From 1982 to 1988, he notes, the use of conventional valuation ratios was effective in the U.S. market.

FORBES: One ratio does not fit all

This was a premature signal as the Dow high was 14, 198 in October 2007, but the ValuEngine Valuation Warning was still effective for Dow sellers between 11, 285 and 14, 198.

FORBES: Time To Book Profits On Overvalued Dow Components

Our valuation is contingent on how effective the turnaround is and the growth potential of its new business lines and we will be watching these closely.

FORBES: HP's Earnings: Restructuring And Weak PC Market Will Be A Drag