quarterly pivot at 1.3318, and weekly and semiannual risky levels at 1.3688 and
1.4733.The euro is trying to return to my quarterly pivot at 1.3318.

Major Indices

Stocks are getting more expensive as technical momentum takes over the
upside. Fourteen of sixteen sectors are overvalued led by Basic Industries and Oils-
Energy by 23.7% and 22.5% respectively. For the first time since late 2007, there are
more overvalued stocks than undervalued stocks-- with 55.8% overvalued versus
44.2% undervalued. Stocks undervalued by more than 20% now exceed stocks
overvalued by more than 20% with undervalued by 20% or more at 20.9% and those
overvalued by more than 20% at 24.8%.

The Dow--
Daily: (11,362) Daily, semiannual, annual, monthly and quarterly value levels are
11,137, 10,558, 10,379, 10,325 and 8,523 with annual and semiannual pivots at 11,235
and 11,296, and weekly risky level at 11,469. A close on the Dow Industrials above its
November 5th high at 11,444.08 generates another Dow Theory Buy Signal.

The S&P 500--

A close above 1228.74 for the SPX violates the 61.8% Fibonacci Retracement of the
decline from October 2007 into March 2009.

Want to learn more about my “Buy and Trade” strategy and apply it to your own
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