ValuEngine Weekly: Health Care Stocks, GGAL, Chinese Stock reports, and ValuEngine Capital

8/18/2019 ValuEngine Weekly: Health Care Stocks, GGAL, Chinese Stock reports, and ValuEngine Capital

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April 22, 2016

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VALUATION WATCH: Overvalued stocks now make up 46!"# o$ ourstocks ass%&ned a valuat%on and '(44# o$ t)ose e*u%t%es are calculated to+e overvalued +, "-# or more .even sectors are calculated to +eovervalued

MARKET OVERVIEW

Inde/ .tarted week 0r%da, 12 C)an&e C)an&e # ,td

3IA %&()"* %&(++"* (4-- -5-# "!#

NA.3A7 +(%(", +%".. 859' 8-99# 8"('#

U..;LL "--- %%*("&* %%+*"(+ '5"" ''9# -6"#

.


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SECTOR OVERVIEW

.ector C)an&e 2T3 =T3 Valuat%on Last '"82eturn

1>;at%o

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

Auto8T%res8Trucks -)".,/ %"./ ,"*,/ "*/ undervalued -%.")+/ %*"+,

?as%c 2ater%als -)")%/ %%"%/ ,*"&+/ *%"+%/ overvalued ".*/ *&",

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

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

Construct%on -)")/ ,"&/ %("%/ )"+%/ undervalued -+"*/ *%")

Consumer 3%scret%onar, -)"%,/ %",&/ ,",./ ,"(/ undervalued -%)".,/ *+

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

0%nance -)"+)/ *".*/ )"&&/ %"&+/ undervalued -"*,/ %."

Industr%al 1roducts -)",/ +"*/ ",&/ ".&/ overvalued -%%")/ %("((

2ed%cal )".)/ "&/ -%",/ &"*)/ undervalued -*)"*)/ *"%

2ult%8.ector Con&lomerates -)"*)/ *"%/ &")*/ &"%+/ overvalued -&",*/ %&".

O%ls8;ner&, )"%/ ("&%/ %*"**/ ."*/ overvalued -,"+,/ *,"%.

eta%l8W)olesale -)"&/ )"(/ %")(/ .",/ undervalued -%+".,/ **"+,

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

Ut%l%t%es -%")*/ -)"/ "%(/ ")/ overvalued -+"),/ **"(%

Sector Talk—Health CareBelow, we present the latest data on leading Health Care Sector stocks from

our 1ro$ess%onal .tock Anal,s%s .erv%ce We applied some basic liquidity criteria--

share price greater than $ and a!erage daily !olume in e"cess of #k shares% Weha!e been following the sector closely of late because it has been correlated sotightly to o!erall equity price mo!es%

Top80%ve Healt) Care .ector .tocks88.)ort8Term 0orecast eturns

T%cker Compan, Name 2arket 1r%ce Valuat%on Last '"82 etrn

01@ 0IVE12I3E T4E25 +"(, 675 (",./

.CLN 89I9:;6E 145235 %*"( 675 ++")/

AH. 536 4:T492 8V98 ,."& -."+,/ +&")+/

T. T2I1:E-8 3


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Top80%ve Healt) Care .ector .tocks88Lon&8Term 0orecast eturns

T%cker Compan, Name 2arket 1r%ce Valuat%on Last '"82 etrn

01@ 0IVE12I3E T4E25 +"(, 675 (",./

.CLN 89I9:;6E 145235 %*"( 675 ++")/AH. 536 4:T492 8V98 ,."& -."+,/ +&")+/

T. T2I1:E-8 3


4/8

ree !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

&rupo 'inanciero &alicia S(% )&&(*+ is in!ol!ed in the 'inancial Ser!ices

ndustry% heir principal acti!ity is to continue to be a financial and in!estmentser!ices holding company and to fulfill the banking ser!ices acti!ities of Banco&alicia%

.alu/ngine continues its S012& B34 recommendation on &0351 &(*C (60for 7#8-9-7#% Based on the information we ha!e gathered and our resultingresearch, we feel that &0351 &(*C (60 has the probability to 135/0'10:

a!erage market performance for the ne"t year% he company e"hibits (0(C./

:omentum and 5;/ 0atio%

.ead our 1omplete etailed Valuation .eport on 'rupo Financiaro 'alicia H;;

Valu;n&%ne 0orecast

Target

Price*

/"pected0eturn

1!onth "1#"1 #%9<

"!onth "$#%& =%7><'!onth "(#&1 #%#8<

1)ear "'#1 #?%79<

$)ear (+% 7%<

")ear (1#(' 9%7>


5/8

Valuat%on < ank%n&s

aluation "$#1(- overvalue. aluation Ran/02 #

1! 3orecast Return 1#("- 1! 3orecast Return Ran/ #

1$! Return (%4- !o5entu5 Ran/ 02 >96har7e Ratio "1 6har7e Ratio Ran/02 ?@

%) 8vg 8nnual Return 1'#(%- %) 8vg 8nnual Rtn Ran/ >#

olatility %$#&- olatility Ran/02 9

E97ecte. EP6 :rowth 1%#1&- EP6 :rowth Ran/02 #9

!ar/et Ca7 0billions2 (#&1 6i;e Ran/ @

Trailing P

What'& Hot

Val(E#)i#e I# The *e"&

Editor's 6oteA The 0ollowing 5rticle Was 1osted =y WatersTechnology This Week

Val(E#)i#e +o"& Chi#e&e-a#)(a)e Report&

Stock !aluation and forecasting pro!ider .alu/ngine has begun producingChinese-language !ersions of its daily stock reports, and has partnered with 2ew

4ork-based online broker Sogorade, and set up a Hong Aong subsidiary to distributethe reports to Chinese institutions and in!estors%

.alu/ngine produces #7-page 56' reports e!ery day for around 9,# 3S stocksusing two distinct modelsa !aluation model, and a forecast model that uses the!aluation model but also deli!ers short- and long-term forecasts of whether a stock is

o!er- or under-!alued% he !endor then uses the outputs of these models to createmarket strategies% he reports are distributed !ia third parties, including homson0euters, Bloomberg, :arkit, Con!erg/" aywalk and SD5 &lobal :arket ntelligence)formerly known as SD5 Capital E+, says .alu/ngine president and chief e"ecuti!e

5aul Henneman%

http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.waterstechnology.com/inside-market-data/news/2454872/valuengine-bows-chinese-language-reportshttp://www.waterstechnology.com/inside-market-data/news/2454872/valuengine-bows-chinese-language-reportshttp://www.valuengine.com/http://www.waterstechnology.com/tag/valuationhttp://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.valuengine.com/ve/ValuationSummary?sym=GGAL#http://www.waterstechnology.com/inside-market-data/news/2454872/valuengine-bows-chinese-language-reportshttp://www.valuengine.com/http://www.waterstechnology.com/tag/valuation


6/8

he !endorFs stock- and industry-le!el reports are created using an automatedprocess that inserts data into pre-written blocks of te"t, selected by the program froma multitude of pre-written narrati!e choices based on the data%

*ast year, .alu/ngine decided to begin producing Chinese-language reportsto respond to demand from Chinese in!estors for access to in!estment opportunities

in 3S stocks, and because se!eral key company e"ecuti!esfounder Ghiwu Chen,!ice president of research and de!elopment 4ongian Ghan, and Hong Aong-basedin!estor (llen Huieare Chinese, Henneman says%

he !endor creates the Chinese reports in the same way as its /nglish-languagereports, by importing data into the same pre-written passages of te"t, translated intoChinese% .alu/ngine pro!ides both the /nglish and Chinese !ersions to Sogorade,

along with two /nglish-language monthly in!estment newsletters written by analystand business de!elopment e"ecuti!e Ste!e Hach% Because these commentaries arewritten fresh each month, they cannot be automatically translated in the same way

as the daily reports, so .alu/ngine pro!ides these in /nglish for Sogorade to translatefor its Chinese-speaking clients%

I( focus of Sogorade is Chinese in!estors in the 3S, and much of its user base isnati!e Chinese speakers, so it has staff whose function is specifically to translatecontent into Chinese,J Henneman says%

n addition, .alu/ngine will also make its reports a!ailable !ia .alu/ngine (sset:anagement, a Hong Aong-based asset management firm owned by .alu/ngineFsin!estors and headed by managing director Huie, and will le!erage his contacts and

local e"pertise gained o!er years of e"perience in the in!estment banking and

finance industries to promote the reports%

hough the !endor is primarily seeking to distribute its Chinese-languageresearch !ia distribution partners, Henneman says the reports pro!ide e!en greater!alue when combined with a full-ser!ice asset management business that can

e"ecute the strategies on behalf of in!estors, such as /!aluated Capital:anagement, the 3S full-ser!ice in!estment firm that .alu/ngine set up earlier thisyear%

n the future, .alu/ngine plans to e"pand its co!erage to pro!ide stock reportsfor other markets by replicating the same automated model% It takes work, but we

can adapt our model for any market,J he says, adding that the !endor alreadypro!ides reports for Canadian stocks% I3ltimately, we want to co!er all the maormarkets, each in multiple languages%J

=) !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

Val(E#)i#e Capital Mo#e. Ma#a)e/e#t Serice&

We are pleased to announce that .alu/ngine Capital has begun trading for

our clients% .alu/ngine Capital, a registered in!estment ad!isory firm, offers our clientsin!estment-management ser!ices based on industry-leading .alu/ngine research%.alu/ngine Capital melds the cutting-edge financial theory of .alu/ngineKs award-winning quantitati!e independent research with the best real-world Wall St% practices%

.alu/ngine Capital offers refined in!estment portfolios for in!estors of all risk-rewardprofiles%

.alu/ngine Capital is offering three in!estment strategies to clients, the.alu/ngine .iew Strategy, the .alu/ngine :arket 2eutral Strategy, and the.alu/ngine 6i!ersified Strategy%

.alu/ngine .iew StrategyL he .alu/ngine .iew Strategy is the product of a

sophisticated stock !aluation model that was first de!eloped by.alu/ngineKs academic research team% t utiliMes a three factor approachLfundamental !ariables such as a companyKs trailing #7-month /arnings-5er-

Share )/5S+, the analyst consensus estimate of the companyKs future #7-month /5S, and the -year reasury yield are all used to create a moreaccurate reflection of a companyKs fair !alue% ( total of ele!en additional

firm specific !ariables are also used% he .alu/ngine .iew portfolio isconstructed by integrating both our (ggressi!e &rowthbased on the.aluation :odel--and 6i!ersified &rowthbased on the 'orecast :odel--

5ortfolio Strategies%

Professional Portfolio Management Services

he .alu/ngine .iew Strategy is constructed by integrating this model alongwith some basic rules for market capitaliMation and industry di!ersification%

he portfolio has #= stocks and is rebalanced once each month%(utomatically rade 1ur 5ortfolio Strategies .alu/ngine :arket 2eutralStrategyL he .alu/ngine :arket 2eutral Strategy is the product of

.alu/ngineKs 'orecast :odel% his model was de!eloped by a team of 5h6Ksand is based on the cutting edge economic theories of Wall Street

professionals and !y *eague academics% We carefully e"amine doMens offundamental and technical factors for o!er @, indi!idual stocks,synthesiMe the data, and then come up with a sector-di!erse list of our bestand worst forecast #-month return stocks% Short and long-term historic

factors in the ./ 'orecast modelKs calculation include past-!aluation le!elsof the stock and its recent price-momentum factor relati!e to other stocks%he .alu/ngine :arket 2eutral Strategy utiliMes 'orecast :odel outputs


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along with market capitaliMation, price, and sector di!ersification rules toconstruct a monthly portfolio made up of #8 stocks for both the long andshort sides%

Strategies )o Suit (ll Investor )ypeshe .alu/ngine 6i!ersified StrategyL he .alu/ngine 6i!ersified Strategyin!ests in a !ariety of asset classes in order to pro!ide in!estors with stablereturns and a high- di!idend yield coupled with significantly lower risk than

single-asset products% he .alu/ngine 6i!ersified Strategy may include /'sfocused on commodities, stock indices, 0/S, bonds, emerging markets,and other suitable products% By reaping the benefits of di!ersification, the

.alu/ngine 6i!ersified Strategy seeks to remain resilient during times ofmarket !olatility% he .alu/ngine 6i!ersified Strategy is designed for in!estorsseeking management for their 0( and other retirement funds as well as

those whose risk-profile is not suitable for our other strategies%

Please contact us if you would like to put the power of ValuEngine to work for you at our new full"service money management firm""

ValuEngine 1apital

For more information, please contact us 0y email at

info2ValuEngine1apitalcom or 0y phone at 3+456 748"9:8:

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

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ValuEngine Weekly: Health Care Stocks, GGAL, Chinese Stock reports, and ValuEngine Capital