June 30, 2011

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Lucky 7
ValuEngine Forecast 16 MNS Alt Long Pick 7 Days Group (SVN,$SVN) up 19%
Since inception, the ValuEngine Forecast 16 MNS Portfolio Newsletter has provided a return of more than 60% while achieving a better Sharpe and Sortino ratios than the S&P 500. In addition, the ValuEngine Forecast Model MNS Portfolio Newsletter beats the S&P 500's overall volatility and had a maximum draw down that was @66% less. The ValuEngine Forecast 16 Market Neutral Strategy Newsletter is based on one of our most tested and researched market approaches, the VE Diversified Growth Benchmark Strategy. It uses our Forecast Model to provide the same sort of long-short equity portfolio utilized by major hedge funds and institutions without the hefty management and performance fees. Market neutral strategy (MNS) portfolios offer the potential of decent, steady returns in both good markets and bad. For the last three years, the ValuEngine Forecast 16 Model MNS portfolio has provided the highest returns of any of our benchmark portfolio strategies. The ValuEngine Diversified Growth 16 Market Neutral Strategy Newsletter offers the investor capable of running a short side access to increased performance with lower overall volatility and hedged risk. Currently, our longs for the month have gained more than 7% vs the S&Ps 5.7%-since May 18th. In addition to primary selections, subscribers also receive alternate picks for each sector in case they wish to eliminate a primary pick or run a larger portfolio. Overall, 9 picks of the 32 total selections (both primary and alternate picks) currently show double digit gains.

The biggest gainer for this month's alternate selections is the Chinese ADR from the Consumer Discretionary Sector, 7 Days Group (SVN). SVN is up more than 19% right now.
Position Long 2 Ticker SVN Company Name 7 DAYS GRP-ADR Entry Price 05/18/2011 17 Current Price 20.29 Change 3.29 %Change 19.35 Sector CONSUMER DISCRETIONARY

Click HERE to Sign Up for ValuEngine's Best Performing Newsletter 7 Days Group Holdings Limited is a hotel chain based in China. It converts and operates limited service economy hotels across metropolitan area in China under its 7 Days Inn brand. Two important drivers of its business are 7 Days Club and eCommerce platform, which is supported by their integrated proprietary information technology. The Company's eCommerce platform allows its guests to make reservations through various electronic reservation channels, receive confirmations and make payments in real time. Its IT system, with its centralized database, integrates and links each hotel's local management system with the Company's central network, and provides its management with real-time financial, operating and reservation information. ValuEngine has issued a BUY recommendation for 7 DAYS GRP-ADR on Jul. 06, 2011. Based on the information we have gathered and our resulting research, we feel that 7 DAYS GRP-ADR has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE momentum, expected EPS growth and company size. Based on available data as of Jul. 06, 2011, we believe that SVN should be trading at $20.44. This makes SVN 2.17% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For SVN, we base this on actual earnings per share (EPS) for the previous four quarters of $0.35, forecasted EPS for the next four quarters of $0.67, and correlations to the 30- year Treasury bond yield of 4.40%.

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 48.35% 51.65% 19.86% 19.48%

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
-0.14% -0.15% 0.91% -0.05% -0.07% 0.57% -0.06% -0.19% -0.37% 0.31% 0.02% -0.11% 0.26% 0.16% -0.78% -0.17%

MTD
-0.09% -0.06% 1.01% 0.01% 0.04% 1.38% 0.00% -0.14% -0.30% 0.37% 0.09% -0.07% 0.30% 0.22% -0.70% -0.15%

YTD
15.85% -4.72% -4.52% 9.53% 8.32% -8.99% 4.04% -5.43% 3.16% 5.30% 14.52% 3.77% 0.07% 9.01% -3.39% 6.27%

Valuation
5.67% overvalued 3.06% overvalued 4.06% undervalued 4.86% overvalued 1.67% overvalued 4.01% undervalued 1.00% overvalued 4.89% overvalued 0.82% overvalued 0.90% overvalued 0.13% overvalued 26.13% overvalued 17.21% overvalued 5.19% overvalued 12.91% overvalued 8.69% overvalued

Last 12MReturn
39.94% 62.88% 56.15% 26.24% 40.68% 11.85% 35.70% 23.67% 18.76% 42.47% 30.06% 43.87% 48.42% 40.33% 28.28% 29.66%

P/E Ratio
19.19 20.15 34.76 28.14 39.01 29.11 32.44 31.95 28.04 29.45 30.37 26.45 56.17 35.2 22.75 24.02