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February 25, 2012

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VALUATION WATCH: Our models find that overvaluation is at levels typically seen when a market pullback may occur. Overvalued stocks now make up 62% of our universe and almost 24% of the universe is calculated to be overvalued by 20% or more. Fifteen of Sixteen sectors are calculated to be overvalued.

Repro Man
--Small Cap Pick Repros Therapeutics Jumps on FDA Action Repros Therapeutics, Inc. is a United States-based company that develops products and services for the management of reproductive health. The Company's products include: contraceptives, vaccines for prostate cancer, enhanced topical treatment for genital herpes as well as treatments for male and female sexual dysfunction. It focuses on the development of oral small molecule drugs to address major unmet medical needs in male and female health. The stock was picked for our Small Cap Stock Newsletter this month. Since inclusion in the portfolio the stock is up more than 30%.

ValuEngine Forecast
Target Price* Expected Return 3.07% 5.36% 7.18% 10.56% 12.36% 5.24%

1-Month 3-Month 6-Month 1-Year 2-Year 3-Year

13.88 14.19 14.44 14.89 15.14 14.18

Valuation & Rankings


Valuation 1-M Forecast Return 12-M Return Sharpe Ratio 5-Y Avg Annual Return Volatility Expected EPS Growth Market Cap (billions) Trailing P/E Ratio Forward P/E Ratio PEG Ratio Price/Sales Market/Book Beta Alpha 2.13% 61.90% -0.75 -66.29% 87.89% n/a 0.09 12.75 n/a n/a 1.04 0.44 1.21 0.46 Valuation Rank 1-M Forecast Return Rank Momentum Rank Sharpe Ratio Rank 5-Y Avg Annual Rtn Rank Volatility Rank EPS Growth Rank Size Rank Trailing P/E Rank Forward P/E Ratio Rank PEG Ratio Rank Price/Sales Rank Market/Book Rank Beta Rank Alpha Rank n/a 99 92 8 7 17 n/a 40 77 n/a n/a 58 91 45 92

Market Overview
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 38.02% 61.98% 15.61% 23.85%

Sector Overview
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
0.85% 0.42% 1.40% 0.77% 0.83% 0.63% 0.62% 0.79% 0.73% 0.85% 0.37% 0.64% 0.99% 0.33% 0.79% 1.32%

MTD
1.53% 0.98% -1.91% 1.77% 2.46% 0.01% 0.91% 1.79% 1.76% 2.57% 1.07% 0.85% 0.15% 2.72% 2.17% -0.32%

YTD
6.21% 7.41% 2.01% 8.34% 9.37% 8.65% 8.57% 6.72% 8.58% 8.61% 7.27% 4.49% 8.14% 10.87% 13.20% 5.51%

Valuation
5.83% overvalued 8.03% overvalued 4.08% undervalued 11.35% overvalued 12.88% overvalued 23.36% overvalued 7.41% overvalued 23.98% overvalued 17.77% overvalued 20.23% overvalued 12.60% overvalued 10.34% overvalued 3.44% overvalued 10.65% overvalued 20.86% overvalued 7.20% overvalued

Last 12MReturn
8.15% -1.77% -29.49% 9.98% 0.26% 20.62% 6.48% 11.57% 14.12% 3.64% 5.71% 11.01% -16.36% 14.63% 0.27% 6.50%

P/E Ratio
37.01 15.47 24.41 25.35 38.33 48.47 24.75 20.4 20.94 22.86 27.23 16.42 30.41 33 24.21 18.57

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