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May 12, 2003 Can ValuEngine Inc. help restore Wall Street's credibility? Miami: On December 20, 2002, a settlement to resolve conflict of interest charges was reached between the office of New York State's Attorney General and ten major Wall Street firms. A significant element included a commitment by ten of the largest investment banking and brokerage firms of $450 million to secure independent research sources for securities analysis and market forecasting. This news immediately got the attention of Paul Henneman, President of ValuEngine Inc. (http://www.ValuEngine.com), an independent stock valuation and forecasting firm with offices in Miami FL and Norwalk CT. "ValuEngine is ideally positioned to fulfill the independent analytical role these firms now require," said Henneman, reached by telephone at his Miami office. "We've been providing valuation and forecasting data to institutional and private investors in the U.S. and Asia since 1996. And, because we're privately owned by the developers of our fully quantitative valuation and forecasting models, we're beholden to no one." ValuEngine was co-founded in 1997 by Dr. Zhiwu Chen, professor of finance at Yale University's School of Management, and Dr. Chia-yu Chang, a former student of Dr. Chen's. The firm uses proprietary quantitative analytical models developed by Chen, Chang and two graduate assistants over a four-year period of intensive research and testing. A unique characteristic of the ValuEngine system is a computer modeled fair value for stocks that fluctuates in real time. "This enables us," said Henneman, "to see how the market is mispricing a stock at any given moment, and spot under and over-valued stocks on a continual basis." Asked how a firm could maintain its independence while being paid a large fee to evaluate thousands of portfolios, Henneman pointed out that "objectivity and independence are inherent in the fully quantitative system we use. These are not accounting based models, although we do integrate traditional fundamentals into our result. The system uses a parametrical platform of eleven price influential variables, each of which is independently quantified in the VE stock valuation model. Then computers write the reports. Computers produce only facts, not opinions. You can't get more independent than that. The approach has resulted in extremely positive returns." Research results can be viewed on www.ValuEngine.com. ValuEngine's financial reports on over 5,000 companies are available at: http://www.VEReports.com Research is also available as a subscription on: http://www.ValuEngine.com
Backtesting results, benchmark portfolios, and more information on the models is all available at: http://www.ValuEngine.com
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