ValuEngine Weekly: Finance Stocks, Reynolds American,Chinese-Language Stock Reports,and ValuEngine Capital

8/17/2019 ValuEngine Weekly: Finance Stocks, Reynolds American,Chinese-Language Stock Reports,and ValuEngine Capital

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April 29, 2016

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VALUATION WATCH: Overvalued stocks now make up 47!!" o# ourstocks ass$%ned a valuat$on and &'()" o# t*ose e+u$t$es are calculated to,e overvalued ,- (." or more /even sectors are calculated to ,eovervalued

MARKET OVERVIEW

Inde0 /tarted week 1r$da- 23 C*an%e C*an%e " -td

5IA %&(") %&&*+ 6(!)4 6&!!" &))"

NA/A8 ),%"), )&&,"), 6&&!.. 6(!&" 6497"

U//;LL (... %%)"+ %%+,"+ 6&7!4 6&9&" 6.'&"

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SECTOR OVERVIEW

/ector C*an%e 3T =T Valuat$on Last &(63eturn

2>;at$o

Aerospace -%"(+/ .")*/ -%".&/ %"))/ overvalued -&"&,/ +(")

Auto6T$res6Trucks -%"),/ (")/ +".,/ ".*/ undervalued -%"+%/ %+".&

?as$c 3ater$als ("),/ %+"%&/ .)"(,/ ++"&+/ overvalued &"&*/ +".

?us$ness /erv$ces -(")(/ %")(/ ,"*&/ +"))/ overvalued -%("(/ ++"++

Computer and Tec*nolo%- -%")/ ("&/ "+%/ %"&%/ undervalued -"(/ +",,

Construct$on -%"(+/ ."./ %"%/ %"+/ undervalued -"**/ ++")%

Consumer $scret$onar- -(")./ %"&/ ."(/ .",)/ undervalued -")/ +*"%%

Consumer /taples ("(,/ %")/ *"/ %("*/ overvalued -+"&)/ +."

1$nance -("&/ +",%/ %"(%/ %")%/ undervalued -"*)/ %*"&)

Industr$al 2roducts -%".*/ ."/ &",/ ,"%/ overvalued -%+"()/ %"&.

3ed$cal -("&/ *"+/ -+"),/ ,"/ undervalued -%,",/ +&"++

3ult$6/ector Con%lomerates -("&/ %"(/ "+)/ "&,/ overvalued -")/ %&"&

O$ls6;ner%- -("*/ %."%)/ %+")/ "((/ overvalued -.)",+/ +.",+

eta$l6W*olesale -%"%)/ (")*/ ("/ *"*/ undervalued -%"%*/ ++"*.

Transportat$on -(")+/ *"(+/ *"&&/ &".&/ undervalued -+&"*(/ %."&&

Ut$l$t$es -(".)/ -("(+/ "/ &",)/ overvalued -)",+/ ++",)

Sector Talk—FiaceBelow, we present the latest data on leading Finance Sector stocks from our

2ro#ess$onal /tock Anal-s$s /erv$ce We applied some basic liquidity criteria--share

price greater than $3 and aerage daily olume in e!cess of "##k shares We haebeen following the sector closely of late because it has been correlated so tightly tooerall equity price moes

Top61$ve 1$nance /ector /tocks66/*ort6Term 1orecast eturns

T$cker Compan- Name 3arket 2r$ce Valuat$on Last &(63 etrn

L@IH 01I 234E5 I67 +&"% 689 %",/

A/2/ 90TI53:;7E


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Top61$ve 1$nance /ector /tocks66Lon%6Term 1orecast eturns

T$cker Compan- Name 3arket 2r$ce Valuat$on Last &(63 etrn

L@IH 01I 234E5 I67 +&"% 689 %",/

A/2/ 90TI53:;7E ;@ .,"% *&".&/ %+"*&/

?1 >9673 =;967-9?; ++"(% *&"+*/ ,"),/

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4/8

Free !o"loa# $or Rea#er% (s a 0onus to our Free Weekly #ewsletter su0scri0ers,

we are offering a F.EE $W#&$( of one of our Stock .eports

%eynolds &merican 'nc (%&) is the parent company of %* %eynolds +obacco

ompany, Santa Fe atural +obacco ompany, 'nc, .ane .imited and %* %eynolds/lobal 0roducts, 'nc %* %eynolds +obacco ompany, the second- largest 1Stobacco company, manufactures about one of eery three cigarettes sold in the

1nited States, including fie of the nation2s "# best-selling brands amel, Winston,455., Salem and 6oral Santa Fe atural +obacco ompany, 'nc manufacturesatural &merican Spirit cigarettes

7alu8ngine continues its B19 recommendation on %895.6S &:8% for ;#" Based on the information we hae gathered and our resulting research, we feelthat %895.6S &:8% has the probability to 51+08%F5%: aerage market

performance for the ne!t year +he company e!hibits &++%&+'78 Sharpe %atio andompany Si?e

.ead our 1omplete etailed Valuation .eport on .eynolds (merican H;;

Valu;n%$ne 1orecast

Target

Price*

8!pected%eturn

1!onth "#$%& #


5/8

Valuat$on < ank$n%s

-aluation &"$%&. overvalue/ -aluation Ran023 >>

1! 4orecast Return $%. 1! 4orecast Return Ran0 C#

1+! Return +#$&. !o5entu5 Ran0 23 C"6har7e Ratio 1$++ 6har7e Ratio Ran023 CC

) 8vg 8nnual Return +$'+. ) 8vg 8nnual Rtn Ran0 C=

-olatility 1($1. -olatility Ran023 >"

E97ecte/ EP6 :rowth 1#$%1. EP6 :rowth Ran023 @C

!ar0et Ca7 billions3 +%$+ 6i;e Ran0 C<

Trailing P


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+he endorHs stock- and industry-leel reports are created using an automated

process that inserts data into pre-written blocks of te!t, selected by the program froma multitude of pre-written narratie choices based on the data

.ast year, 7alu8ngine decided to begin producing hinese-language reports

to respond to demand from hinese inestors for access to inestment opportunitiesin 1S stocks, and because seeral key company e!ecutiesEfounder Ihiwu hen,ice president of research and deelopment 9ongJian Ihan, and Dong 4ong-based

inestor &llen DuieEare hinese, Denneman says

+he endor creates the hinese reports in the same way as its 8nglish-language

reports, by importing data into the same pre-written passages of te!t, translated intohinese 7alu8ngine proides both the 8nglish and hinese ersions to Sogo+rade,along with two 8nglish-language monthly inestment newsletters written by analyst

and business deelopment e!ecutie Stee Dach Because these commentaries arewritten fresh each month, they cannot be automatically translated in the same wayas the daily reports, so 7alu8ngine proides these in 8nglish for Sogo+rade to translate

for its hinese-speaking clients

K& focus of Sogo+rade is hinese inestors in the 1S, and much of its user base is

natie hinese speakers, so it has staff whose function is specifically to translatecontent into hinese,L Denneman says

'n addition, 7alu8ngine will also make its reports aailable ia 7alu8ngine &sset

:anagement, a Dong 4ong-based asset management firm owned by 7alu8ngineHsinestors and headed by managing director Duie, and will leerage his contacts andlocal e!pertise gained oer 3# years of e!perience in the inestment banking and

finance industries to promote the reports

+hough the endor is primarily seeking to distribute its hinese-language

research ia distribution partners, Denneman says the reports proide een greateralue when combined with a full-serice asset management business that cane!ecute the strategies on behalf of inestors, such as 8aluated apital

:anagement, the 1S full-serice inestment firm that 7alu8ngine set up earlier thisyear

'n the future, 7alu8ngine plans to e!pand its coerage to proide stock reports

for other markets by replicating the same automated model K't takes work, but wecan adapt our model for any market,L he says, adding that the endor alreadyproides reports for anadian stocks K1ltimately, we want to coer all the maJor

markets, each in multiple languagesL

=) !8> =?@IE

8PRIL 1', +1%

http://www.waterstechnology.com/tag/chinahttp://www.sogotrade.com/http://www.vam.hk/http://www.vam.hk/http://www.waterstechnology.com/author/659/max-bowiehttp://www.waterstechnology.com/tag/chinahttp://www.sogotrade.com/http://www.vam.hk/http://www.vam.hk/http://www.waterstechnology.com/author/659/max-bowie


7/8

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7alu8ngine 7iew Strategy +he 7alu8ngine 7iew Strategy is the product of a

sophisticated stock aluation model that was first deeloped by7alu8ngine2s academic research team 't utili?es a three factor approachfundamental ariables such as a company2s trailing ";-month 8arnings-0er-

Share (80S), the analyst consensus estimate of the company2s future ";-month 80S, and the 3#-year +reasury yield are all used to create a moreaccurate reflection of a company2s fair alue & total of eleen additional

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7alu8ngine2s Forecast :odel +his model was deeloped by a team of 0h62sand is based on the cutting edge economic theories of Wall Street

professionals and 'y .eague academics We carefully e!amine do?ens offundamental and technical factors for oer >,### indiidual stocks,synthesi?e the data, and then come up with a sector-dierse list of our bestand worst forecast "-month return stocks Short and long-term historic

factors in the 78 Forecast model2s calculation include past-aluation leelsof the stock and its recent price-momentum factor relatie to other stocks+he 7alu8ngine :arket eutral Strategy utili?es Forecast :odel outputs


8/8

along with market capitali?ation, price, and sector diersification rules toconstruct a monthly portfolio made up of "< stocks for both the long andshort sides

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ValuEnginecom is an independent research provider, producing 0uy;hold;sell recommendations, target price, and valuations on over 5,444

Documents

ValuEngine Weekly: Finance Stocks, Reynolds American,Chinese-Language Stock Reports,and ValuEngine Capital