2015 Issue #8 - Published August 26th Subscription information available at ValuEngine.com

Volatility and China-driven market sell off challenged investors for the past month and our portfolio, being long only, once againposted some losses. Our decline of 14.19% trailed the S&P loss of 11.38% by 281 bps. The trailing 12 month gain of the VE View is -18.13% versusthe S&P 500 loss of 5.75%. The return since inception of the View is 88.56% versus the S&P's gain of 64.92%.

Our sole winner for the month was Southwest Airlines. Other than that, it was a sea of red as the China currency devaluation andmarket sell off hammered stocks across the globe.

We remain convinced that the US economy is strong and getting stronger every day, but we do not know what sort of global macroeconomy we have when China falters. One thing is more certain, the chances of the US central bank raising rates in September grows moreremote the longer this correction continues. We don't think there is reason to panic, and we find little changed for the US economy beyondthese China “issues.” Given the state of the US economy, and the fact that this slide in prices makes the potential for a Fed rate-hike nextmonth less likely, we believe this dip represents a buying opportunity for investors.

Valuations have declined significantly and are looking oversold. 30.14% of the stocks we can assign a valuation are calculated to beovervalued-- with 9.61% of them calculated to be overvalued by 20% or more. You would have to go back to November, 2012 to find a periodwhen stocks were calculated to be this cheap by our valuation model. We have had a stunning run up in the markets for almost the entirety ofthe Obama Administration, but what goes up must come down. We live in an interconnected world and China has a cold. IT will take a whileto figure out how this effects a number of sectors—energy, commodities, shipping, etc. In the meantime, tighten up those stop-losses.

In our August portfolio, we turnover eleven stocks. On a sector basis the model likes Tech, Energy, and Transportation. We retain fourpositions, add five selections from our Valuation model's aggressive-growth strategy, two selections from our diversified growth strategy, andadd four new positions favored by both our aggressive and diversified growth strategies.

SteveHachSenior Editor, ValuEngine Inc.

JULY/AUGUST RESULTS Ticker Company Name Entry Price 7/16/15 Current Price Change %Change

ACCO ACCO BRANDS CP 7.68 7.19 -0.49 -6.38

CLDT CHATHAM LODGING 27.95 22.5 -5.45 -19.49

HA HAWAIIAN HOLDINGS 24.06 22.11 -1.95 -8.10

HII HUNTINGTON INGALLS 115.74 104.87 -10.87 -9.39

HT HERSHA HOSPITALITY TRUST 28.28 23.59 -4.69 -16.58

LCI LANNETT INC 61.24 46.65 -14.59 -23.82

LEA LEAR CORPORATION 103.75 95.05 -8.70 -8.39

LUV SOUTHWEST AIRLINES 33.86 36.52 2.66 7.87

MFLX MULTI-FINELINE ELECTRONIX 18.75 15.71 -3.04 -16.21

MUSA MURPHY USA INC 56.19 48.7 -7.49 -13.33

NAVI NAVIENT CORP 16.56 12.04 -4.52 -27.29

NLNK NEWLINK GENETICS 52.4 45.15 -7.25 -13.84

SPR SPIRIT AEROSYSTEMS 55.76 49.02 -6.74 -12.09

STRZA STARZ-LIBERTY CAPITAL 45.48 35.99 -9.49 -20.87

TNP TSAKOS ENERGY NAVIGATION 9.75 7.32 -2.43 -24.92

LONG PORTFOLIO -14.19

GSPC S&P500 2107.4 1867.61 -239.79 -11.38

JULY/AUGUST ALTERNATE RESULTS

Symbol Company Name Entry Price 7/16/15 Current Price Change %Change

AUO AU OPTRONCS-ADR 4.13 2.87 -1.26 -30.51

GNC GNC HOLDINGS 44.96 44.41 -0.55 -1.22

SMCI SUPER MICRO COM 25.17 24.57 -0.60 -2.38

UEPS NET 1 UEPS TECH 18.48 20.2 1.72 9.31

WU WESTERN UNION 18.96 17.81 -1.15 -6.07

LONG PORTFOLIO -6.17

GSPC S&P500 2107.4 1867.61 -239.79 -11.38

AUGUST PORTFOLIO Ticker Company Name Mkt Price Number of Shares Sector

AAWW ATLAS AIR WORLDWIDE 39.21 26 Transportation

ARR ARMOUR RESIDENTIAL REIT 20.8 48 Finance

AVGO AVAGO TECHNOLOGIES 108.51 9 Computer and Technology

BLMN BLOOMIN' BRANDS 18.82 53 Retail-Wholesale

CALM CAL-MAINE FOODS 47.76 21 Consumer Staples

HII HUNTINGTON INGALLS 104.87 10 Aerospace

LEA LEAR CORPORATION 95.05 11 Auto-Tires-Trucks

LUV SOUTHWEST AIRLINES 36.52 27 Transportation

MFLX MULTI-FINELINE ELECTRONIX 15.71 64 Computer and Technology

MIK MICHAELS COMPANIES 23.1 43 Retail-Wholesale

MYL MYLAN NV 49.11 20 Medical

SKYW SKYWEST INC 15.52 64 Transportation

TNK TEEKAY TANKERS 5.95 168 Transportation

TSO TESORO CORP 88.68 11 Oils-Energy

VLO VALERO ENERGY 57.61 17 Oils-Energy

NOTE: Monday's closing prices. Stocks in bold letters are new positions.

To summarize, we are selling: ACCO,CLDT,HA,HT,LCI,MUSA,NAVI,NLNK,SPR,STRZA, and TNP

And, we are purchasing: AAWW,ARR,AVGO,BLMN,CALM,MIK,MYL,SKYW,TNK,TSO, and VLO

AUGUST ALTERNATE SELECTIONS

Ticker Company Name MarketPrice

Valuation Last 12-MRetrn

1-MForecast

Retn

1-YrForecast

Retn

P/ERatio

Sector Name

CVG CONVERGYS CORP 21.33 -13.55% 11.44% 1.08% 12.93% 12.21 Business Services

HELE HELEN OF TROY 83.53 5.78% 44.92% 1.00% 11.96% 14.61 Consumer Staples

PCG PG&E CORP 48.96 0.04% 6.62% 0.84% 10.10% 13.03 Utilities

RTK RENTECH INC 6.31 20.59% 182.10% 1.63% 19.80% 7.01 Oils-Energy

VDSI VASCO DATA SEC 16.94 -32.24% 19.04% 1.21% 14.60% 12.55Computer and

Technology

NOTE: Stocks in bold letters are current positions. These stocks were included as a courtesy and are subject to the same rigorous research process as the primary selections. You should carefully research the stock picks provided in this newsletter for information on dividend payment schedules, mergers, stock splits, corporate actions, SEC activities, “acts of God,” etc. ValuEngine's proprietary models cannot always calculate the impact of such events on portfolio picks and all investment targets should be subjected to an additional human “sanity check.” If in doubt, use an alternate selection.

The ValuEngine View newsletter is the product of sophisticated stockvaluation and forecast models first developed by Yale Professor ofFinance Zhiwu Chen. The Valuation Model utilizes a three factorapproach: fundamental variables such as a company's trailing 12-month Earnings-Per-Share (EPS); analyst consensus estimate of thecompany's future 12-month EPS; and the 30-year Treasury yield. TheForecast Model uses proprietary and well-established forecastingvariables derived from financial research studies. Short and long-term historic factors in the VE valuation model's calculation includepast-valuation levels of the stock and its recent price-momentumfactor relative to other stocks. These considerations, applied with the

firm-specific variables, allow the model to differentiate a stock acrosssectors and within the company's own business-growth stages.

The ValuEngine View portfolio is constructed by integrating both ourAggressive Growth—based on the Valuation Model--and DiversifiedGrowth—based on the Forecast Model-- Portfolio Strategies. Theportfolio has 15 stocks and is balanced once each month. Note thatthe newsletter is published near the middle of each calendar month.An equal amount of capital is allocated to each stock. The monthlyreturns are calculated from the closing prices on date of publication.The performance calculation does not include any transaction costs.

NEW BUY AAWW ATLAS AIR WORLDWIDEAtlas Air Worldwide Holdings, Inc. is the parent company of Atlas Air and Polar Air Cargo, which together operate the world's largest fleet of Boeing freighter aircraft. AAWW is principally involved in the airport-to-airport air transportation of heavy freight cargo through itstwo operating subsidiary airlines, Atlas Air, Inc. and Polar Air Cargo, IncAAWW, through its principal subsidiaries Atlas and Polar, offers scheduled air cargo service, cargo charters, military charters, and ACMI aircraft leasing in which customers receive a dedicated aircraft, crew, maintenance and insurance on a long-term lease basis.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

39.21 -26.49% 17.15% 1.52% 18.38% 8.02 Transportation

NEW BUY ARR ARMOUR RESIDENTIAL REIT

ARMOUR Residential REIT, Inc. invests primarily inresidential mortgage-backed securities issued or guaranteed by a United States Government-chartered entity.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

20.8 -19.07% 394.06% 1.77% 21.52% 7.67 Finance

NEW BUY AVGO AVAGO TECHNOLOGIESAvago Technologies Limited is a designer, developer and global supplier of a range of analog semiconductor devices with a focus on III-V based products. III-V refers to elements fromthe 3rd and 5th groups in the periodic table of chemical elements, and examples of these materials are gallium arsenide (GaAs), gallium nitride (GaN), and indium phosphide (InP). The Company serves three primary target markets: wireless communications, which supports the wireless industry with a range of radio frequency(RF) semiconductor devices; wired infrastructure, which supplies transceivers that receive and transmit information along optical fibers, and industrial and other, which provides a range of products for the general industrial and automotive markets.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

108.51 -16.92% 43.21% 1.14% 13.75% 14.07 Computer andTechnology

NEW BUY BLMN BLOOMIN' BRANDSBloomin' Brands, Inc. is a casual dining restaurant company with a portfolio of differentiated restaurant concepts. It has five concepts: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar and Roy's. The Company offers its products and services through company owned and franchised locations throughout the United States and internationally. Bloomin' Brands, Inc. is based in Tampa, Florida.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

18.82 -23.56% 16.24% 0.87% 10.45% 15.55 Retail-Wholesale

NEW BUY CALM CAL-MAINE FOODSCal-Maine Foods, Inc. is engaged in the production, cleaning, grading, and packagingof fresh shell eggs for sale to shell egg retailers. The company is the one of the largest producers and distributors of fresh shell eggs in the United States. The company markets its eggs primarily in the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

47.76 -19.13% 23.33% 1.38% 16.62% 10.59 Consumer Staples

RETAINED HII HUNTINGTON INGALLSHuntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. The company also developsand produces warships, including destroyers, amphibious transport dock ships, and national security cutters for the surface Navy fleet, U.S. Coast Guard, U.S. Marine Corps, and foreign and commercial customers. Additionally, the company provides complex nuclear project management; safe management and handling of radiological materials and waste; and nuclear facility construction, commissioning, operations, and D&D services. Huntington Ingalls Industries (HII) is based in Newport News, Virginia.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

104.87 -14.18% 1.65% 0.80% 9.60% 13.47 Aerospace

RETAINED LEA LEAR CORPORATIONLear Corporation is a leading global supplier ofautomotive seating systems, electrical distribution systems and electronics. The seating segment consists of the manufacture, assembly and supply of vehicle seating requirements. The Company produces seat systems for automobiles and light trucks that are fully assembled and ready for installation. The electrical and electronic segment consists of the manufacture, assembly and supply of electrical and electronic systems and components for the vehicle. The Company is able to provide its customers with engineering and design solutions and manufactured systems, modules and components that optimally integrate the electrical distribution system of wiring, terminals and connectors, junction boxes and electronic modules within the overall architecture of the vehicle. Lear Corporation is headquartered in Southfield, Michigan.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

95.05 -19.99% -3.34% 0.96% 11.54% 10.08 Auto-Tires-Trucks

RETAINED LUV SOUTHWEST AIRLINESSouthwest Airlines is a major domestic airline that provides primarily shorthaul, high-frequency, point-to-point, low-fare service. Southwest operates over Boeing 737 aircraft in numerous cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall Customer Service records.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

36.52 -22.37% 13.63% 1.15% 13.89% 12.37 Transportation

RETAINED MFLX MULTI-FINELINE ELECTRONIXMulti-Fineline Electronix is a global provider of high-quality, technologically advanced flexibleprinted circuit and value-added component assembly solutions to the electronics industry.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

15.71 -32.91% 55.24% 1.60% 19.32% 10.07 Computer andTechnology

NEW BUY MIK MICHAELS COMPANIESThe Michaels Companies, Inc. is a specialty retailer of arts and crafts. The Company's storesoffer stock-keeping units in arts, crafts, scrapbooking, floral, framing, home d?cor, seasonal offerings, and children's hobbies. It produces 11 exclusive private brands includingRecollections(R), Studio Decor(R), Bead Landing(R), Creatology(R), Ashland(R), Celebrate It(R), Art Minds(R), Artist's Loft(R), Craft Smart(R), Loops & Threads(R) and Imagin8(R). The Michaels Companies, Inc. is based in Irving, Texas.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

23.1 -35.46% 47.89% 1.14% 13.76% 15.00 Retail-Wholesale

NEW BUY MYL MYLAN NVMylan NV is a pharmaceutical company. The company develops, licenses, manufactures, markets and distributes generic and specialty pharmaceuticals. It operates primarily in the United States, Canada, Europe, the Middle East, Africa, India, Australia, Japan and New Zealand. Mylan NV, formerly known as Mylan Inc., is based in Canonsburg, Pennsylvania.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

49.11 -25.31% 1.24% 0.94% 11.22% 12.61 Medical

NEW BUY SKYW SKYWEST INCSkyWest, Inc., through its wholly-owned subsidiary, SkyWest Airlines, Inc. , operates one of the larger regional airlines in the United States. SkyWest provides passenger and air freight service and completes over 880 daily flights. Pursuant to a joint marketing and code sharing agreement with Delta Airlines, Inc., SkyWest operates as a Delta Connection in certain SkyWest markets. SkyWest entered into a marketing and code sharing agreement withContinental Airlines, Inc. Which allows SkyWest to operate as a Continental Connection in certain markets in and out of Los Angeles.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

15.52 -12.96% 54.43% 1.55% 18.73% 9.43 Transportation

NEW BUY TNK TEEKAY TANKERSTeekay Tankers Ltd. is a Marshall Islands corporation recently formed by Teekay Corporation to provide international marine transportation of crude oil. Teekay Tankers Ltd. owns a fleet of nine double-hull Aframax-class oil tankers, which an affiliate of Teekay Corporation manages under a mix of spot-market trading and short- or medium-term fixed-rate time-charter contracts. In addition, Teekay Corporation will offer to Teekay TankersLtd. within eighteen months of the initial public offering the opportunity to purchase up to four Suezmax-class oil tankers. Teekay Tankers Ltd. intends to distribute on a quarterly basis all of itscash available for distribution, subject to any reserves established by its board of directors.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

5.95 -51.65% 42.69% 1.78% 21.58% 5.74 Transportation

NEW BUY TSO TESORO CORPTesoro was founded in 1968 as a company primarily engaged in petroleum exploration and production. In 1969, Tesoro began operating Alaska's first refinery near Kenai. Today, Tesoro is a FORTUNE 500 company and one of the largest independent petroleum refiners and marketers in the Western United States.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

88.68 -8.28% 36.62% 1.54% 18.64% 8.43 Oils-Energy

NEW BUY VLO VALERO ENERGYValero Energy Corporation owns and operatesrefineries in the United States and Canada witha combined throughput capacity of approximately two million BPD, making it one of the nation's top refiners of petroleum products. Valero is also one of the nation's leading retail operators with retail outlets in theUnited States and Canada under various brand names including Diamond Shamrock, Ultramar, Valero, Beacon and Total.

Market Price ValuationLast 12-M

Retrn1-M Forecast

Retn1-Yr Forecast

RetnP/E Ratio Sector Name

57.61 -10.64% 6.33% 1.35% 16.31% 6.82 Oils-Energy