December 27, 2016

VALUATION WARNING: Overvalued stocks now make up 65.84% of our stocks assigned a valuation and 34.71% of those equities are calculated to be overvalued by 20% or more. Fifteen sectors are calculated to be overvalued.

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Fill The Tank

--ValuEngine Upgrade List Sees Fairpoint Communications In The Lead

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities.  When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

We combine all of the equities with a valuation calculation to track market valuation figures and use them as a metric for making calls about the overall state of the market.  Two factors can lower these figures-- a market pullback, or a significant rise in EPS estimates.

We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

For today's edition of our upgrade list, we used our website's advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. Fairpoint Communications (FRP) is our top-rated upgrade this week and it is a STRONG BUY. The other components of our top-five this week are also rated BUY. We did not jhave enough upgrades that met met minimum liquidity requirements with full valuation data so Cambridge Bancorp (CATC) was included to fill out our list.

Below is today's data on Fairpoint Communications (FRP):

FairPoint Communications, Inc. operates as a provider of communications services to rural and small urban communities, primarily in northern New England. Services offered by the Company includes including local and long distance voice, data, Internet, television and broadband services. The Company operates local exchange companies and also offers video services to its customers by reselling DirectTV content and providing cable and IP television video over digital subscriber line (DSL). FairPoint Communications, Inc. is headquartered in Charlotte, North Carolina.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from BUY to STRONG BUY for Fairpoint Communications on 2016-12-23. Based on the information we have gathered and our resulting research, we feel that Fairpoint Communications has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Sharpe Ratio.

You can download a free copy of detailed report on Fairpoint Communications (FRP) from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	19.51	1.10%
3-Month	19.76	2.40%
6-Month	19.97	3.47%
1-Year	21.86	13.25%
2-Year	21.18	9.74%
3-Year	21.31	10.44%

Valuation & Rankings
Valuation	8.16% overvalued	Valuation Rank(?)	54
1-M Forecast Return	1.10%	1-M Forecast Return Rank	98
12-M Return	20.62%	Momentum Rank(?)	66
Sharpe Ratio	0.85	Sharpe Ratio Rank(?)	90
5-Y Avg Annual Return	25.09%	5-Y Avg Annual Rtn Rank	93
Volatility	29.40%	Volatility Rank(?)	55
Expected EPS Growth	-134.80%	EPS Growth Rank(?)	2
Market Cap (billions)	0.52	Size Rank	55
Trailing P/E Ratio	4.31	Trailing P/E Rank(?)	99
Forward P/E Ratio	n/a	Forward P/E Ratio Rank	n/a
PEG Ratio	n/a	PEG Ratio Rank	n/a
Price/Sales	0.62	Price/Sales Rank(?)	80
Market/Book	n/a	Market/Book Rank(?)	n/a
Beta	0.26	Beta Rank	73
Alpha	-0.11	Alpha Rank	29

DOWNLOAD A FREE SAMPLE OF OUR FAIRPOINT COMMUNICATIONS (FRP) REPORT BY CLICKING HERE

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