December 23, 2010

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available from ValuEngine. In today's fast-moving and globalized financial markets, it is easy to get overloaded with information.
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VALUATION WATCH: Our models find that overvaluation is approaching

levels typically seen when a market correction is imminent. Overvalued
stocks now make up almost 63% of our universe and 32% of the universe is
calculated to be overvalued by 20% or more. 15 of 16 Sectors are now
calculated to be overvalued.

Bonus for Readers

--Free Individual Stock Report for Weekly Newsletter
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 Sonic Solutions (SNIC). ValuEngine
has issued a STRONG BUY recommendation for Sonic Solutions. Based on the
information we have gathered and our resulting research, we feel that Sonic Solutions
has the probability to OUTPERFORM average market performance for the next year.
The company exhibits ATTRACTIVE expected EPS growth.
Based on available data as of Dec. 23, 2010, we believe that SNIC should be
trading at $8.11. This makes SNIC 38.20% overvalued. 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 SNIC, we base this on actual
earnings per share (EPS) for the previous four quarters of $0.04, forecasted EPS for the
next four quarters of $0.19, and correlations to the 30- year Treasury bond yield of
4.45%.
 Sonic Solutions engages in the development of products and services that
enable the creation and management of digital media content across various
technology platforms. Their product line includes brands/products such as Roxio,
Toast, Scenarist, CineVIsion, and DVDit.
Weekly Subscribers can download a FREE Detailed Valuation Report on SNIC HERE.
If you have not subscribed and want to be able to receive a FREE $ 25.00 Detailed
Valuation Report, you can subscribe to our Free Weekly Newsletter HERE.
MARKET OVERVIEW
Index started week Wednesday 3 day change 3 day change % ytd
Close
DJIA 11491.3 11559.5 68.2 0.59% 10.85%
NASDAQ 2651.98 2671.48 19.5 0.74% 17.73%
RUSSELL 2000 779.51 790.59 11.08 1.42% 24.68%
S&P 500 1245.76 1258.84 13.08 1.05% 12.89%

Summary of VE Stock Universe

Stocks Undervalued 37.49%
Stocks Overvalued 62.51%
Stocks Undervalued by 20% 17.49%
Stocks Overvalued by 20% 30.16%

SECTOR OVERVIEW
Sector Change MTD YTD Valuation Last 12- P/E
MReturn Ratio
Aerospace -0.10% 3.20% 21.77% 7.84% overvalued 32.74% 19.63
Auto-Tires-Trucks -0.88% 8.04% 60.27% 15.34% overvalued 53.55% 26.49
Basic Materials -0.37% 6.23% 33.04% 29.38% overvalued 71.16% 37.57
Business Services -0.16% 5.74% 14.48% 7.13% overvalued 21.72% 29.9
Computer and Technology 0.15% 5.30% 32.12% 7.82% overvalued 35.92% 43.8
Construction 0.77% 9.98% 14.40% 7.51% overvalued 13.12% 38.12
Consumer Discretionary 0.07% 3.70% 23.16% 6.41% overvalued 27.32% 31.25
Consumer Staples 0.27% 5.15% 13.27% 12.12% overvalued 20.34% 27.88
Finance 0.97% 5.80% 21.28% 8.50% overvalued 19.00% 24.83
Industrial Products -0.32% 6.92% 24.85% 16.52% overvalued 32.68% 26.05
Medical 0.23% 7.80% 19.39% 2.41% undervalued 22.77% 37.7
Multi-Sector Conglomerates 0.22% 3.91% 25.77% 14.56% overvalued 33.45% 29.34
Oils-Energy 0.44% 4.85% 18.64% 24.70% overvalued 38.24% 41.29
Retail-Wholesale -0.30% 2.71% 21.19% 10.75% overvalued 63.46% 22.35
Transportation 0.34% 3.78% 26.16% 11.96% overvalued 28.46% 42.7
Utilities 0.16% 2.13% 7.11% 7.90% overvalued 13.91% 25.41
Sector Talk-- Consumer Staples
Below, we present various top-five lists for the Consumer Staples 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 Consumer Staples Stocks--Short-Term Forecast Returns

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
MED MEDIFAST INC 31.01 -7.51 -4.82
SNMX SENOMYX INC 7.46 -40.6 114.37
SSP EW SCRIPPS CO 10.25 -18.58 50.74
DMND DIAMOND FOODS 54.4 27.71 57
HSY HERSHEY CO/THE 47.99 -8.93 36.45

Top-Five Consumer Staples Stocks--Long-Term Forecast Returns

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
MED MEDIFAST INC 31.01 -7.51 -4.82
SNMX SENOMYX INC 7.46 -40.6 114.37
SSP EW SCRIPPS CO 10.25 -18.58 50.74
DMND DIAMOND FOODS 54.4 27.71 57
JOBS 51JOBS INC-ADR 50.7 60.5 192.56

Top-Five Consumer Staples Stocks--Composite Score

Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
CCE COCA-COLA ENTRP 25 -15.09 76.06
HSY HERSHEY CO/THE 47.99 -8.93 36.45
SSP EW SCRIPPS CO 10.25 -18.58 50.74
CPO CORN PROD INTL 47.04 -1.92 62.54

SNMX SENOMYX INC 7.46 -40.6 114.37

Top-Five Consumer Staples Stocks--Most Overvalued
Last 12-M
Ticker Name Mkt Price Valuation(%)
Retn(%)
DANOY GRP DANONE-ADR 12.51 300 6.29
CLMT CALUMET SPECLTY 20.96 178.69 28.91
BRFS BRF-BRASIL FOOD 16.35 87.03 30.28
CALM CAL-MAINE FOODS 33.8 69.48 18.18
DOLE DOLE FOOD CO 13.1 60.65 8.71

Subscribers can check out the latest valuation, forecast, and ratings figures on
the Consumer Staples Sector from our Models HERE.
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What's Hot---- Suttmeier in the News

Suttmeier Warns of Downside Risk, Sees Commodity Bubble
Our Chief Market Strategist made some media appearances over the past
week. Suttmeier argues that with the recent moves upward, the risk right now is to
the downside. He continues to see trouble ahead for the housing and banking
industries, and he warns that Fed policy is helping to create a speculative bubble in
commodities as investors search for yield. As always, Richard notes that investors must
be aware that even in a muddled market environment there is money to be
made. For this reason he supports the idea of "Buy and Trade" in today's markets.
 Click the two images below to watch him discuss his views on the outlook for
commodities in 2011 as well as the macro-themes he's watching for the New Year.

With Richard Suttmeier's ValuTrader Newsletter Portfolio, you get timely stock picks
and a strategy designed to profit from today's volatile market environment.
Click HERE to Sign Up for Richard Suttmeier's ValuTrader Newsletter Portfolio

With the ValuEngine Forecast Model Market Neutral Strategy Newsletter, you can
run your own portfolio like a hedge fund to manage risk and profit in any market
environment.
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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-- (3.348) This week’s pivot at 3.358 has been a magnet.
My semiannual value level at 3.479 was violated at last week’s
high yield of 3.568.

Commodities and Forex

Comex Gold-- ($1387.4) The 50-day simple moving average is $1371.8 with this
week’s risky level at $1426.1.

Nymex Crude-- ($90.48) Has been influenced by my weekly pivot at $89.61. My

semiannual value level is $83.94 with my annual risky level at $97.29.

The Euro--(1.3100) My weekly pivot is 1.3079 with quarterly pivot at 1.3318. The 200-
day simple moving average is 1.3091.

Major Indices
US stocks are overvalued fundamentally and overbought technically on both
daily and weekly charts. The major equity averages straddle weekly pivots and risky
levels at 11,496 Dow, 1250.3 SPX, 2670 NASDAQ, 5136 Dow Transports and 787.37
Russell 2000. Fifteen of sixteen sectors are overvalued according to ValuEngine with
only 37.5% of all stocks undervalued. At 35% the stock market tends to find a top. Only
17.5% of all stocks are undervalued by 20% or more.

The Dow--
Daily: (11,559) – I will not have new monthly, quarterly, semiannual and annual
value levels, pivots and risky levels until January 3, 2011, but this week’s pivot is 11,496
and today’s risky level is 11,586.
Upcoming Suttmeier Appearance
ValuEngine Chief Market Strategist Richard Suttmeier On the Road in
January
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.

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.
Merry Christmas to All !