September 2, 2016

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VALUATION WATCH: Overvalued stocks now make up 46.09% of our

stocks assigned a valuation and 13.9% of those equities are calculated to
be overvalued by 20% or more. Eight sectors are calculated to be
overvalued.
MARKET OVERVIEW
Index

Started week

Friday PM

Change

Change %

ytd

DJIA

18421.29

18459.36

38.07

0.21%

5.94%

NASDAQ

5223.8

5239.95

16.15

0.31%

4.64%

RUSSELL 2000

1238.32

1247.64

9.32

0.75%

9.84%

S&P 500

2170.19

2175.92

5.73

0.26%

6.46%

Summary of VE Stock Universe

Stocks Undervalued

53.91%

Stocks Overvalued

46.09%

Stocks Undervalued by 20%

21.97%

Stocks Overvalued by 20%

13.90%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

0.74%

0.84%

0.23%

1.02% overvalued

2.93%

18.42

Auto-Tires-Trucks

0.26%

0.29%

4.80%

8.62% undervalued

5.60%

15.26

Basic Materials

0.69%

0.77%

45.26%

0.25% undervalued

58.47%

31.26

Business Services

0.32%

0.38%

12.56%

1.14% undervalued

1.73%

24.89

Computer and Technology

0.30%

0.36%

15.49%

2.68% overvalued

10.13%

29.85

Construction

0.23%

0.28%

28.64%

3.45% undervalued

13.46%

20.39

Consumer Discretionary

0.24%

0.29%

9.04%

2.35% undervalued

2.70%

24.06

Consumer Staples

0.07%

0.10%

10.87%

3.81% overvalued

16.10%

23.77

Finance

-0.09%

-0.06%

7.17%

0.07% undervalued

7.47%

16.33

Industrial Products

-0.02%

0.01%

15.99%

4.32% overvalued

10.82%

23.14

Medical

-0.21%

-0.15%

0.26%

10.63% undervalued

-13.53%

27.16

Multi-Sector Conglomerates

-0.21%

-0.19%

8.70%

18.71% overvalued

12.55%

20.7

Oils-Energy

0.10%

0.20%

14.95%

2.89% overvalued

-9.42%

25.33

Retail-Wholesale

0.11%

0.18%

2.11%

9.34% undervalued

-2.07%

22.54

Transportation

-0.14%

-0.09%

11.48%

1.18% overvalued

-13.96%

15.32

Utilities

-0.06%

-0.02%

10.41%

0.06% overvalued

16.41%

21.59

Sector TalkComputers and Tech

Below, we present the latest data on leading Computers and Tech Sector
stocks from our Professional Stock Analysis Service. We applied some basic liquidity
criteria--share price greater than $3 and average daily volume in excess of 100k
shares. We have been following the sector closely of late because it has been
correlated so tightly to overall equity price moves.

Top-Five Computers and Tech Sector Stocks--Short-Term Forecast

Returns
Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

MXL

MAXLINEAR INC-A

19.52

-5.09%

101.65%

SANM

SANMINA CORP

26.72

-5.37%

41.83%

LPL

LG DISPLAY-ADR

13.35

0.30%

38.92%

CYOU

CHANGYOU.COM

24.3

-5.66%

27.56%

KLAC

KLA-TENCOR CORP

70.74

-4.68%

47.28%

Top-Five Computers and Tech Sector Stocks--Long-Term Forecast

Returns
Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

MXL

MAXLINEAR INC-A

19.52

-5.09%

101.65%

SANM

SANMINA CORP

26.72

-5.37%

41.83%

LPL

LG DISPLAY-ADR

13.35

0.30%

38.92%

CYOU

CHANGYOU.COM

24.3

-5.66%

27.56%

KLAC

KLA-TENCOR CORP

70.74

-4.68%

47.28%

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

WIN

WINDSTREAM HLDG

8.63

-62.97%

16.46%

LPL

LG DISPLAY-ADR

13.35

0.30%

38.92%

KLAC

KLA-TENCOR CORP

70.74

-4.68%

47.28%

SANM

SANMINA CORP

26.72

-5.37%

41.83%

AMAT

APPLD MATLS INC

30.29

-4.25%

95.55%

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

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

RNET

RIGNET INC

12.12

300.00%

-56.36%

ANGI

ANGIES LIST INC

10.2

170.30%

100.39%

AMD

ADV MICRO DEV

7.35

115.72%

329.82%

AOSL

ALPHA&OMEGA SEM

21.37

115.18%

190.75%

MXWL

MAXWELL TECH

5.09

108.91%

-0.78%

Find out what Wall Street Investment and Media Professionals already know,
ValuEngine offers sophisticated stock valuation and forecast research as well as a
variety of portfolio screening and creation tools.

Free Download for Readers

As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports
EU regulators dropped a bomb on Apple this week with a demand that the
company pay Ireland more than $14 billion in back taxes covering the period of 20032014. The company did not technically evade these payments, they had an
agreement with the government of Ireland to avoid them as part of a deal to base
the company in that country. EU rules forbid member states from providing such tax
breaks to corporations.
Apple had a real sweet-heart deal with Ireland. The tech darling managed to
pay miniscule annual tax rates which varied between 0.0005-1% for the period
covered by the agreements. EU anti-trust official Margrethe Vestager noted that "The
commissions investigation concluded that Ireland granted illegal tax benefits to
Apple, which enabled it to pay substantially less tax than other businesses over many
years."
This back tax penalty is the largest ever levied by the EU and it has ramifications
for many big firms that have used tactics such as "inversion" and other loopholes to
move to EU member states and avoid taxation. While the actual payment will
probably be held up in court for years, it will surely put many big corporations on
notice that their efforts to avoid paying the tax man may come back to bite them in
the long-term.
Of course, the massive $14 billion back tax payment sounds substantive, but the
reality is that Apple is highly profitable in Europe and in the most recent quarter alone
their profits were almost $8 billion. But, the company plans to fight this tax bill and in
the meantime will place the money demanded by the EU into an escrow account.
Apple Inc. (AAPL) is engaged in designing, manufacturing and marketing
mobile communication and media devices, personal computers, and portable digital
music players. The Company's products and services include iPhone, iPad, Mac, iPod,
Apple TV, a portfolio of consumer and professional software applications, the iOS and
Mac OS X operating systems, iCloud, and a range of accessory, service and support
offerings. It sells its products worldwide through its online stores, its retail stores, its
direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in
Cupertino, California.

ValuEngine continues its HOLD recommendation on APPLE INC for 2016-09-01.

Based on the information we have gathered and our resulting research, we feel that
APPLE INC has the probability to ROUGHLY MATCH average market performance for
the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE
Book Market Ratio.
You can download a free copy of detailed report on Apple Inc. (AAPL) from the link
below.
Read our Complete Detailed Valuation Report on Apple HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

106.81

0.08%

3-Month

107.43

0.66%

6-Month

107.76

0.97%

1-Year

107.72

0.93%

2-Year

116.98

9.60%

3-Year

111.52

4.48%

Valuation & Rankings

Valuation

4.61% undervalued

Valuation Rank(?)

1-M Forecast Return

0.08%

1-M Forecast Return Rank

12-M Return

-0.92%

Momentum Rank(?)

Sharpe Ratio

0.51

Sharpe Ratio Rank(?)

5-Y Avg Annual Return

13.15%

5-Y Avg Annual Rtn Rank

Volatility

25.63%

Volatility Rank(?)

Expected EPS Growth

3.35%

EPS Growth Rank(?)

Market Cap (billions)

621.68

Size Rank

Trailing P/E Ratio

12.79

Trailing P/E Rank(?)

Forward P/E Ratio

12.37

Forward P/E Ratio Rank

PEG Ratio

3.81

PEG Ratio Rank

Price/Sales

2.82

Price/Sales Rank(?)

Market/Book

5.28

Market/Book Rank(?)

Beta

1.11

Beta Rank

Alpha

-0.17

Alpha Rank

56
57
40
80
81
64
28
100
84
71
11
35
24
38
31

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