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February 28, 2011

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in agreement tmples. A quan

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ExclusiveWe had the precent VALUthe event andAfter eleven Oakcliff Cappartners and partnered wiOakcliff full-be confining.

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e Interviewpleasure of speUEx in Zurich/Kd are pleased years as a ba

ital, in 2004 inCEOs of the p

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will be a markertners, we thinr a two-year loWe also have usually great peat sources of a partner who

something, is

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nies with too mthe investmennt was made. Twe have foun

ed Investors

of 170

rence at the Bryan after

interview. partnership, e capital of 010, Bryan returned to mpanies to

What goals d you since

pital for my ers’ wealth So a goal

nts (though pass up on

mize returns you quickly cially on an

ent capital, he plate all

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do anything rced to do age at the much debt. ts with the That is not nd, in both

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“At the investment pbasic quest

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ple who act lis it cheap;

is it cheap.”

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al is for the which it has urns to limitedurns have beeh cash balancert enough to hoough the crashsses, have a clehe bank to take

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ouble-digit ll fees and e than 90% they were rtfolio. We experience ant to own e, and have otherwise.

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example was Glargest onlin

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Akre CapitaChuck Akre hafollows a value

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ny / Ticker

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ch he founded er’s specialty is

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Atlantic InvAlexander Roep“family-oriente

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2 ITT Corp

3 Owens Il

4 Oshkosh

5 TRW Aut

6 Crown H

7 Lubrizol /

8 LyondellB

9 Stanley B

10 PolyOne

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1 Owens Illi

2 ITT Corp.

3 Energizer

4 Raytheon

5 FMC Corp

6 Xerox / XR

7 Oshkosh /

8 TRW Auto

9 Solutia / S

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Price

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69.76

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© 2008-2011 by Beyond

Bares CapitBrian Bares stacompanies. Thestrategies. Baredisciplined busauthor of The S

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2 Winmark

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4 Stratasys

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6 Travelzoo

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8 American

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Baupost (SeSeth Klarman, respected valueannual return o

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1 Theravan

2 Alere / A

3 AVEO Ph

4 ViaSat / V

5 News Co

6 PDL BioP

7 Ituran Lo

8 Multimed

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2 News Cor

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4 CapitalSo

5 Alere / AL

6 Enzon Pha

7 BreitBurn

8 Regenero

9 Alliance O

10 Ituran Loc

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ny / Ticker

nce / THRX

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harma / AVEO

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orp. / NWSA

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arma / ENZN

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p Current Idea

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377

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1,665

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316

360

$1.7 billion

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18x

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by Seth Klarman mathe chart or tables.

SUBSCRIBE TODA

e Baupost Grouception in Febr

as of Baupos

Price

Recent ($) D

22.50

37.99

13.89

41.25

17.71

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Value

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41.25

17.71

22.50

7.78

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ay be invested in n.

AY! www.manualo

up, is the authoruary 1983, Th

st

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n/m n/m

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n/m

6.9x

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© 2008-2011 by Beyond

Berkshire HWarren Buffettnvestor of all t

companies with

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1 Wells Fa

2 Comdisc

3 Kraft Foo

4 Coca-Co

5 Procter &

6 Washing

7 American

8 Wesco F

9 USG / US

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1 Coca-Cola

2 Wells Farg

3 American

4 Procter &

5 Kraft Food

6 Johnson &

7 Wesco Fin

8 ConocoPh

9 Wal-Mart /

10 U.S. Banc

New Position

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Median P/E (ne

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* A large portion of are not publicly trad


Hathaway (Wt has built an untime. Buffett hah durable comp

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ny / Ticker

rgo / WFC

o / CDCO

ods / KFT

ola / KO

& Gamble / PG

ton Post / WPO

n Express / AXP

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SG

& Johnson / JNJ

s of Berkshir

y / Ticker

a / KO

go / WFC

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Gamble / PG

ds / KFT

& Johnson / JNJ

nancial / WSC

hillips / COP

/ WMT

corp / USB

ns

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erved.

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p Current Idea

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($mn)

171,319

35

53,993

149,887

179,988

3,811

54,807

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J 167,824

re Hathaway

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($mn)

149,887

171,319

54,807

179,988

53,993

167,824

2,785

112,572

197,263

54,787

$54 billion

93%

$38 billion

$69 billion

14x

13x

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value may be attribore not shown in the

SUBSCRIBE TODA

ffett) vestment track long term-orieage, high retur

as of Berksh

Price

Recent ($) D

32.64

8.65

30.91

64.55

64.30

451.17

45.53

391.18

18.73

61.11

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Recent ($) De

64.55

32.64

45.53

64.30

30.91

61.11

391.18

76.62

55.38

28.56


uted to holdings the chart or tables.

AY! www.manualo

record over seented investmenrns on capital e

hire Hathawa

Shar


5% 342,62

-4% 1,53

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-2% 200,00

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dely regarded ais on investing riendly manage

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17x 15x

16x 15x

19x 21x

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n/a n/a

n/m n/m

13x 12x

P/E (Est.) P

This Next TFY FY

17x 15x

12x 9x

12x 11x

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14x 12x

13x 12x

n/a n/a

11x 10x

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e's / LOW

o Holding / NLC

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ed Investors

of 170

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3.4x

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©

BJG M

T

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G

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* p

© 2008-2011 by Beyond

Blue Ridge (John Griffin waGriffin became

MOI Signal R

Compan

1 Amazon.

2 Valeant P

3 Express

4 Western

5 NRG Ene

6 Covanta

7 Cablevis

8 PennyMa

9 BP / BP

10 TAL Edu

Top Holdings

Company

1 JPMorgan

2 Amazon.c

3 Apple / AA

4 Valeant P

5 Discovery

6 Express S

7 BP / BP

8 Citrix Syst

9 Western U

10 Crown Ca

New Position

Cablevision / CVC

General Motors /

Howard Hughes /

vanhoe Energy /

Northeast Bancor

Portfolio Met

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Median market

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(John Griffias a merchant b

e president of T

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ny / Ticker

com / AMZN

Pharma / VRX

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/ CVA

ion / CVC

ac Mortgage / PM

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s of Blue Rid

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n Chase / JPM

com / AMZN

APL

harma / VRX

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tems / CTXS

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stle / CCI

ns

C

GM

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7 QEP Res

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BRB M

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Breeden CapRichard C. BreBreeden Capita

MOI Signal R

Compan

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2 Flowserv

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4 Stanley B

5 ValueClic

6 Iron Mou

7 EMCOR

8 Bally Tec

9 Zale / ZL

10 Hillenbra

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2 Steris / ST

3 Helmerich

4 Aon / AON

5 Dun & Bra

6 EMCOR G

7 Hillenbran

8 Bally Tech

9 Flowserve

10 Stanley Bl

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SUBSCRIBE TODA

n) mer Chairman o

fund applies a

as of Breede

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35.16

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35.16

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of the U.S. Secuconcentrated,

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8 Best Buy

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4 Calamos A

5 Terra Nov

6 Vonage / V

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AY! www.manualo

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2 Molson C

3 CBS / CB

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5 CME Gro

6 Viacom /

7 Walt Disn

8 Visa / V

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1 Viacom / V

2 Walt Disne

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5 Molson Co

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7 Microsoft /

8 Altera / AL

9 News Cor

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SUBSCRIBE TODA

ork-based Eaglbillion in assetnies that trade a

as of Eagle C

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F

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© 2008-2011 by Beyond

Edinburgh PSandy Nairn fofamed investor

MOI Signal R

Compan

1 Zimmer H

2 Cisco Sy

3 Petroleo

4 Applied M

5 D.R. Hor

6 Bank of A

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8 Eastman

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2 Petroleo B

3 Time Warn

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ystems / CSCO

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SUBSCRIBE TODA

n) tment style. He

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AY! www.manualo

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© 2008-2011 by Beyond

ESL InvestmEddie Lampert,Rubin at the arbnvestor Richarargest investm

engineered the Sears Holdings

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3 CIT Grou

4 Gap / GP

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6 H&R Bloc

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9 Genworth

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ment was the mumerger of Km

s (SHLD). He a

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SUBSCRIBE TODA

mber of ESL Invchs. When he leounded ESL’s

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as of ESL Inv

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vestments, is aeft Goldman tocapital at ratesl of Kmart duricurrently chairm

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22% 62,227

24% 7,366

-8% 3,563

6% 10,863

-7% 6,440

4% 2,838

-9% 3,848

22% 400

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a value investoro start ESL in 1s of more than ing Kmart’s ba

rman and chief ip, which holds

res Owned

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0 0% 4

0 -10% 2

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8 new <

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r Weightings

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r who started o1988, he receiv25% per annum

ankruptcy procf capital allocats a concentrate

Holdings as % of

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42% 21%

44% 43%

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44% 43%

26% 28%

42% 21%

2% 4%

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s

*



out working unved the supportm for many yecess in 2002. Ltor of the combed investment p

P/E (Est.)

This Next FY FY

n/a n/a

12x 11x

22x 17x

12x 12x

10x 10x

10x 9x

19x 17x

72x 82x

12x 8x

14x 12x

P/E (Est.) P

This Next TFY FY

72x 82x

14x 12x

19x 17x

10x 10x

22x 17x

12x 8x

12x 11x

12x 12x

n/a n/a

10x 9x

ed Investors

of 170

nder Bob t of Texas ears. His Lampert bined firm, portfolio.

Price/ Tang. Book

2.2x

4.0x

1.0x

3.4x

1.9x

n/m

7.0x

2.7x

.6x

n/m

Price/ Tang. Book

2.7x

n/m

7.0x

1.9x

1.0x

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4.0x

3.4x

2.2x

n/m

©

FPra M

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n

© 2008-2011 by Beyond

Fairfax (PrePrem Watsa is reinsurance firmas an astute val

MOI Signal R

Compan

1 Overstoc

2 Johnson

3 Level 3 C

4 Frontier C

5 Kraft Foo

6 Baldwin &

7 USG / US

8 MBIA / M

9 Research

10 Hologic /

Top Holdings

Company

1 Johnson &

2 Dell / DEL

3 Internation

4 Level 3 Co

5 SandRidg

6 Frontier C

7 Kraft Food

8 Wells Farg

9 Research

10 USG / US

New Position

AbitibiBowater / AEXCO Resources

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang


* A large portion of not publicly traded a


em Watsa) the founder, chm. While manalue investor. So

Rank™ – Top

ny / Ticker

ck.com / OSTK

& Johnson / JNJ

Comms / LVLT

Comms / FTR

ods / KFT

& Lyons / BWINB

SG

MBI

h In Motion / RIM

HOLX

s of Fairfax –

y / Ticker

& Johnson / JNJ

LL

nal Coal / ICO

omms / LVLT

e Energy / SD

omms / FTR

ds / KFT

go / WFC

In Motion / RIMM

G

ns

ABH s / XCO

trics *

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value

t value

s FY)

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Fairfax’s asset valuand are therefore n

erved.

hairman and CEaging Fairfax’some have calle

p Current Idea

Market Value

($mn)

330

J 167,824

2,437

9,402

53,993

B 353

1,927

2,408

MM 36,587

5,376

– By Dollar V

Market Value

($mn)

167,824

29,784

1,939

2,437

3,609

9,402

53,993

171,319

M 36,587

1,927

$2.4 billion

88%

$7.8 billion

$35 billion

14x

13x

2.0x


ue may be attributenot shown in the ch

SUBSCRIBE TODA

EO of Fairfax s investment poed him “Warren

as of Fairfax

Price

Recent ($) D

14.33

61.11

1.46

9.46

30.91

24.31

18.73

12.05

69.86

20.61

Value

Price

Recent ($) De

61.11

15.43

9.51

1.46

8.92

9.46

30.91

32.64

69.86

18.73


ed to holdings that art or tables.

AY! www.manualo

(Toronto: FFHortfolio over thn Buffett of Ca

x

Shar


-13% 3,38

-1% 6,88

49% 139,27

-3% 18,62

-2% 5,36

3% 97

11% 6,79

1% 3

20% 2,06

10% 2

Share


-1% 6,884

14% 22,702

23% 22,578

49% 139,276

22% 21,308

-3% 18,620

-2% 5,366

5% 4,512

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11% 6,794

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H), a Canadianhe past couple oanada.”

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76 0%

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r Weightings

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Holdings as % of

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2% 7%

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alty insurance atsa has built a

P/E (Est.)

This Next FY FY

36x 30x

13x 12x

n/m n/m

19x 23x

14x 12x

24x 16x

n/m n/m

n/m n/m

n/a n/a

17x 15x

P/E (Est.)

This Next FY FY

13x 12x

9x 9x

15x 8x

n/m n/m

>99x >99x

19x 23x

14x 12x

12x 9x

n/a n/a

n/m n/m

ed Investors

of 170

and a reputation

Price/ Tang. Book

>9.9x

6.8x

n/m

n/m

n/m

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3.6x

1.0x

5.8x

n/m

Price/ Tang. Book

6.8x

>9.9x

2.6x

n/m

3.0x

n/m

n/m

2.2x

5.8x

3.6x

©

FBdra M

T

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A

B

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P

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© 2008-2011 by Beyond

Fairholme (Bruce Berkowidecade. From inreturn, net of exannualized perf

MOI Signal R

Compan

1 General

2 AIG / AIG

3 MBIA / M

4 Bank of A

5 Morgan S

6 Sears Ho

7 St. Joe /

8 Regions

9 CIT Grou

10 Berkshire

Top Holdings

Company

1 AIG / AIG

2 General G

3 Sears Hol

4 Bank of A

5 Morgan St

6 Citigroup /

7 Berkshire

8 Goldman S

9 Regions F

10 CIT Group

New Position

AT&T / T

Banco Santander

General Growth /

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



(Bruce Berkoitz, manager ofnception on Dexpenses, of 253formance of 13

Rank™ – Top

ny / Ticker

Growth / GGP

G

MBI

America / BAC

Stanley / MS

oldings / SHLD

JOE

Financial / RF

up / CIT

e Hathaway / BR

s of Fairholm

y / Ticker

Growth / GGP

dings / SHLD

merica / BAC

tanley / MS

/ C

Hathaway / BRK

Sachs / GS

Financial / RF

p / CIT

ns

r / STD

/ GGP

trics *

portfolio

value

t value

s FY)

xt FY)

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erved.

kowitz) f The Fairholmecember 29, 193%, versus a re3.4% and -0.9%

p Current Idea

Market Value

($mn)

19,896

74,675

2,408

148,756

46,933

10,234

2,603

9,785

8,667

RK.A 210,308

me – By Dolla

Market Value

($mn)

74,675

19,896

10,234

148,756

46,933

142,677

K.A 210,308

85,909

9,785

8,667

Royal Dutch S

Verizon / VZ

$16 billion

78%

$12 billion

$61 billion

12x

13x

2.0x


SUBSCRIBE TODA

me Fund, has be999 through Deeturn of -9%, b% for The Fairh

as of Fairhol

Price

Recent ($) D

15.76

41.51

12.05

14.75

30.99

93.03

28.10

7.79

43.28

127,640

ar Value

Price

Recent ($) De

41.51

15.76

93.03

14.75

30.99

4.91

127,640

168.04

7.79

43.28

Shell / RDS.A


AY! www.manualo

een one of the mecember 31, 20

before expenseholme Fund an

lme

Shar


2% 113,60

-14% 44,28

1% 38,45

11% 92,14

14% 38,58

26% 14,91

29% 26,78

11% 124,45

-8% 19,99

6%

Share


-14% 44,286

2% 113,600

26% 14,918

11% 92,140

14% 38,582

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6% 9

0% 5,889

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most successfu009, The Fairhs, for the S&P

nd the S&P 500

res Owned

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Weightings

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ul value-orienteholme Fund del

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<1% 7%

<1% 7%

1% 6%

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s

*



ed investors oflivered a cumuhis translates inctively.

P/E (Est.)

This Next FY FY

n/m 53x

n/m 40x

n/m n/m

11x 8x

11x 10x

72x 82x

n/m n/m

n/m 13x

22x 17x

19x 19x

P/E (Est.) P

This Next TFY FY

n/m 40x

n/m 53x

72x 82x

11x 8x

11x 10x

11x 9x

19x 19x

10x 9x

n/m 13x

22x 17x

ed Investors

of 170

f the past ulative nto

Price/ Tang. Book

>9.9x

>9.9x

1.0x

1.3x

1.3x

2.7x

3.0x

1.4x

1.0x

2.1x

Price/ Tang. Book

>9.9x

>9.9x

2.7x

1.3x

1.3x

1.1x

2.1x

1.4x

1.4x

1.0x

©

FR M

T

N

F

G

J

L

R

P

* p

© 2008-2011 by Beyond

Force CapitaRobert Jaffe fou

MOI Signal R

Compan

1 Goldman

2 J.C. Pen

3 Copart /

4 Bank of A

5 First Indu

6 Foster W

7 Shutterfly

8 Sears Ho

9 SL Green

10 AutoNatio

Top Holdings

Company

1 Sears Hol

2 J.C. Penn

3 Copart / C

4 Goldman S

5 Bank of A

6 First Indus

7 AutoNatio

8 SL Green

9 Shutterfly

10 Foster Wh

New Position

Foster Wheeler /

Goldman Sachs /

J.C. Penney / JC

Lockheed Martin

RAIT Financial Tr

Portfolio Met

Portfolio size

Top 10 as % of

Median mar et

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



al (Robert Junded Force C

Rank™ – Top

ny / Ticker

n Sachs / GS

ney / JCP

CPRT

America / BAC

ust. Realty / FR

Wheeler / FWLT

y / SFLY

oldings / SHLD

n Realty / SLG

on / AN

s of Force Ca

y / Ticker

dings / SHLD

ey / JCP

CPRT

Sachs / GS

merica / BAC

st. Realty / FR

n / AN

Realty / SLG

/ SFLY

heeler / FWLT

ns

FWLT

/ GS

P

/ LMT

rust / RAS

trics *

portfolio

value

t value

s FY)

xt FY)

gible book


erved.

Jaffe) Capital Manage

p Current Idea

Market Value

($mn)

85,909

8,759

3,404

148,756

743

4,911

1,217

10,234

5,802

5,127

apital Manag

Market Value

($mn)

10,234

8,759

3,404

85,909

148,756

743

5,127

5,802

1,217

4,911

Scholastic / S

Shutterfly / S

SodaStream

TechTarget /

$259 million

75%

$1.4 billion

$16 billion

19x

16x

2.4x


SUBSCRIBE TODA

ement in 2002 a

as of Force C

Price

Recent ($) D

168.04

37.02

41.41

14.75

11.65

39.48

42.80

93.03

74.10

34.39

gement – By

Price

Recent ($) De

93.03

37.02

41.41

168.04

14.75

11.65

34.39

74.10

42.80

39.48

SCHL

FLY

/ SODA

TTGT


AY! www.manualo

after eight year

Capital Mana

Shar


0% 10

15% 55

11% 48

11% 1,10

-44% 1,26

14% 21

23% 24

26% 68

10% 14

22% 35

Dollar Value

Share


26% 680

15% 550

11% 480

0% 100

11% 1,104

-44% 1,267

22% 350

10% 146

23% 245

14% 216

Sold O

BJ's Who

Jack In T

McClatch

Sonic Co

Wabash

Sector

des es.

Value-oriented Eq

ofideas.com

rs at Steven Co

agement

res Owned

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00 new

50 new

80 >100%

04 51%

67 >100%

16 new

45 new

80 3%

46 >100%

50 >100%

e

es Owned

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0 3% <

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0 >100% <

0 new <

4 51% <

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0 >100% <

6 >100% <

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Out Positions

olesale Club / BJ

The Box / JACK

hy / MNI

orp. / SONC

National / WNC

r Weightings

quity Investment Id

ohen’s hedge fu

Holdings as % of

Co. Fund*

<1% 6%

<1% 8%

<1% 8%

<1% 6%

2% 6%

<1% 3%

<1% 4%

<1% 24%

<1% 4%

<1% 5%

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<1% 24%

<1% 8%

<1% 8%

<1% 6%

<1% 6%

2% 6%

<1% 5%

<1% 4%

<1% 4%

<1% 3%

s

Winth

*



fund SAC Capi

P/E (Est.)

This Next FY FY

10x 9x

24x 21x

19x 16x

11x 8x

n/m 14x

n/a n/a

54x 40x

72x 82x

>99x 98x

19x 17x

P/E (Est.)

This Next FY FY

72x 82x

24x 21x

19x 16x

10x 9x

11x 8x

n/m 14x

19x 17x

>99x 98x

54x 40x

n/a n/a

hrop Realty / FU

ed Investors

of 170

ital.

Price/ Tang. Book

1.4x

1.8x

3.9x

1.3x

.9x

6.5x

4.8x

2.7x

1.3x

7.0x

Price/ Tang. Book

2.7x

1.8x

3.9x

1.4x

1.3x

.9x

7.0x

1.3x

4.8x

6.5x

R

©

GJs M

T

N

S

W

P

* p

© 2008-2011 by Beyond

Gates CapitJeff Gates has 2spending 10+ y

MOI Signal R

Compan

1 Snap-on

2 Copart /

3 Vishay P

4 Bed Bath

5 Zimmer H

6 Interval L

7 W.R. Gra

8 Dover Do

9 KAR Auc

10 Quanex B

Top Holdings

Company

1 Copart / C

2 Solutia / S

3 Blount Inte

4 Eagle Mat

5 Snap-on /

6 Zimmer H

7 Interval Le

8 Darling / D

9 Bed Bath

10 Gap / GPS

New Position

Snap-on / SNA

W.R. Grace / GR

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



tal (Jeff Gat25+ years of exyears in high yi

Rank™ – Top

ny / Ticker

/ SNA

CPRT

recision / VPG

h & Beyond / BBB

Holdings / ZMH

Leisure / IILG

ace / GRA

owns Gaming / D

ction / KAR

Building / NX

s of Gates Ca

y / Ticker

CPRT

SOA

ernational / BLT

terials / EXP

SNA

oldings / ZMH

eisure / IILG

DAR

& Beyond / BBB

S

ns

A

trics *

portfolio

value

t value

s FY)

xt FY)

gible book


erved.

tes) xperience identield bond resea

p Current Idea

Market Value

($mn)

3,572

3,404

224

BY 12,946

12,583

993

2,879

DDE 115

2,061

728

apital – By D

Market Value

($mn)

3,404

3,032

744

1,374

3,572

12,583

993

1,694

Y 12,946

14,161

$676 million

63%

$2.7 billion

$4.4 billion

16x

14x

3.0x


SUBSCRIBE TODA

tifying undervaarch and sales,

as of Gates C

Price

Recent ($) D

61.28

41.41

16.80

50.82

63.73

17.39

39.40

3.56

15.23

19.41

Dollar Value

Price

Recent ($) De

41.41

24.90

15.46

31.08

61.28

63.73

17.39

14.51

50.82

23.05


AY! www.manualo

alued securitieincluding as a

Capital

Shar


8% 63

11% 1,68

-11% 1,16

3% 58

19% 53

8% 1,93

12% 73

5% 2,81

10% 1,88

2% 1,03

Share


11% 1,688

8% 2,588

-2% 3,126

10% 1,441

8% 631

19% 534

8% 1,933

9% 2,265

3% 587

4% 1,287

Sold O

Armstron

USG / US

Sector

des es.

Value-oriented Eq

ofideas.com

s. He started thdirector at Sch

res Owned

nt from 0) Sep. 30

31 new

88 48%

63 25%

87 2%

34 27%

33 2%

36 new

2 0%

87 55%

39 30%

es Owned

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8 48%

8 -18%

6 -29%

-1%

new

4 27% <

3 2%

5 -12%

7 2% <

7 -8% <

Out Positions

ng World / AWI

SG

r Weightings

quity Investment Id

he ECF Value hroder & Co.

Holdings as % of

Co. Fund*

1% 6%

2% 10%

9% 3%

<1% 4%

<1% 5%

3% 5%

1% 4%

9% 1%

1% 4%

3% 3%

Holdings as % of T

Co. Fund*

2% 10%

2% 10%

6% 7%

3% 7%

1% 6%

<1% 5%

3% 5%

2% 5%

<1% 4%

<1% 4%

s

*



Fund in 1996 a

P/E (Est.)

This Next FY FY

15x 13x

19x 16x

21x 14x

17x 15x

14x 12x

23x 21x

13x 13x

10x n/a

15x 14x

29x 20x

P/E (Est.) P

This Next TFY FY

19x 16x

11x 10x

19x 14x

56x 47x

15x 13x

14x 12x

23x 21x

23x 14x

17x 15x

12x 12x

ed Investors

of 170

after

Price/ Tang. Book

9.0x

3.9x

1.4x

3.4x

5.3x

n/m

n/m

1.0x

n/m

2.0x

Price/ Tang. Book

3.9x

n/m

n/m

4.3x

9.0x

5.3x

n/m

8.7x

3.4x

3.4x

©

GLf M

T

N

AABCCG

P

* p

© 2008-2011 by Beyond

Glenview (LLarry Robbins fund utilizes va

MOI Signal R

Compan

1 Life Tech

2 Flextronic

3 McKesso

4 Tyco Inte

5 CVS Car

6 AIG / AIG

7 Microsoft

8 Lab Corp

9 Baxter In

10 Clearwire

Top Holdings

Company

1 Life Techn

2 McKesson

3 Express S

4 Fidelity Na

5 Flextronics

6 Tyco Inter

7 Thermo Fi

8 CVS Care

9 Aon / AON

10 Xerox / XR

New Position

Aetna / AET Apollo Group / APBaxter InternationComputer SciencCorning / GLW General Motors /

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



Larry Robbinfounded Glenv

arious value-or

Rank™ – Top

ny / Ticker

hnologies / LIFE

cs / FLEX

on / MCK

ernational / TYC

remark / CVS

G

t / MSFT

p. of America / LH

nternational / BAX

e / CLWR

s of Glenview

y / Ticker

nologies / LIFE

n / MCK

Scripts / ESRX

ational / FIS

s / FLEX

rnational / TYC

isher / TMO

emark / CVS

N

RX

ns

POL nal / BAX ces / CSC

GM

trics *

portfolio

value

t value

s FY)

xt FY)

gible book


erved.

ins) view after workiented investm

p Current Idea

Market Value

($mn)

10,160

6,399

20,504

22,423

44,922

74,675

227,369

H 9,052

X 30,902

1,372

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2 Spectrum

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4 Crosstex

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6 Harbinge

7 Constella

8 Corn Pro

9 Media Ge

10 New Yor

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3 Corn Prod

4 Crosstex E

5 Cliffs Natu

6 New York

7 Harbinger

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9 Radian Gr

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SUBSCRIBE TODA

rtners in 2001 ion investments

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Price/ Tang. Book

1.1x

n/m

3.1x

n/m

3.8x

6.1x

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3.8x

n/m

n/m

Price/ Tang. Book

n/m

3.1x

3.8x

n/m

3.8x

n/m

6.1x

1.0x

1.1x

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©

HKdf M

T

N

F

P

* p

© 2008-2011 by Beyond

Hawkshaw Kian Ghazi co-disconnect betwform investmen

MOI Signal R

Compan

1 Electroni

2 Corporat

3 Constant

4 The Knot

5 Gold Min

6 AnnTaylo

7 SPDR Go

8 Abercrom

9 Universa

10 Frozen F

Top Holdings

Company

1 Symantec

2 Electronic

3 Dell / DEL

4 Aviat Netw

5 Corporate

6 Abercromb

7 Constant C

8 The Knot /

9 Frozen Fo

10 IAC/InterA

New Position

FalconStor Softw

Portfolio Met

Portfolio size

Top 10 as % of

Median mar et

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



(Kian Ghaz-founded long/sween near-termnt theses on ind

Rank™ – Top

ny / Ticker

c Arts / ERTS

e Executive / EX

t Contact / CTCT

t / KNOT

ners ETF / GDX

or Stores / ANN

old Trust / GLD

mbie & Fitch / AN

al Technical / UTI

Food Express / F

s of Hawksha

y / Ticker

c / SYMC

Arts / ERTS

LL

works / AVNW

Executive / EXB

bie & Fitch / ANF

Contact / CTCT

/ KNOT

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ActiveCorp / IACI

ns

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value

t value

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m market expecdividual compa

p Current Idea

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6,446

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361

6,765

1,392

54,611

NF 5,173

I 441

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aw Capital –

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($mn)

14,181

6,446

29,784

379

BD 1,417

F 5,173

893

361

EX 83

3,205

$155 million

81%

$1.1 billion

$6.1 billion

19x

15x

2.5x


SUBSCRIBE TODA

ent partnership ctations and lonanies.

as of Hawks

Price

Recent ($) D

19.28

41.31

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10.51

58.98

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Price

Recent ($) De

18.58

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AY! www.manualo

Hawkshaw in nger-term intrin

haw Capital

Shar


18% 89

10% 31

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tments in whicepth primary re

P/E (Est.)

This Next FY FY

29x 22x

25x 22x

48x 34x

70x 46x

n/a n/a

18x 15x

n/a n/a

21x 15x

14x 13x

n/a n/a

P/E (Est.) P

This Next TFY FY

13x 12x

29x 22x

9x 9x

n/m 18x

25x 22x

21x 15x

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n/a n/a

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ed Investors

of 170

h there is a esearch to

Price/ Tang. Book

5.9x

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7.4x

2.2x

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2.9x

1.4x

2.8x

4.4x

1.0x

Price/ Tang. Book

n/m

5.9x

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2.8x

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2.2x

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©

HJ M

T

N

K

S

T

P

* p

© 2008-2011 by Beyond

Hound PartJonathan Auerb

MOI Signal R

Compan

1 Liberty In

2 W.R. Gra

3 SemGrou

4 Liberty S

5 Valeant P

6 Carter's /

7 TiVo / TIV

8 Kronos W

9 EchoStar

10 Covanta

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Company

1 W.R. Grac

2 TransDigm

3 Liberty Int

4 Ensco / ES

5 Liberty Sta

6 Compass

7 Valeant P

8 EchoStar /

9 Carter's / C

10 SemGroup

New Position

Kronos Worldwid

SemGroup / SEM

TiVo / TIVO

Portfolio Met

Portfolio size

Top 10 as % of

Median mar et

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



tners (Jonatbach is a “Tige

Rank™ – Top

ny / Ticker

nteractive / LINTA

ace / GRA

up / SEMG

tarz / LSTZA

Pharma / VRX

/ CRI

VO

Worldwide / KRO

r / SATS

/ CVA

s of Hound P

y / Ticker

ce / GRA

m / TDG

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SV

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Minerals / CMP

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/ SATS

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p / SEMG

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p Current Idea

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$425 million

80%

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17x

15x

5.2x


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bach) g received an e

as of Hound

Price

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17.41

39.40

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71.90

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10.41

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y Dollar Valu

Price

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39.40

81.50

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AY! www.manualo

early-stage inve

Partners

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10% 2,31

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on.

P/E (Est.)

This Next FY FY

17x 23x

13x 13x

n/a n/a

17x 16x

n/a n/a

12x 13x

n/m n/m

20x 15x

67x 56x

33x 30x

P/E (Est.) P

This Next TFY FY

13x 13x

20x 17x

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17x 16x

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n/a n/a

67x 56x

12x 13x

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er-One / PWER

con Technology

ed Investors

of 170

Price/ Tang. Book

n/m

n/m

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9.9x

n/m

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/ RBCN

©

ICp

B M

T

N

N

P

* p

**

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© 2008-2011 by Beyond

Icahn CapitaCarl Icahn is anpublishes an ac

Below we show

MOI Signal R

Compan

1 Chesape

2 Amylin P

3 Lions Ga

4 Hain Cele

5 Biogen Id

6 Genzyme

7 Mentor G

8 Take-Tw

9 Enzon Ph

10 Lawson S

Top Holdings

Company

1 Biogen Ide

2 Genzyme

3 Chesapea

4 Amylin Ph

5 Lions Gate

6 Mentor Gr

7 Hain Cele

8 Take-Two

9 Lawson S

10 Regenero

New Position

Navistar / NAV

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang


* A large portion of other than Icahn Ca


tal (Carl Icahn activist invesctivist investing

w public equity

Rank™ – Top

ny / Ticker

eake Energy / CH

Pharma / AMLN

ate / LGF

estial / HAIN

dec / BIIB

e / GENZ

Graphics / MENT

o / TTWO

harma / ENZN

Software / LWSN

s of Icahn Ca

y / Ticker

ec / BIIB

/ GENZ

ake Energy / CHK

harma / AMLN

e / LGF

raphics / MENT

stial / HAIN

/ TTWO

oftware / LWSN

n Pharma / REG

ns

trics *

portfolio

value

t value

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assets controlled bapital LP and are th

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ahn) stor with a longg blog entitled

holdings disclo

p Current Idea

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HK 19,899

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16,295

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666

N 1,703

apital – By D

Market Value

($mn)

16,295

19,523

K 19,899

2,344

837

1,592

1,328

1,392

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GN 3,372

$4.0 billion

88%

$2.7 billion

$6.7 billion

22x

17x

2.7x


by Carl Icahn may bherefore not shown

SUBSCRIBE TODA

g track record oThe Icahn Rep

osed by Icahn

as of Icahn C

Price

Recent ($) D

30.43

16.28

6.12

30.88

67.64

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Recent ($) De

67.64

75.38

30.43

16.28

6.12

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30.88

16.28

10.41

37.48


be attributed to entin the chart or tabl

AY! www.manualo

of success agitaport at www.ic

Capital LP. Ce

Capital

Shar


17% 20,88

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forming compa

ed by Carl are

P/E (Est.)

This Next FY FY

10x 11x

n/m n/m

n/a n/a

24x 21x

12x 11x

18x 15x

22x 17x

19x 16x

n/m n/m

21x 17x

P/E (Est.) P

This Next TFY FY

12x 11x

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n/m n/m

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ed Investors

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anies. Carl

excluded.

Price/ Tang. Book

1.6x

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n/m

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6.6x

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4.9x

2.0x

n/m

Price/ Tang. Book

6.6x

4.4x

1.6x

6.8x

n/m

8.7x

>9.9x

4.9x

n/m

6.4x

©

LYC M

T

N

B

C

M

P

* p

© 2008-2011 by Beyond

Lane Five (LYale-educated Capital Manage

MOI Signal R

Compan

1 Learning

2 Williams

3 DeVry / D

4 Capitol F

5 American

6 MedCath

7 ITT Educ

8 Microsoft

9 Corinthia

10 Bridgepo

Top Holdings

Company

1 MasterCar

2 Williams C

3 Raymond

4 Learning T

5 Ares Capi

6 MedCath /

7 Healthsou

8 American

9 DeVry / DV

10 Republic S

New Position

Bridgepoint Edu.

Capitol Federal /

Microsoft / MSFT

Portfolio Met

Portfolio size

Top 10 as % of

Median mar et

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



Lisa RapuanLisa Rapuano ement prior to

Rank™ – Top

ny / Ticker

Tree / LTRE

Controls / WMC

DV

Federal / CFFN

n Public Ed. / AP

h / MDTH

cational / ESI

t / MSFT

an Colleges / CO

oint Edu. / BPI

s of Lane Fiv

y / Ticker

rd / MA

Controls / WMCO

James / RJF

Tree / LTRE

tal / ARCC

/ MDTH

uth / HLS

Public Ed. / APE

V

Services / RSG

ns

/ BPI

CFFN

T

trics *

portfolio

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t value

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erved.

no) spent ten yearsfounding Lane

p Current Idea

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O 80

3,821

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280

2,319

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4,972

125

3,391

280

2,243

EI 781

3,821

11,524

$111 million

55%

$3.7 billion

$19 billion

16x

14x

3.1x


SUBSCRIBE TODA

s at Legg Masoe Five in 2006.

as of Lane F

Price

Recent ($) D

9.24

10.95

55.18

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43.49

13.77

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By Dollar Val

Price

Recent ($) De

250.74

10.95

39.46

9.24

17.61

13.77

24.00

43.49

55.18

29.99


AY! www.manualo

on Capital Man

Five Capital

Shar


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EQIX

r Weightings

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o-CIO at Mata

P/E (Est.)

This Next FY FY

23x 16x

13x 8x

12x 11x

30x 28x

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8x 9x

11x 10x

6x 11x

9x 8x

P/E (Est.) P

This Next TFY FY

15x 13x

13x 8x

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ed Investors

of 170

dor

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5.0x

Price/ Tang. Book

8.2x

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2.1x

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n/m

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n/m

©

LCcthanW M

T

N

N

P

* p

**

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© 2008-2011 by Beyond

Leucadia (IaChairman Cumcompanies that here. From tim

advantageous lenot income statWe believe we

MOI Signal R

Compan

1 Jefferies

2 Capital S

3 Winn-Dix

4 Global Po

5 Internatio

6 TravelCe

Top Holdings

Company /

1 Jefferies / J

2 Internationa

3 Global Pow

4 Capital Sou

5 Winn-Dixie

6 TravelCente

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an Cummingmming and Pres

are troubled ome to time, we sevels. While wtement driven aare conservati

Rank™ – Top

ny / Ticker

/ JEF

Southwest / CSW

xie Stores / WINN

ower Equip. / GL

onal Assets / INT

enters / TA

s of Leucadia

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uthwest / CSWC

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ns

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portfolio

value

t value

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erved.

g and Joe Ssident Steinbergor out of favor asell parts of the

we are not perfeand do not run ve in our accou

p Current Idea

Market Value

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WC 375

N 389

LPW 363

TL 447

161

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447

W 363

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$1.3 billion

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value may be attribuore not shown in the

SUBSCRIBE TODA

Steinberg) g describe theiand as a result ese operations ect in executingyour company

unting practice

as of Leucad

Price

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25.04

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ir approach in aare selling subwhen prices avg this strategy,y with an unduees and policies

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P/E (Est.)

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1 Citigroup

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6 VanceInf

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2 Schlumbe

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6 Polo Ralp

7 Express S

8 Goodrich C

9 Teck Reso

10 Dollar Gen

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142,677

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23,919

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SUBSCRIBE TODA

in 1997. He pr

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Price

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© 2008-2011 by Beyond

Markel GayTom Gayner haVirginia-based steward of capi

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MHR (MarkMark Racheskyon inefficient m

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Compan

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$2.1 billion

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SUBSCRIBE TODA

m 1990 to 1996.cial situation eq

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MSD CapitaGlenn Fuhrmanmanage his perhe Special Inv

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685

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SUBSCRIBE TODA

d John Phelanaging partnerss. Fuhrman pre

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Pabrai FundMohnish Pabrapartnerships wi25% performanS&P 500 Index

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7 CapitalSo

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POT

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ource / CSE

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SUBSCRIBE TODA

artner of Pabrahat of the Buffdle rate. Pabraient strategy bui

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Paulson & CJohn Paulson fo

MOI Signal R

Compan1 Anadarko2 CommSc3 Martek B4 Del Mont5 J. Crew /6 King Pha7 Howard H8 McAfee /9 Wilmingto

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SUBSCRIBE TODA

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SUBSCRIBE TODA

Bernstein in 19he was respon

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Pershing SqBill Ackman, mportfolio with tdeveloped into overvalued andapproached larg

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3 Fortune B

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SUBSCRIBE TODA

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Sageview (EEd Gilhuly andKravis Roberts end of 1994. ThThe firm follow

MOI Signal R

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2 Covidien

3 Life Tech

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5 Baxter In

8 SandRidg

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5 SandRidge

6 Baxter Inter

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tuart) s at Stanford Bile Stuart startedership roles atue-oriented inv

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Scout (JameJames Crichton

MOI Signal R

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6 Lamar Ad

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2 McDonald

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4 Sensata T

5 eBay / EB

6 Tyco Elec

7 Lamar Adv

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Dr Pepper Snapp

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Kroger / KR

Safeway / SWY

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SUBSCRIBE TODA

m Weiss in 19

as of Scout C

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AY! www.manualo

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Second CurvTom Brown waBarney, PaineWout on his own

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6 Cemex / C

7 Pioneer N

8 Aon / AON

9 Liberty Int

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Spencer (KeDr. Shubin Stei

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Teton (QuinQuincy Lee is apartnership at a

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7 Nicholas F

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© 2008-2011 by Beyond

Third Point Loeb is the fou

MOI Signal R

Compan1 LyondellB2 Massey E3 Williams 4 Alcon / A5 Potash / 6 NXP Sem7 BioFuel E8 Rio Tinto9 Citigroup

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1,402 2,936

20,220 8,667

Oritani FinancPall Corp. / PPlains ExplorPMI Group / PRio Tinto / RISemGroup / SSmurfit-StoneSunoco / SUNViewPoint FinWilliams ComYahoo! / YHOZoran / ZRAN

$2.0 billion

58%

$4.0 billion

$26 billion

17x

14x

2.5x


SUBSCRIBE TODA

nd Third Point

as of Third P

Price Recent ($) D 37.95 64.28 30.37 165.40 180.00 29.30 0.95 71.54 4.91 43.28

lar Value

Price Recent

($) De180.00

37.95 165.40

64.28 30.37 29.30 25.24 30.73 17.41 43.28

cial / ORIT PLL ration / PXP PMI O SEMG e / SSCC N nancial / VPFG mpanies / WMB OO N


AY! www.manualo

t, which has am

Point

Shar from Recen

Dec. 31 ('00010% 4,4620% 2,0023% 4,00

1% 8016% 1,2040% 3,15

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ec. 31 ('000)16% 1,20010% 4,463

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Apple / ANorthern

Sector

des es.

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es Owned t from ) Sep. 30 C0 20% <3 new <0 14% <0 new 0 new <

new 0 0% 0 0% 0 0% <0 0% <

Out Positions

AAPL Trust / NTRS

r Weightings

quity Investment Id

ctable long-term

Holdings as % of

Co. Fund* <1% 8%

2% 6% <1% 6% <1% 7% <1% 11%

1% 5% 6% <1%

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m investment r


FY FY n/a n/a 19x 13x 24x 19x n/a n/a n/a n/a n/a n/a n/a n/a 10x 7x 11x 9x 22x 17x


FY FY n/a n/a n/a n/a n/a n/a 19x 13x 24x 19x n/a n/a 29x 8x 11x 10x 17x 23x 22x 17x

ed Investors

of 170

record.

Price/ Tang. Book

2.3x 4.0x 2.5x 9.1x 6.6x n/m 1.6x 3.2x 1.1x 1.0x

Price/ Tang. Book

6.6x 2.3x 9.1x 4.0x 2.5x n/m 5.2x 2.8x n/m 1.0x

©

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© 2008-2011 by Beyond

Tiger GlobaChase Colemanprior to foundin

MOI Signal R

Compan

1 Liberty G

2 Electroni

3 MakeMyT

4 Amazon.

5 Liberty C

6 Ctrip.com

7 DuoyuanDGW

8 Visa / V

9 Live Nati

10 Longtop

Top Holdings

Company

1 Apple / AA

2 Viacom / V

3 Liberty Glo

4 DIRECTV

5 Electronic

6 Liberty Ca

7 MercadoL

8 Cablevisio

9 priceline.c

10 Amazon.c

New Position

Baidu.com / BIDU

Ctrip.com / CTRP

Visa / V

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



al (Chase Con, a descendantng Tiger Globa

Rank™ – Top

ny / Ticker

Global / LBTYA

c Arts / ERTS

Trip / MMYT

com / AMZN

Capital / LCAPA

m / CTRP n Global Water /

on / LYV

Fin. Tech / LFT

s of Tiger Glo

y / Ticker

APL

VIA.B

obal / LBTYA

/ DTV

Arts / ERTS

apital / LCAPA

ibre / MELI

on / CVC

com / PCLN

com / AMZN

ns

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portfolio

value

t value

s FY)

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erved.

oleman) t early New Yoal in 2001.

p Current Idea

Market Value

($mn)

10,033

6,446

940

84,112

20,220

5,839

232

54,043

1,967

1,826

obal – By Do

Market Value

($mn)

322,963

27,699

10,033

36,934

6,446

20,220

3,213

11,288

22,041

84,112

$4.1 billion

67%

$8.3 billion

$31 billion

18x

14x

3.9x


SUBSCRIBE TODA

ork Governor P

as of Tiger G

Price

Recent ($) D

42.19

19.28

27.55

186.50

71.88

39.49

9.44

75.83

11.33

32.00

ollar Value

Price

Recent ($) De

350.56

45.50

42.19

44.30

19.28

71.88

72.80

37.62

448.93

186.50


AY! www.manualo

Peter Stuyvesan

Global

Shar


19% 7,77

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2% 4,13

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15% 3,57

-2% 1,31

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9% 1,133

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This Next TFY FY

15x 13x

13x 12x

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heed Martin / LM

/ NKE

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ed Investors

of 170

anagement

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n/m

4.4x

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6.0x

n/m

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MT

S

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Viking GlobAndreas Halvoand a former di

MOI Signal R

Compan1 Time Wa2 Citigroup3 Baidu.co4 LifePoint5 Estee La6 Yum! Bra7 Potash / 8 Sherwin-9 Akamai T

10 EMC / EM

Top Holdings

Company1 Invesco / I2 Citigroup /3 Time Warn4 Estee Lau5 Baidu.com6 Yum! Bran7 Sherwin-W8 Potash / P9 American

10 EMC / EM

New PositionC.H. Robinson / CHCameron / CAM CareFusion / CFN Charles River Labs Comcast / CMCSA CVS Caremark / CVCytec Industries / CDanaher / DHR Express Scripts / ESFlowserve / FLS Goldman Sachs / GGuess? / GES Hexcel Corp. / HXL Human Genome Sclumina / ILMN

Magellan Health / MNoble Energy / NBLOracle / ORCL Stanley Black Deck

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



bal (Andrearsen is a graduirector of equit

Rank™ – Top

ny / Ticker arner Cable / TWp / C m / BIDU Hospitals / LPN

auder / EL ands / YUM POT

-Williams / SHW Technologies / AMC

s of Viking G

y / Ticker IVZ / C ner Cable / TWC

uder / EL m / BIDU nds / YUM Williams / SHW POT

Tower / AMT MC

ns HRW

/ CRL

VS CYT

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trics *

portfolio

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erved.

as Halvorsenuate of the Norwties at Tiger Ma

p Current Idea

Market Value

($mn)C 25,574

142,67744,066

T 1,93318,65323,91951,207

9,178AKAM 7,580

56,002

Global – By D

Market Value

($mn) 12,637

142,677 C 25,574

18,653 44,066 23,919

9,178 51,207 21,654 56,002

Tyco InternatioUnited TherapeUnitedHealth / Viacom / VIA.BWalgreen / WAWellCare / WCWellPoint / WL

$13 billion

45%

$12 billion

$33 billion

16x

15x

3.5x


SUBSCRIBE TODA

en) wegian Naval Aanagement. Ha

as of Viking

Price Recent ($) D 71.89 4.91 126.80 36.68 94.48 51.17 180.00 85.03 41.57 27.18

Dollar Value

Price Recent

($) De27.35

4.91 71.89 94.48

126.80 51.17 85.03

180.00 54.26 27.18

nal / TYC eutics / UTHR UNH

B AG G P


AY! www.manualo

Academy, a foalvorsen found

Global

Shar from Rece

Dec. 31 ('009% 9,214% 150,98

31% 4,700% 3,51

17% 6,324% 11,04

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Sharefrom Recen

ec. 31 ('00014% 35,572

4% 150,9859% 9,210

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Sold OAcme PacAkamai TeAmerisourApollo GroBeckman CBlackRockBroadcom Capital OnCommunitD.R. HortoFifth Third Fortinet / FGoogle / GH&R BlockHealthsoutHospira / HJack HenryLas VegasLifePoint H

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r Weightings

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<1% 3%

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<1% 6% 3% 5% 3% 4% 1% 4% 2% 4% 6% 4% 1% 4% 2% 3%

<1% 3%

s

M LyondMarshMcKeMedtrMGMNew ONII HoPenn PerkinProcteSL GrSotheTalecTalismU.S. BUrbanValspVanceYum!

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FY FY 16x 13x 11x 9x 51x 35x 13x 12x 26x 22x 18x 16x n/a n/a 17x 14x 26x 23x 18x 16x


FY FY 15x 13x 11x 9x 16x 13x 26x 22x 51x 35x 18x 16x 17x 14x n/a n/a 58x 49x 18x 16x

dellBasell / LYB h & McLennan / MMesson / MCK ronic / MDT Mirage / MGM Oriental Edu. / EDUoldings / NIHD West Energy / PW

nElmer / PKI er & Gamble / PGreen Realty / SLGeby's / BID cris Bio / TLCR man Energy / TLMBancorp / USB n Outfitters / URBNpar / VAL eInfo / VIT Brands / YUM

ed Investors

of 170

n SEALs,

Price/ Tang. Book

n/m 1.1x

>9.9x 6.7x

>9.9x >9.9x

6.6x >9.9x

4.6x >9.9x

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n/m 1.1x n/m

>9.9x >9.9x >9.9x >9.9x

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MC

U

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Weitz FundsWally Weitz, sounder managem

MOI Signal R

Compan

1 Omnicare

2 Aon / AO

3 Texas Ins

4 Intelligen

5 Tree.com

6 Strayer E

7 Ascent M

8 Prestige

9 Kennedy

10 Southwe

Top Holdings

Company

1 Omnicare

2 Liberty Int

3 Aon / AON

4 Redwood

5 Texas Inst

6 Berkshire

7 Microsoft /

8 ConocoPh

9 Dell / DEL

10 Liberty Glo

New Position

Apple / AAPL

ron Mountain / IR

TT Educational /

Republic Service

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



ds (Wally Weometimes calle

ment. The firm

Rank™ – Top

ny / Ticker

e / OCR

ON

struments / TXN

nt Systems / INS

m / TREE

Education / STRA

Media / ASCMA

Brands / PBH

y-Wilson / KW

stern Energy / S

s of Weitz – B

y / Ticker

/ OCR

eractive / LINTA

N

Trust / RWT

truments / TXN

Hathaway / BRK

/ MSFT

hillips / COP

LL

obal / LBTYA

ns

RM

/ ESI

s / RSG

trics *

portfolio

value

t value

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erved.

Weitz) ed “The Other has since grow

p Current Idea

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($mn)

3,135

17,010

42,540

15

86

A 1,851

597

561

444

WN 12,640

By Dollar Va

Market Value

($mn)

3,135

20,220

17,010

1,315

42,540

K.A 210,308

227,369

112,572

29,784

10,033

SAIC / SAI

Skechers / SK

Southwestern

Viacom / VIA

$2.2 billion

48%

$7.9 billion

$31 billion

16x

14x

3.5x


SUBSCRIBE TODA

Oracle of Omawn into a $2 bil

as of Weitz

Price

Recent ($) D

26.96

52.93

36.23

1.70

7.80

136.62

40.09

11.17

11.02

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lue

Price

Recent ($) De

26.96

17.41

52.93

16.84

36.23

127,640

27.06

76.62

15.43

42.19

KX

n Energy / SWN

A.B


AY! www.manualo

aha,” founded Wllion asset man

Shar


6% 4,74

15% 2,30

11% 2,91

32% 2,27

-17% 6

-10% 3

3% 67

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10% 3

-3% 26

Share


6% 4,742

10% 7,166

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Sold O

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des es.

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Wallace R. Wenager best know

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roup / APOL

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s

Weig

*



983 with $10 mitz Value Fund

P/E (Est.)

This Next FY FY

13x 12x

15x 14x

14x 13x

n/a n/a

n/m 71x

15x 15x

n/a n/a

14x 11x

41x >99x

21x 23x

P/E (Est.) P

This Next TFY FY

13x 12x

17x 23x

15x 14x

12x 13x

14x 13x

19x 19x

11x 10x

11x 10x

9x 9x

35x 39x

ght Watchers / W

ed Investors

of 170

million d.

Price/ Tang. Book

n/m

n/m

4.6x

2.8x

1.9x

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1.7x

4.4x

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n/m

n/m

n/m

1.3x

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WTW

©

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© 2008-2011 by Beyond

West Coast Lace Helfert annvestments, pr

West Coast inv

MOI Signal R

Compan

1 American

2 Molson C

3 Microsoft

4 Kimberly

5 Clorox / C

6 Automati

7 Angiotec

8 Kraft Foo

9 Johnson

10 Live Nati

Top Holdings

Company

1 Clorox / C

2 Molson Co

3 Kimberly-C

4 Automatic

5 McCormic

6 Johnson &

7 Live Natio

8 Broadridge

9 Kraft Food

10 Microsoft /

New Position

Constellation Ene

Microsoft / MSFT

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



(Lance Helfnd Paul Orfaleareviously oversvests in underva

Rank™ – Top

ny / Ticker

n Defense / EAG

Coors / TAP

t / MSFT

-Clark / KMB

CLX

c Data / ADP

h Pharma / ANP

ods / KFT

& Johnson / JNJ

on / LYV

s of West Co

y / Ticker

LX

oors / TAP

Clark / KMB

c Data / ADP

ck / MKC

& Johnson / JNJ

n / LYV

e Financial / BR

ds / KFT

/ MSFT

ns

ergy / CEP

T

trics *

portfolio

value

t value

s FY)

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erved.

fert and Paua co-founded Wsaw a $1 billionalued equities a

p Current Idea

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($mn)

G 8

8,470

227,369

26,776

9,378

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PI 14

53,993

J 167,824

1,967

oast Asset Ma

Market Value

($mn)

9,378

8,470

26,776

24,791

5,546

167,824

1,967

2,912

53,993

227,369

$90 million

94%

$5.5 billion

$35 billion

14x

12x

5.8x


SUBSCRIBE TODA

aul Orfalea) West Coast Assn portfolio at Wand follows a c

as of West C

Price

Recent ($) D

0.16

45.60

27.06

65.66

68.15

49.94

0.03

30.91

61.11

11.33

anagement –

Price

Recent ($) De

68.15

45.60

65.66

49.94

46.06

61.11

11.33

23.24

30.91

27.06


AY! www.manualo

set ManagemenWilshire Assocconcentrated in

Coast Asset M

Shar


-6% 7,06

-9% 25

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4% 17

8% 18

8% 21

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– By Dollar V

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8% 181

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o Oil & Gas / MC

r Weightings

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t

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<1% 14%

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s

CF

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cts the firm’s of Kinko’s cop

P/E (Est.)

This Next FY FY

n/a n/a

12x 11x

11x 10x

13x 12x

17x 15x

20x 19x

n/a n/a

14x 12x

13x 12x

n/m n/a

P/E (Est.) P

This Next TFY FY

17x 15x

12x 11x

13x 12x

20x 19x

16x 15x

13x 12x

n/m n/a

17x 14x

14x 12x

11x 10x

ed Investors

of 170

py shops.

Price/ Tang. Book

n/m

5.1x

6.5x

>9.9x

n/m

>9.9x

n/m

n/m

6.8x

n/m

Price/ Tang. Book

n/m

5.1x

>9.9x

>9.9x

n/m

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n/m

>9.9x

n/m

6.5x

©

WDpF M

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B

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© 2008-2011 by Beyond

WintergreenDavid Winters president and CFund, a mutual

MOI Signal R

Compan

1 Barrick G

2 Canadian

3 Consolid

4 Franklin

5 Reynolds

6 Activision

7 Goldman

8 Coca-Co

9 McDonal

10 Coca-Co

Top Holdings

Company

1 Canadian

2 Berkshire

3 Franklin R

4 Consolida

5 Barrick Go

6 Reynolds

7 Philip Mor

8 General D

9 Goldman S

10 Coca-Cola

New Position

Activision Blizzar

Barrick Gold / AB

Portfolio Met

Portfolio size

Top 10 as % of

Median market

Average market

Median P/E (thi

Median P/E (ne

Median P / tang



en (David Wijoined Mutual

CIO of Mutual fund that follo

Rank™ – Top

ny / Ticker

Gold / ABX

n Natural / CNQ

ated-Tomoka / C

Resources / BEN

s American / RAI

n Blizzard / ATVI

n Sachs / GS

ola FEMSA / KOF

d's / MCD

ola / KO

s of Wintergr

y / Ticker

Natural / CNQ

Hathaway / BRK

Resources / BEN

ted-Tomoka / CT

old / ABX

American / RAI

rris / PM

Dynamics / GD

Sachs / GS

a / KO

ns

d / ATVI

BX

trics *

portfolio

value

t value

s FY)

xt FY)

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p Current Idea

Market Value

($mn)

51,467

52,274

CTO 182

N 29,088

I 20,150

13,351

85,909

F 2,063

80,432

149,887

reen Adviser

Market Value

($mn)

52,274

K.A 210,308

29,088

TO 182

51,467

20,150

111,458

29,506

85,909

149,887

$577 million

86%

$29 billion

$51 billion

16x

14x

2.4x


SUBSCRIBE TODA

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as of Winterg

Price

Recent ($) D

51.40

47.90

31.76

130.40

34.56

11.07

168.04

76.00

76.13

64.55

rs – By Dolla

Price

Recent ($) De

47.90

127,640

130.40

31.76

51.40

34.56

61.43

78.11

168.04

64.55


AY! www.manualo

tored by famed05 to form Win

d investment ap

green Advise

Shar


-3% 89

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Out Positions

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P/E (Est.)

This Next FY FY

n/a n/a

n/a n/a

n/a n/a

16x 14x

13x 12x

15x 13x

10x 9x

18x 15x

15x 14x

17x 15x

P/E (Est.) P

This Next TFY FY

n/a n/a

19x 19x

16x 14x

n/a n/a

n/a n/a

13x 12x

14x 13x

11x 10x

10x 9x

17x 15x

ed Investors

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Price/ Tang. Book

3.8x

2.4x

1.6x

4.8x

n/m

5.6x

1.4x

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7.2x

>9.9x

Price/ Tang. Book

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2.1x

4.8x

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WL Ross & CWilbur Ross, ba leveraged buy

MOI Signal R

Compan

1 Dynegy /

2 Sun Banc

3 EXCO Re

4 Hanesbra

5 Assured

6 Key Ener

7 Plains Ex

8 Cooper T

9 BioScrip

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Top Holdings

Company

1 EXCO Re

2 Assured G

3 Internation

4 Sun Banco

5 Dynegy / D

6 Cooper Ti

7 Key Energ

8 Hanesbran

9 Plains Exp

10 Innophos /

New Position

BioScrip / BIOS

Dynegy / DYN

Hanesbrands / H

Portfolio Met

Portfolio size

Top 10 as % of

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Average market

Median P/E (thi

Median P/E (ne

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ny / Ticker

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Guaranty / AGO

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/ BIOS

onal Coal / ICO

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sources / XCO

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orp NJ / SNBC

DYN

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p Current Idea

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727

226

4,329

2,443

O 3,004

EG 1,991

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250

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4,329

3,004

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226

727

TB 1,513

G 1,991

2,443

5,467

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100%

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$2.3 billion

13x

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SUBSCRIBE TODA

ll-known for ren steel, coal, te

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Price

Recent ($) D

6.01

4.49

20.39

25.35

16.35

14.08

39.02

24.60

4.65

9.51

Dollar Value

Price

Recent ($) De

20.39

16.35

9.51

4.49

6.01

24.60

14.08

25.35

39.02

43.32


AY! www.manualo

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P/E (Est.)

This Next FY FY

n/m n/m

n/m 75x

28x 30x

10x 9x

5x 4x

n/m 25x

33x 23x

10x 10x

33x 16x

15x 8x

P/E (Est.) P

This Next TFY FY

28x 30x

5x 4x

15x 8x

n/m 75x

n/m n/m

10x 10x

n/m 25x

10x 9x

33x 23x

11x 11x

ed Investors

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Price/ Tang. Book

.3x

1.0x

3.1x

n/m

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3.7x

1.9x

3.4x

n/m

2.6x

Price/ Tang. Book

3.1x

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2.6x

1.0x

.3x

3.4x

3.7x

n/m

1.9x

4.0x

©

NA

© 2008-2011 by Beyond

New or IncAbitibiBowa

Basic Materials

Price: $27.23

52-week rang

Market value:

Enterprise va

Shares out: 9

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

$0

$5

$10

$15

$20

$25

$30

$35


creased Suater (ABH) —s: Paper & Pape

Trading Data

(as of 2/23/11)

ge: $21.50 - $30.

: $2.7 billion

lue: $3.5 billion

97.1 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 77%

ept

12/31/

2,7

5

me (10

(20

(6.7

g)

rations

2

(19

ments 1

ssets 8

ts 8

5,6

t 2

bilities 6

2,2

4,0

y 1,6

erved.

uperinves— Fairfax er Products

54

a

: 0

): 0

Op

/03 12/31/04

721 3,190

527 844

01) 30

05) (87)

76) (2.93)

30 30

20 123

216 84

96) 38

46 130

843 903

828 819

616 5,450

214 87

660 557

292 2,428

003 3,943

0 0

613 1,507

Ten-Year Sto

SUBSCRIBE TODA

tor Holdin, Mark

This quarter

Next quarter

FYE 12/31/1

FYE 12/31/1

FYE 12/30/1

LT growth

EPS Surpris

11/15/10

perating Perform

Fiscal Y

12/31/05 12

3,484

943

99

(121)

(4.03)

30

169

168

1

30

990

794

5,152

77

576

2,400

3,937

0

1,216

ock Price Perfor

AY! www.manualo

ngs kel , Pa

Consensus EPS

Late

-$1.

r 0.

10 -8.

11 2.

12 3.

n

se Actua

0 n/a

mance and Finan

Years Ended

2/31/06 12/31/

3,530 3,8

847 6

54 (40

(138) (49

(4.53) (14.1

30

182 (24

199 1

(17) (37

99 1

959 2,1

590 1,9

4,646 10,2

15 9

446 2,1

2,252 4,6

3,813 8,3

0

833 1,8

rmance and Tra

Value-oriented Eq

ofideas.com

aulson ,Montreal, QC, C

S Estimates

Month

est Ago

.03 -$0.37

.62 0.70

.49 -17.84

.72 3.24

.46 3.52

n/a n/a

al Estim

n

ncial Position

/07 12/31/08

876 6,771

670 1,627

00) (1,399)

90) (2,234)

12) (34.34)

35 58

47) (420)

28 186

75) (606)

95 192

42 2,767

971 338

287 8,072

953 955

78 2,385

695 5,015

388 8,548

0 0

899 (476)

ading Volume Dy

quity Investment Id

, Third PoinCanada, 514-875-2160

# of P/

Ests P/

3 P/

2 P/

2 EV

5 EV

5 P

n/a

mate LT

/a LT

L

12/31/09 9/

4,366

1,023

(1,014) (1

(1,553) (1

(26.92) (3

58

46

101

(55)

774

2,172

526

7,112

985

1,688

274

9,203 1

0

(2,091) (3

ynamics



nt www.abi

Valuatio

/E FYE 12/31/09

/E FYE 12/31/10

/E FYE 12/31/11

/E FYE 12/30/12

V/ LTM revenue

V/ LTM EBIT

/ tangible book

Greenblatt C

TM EBIT yield

TM pre-tax ROC

LTME FQE

30/10 9/30/09

4,600 1,091

956 206

1,537) (334)

1,940) (511)

33.62) (8.86)

58 58

(10) 8

63 27

(73) (19)

540 569

2,074 2,525

516 528

6,447 7,603

1,102 1,330

1,733 2,117

281 35

0,236 9,278

0 0

3,789) (1,675)

ed Investors

of 170

itibibowater.com

on

n/m

n/m

n/m

n/m

0.8x

n/m

n/m

riteria

-41%

-33%

E FQE

9 9/30/10

1,192

6 300

) (719)

) (829)

) (14.37)

8 58

8 18

7 16

) 2

9 540

5 2,074

8 516

3 6,447

0 1,102

7 1,733

5 281

8 10,236

0 0

) (3,789)

Feb 11

©

BAc I

I

TAcCDmWm

© 2008-2011 by Beyond

BUSINESS OVEAbitibiBowatercompany that e

NVESTMENT H Forest

capacpaperAbitibnewspcoatedmillioncapaciN.A. csawmithat pr

Low-chas cloand labof the the lowthe low

Impro$6.8 b(emplothe samto sell C$300

New Cservedproduc

StronFairfax

NVESTMENT R Cyclic

term eemergbalancrelativsubjecfor new

56% oCanadnegati

Capitwants cash flfull-cy

THE BOTTOM LIAbitibiBowatercredit default swCDS rewards. IDecember 2010may be a strongWe would like merits.


RVIEW r is a North Amemerged from b

HIGHLIGHTS t products leaity of seven m

r and two billiobiBowater prodprint (9% of glod paper (14% on tons of uncoaity); 1.1 millioncapacity). The ills and six woroduce lumber cost, restructuosed marginal bor expenses bcompany’s tw

wer half of the west-cost produoved balance sbillion pre-crisioyee count cutme time). In Feits stake in cer

0 million; additCEO appointed as CEO of Cacts company, fg shareholderx, 5% by Pauls

RISKS & CONCEcal, commoditeconomics. Wh

ged with a muchce sheet, the unvely unattractivct to lower-costwsprint, in parof production da, implying thvely affected bal structure toto keep fixed c

flow “at all poinycle returns on

INE r was forced inwaps may haveIn any case, Ab0, with Prem Wg player in a toto see the soon

erved.

merican forest pbankruptcy in D

ader, with annmillion metric t

on board feet duces 3.3 millioobal capacity); of North Ameriated paper (35%n tons of markcompany also od products faand other spec

ured producerassets and redu

by $880 millionwelve newsprint

cost curve. Abucer of coated sheet, with debis to $850 millit from 18,000 tebruary, Abitibrtain Ontario htional asset saled in January.atalyst Paper, afrom early 2007r base, includinson, and 2% by

ERNS ty business withile AbitibiBoh-improved co

nderlying businve — it is capitt global comperticular, are in land 15% of s

hat profitabilityby a rising Canoo conservativcharges low ennts in the cycleequity unattra

nto bankruptcy e used their owbitibiBowater e

Watsa’s Fairfaxough industry, an-to-be-release

SUBSCRIBE TODA

products December 201

ual operatingtons of pulp anof lumber.

on tons of 660K tons of

ican capacity); % of N.A.

ket pulp (7% ofoperates 18 cilities in Canacialized producr. AbitibiBowauced fixed costn annually. Tent facilities are ibitibiBowater ipaper in N.A.

bt reduced fromion at yearend to 11,000 durinbiBowater agrehydro assets fores are possible. Richard Garna distressed pap7 to mid 2010.ng 18% ownedy Third Point.

th tough long-water has re-

ost structure anness remains tal-intensive anetition. Marketslong-term decliales are basedy could be

nadian dollar. ve? Managemenough to generae.” Will this mactive?

in April 2009.wnership of theemerged as a sx holding an 18as newsprint an

ed Q4 2010 fina

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SELECTEFYE DeceRevenue Change% of reveNewsprinCoated pSpecialtyMarket puWood proShipmentNewsprinCoated pSpecialtyMarket puWood proAverage NewsprinCoated pSpecialtyMarket puWood proOperatingNewsprinCoated pSpecialtyMarket puWood proSelected Cost of reD&A and DistributioSelling anNon-recu OperatiD&A and NewsprinCoated pSpecialtyMarket puWood proCorporate D&A an % of revTotal debEmployee

MAJOR Fairfax RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO

George Sorose company’s deignificantly lea

8% equity stakend other paper ancials prior to

Value-oriented Eq

ofideas.com

D OPERATING cember 31 ($mn) e (y-y) enue by major segmnt papers y papers ulp oducts ts by segment:

nt ('000 metric tons) papers ('000 short toy papers ('000 short tulp ('000 metric tonsoducts (mn board fee transaction price by nt ($/metric ton) papers ($/short ton) y papers ($/short tonulp ($/metric ton) oducts ($/'000 boardg cost per unit, by sent ($/metric ton) papers ($/short ton) y papers ($/short tonulp ($/metric ton) oducts ($/'000 board items as % of revenevenue, ex. D&A timber harvested on costs nd administrative urring items ing income

d timber harvested, bnt papers y papers ulp oducts e and other nd timber harvested venue

bt ($mn) es (‘000)

HOLDERS 18% | Paulson

S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S

Able to sustain high GS MOMENTUM Poised to benefit fr

s has asserted thebt to force it inaner and more e in the restrucproducts mark

o making a def

quity Investment Id

DATA 2006 2

3,530 31%

ment ($mn): 41% 17% 16% 16%

9%

2,260 2ns) 797 tons) 852 1

s) 972 et) 1,045 1

y segment: 636 769

) 669 576

d feet) 317 egment:

601 673

) 711 538

d feet) 346 nue:

-76% --9% --9% --5% 1% 1% -

by segment ($mn): 137

42 64 53 18

9 323

9% 2,267 5

7.4

5% | Chou 2%

erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested

M Fundamentals imrom economic and s

hat large buyernto bankruptcywell-capitalize

ctured entity. Akets experiencefinitive judgme



2007 2008 23,876 6,771 4,10% 75% -3

41% 48% 415% 10% 121% 27% 315% 9% 1

8% 6%

2,620 4,746 3,792 748 ,195 2,425 1,907 895 ,111 1,556 1,

601 682 720 882 699 754 661 700 287 269

652 676 667 713 741 760 556 626 368 313

-83% -76% -7-10% -11% -1-11% -11% -1

-7% -5% -0% -18% -

-10% -21% -

165 341 38 37

109 239 54 53 23 40

7 16 396 726

10% 11% 15,648 5,970 1,

18.0 15.9 1

% | Third Point

market value? manent loss? ivized? ? d capital?

mproving? secular trends?

rs of AbitibiBoy in order to reed company in

At best, AbitibiBe long-term chaent on the inves

ed Investors

of 170

009 2010 366 4,746

36% 9%

41% 38% 10% 10% 30% 28% 12% 15%

7% 9%

157 3,005 571 671 819 1,924 946 970 143 1,395

571 600 730 718 731 687 548 737 254 304

682 657 574 672 685 709 430 596 303 297

77% -78% 14% -10% 11% -12% -5% -3% -3% 1% -9% -3%

291 225

28 30 151 128

52 49 49 42 31 19

602 493 14% 10% 465 850 12.1 11.0

2%

owater ap large

n Bowater allenges. stment

©

A

A

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S

© 2008-2011 by Beyond

ABITIBIBOWAT

ABITIBIBOWAT

ABITIBIBOWAT

Source: Company p


TER – EBITDA S

TER – REVENUE

TER – OPERATI

presentation dated

erved.

SENSITIVITIES

E BREAKDOWN

NG CAPACITY

January 14, 2011.

SUBSCRIBE TODA

N

OVERVIEW

AY! www.manualo

Value-oriented Eq

ofideas.com

quity Investment Ideas for Sophisticate


ed Investors

of 170

©

A

S

© 2008-2011 by Beyond

ABITIBIBOWAT

Source: Company p


TER – EXPECTE

presentation dated

erved.

D RESULTS OF

January 14, 2011.

SUBSCRIBE TODA

RESTRUCTURIN

AY! www.manualo

NG

Value-oriented Eq

ofideas.com



ed Investors

of 170

©

A

© 2008-2011 by Beyond

Accuride (ACConsumer Cyc

Price: $15.32

52-week rang

Market value:

Enterprise va

Shares out: 4

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18


ACW) — Thirclical: Auto & Tr

Trading Data

(as of 2/18/11)

ge: $10.10 - $16.

: $724 million

lue: $1.3 billion

47.2 million

Ownership Data

rship: 3%

(last six months)

(last six months)

wnership: 22%

ept

12/31

3

me

(6.

g)

rations

(

ments

ssets 1

ts 1

5

t

bilities

4

5

y (

mployed 1

erved.

ird Point ruck Parts

34

a

: 19

): 21

Op

/03 12/31/04

364 494

63 103

39 77

(9) 22

11) 14.12

1 1

9 58

20 26

(11) 32

43 72

137 198

123 123

528 563

2 2

60 92

489 487

594 609

0 0

(66) (46)

6% 32%

Ten-Year Sto

SUBSCRIBE TODA

This quarter

Next quarte

FYE 12/31/1

FYE 12/31/1

FYE 12/30/1

LT growth

EPS Surpris

n/a

perating Perform

Fiscal Y

12/31/05 12

1,229

217

145

51

17.03

3

92

40

52

48

352

537

1,220

0

198

698

1,045

0

176

44%

ock Price Perfor

AY! www.manualo

Consensus EP

Lat

r

r

10

11

12

se Actu

n/a

mance and Finan

Years Ended

2/31/06 12/31/

1,408 1,0

197

144

65

18.79 (2.4

3

151

42

109

110

398 3

525 5

1,233 1,1

0

187 1

643 5

970 8

0

264 2

35% 8

rmance and Tra

Value-oriented Eq

ofideas.com

Evansville, IN,

PS Estimates

Month

test Ago

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

al Esti

a n

ncial Position

/07 12/31/08

014 931

87 56

30 (277)

(9) (328)

46) (92.37)

4 4

83 (9)

37 30

46 (39)

91 124

313 308

508 225

114 809

0 0

150 126

573 651

840 882

0 0

274 (74)

8% -83%

ading Volume Dy

quity Investment Id

812-962-5000

# of P/

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n/a P/

n/a P/

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n/a EV

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12/31/09 9/

570

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(140)

(35.90)

4

(39)

20

(60)

57

199

217

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398

474

0

900

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/E FYE 12/31/09

/E FYE 12/31/10

/E FYE 12/31/11

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V/ LTM revenue

V/ LTM EBIT

/ tangible book

Greenblatt C

TM EBIT yield

TM pre-tax ROC

LTME FQE

/30/10 9/30/09

717 145

52 2

40 (21)

(7) (33)

(6.66) (9.16)

6 4

(22) (21)

14 5

(36) (27)

51 25

227 188

363 221

866 663

0 632

110 727

587 0

832 835

0 0

34 (172)

13% n/m

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n/m

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32x

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Criteria

3%

13%

E FQE

9 9/30/10

5 206

2 21

) 43

) 12

) (0.08)

4 13

) 7

5 3

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5 51

8 227

1 363

3 866

2 0

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© 2008-2011 by Beyond

BUSINESS OVEAccuride manu

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NVESTMENT H One o

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rated $200+ ming an EV-to- recent EBITDAccuride has s

commercial vehght tonnage isase throughout ontinue to drivailers going forents Accuride sehicles, U.S. traels) have “conting for adj. EB(up 51-74% y-yn (up 15-21% y8 production to

RISKS & CONCEation case depeprofitability, wfor normalized

e midpoint of 2ed EV-to-EBIT5 million of netEBITDA). Descturing over ths high leveragepetitors: Alcoamerz in wheels;o, and Webb W

mblies for heavys; and Nationauck body/chasof 2009 revenuler Truck North

INE argest manuface recovers. A redemanding relaved since 2006/acking, leaves

erved.

mercial vehicle

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manufacturerss in North Ammmercial vehicd assemblies, trher vehicle comsitions in steelrake drums, disgrills, metal bu

plating and poltanks in comm

million of EBIT-prior peak EB

DA remains wesignificant earnhicle industry rs forecasted to

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BITDA of $100y) on revenue oy-y). Managemo be 220,000-2

ERNS ends on recovwhich may be ad revenue and m011 EBITDA g

TDA multiple et debt at yearespite wide-reace past two year

e relative to runa, ArvinMeritor ArvinMeritor,heel Products i

y-duty trucks al Seating in seasis markets are

ue from Navisth America, and

cturers of commeturn to 10+% ative to prior-p/07 (EV-to-avethe business vu

SUBSCRIBE TODA

components.

ter 11 in 2009 a

s of commercimerica. Accuridcle wheels, wheruck body and mponents. l wheels, forgesc wheel hubs,umpers, crownlishing, seating

mercial vehiclesTDA in 2006, BITDA of ~4xll below the 20

ning power if threcovers. o steadily ral years, whichmand for truck

hree major h America Clasted aftermarkeove” y-y in 200-115 millionof $875-925

ment expects 20235,000 units.

ery to prior-an unrealistic margins. Basedguidance, the exceeds 8x. end 2010 (~3.5ching financial rs, Accuride n-rate EBITDAr, and Hayes , Consolidatedin wheel-ends aand commerciaating assembliee fragmented. tar, PACCAR, d Volvo/Mack.

mercial vehicleoperating marg

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SELECTEFYE DeceRevenue ∆ reven% of reveComponeWheels Other Revenue ComponeWheels Other Gross maComponeWheels Other Total gr% of reveU.S. InternatioRevenue U.S. InternatioSelected Adj. EBITEBIT Net incomD&A Capex Adjusted Tangible

1 Financialentities filin2 Revenue3 For 2010restructurin

COMPAR

MGA

DAN

ARM

AXL

ACW

MAJOR Insiders FMR 7% RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO

e components igins appears likshares are not

0 EBITDA is ~ecovery in com

Value-oriented Eq

ofideas.com

D OPERATING cember 31 ($bn) nue enue by segment: ents

growth by segmentents

argin by segment: ents

ross margin enue by geography:

onal growth by geograph

onal items as % of reven

TDA

me

EBITDA ($mn) equity to assets ls are not comparang for Chapter 11 i

e increased due to d0, adjusted EBITDAng and reorganizat

RABLE PUBLIC

MV EV($mn) ($mn

14,220 12,69

2,620 3,21

1,780 2,54

1,030 1,80

720 1,26

HOLDERS 1% | Third Po

% | Tinicum 6%



in North Amerkely in such a cheap when m

~10x). Moreovemmercial vehicle

quity Investment Id

DATA1 2006 20

1.4 115% -28

48% 4848% 47

3% 4t:

20% -289% -30

23% -6

11% 117% 1525% 2614% 9

95% 86

5% 14hy:

15% -3515% 102

nue: 16% 1110% 3

5% -15% 63% 4219 1

-37% -39able throughout the n 2009 and exitingdemand in the com

A excludes $40 milltion items.

COMPANY AN P

EV / Tann) Rev. Bo

90 .6x 2.1

10 .5x 5.8

40 .7x n/

00 .8x n/

60 1.8x n/

oint 8% | Whipp% | Cetus 6% |



rica, Accuride srecovery scena

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007 2008 20091.0 0.9 0.68% -8% -39%

8% 53% 52%7% 42% 42%4% 5% 6%

8% 0% -39%0% -18% -39%6% 6% -32%

1% -4% -9%5% 17% 9%6% 28% 25%9% 6% 0%

6% 83% 86%4% 17% 14%

5% -11% -37%2% 10% -49%

1% 8% 4%3% -30% -11%1% -35% -25%6% 5% 9%4% 3% 4%13 79 24

9% -51% -98%period due to Accu bankruptcy in Feb

mmercial vehicle indion in benefits asso

NALYSIS / This Neng. FY FY

ook P/E P/

1x n/a n/

8x 29x 16

m 21x 8x

m 8x 6x

m n/a n/

poorwill 8% | YApollo 4% | B



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% 34%2

% 54% % 37% % 8%

% 39% % 20% % 90%

% n/a % n/a % n/a % 8%

% n/a % n/a

% n/a % n/a

% 9%3 % -1% % -10% % 7% % 3% 4 663

% -12% uride’s U.S.

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ext Y /E

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6x

x

x

/a

York 7% | Brigade 1%

fit as U.S. e recent e-cycle” et, with no f.

©

A

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1 o2 S

© 2008-2011 by Beyond

ACCURIDE – OU

($ in millions)

Valuation metho

Midpoint of 201

Minus: Estimate

Estimated 2011

Fair value multip

Estimated enter

Minus: Net debt

Estimated fair

Implied 2010 ad

Implied EV-to-2

Implied EV-to-2

Implied EV-to-re

The company is guApproximates 201Based on 46 millioBased on adjustinThe company is gu

Source: Company f

ACCURIDE – CA

Market value of coon September 30, 2

Assumes 100% paSource: Company p


UR ESTIMATE O

odology

1 adj. EBITDA g

ed maintenance c

adj. EBITDA mi

ple

rprise value

t (as of 12/31/10)

value of the equ

dj. FCF yield4

2010 adj. EBITDA

2010 revenue

evenue based on

uiding for adjusted 0 capex.

on shares outstandg 2010 reported freuiding for revenue ilings, The Manual

APITAL STRUCT

onvertible notes on 2010 was $285.3 marticipation in recenpresentation dated

erved.

OF THE EQUITY

uidance1

capex2

nus maintenance

)

uity of Accuride

A

n midpoint of 201

EBITDA of $100-1

ing. ee cash flow of negof $875-925 millionof Ideas analysis,

TURE

February 26, 2010million. ntly announced conNovember 2010.

SUBSCRIBE TODA

Y FAIR VALUE R

e capex

e3

11 guidance5

15 million in 2011

gative $28 million bn in 2011 (up 15-21assumptions and e

0 and June 30, 201

nversion offer for th

AY! www.manualo

RANGE

Conservativ

8x estimated 2EBITDA min

maintenance c

108

(20)

$88

8.0x

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$10.31 per sh

3%

11x

0.9x

0.8x

(up 51-74% y-y).

y the $44 million of1% y-y). estimates.

0 was $284.7 millio

he 7.5% convertible

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ofideas.com

ve

2011 nus capex

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main

on $

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quity Investment Id

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108

(20)

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10.0x

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1.1x

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10

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©

A

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© 2008-2011 by Beyond

ACCURIDE – “P

Source: Company p

ACCURIDE – 20

Source: Company p


POSITIONED FO

presentation dated

011 BUILD FOR

presentation dated

erved.

OR END MARK

November 2010.

RECASTS

November 2010.

SUBSCRIBE TODA

ET REBOUND”

AY! www.manualo

Value-oriented Eq

ofideas.com



ed Investors

of 170

©

A

© 2008-2011 by Beyond

Anheuser-BConsumer Non

Price: $54.90

52-week rang

Market value:

Enterprise va

Shares out: 1

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$10

$20

$30

$40

$50

$60

$70


Busch InBev n-Cyclical: Beve

Trading Data

(as of 2/18/11)

ge: $43.19 - $64.

: $87.4 billion

lue: $129.7 billio

,592.3 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 3%

ept

me

g)

rations

ments

ssets

ts

t

bilities

y

mployed

erved.

v (BUD) — Merages (Alcohol

77

on

a

: 0

): 0

Ten-Year

SUBSCRIBE TODA

Markel ic)

This quarte

Next quarte

FYE 12/31/

FYE 12/31/

FYE 12/30/

LT growth

EPS Surpri

11/3/1

Operating Perfo

1

Stock Price Per

AY! www.manualo

Consensus EP

La

er $

er

/10

/11

/12 4

16

ise Actu

0 $0.

ormance and Fi

Fiscal Years E

12/31/06 12/3

16,692 19

9,822 11

3,917 5

1,754 3

1.79

972

4,122 5

1,731 2

2,391 3

2

8

22

42

2

9

7

22

20

7

rformance and T

Value-oriented Eq

ofideas.com

Leuven, Belg

PS Estimates

Month

atest Ago

0.75 $0.74

0.79 0.80

3.17 3.14

3.82 3.77

4.32 4.33

6.9% 15.7%

ual Es

94 $

inancial Positio

Ended

1/07 12/31/08

,735 23,507

,617 13,171

,872 5,153

,005 1,927

3.06 1.93

976 999

,557 5,533

,162 2,652

,395 2,881

,213 3,206

,153 10,831

,205 73,881

,247 113,748

,235 12,066

,841 23,167

,633 48,039

,190 91,306

0 0

,057 22,442

73% 42%

Trading Volume

quity Investment Id

ium, 32-16-247-7111

h # of P

o Ests P

4 4 P

0 2 P

4 7 E

7 8 E

3 6 P

% 2

stimate L

$0.90 L

on

8 12/31/09

7 36,758

1 19,560

3 10,940

7 4,613

3 2.90

9 1,584

3 9,124

2 1,713

1 7,411

6 3,744

1 10,853

1 75,290

8 112,525

6 2,043

7 14,254

9 47,049

6 82,207

0 0

2 30,318

% 79%

e Dynamics



Valu

P/E FYE 12/31/0

P/E FYE 12/31/1

P/E FYE 12/31/1

P/E FYE 12/30/1

EV/ LTM revenu

EV/ LTM EBIT

P / tangible book

Greenbla

LTM EBIT yield

LTM pre-tax ROC

LTME

9/30/10 9/3

36,121 9

19,857 5

10,670 3

4,337 1

2.71

1,586 1

n/a 3

n/a 1

n/a 2

4,698

11,729

74,579

111,495

2,772

14,734

44,244

79,710

0

31,785

>100%

Feb 10

ed Investors

of 170

www.ab-inbev.co

uation

09 19x

10 17x

11 14x

12 13x

e 3.6x

12x

k n/m

att Criteria

8%

C >100%

FQE FQE

30/09 9/30/1

9,763 9,32

5,258 5,19

3,253 2,88

,546 1,43

0.97 0.9

,586 1,59

3,704 n/

,537 n/

2,167 n/

4,69

11,72

74,57

111,49

2,77

14,73

44,24

79,71

31,78

n/m

Feb 11

m

E

0

3

3

8

4

0

1

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a

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8

9

9

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2

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© 2008-2011 by Beyond

BUSINESS OVEBelgium-based

NVESTMENT H #1 bre

nearlyin the Canad(16%)

BenefmarkeBudwbeer p

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“multi-country” brauch as Bud Light,

Harbin, Sedrin, Klin** 1H10 annualized

COMPARABLE P MV ($mn

HINKY 29,77

TAP 8,47

BUD 87,42

THE BOTTOM LIAB InBev repreeader in the gloncremental rethe Anheuser-B

of many other fWhile growth c


RVIEW d Anheuser-Bus

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da (42%) and M) and Germanyfits from scale ets as well as geiser, Stella Arlants produced

es offer good rted FCF yieldue from Brazil a50% interest intive. Pricing powrands should aforganic reven

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RISKS & CONCE% of revenue (~

re markets in organic reven

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PUBLIC COMPA

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70 9,210

20 129,740 3

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ANY ANALYSIS P /

EV / Tang. Rev. Book

1.8x n/m

2.8x 5.1x

3.6x n/m

ortunity to comstry. Cash flowobal brands and2008 (helped bye at an ~8% FC

Europe /U.S. –

SUBSCRIBE TODA

duces beer.

market share AB InBev is #

razil (69%), It is #2 in Rusin China (11%n consolidated, including

k’s.** ~140 glob

ectoliters in 3Qading at an 8%hly one third ofd Mexico exposwth prospects aong market sharn from cost ris 3Q10 (volum

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S This Next FY FY P/E P/E

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RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO

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D OPERATING

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2008 2009 0% -1% 5% 3% 5% 44%

19% 56% 54% -15% 23.5 36.8

16% 42% 33% 21%

8% 5% 20% 12% 14% 7%

6% 5% 3% 8%

8% 1% 5% 13%

29% 15% -2% -2% 4% 1% 8% 2%

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56% 53% 25% 28%

8% 13% 24% 25%

8% 8% 11% 5% 285 409 2% 59%

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ng AB InBev 5tichting, which is

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2% 4%

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55% 30% 11%

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©

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© 2008-2011 by Beyond

ANHEUSER-BU

($ in billions)

Valuation metho

Estimated 2010

Estimated 2010

Estimated 2010

Minus: Estimate

Estimated 2010

Fair value multip

Estimated enter

Plus: Grupo Mo

Minus: Net debt

Minus: Net emp

Minus: Non-con

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Implied 1H10 an

Implied 2009 di

Implied EV-to-ru

Implied EV-to-ru

Annualized revenu3Q10 EBITDA maManagement is guThe company has

equity-method invesof AB InBev was $6

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Anheuser-Busch in Based on annualiz

Source: Company f

GLOBAL CONSU

Source: Company p


SCH INBEV – O

odology

0 revenue1

0 adj. EBITDA ma

0 adj. EBITDA

ed 2010 capex3

0 EBITDA minus

ple

rprise value

odelo stake4

t5

ployee benefits5

ntrolling interest5

value of the equ

nnualized FCF y

vidend yield7

un-rate adj. EBIT

un-rate revenue8

ue is $35.8 billion brgin is 37.9%, excl

uiding for net capitaa 50% effective eq

stment. Our valuati6.8 billion at June 3 sheet values as of

million ADS outstand9 dividend of $0.55late 2008, as the p

zing 1Q-3Q10 finanilings, The Manual

UMER PRODUC

presentation dated

erved.

OUR ESTIMATE

argin2

maintenance ca

uity of AB InBev

yield

TDA8 8

based on revenue duding special itemsal expenditures of $quity interest in Gruon is based on the0, 2010. f June 30, 2010. ding (1 ADS = 1 ord5 per ADS declaredprimary use of cashncials. of Ideas analysis,

CTS COMPANIE

November 17, 201

SUBSCRIBE TODA

E OF THE EQUIT

Co

10x estiEB

main

pex

v6 $

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© 2008-2011 by Beyond

ANHEUSER-BU

AB InBev holds dirSAB Miller holds aHeineken holds a

Source: Company p

ANHEUSER-BU

AB InBev holds dirFEMSA Cerveza w

Source: Company p


SCH INBEV – M

rectly and indirectlya 49% stake in Chin37.5% stake in Un

presentation dated

SCH INBEV – M

rectly and indirectlywas acquired by Hepresentation dated

erved.

MARKET POSIT

y a 50.2% stake in na Resource Beverited Breweries LimNovember 17, 201

MARKET SHAR

y a 50.2% interest ieineken in April 201November 17, 201

SUBSCRIBE TODA

TION IN FASTE

Modelo. rages. ited. 0.

RE IN TOP 10 G

in Modelo 10 0.

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GLOBAL BEER “

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© 2008-2011 by Beyond

BP (BP) — Energy: Oil & G

Price: $47.93

52-week rang

Market value:

Enterprise va

Shares out: 3

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90


Blue Ridge Gas - Integrated

Trading Data

(as of 2/18/11)

ge: $26.75 - $60.

: $149.9 billion

lue: $170.8 billio

3,126.7 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 10%

ept

12/31/

196,6

51,2

me 25,7

17,0

4

g) 3,6

rations 23,3

12,2

11,0

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ts 15,0

194,6

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12,9

117,7

y 76,8

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604 245,486

219 60,868

746 32,182

088 22,024

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637 3,521

378 26,721

286 12,281

092 14,440

359 2,960

443 75,290

062 15,143

630 206,914

184 8,932

126 71,997

907 10,230

738 127,253

0 21

892 79,640

6% 33%

Ten-Year S

FeFeb 03

SUBSCRIBE TODA

pital , Cho

This quarter

Next quarter

FYE 12/31/1

FYE 12/30/1

FYE 12/30/1

LT growth

EPS Surpris

2/1/11

Operating Perfo

Fiscal Y

12/31/06 12

274,316 2

63,840

35,658

22,313

6.64

3,338

28,172

15,125

13,047

2,590

75,339

16,026

217,601 2

12,924

75,352

11,086

132,977 1

21

84,603

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1 5

2 6

3 5

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3,194 3,1

24,709 38,0

17,830 22,6

6,879 15,4

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236,076 228,2

15,394 15,7

77,231 69,7

15,651 17,4

42,386 136,9

21

93,669 91,2

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PS Estimates

Month

test Ago

1.66 $1.76

1.69 1.80

5.89 6.20

6.45 6.68

5.31 8.11

.0% 5.0%

ual Est

39 $1

nancial Position

1/08 12/31/09

053 246,138

315 59,164

239 26,426

155 16,576

6.69 5.25

132 3,122

095 27,716

658 20,650

437 7,066

197 8,339

384 67,653

138 20,168

238 235,968

740 9,109

793 59,320

464 25,518

935 134,355

21 0

282 101,613

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FFeb 07

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# of P

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4 P

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12/31/10 1

308,928 3

28,102

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13,616

18,421

(4,805)

20,088

96,853

22,896

272,262 2

14,626

83,879

30,710

177,275

0

94,987

-3%

e Dynamics

Feb Feb 08



-5672

Valua

P/E FYE 12/31/10

P/E FYE 12/31/11

P/E FYE 12/30/12

P/E FYE 12/30/13

EV/ LTM revenue

EV/ LTM EBIT

P / tangible book

Greenblat

TM EBIT yield

TM pre-tax ROC

LTME F

12/31/10 12/31

308,928 73,

22,858 17,

(3,393) 6,

(3,721) 4,

(1.24) 1

3,131 3,

13,616 7,

18,421 5,

(4,805) 1,

24,444 13,

96,853 67,

22,896 20,

272,262 235,

14,626 9,

83,879 59,

30,710 25,

177,275 134,

0

94,987 101,

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0 n/m

1 8x

2 7x

3 9x

e 0.6x

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C -3%

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1.36 1.76

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,288 (178)

,647 5,118

,641 (5,296)

,306 24,444

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0 0

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BUSINESS OVEBP is an integra

NVESTMENT H Prove

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THE BOTTOM LIDespite significrade at an estims after adjustinhe liability remhrough 2010. T


RVIEW ated oil and ga

HIGHLIGHTS ed reserves of alents (boe) atf average daily e life is ~13 ye% between oil oped, and roughsted EV/boe ofs an average $prise value is aning Gulf of Msions and $10 bproduction costend reinstatemd pressures anlized 4Q10 div

009 pre-oil spillBITDA of $43r oil prices (adj-term earning asset base remareserves are dources” of 50 bi

eting $30 billiobillion has alrery ‘11 (at impliunced share sweft in Januarywn 11% of Roeft will own 5%

RISKS & CONCEate GOM oil s

r than the remok a $41 billionillion of cash inn of cash p.a. inional claims/fin

vestment risk. ost of finding n if not more, ths may lag realitillion of net de

RS* BlackRock 6%he pending share sof the enlarged sha

INE cant share pricemated 25+% ding BP’s enterprmains uncertainThe recently re

erved.

as producer.

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ears). Reservesand natural gahly a third are f proved reser$15+ for U.S./Edjusted to inclu

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ains mostly intown only 1% deillion boe are uon of asset dispeady been annoied $12/boe of wap and globa. Pending deal sneft (incl. exi

% of BP’s enlar

ERNS spill liability m

maining $23 bin pre-tax chargn 2010. It plannto a trust fundnes may requirOil and gas are

new reserves mhan selling pricty due to GAAebt (0.6x 2010

% | L&G 5% | Sswap with Russia-bare capital of BP af

e appreciation iscount to its prise value for thn, BP’s 2010 adeinstated divide

SUBSCRIBE TODA

arrels of oil and 3.8 millio2010 (implied

s are split roughas; ~55% are based in the U

rves is ~$11 European peeude $23 billionoil spill

ion provisions. 7/boe since 20educing GOMresilience. Theremains at 50%lds ~4%. 2010

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1 In billions2 Based on3 Estimate4 Excludes2010 exclu5 As report

COMPAR

XOM

RDS.A

CVX

BP


s related to the enterprise valu

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D OPERATING cember 31 eserves (Bboe)1 ed reserves fter-tax ($bn)2 production alized oil price alized gas price ction costs y intake e ($bn)

enue by segment: on/Production Marketing e/Eliminations - growth by selected on/Production Marketing EBIT margin by seleon/Production Marketing dj. EBIT margin enue from U.S. items as % of reven

me

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s inventory gains/loudes $41 billion GOted (includes GOM

RABLE PUBLIC

MV ($mn) ($

426,100 43

221,390 25

198,670 19

149,870 17



Gulf of Mexicue per oil-equispill-related proon dwarfs the $4%, has the pot

quity Investment Id

DATA 2005 2006 2017.9 17.7 1-2% -1% 128 91 10% -2% -

37% 22% 127% -4% -33% 5% 2-8% -8% -25% 11% 240 266 2

26% 26% 289% 87% 8

-15% -13% -1 segment: 25% 10% -31% 9% ected segment:4 43% 46% 4

2% 2% 13% 13% 139% 36% 3

nue: 14% 13% 1

9% 8% 4% 3% 5% 6%

tion segment data: 48.5 59.2 6

4.9 4.7 4.5 5.7

35% 33% 234% 34% 3-3% -5% -

barrels, net (incl. BPludes BP share of e

osses (and other noOM oil spill charge oil spill charge and

COMPANY AN

EV EV / $mn) Rev.

32,140 1.1x

52,280 .7x

94,760 1.0x

70,760 .6x



co oil spill in 20ivalent barrel oovisions. Whil$18 billion of ctential to more



007 2008 2007.8 18.1 181% 2% 1%176 57 8-3% 1% 4%4% 34% -38%

-4% 32% -46%6% 1% -12%

-3% 1% 6%7% 27% -34%284 361 23

3% 24% 24%

88% 89% 89%1% -12% -13%

-3% 31% -33%8% 28% -33%

42% 46% 38%

1% 1% 2%0% 12% 9%

36% 34% 35%

1% 10% 11%7% 6% 7%4% 3% 5%6% 6% 9%

67.5 90.2 564.5 6.0 37.1 7.2 69% 29% 22%

34% 35% 36%-4% -2% 0%P’s share of equity iequity-accounted e

on-operating items (pre-tax, pre-partned other items).

NALYSIS P / This

Tang. FY Book P/E

2.9x 12x

1.5x 11x

2.0x 9x

2.1x 8x



010, BP continof proved reserve the ultimate acash costs incu

e than double o

ed Investors

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09 2010 .3 18.1 % -1% 89 n/a % -4% % 30% % 22% % 13%3 % 6% % 24% 39 297

% 22% % 90% % -12%

% 15% % 25%

% 42% % 2% % 11% % 33%

% -1%5 % -1% % 4% % 6%

.3 73.4 .3 4.0 .4 7.13 % -5% % 33% % 0% nvestees).

entities.

in 2007-10). er recovery).

Next FY P/E

10x

10x

9x

7x

nues to ves. This amount of urred over time.

©

B

1 ocBthre2 b~v3 4 5 6 pacpin7 oofo8 9

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© 2008-2011 by Beyond

BP – OUR ESTI

($ in billions)

Valuation metho

Value of proved

Proved reserves

Fair value "mult

Fair value of pr

Value of additio

Additional "reso

Fair value "mult

Fair value of ad

Estimated tota

Minus: Net debt

Minus: Remaini

Minus: Provision

Minus: Non-con

Estimated fair

Implied 2010 ad

Implied run-rate

Implied 2009 di

Implied EV-to-2

Implied fair valu

Implied EV per

Implied EV per

As of year-end 20of 13 years based oconventional/LNG gBP). BP also has sighrough January 20espectively, of whic

For reference, the based competitors E~$15/boe. Based onvalue to barrel of oil

Per BP's disclosur

As timing and ultim

Per balance sheet

BP took a spill-relaprovision is $23.3 bassumes the presencases are modestlyprocesses). Underlynvestigations, most

Based on 3.13 billordinary shares (~1of BP. In return, BPorming a global stra

Adjusted to exclud

Based on annualiz

Source: Company f


MATE OF THE E

odology

d reserves:1

s, including shar

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onal "resources":3

ources" as of 12/3

tiple"4

dditional "resou

l enterprise val

t5

ng liability for Gu

n for post-retirem

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value of the equ

dj. earnings yield

e dividend yield9

vidend yield

2010 adj. EBITDA

ue of the equity to

boe of proved re

boe of total "reso

10, BP had provedon 2010 productiongas. ~55% of provegnificant reserves i11 (out of total targch 0.4bn boe and 1

implied value of BExxon Mobil (includn our analysis, a sel-equivalent proved

re in February 2011

mate recoverability

t values as of Dece

ated charge of $40illion as of yearendnt value of total remlower. This is main

ying our estimates t of which are still p

ion American Depo65 million ADS) to will receive Rosne

ategic alliance focu

de Gulf of Mexico s

zing the 4Q10 divid

ilings, The Manual

erved.

EQUITY FAIR V

e of equity inves

(A) 3

31/10

urces" (B)

ue (A) + (B)

ulf of Mexico oil s

ment benefits5

uity of BP7

d8

A (including share

o tangible book

eserves

ources" (proved r

reserves of 18.1 b. Conventional oil r

ed reserves are devin the North Sea, Ageted disposals of ~1.8bn boe are base

P's announced dispding recently acquielect peer group of d reserves of ~$17/

1, it had 50.2 billion

of additional resou

ember 31, 2010.

.9 billion (pre-tax) id 2010. BP expectsmaining liabilities apnly to reflect the timis the assumption t

pending.

ositary Shares (ADbe issued to Rosne

eft shares that will eused on oil and gas

pill response charg

dend of $0.42 per A

of Ideas analysis,

SUBSCRIBE TODA

VALUE RANGE

stees, as of 12/31

spill6

re of profit from e

reserves+additio

billion oil-equivalentrepresents ~50% oveloped. About oneAzerbaijan, and Ang~$30 billion) relate ed on disposals com

posals of $21+ billired XTO Energy), CEuropean-based in

/boe. The peer grou

n boe of "non-prove

urces is uncertain, w

n 2010. After 2010s to fund $5.0 billionpproximate the yea

me value of money that BP will not face

S) outstanding. Oneft as part of a deaexpand its existing s exploration in the

ges, inventory holdi

ADS. BP reinstated

assumptions and e

AY! www.manualo

1/10

equity investees)8

onal resources)

t barrels (includingf reserves, with the

e third of reserves agola, among othersto proved reserves

mpleted in 2010 (ex

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ed resources" in ad

we attach zero valu

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ne ADS equals 6 oral announced in Janstake in Rosneft froArctic Sea.

ing gains/losses, a

a dividend in Febr

estimates.

Value-oriented Eq

ofideas.com

Conservat

Valuation proved reseonly (basedimplied $/bo

announceasset dispos

of ~$12/bo

18 billion b

$12.00 per

$217 billio

50 billion b

$0 per bo

$0

$217 billio

-$26 billio

-23 billion

-10 billion

-1 billion

$157 billio

$50 per AD

13%

3%

7% 8 5.1x

2.2x

$12

$3

its share of reservee remainder largelyare located in the Us. Total headline prs and non-proved rxcluded from our re

e of proved reserveocoPhillips at an avas producers has rTotal, Eni and OMV

ddition to its proved

ue per barrel of oil-e

f $17.7 billion (inclust fund in each of 2on value of ~$23 biunt and timing of caer costs beyond exi

rdinary BP shares. nuary 2011. Pendinom ~1% to 10+%.

nd other non-opera

ruary 2011 after sus

quity Investment Id

tive Base

of rves

d on oe of ed sals oe)

Valuatproved r(~$13/bo

valuaddit

"resou

boe 18 billio

boe $13.00

on $235 b

boe 50 billio

oe $0.50 p

$25 b

on $260 b

on -$26 b

n -20 b

n -10 b

n -1 bi

on $204 b

DS $65 pe

10

3%

5%

6.

2.8

$1

$

es in equity investey represented by deU.S. and ~20% in Rroceeds of >$21 bilresources of 1.7bn eserve/resources fi

es. We estimate theverage enterprise varecently traded at aV.

d reserves at year-

equivalent resourc

uding $5.0 billion in2011, 2012 and 201llion, our estimatesash outflows largelisting provisions fro

Our share count dng the completion oIn addition to the s

ating items.

spending payment



Case Ag

tion of reserves oe) plus

ue of tional urces"

Vaprov(~$1

va

"re

on boe 18

per boe $14

billion $2

on boe 50

per boe $1.

billion $5

billion $3

billion -$

billion -

billion -

illion -

billion $2

er ADS $80

0%

%

%

1x

8x

14

$4

ees) with an impliedeepwater oil and

Russia through a stalion from announceboe and 3.2bn boegures above).

e average valuationalue to barrel of oil

an average implied

end 2010.

es in our conservat

to a trust fund), the13. While our conses in the base and ay depend on politicom oil spill-related

oes not include 989of the deal, Rosnefshare swap, BP and

s after the 2010 GO

ed Investors

of 170

ggressive

aluation of ved reserves 14/boe) plus value of

additional esources"

billion boe

.00 per boe

253 billion

billion boe

00 per boe

50 billion

304 billion

$26 billion

15 billion

10 billion

-1 billion

252 billion

0 per ADS

8%

2%

4%

7.1x

3.5x

$17

$4

d reserve life

ake in TNK-ed disposals e,

n of U.S.--equivalent of enterprise

tive case.

e remaining ervative case ggressive cal and legal litigation and

9 million new ft will own 5% d Rosneft are

OM oil spill.

©

B

* B

1 2 3 B

* **

**

S

© 2008-2011 by Beyond

BP – GULF OF M

Balance sheet amo

BP – 2010 UND

Adjusted for the coReserves and resoAdjusted for non-o

BP – 2011 GUI

Cash from disposa* Excluding the effe** Excluding the imp

Source for the abov


MEXICO OIL SP

ount includes all pr

DERLYING PER

osts associated witource replacementoperating items, fair

IDANCE

als including deposects of changes in epact of the Gulf of M

ve charts: Company

erved.

PILL COSTS AN

rovisions, other pay

RFORMANCE

h the Gulf of Mexic, as reported on a cr value timing effec

its of $6.2bn receivexchange rates andMexico oil spill.

y presentation date

SUBSCRIBE TODA

D PROVISIONS

yables and the reim

co oil spill, other Nocombined basis of cts and the environm

ved at year end 201d fuel costs. A full d

ed February 1, 2011

AY! www.manualo

S (pre-tax, pre

mbursement asset b

on-Operating Itemssubsidiaries and eqment effect of refin

10 relating to dispodefinition of cash co

1.

Value-oriented Eq

ofideas.com

e partner recov

balances related to

s and Fair Value Acquity accounted ening margins, petroc

osal transactions exosts can be found o

quity Investment Id

very)

o the Gulf of Mexico

ccounting Effects. ntities, excluding acchemical margins,

xpected to completon bp.com.



o oil spill.

cquisitions and diveforex and energy c

te in subsequent pe

ed Investors

of 170

estments. costs.

eriods.

©

B

© 2008-2011 by Beyond

Brookfield IUtilities: Electr

Trad

Price: $23.55

52-week rang

Market value:

Enterprise va

Shares out: 1

Owne

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25


Infrastructuric Utilities

ding Data

(as of 2/18/11)

ge: $14.95 - $23.

: $2.7 billion

lue: $3.1 billion

13.0 million

ership Data

rship: <1%

(last six months)

(last six months)

wnership: 55%

ept

me

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79

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SUBSCRIBE TODA

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quarter

12/31/11

12/30/12

12/30/13

rowth

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Mont

test Ago

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

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12/31/09

290

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195

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a n/a

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ading Volume Dy

Feb

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P/E FYE 12/31

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P/E FYE 12/30

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EV/ LTM reven

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110

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Feb 10

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frastructure.com

6x

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a

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12/31/10

634

221

495

467

4.25

110

n/a

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Feb 11

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© 2008-2011 by Beyond

BUSINESS OVEBrookfield Infroperates infrast

Utilities (2010 onne coal expo

global seabornehe Americas (8

Australasia/Eur

Transport and Eenergy transmisgas pipelines), provider in partn Europe (20 p

Timber (2010 Fof freehold timb

NVESTMENT H Provid

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BIP opinfrast(e.g. A

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THE BOTTOM LIBIP owns long distribution yieprojects. Howeacquisition-led


RVIEW rastructure Parttructure assets

FFO:*$200 miort terminal in Ae met coal expo8,750 km of linrope (804,000 e

Energy (2010 Fssion in North 5,100 km of rats of Southwestports handling

FFO: $11 milliberlands in No

HIGHLIGHTS des exposure tgh an MLP stwith high barr

actual cash flowes at a ~9% trbution yield), e Prime mergerbution by 13% ets 3-7% long-to inflationary prery. An $0.8 bil, as well as newrecourse debt. lidated debt at y2010 merger we value? BIP cital markets and

RISKS & CONCEisition-led groperates in a vertructure assets.

Australia railroatracted” cash of invested paof it in coal exr exposed to a . This is magnilated cash flow

may not adequate leakage fromkfield Asset Maee (tied to BIP ive participatio

INE life assets with

eld appears attrver, the risk-remodel, as well

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tners L.P. (BIPthrough three s

illion): IncludeAustralia (accoorts), electricity

nes), and energyelectricity/ gas c

FFO: $175 miAmerica (15,5

ailroad tracks intern Australia), ~85 million ton

ion): Includes orth America.

to global infratructure.** BIPriers to entry. Rw represents ~8ailing FFO yiebased on 2010r. BIP increaseto $0.31 per unterm growth irice increases allion project ba

w projects, offer99%+ of BIP’syearend 2010 i

with Prime Inflaims it will “ed “facilitate” fu

ERNS wth may not cry competitive Expansion at ads) mitigates flow is not alw

artnership capitxport infrastrucslowdown in dified by high lews provide a ctely compensat

m services agreanagement, whmarket value) a

on (tied to per u

h high barriers active given th

eward is diminil as value leaka

SUBSCRIBE TODA

P), owns and segments:

es an 85 millionunts for ~20% y transmissiony distribution inconnections).

illion): Include500 km of natun Australia (soand ports mainnnes annually)

1.3 million acr

astructure assP owns long lifRegulated and 80% of the totaeld (5% run-r

0 FFO pro-formed the quarterlynit in Februaryn distributionand a timber pracklog at existinr growth potents $4.6 billion os at project-levfrastructure enhance” accesuture growth.

create value amarket for existing facilitthis to an exten

ways stable. Wtal in Australiacture), unitholddemand from everage. ceiling on retute for risk. eement with hich gets a 1.25and escalating

unit distribution

to entry that phe non-recourseished by exposage to the gene

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SELECTE

FYE DeceProportioUtilities TransportTimber Corporate ProportProportioUtilities TransportTimber Corporate ProportProportio% of propUtilities TransportTimber ProportioUtilities TransportTimber ProportTotal assSelected Cash andGoodwill/Other assDebt (99+Other liabNon-contPartnersh∆ units ou

1 BIP was based on I2 Proforma3 Funds frotaxes, and4 AFFO=Acapital exp5 Defined a6 Based on

MAJOR General Connor,* Estimate

RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * FFO=netStated on ** The masof a limite

provide essentiae nature of the sure to cyclicaleral partner. On

Value-oriented Eq

ofideas.com

D OPERATING

cember 31 onate FFO by segme

rt and Energy

e/Other tionate FFO

onate FFO less main

rt and Energy

e/Other tionate AFFO

onate invested partneportionate invested p

rt and Energy

onate AFFO yield by

rt and Energy

tionate AFFO yield sets ($bn) items as % of total ad equivalents /intangible assets sets (mainly PP&E) +% non-recourse) bilities trolling interest hip capital ut (period-end) established in 200IFRS. Proportionata for the merger witom operations (FFOd certain other itemsAdjusted FFO as reppenditures). 2009 fias partnership capin adjusted FFO div

HOLDERS* Partner <1% |, Clark & Lunnd holdings after is


Able to sustain high GS MOMENTUM Poised to benefit frt income plus DD&a proportionate baster limited partnered partnership with

al infrastructurdebt and oppo

l demand for con balance, we d

quity Investment Id

DATA1

ent ($mn):3

ntenance capex (AFF

ership capital ($bn):5

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y segment:6

assets:

8 by Brookfield Asste figures are statedth Prime InfrastructO) is defined as nes. 2009 figure excluported by the compigure excludes a gaital less certain adj

vided by average in

Brookfield Asn 3% | TD 3% | ssue of 51 million


M Fundamentals imrom economic and s&A, deferred taxesasis and pro-formarship (MLP) struch the liquidity of p

re-related serviortunities for orommodities, exdo not find the



2009 2010

61 144 13 91 -3 11

-22 -49 49 197

FO) by segment ($m49 131 13 58 -9 8

-22 -49 31 148

5 1.8 2.9 by selected segment

39% 38% 26% 46% 31% 18%

15% 15% 15% 9% -2% 2% 4% 8% 6.0 13.1

2% 1%

15% 27% 83% 72% 33% 35% 15% 27% 21% 12% 31% 26% n/m 48%

set Management. Fd after non-controllture (completed in

et income plus DD&udes a gain on salepany (FFO minus main on sale. ustments.

nvested partnership

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mproving? secular trends? s, and certain othe

a for Prime mergercture combines thepublicly traded sec

ices. The 5% rurganic growth xecution risk ti

e valuation com

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of 170

Pro-forma2 2010

200 175 11

-58 328

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8 -55 224 2.9

t: 45% 43% 16%

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Financials are ing interest. Dec. 2010).

&A, deferred e.

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ent 30% | brai 1% ember 2010.

er items. r in 2010. tax benefits

curities.

un-rate at existing ied to an

mpelling.

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© 2008-2011 by Beyond

BROOKFIELD IN($ in millions)

Valuation metho

2010 pro-forma

Maintenance ca

Estimated 2010

Fair value multip

Estimated fair

Implied annualiz

Implied 2010 FF

Implied fair valu

Implied fair valu

Proforma for the mdeferred taxes, and

As implied by repoBased on 157 millBased on Decemb

Source: Company f

BROOKFIELD IN

Source: Company p

BROOKFIELD IN

Source: Company p


NFRASTRUCTUR

odology

funds from oper

apex2

0 FFO minus mai

ple

value per unit o

zed cash distribu

FO yield

ue to partnership

ue to estimated ta

merger with Prime Icertain other items

orted adjusted FFOion diluted units ouber 31, 2010, balanilings, The Manual

NFRASTRUCTUR

presentation dated

NFRASTRUCTUR

presentation dated

erved.

RE PARTNERS

rations (FFO)1

ntenance capex

of Brookfield Inf

ution yield4

capital5

angible partnersh

nfrastructure, whics. It is stated after F

O (AFFO), which is dutstanding. 4 nce sheet. Tangible

of Ideas analysis,

RE PARTNERS

February 2011.

RE PARTNERS

February 2011.

SUBSCRIBE TODA

– OUR ESTIMA

frastructure3

hip capital5

h was completed inFFO attributable to defined as FFO miBased on annualiz

e partnership capitaassumptions and e

– OPERATING

– CASH FLOW

AY! www.manualo

ATE OF THE EQUConservat

15x 2010 pro-FFO minu

maintenance

$328

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9.8%

1.0x

3.3x

n December 2010. non-controlling intnus maintenance cing the latest quart

al is stated as partnestimates.

PROFILE

PROFILE

Value-oriented Eq

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UITY FAIR VALtive

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ma

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nit

Funds from operatterests. capital expenditureterly cash distributionership capital less

quity Investment Id

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x 2010 pro-formaFFO minus

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© 2008-2011 by Beyond

BROOKFIELD IN

Source: Company p

BROOKFIELD IN

Source: Company p

BROOKFIELD IN

Source: Company p


NFRASTRUCTUR

presentation dated

NFRASTRUCTUR

presentation dated

NFRASTRUCTUR

presentation dated

erved.

RE PARTNERS

February 2011.

RE PARTNERS

February 2011.

RE PARTNERS

February 2011.

SUBSCRIBE TODA

– SELECTED FIN

– SELECTED BA

– PRO FORMA

AY! www.manualo

NANCIAL INFO

ALANCE SHEET

A CORPORATE L

Value-oriented Eq

ofideas.com

ORMATION (pr

DATA (propor

LIQUIDITY (Dec

quity Investment Id

roportionate sh

rtionate share)

cember 31, 20



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)

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ed Investors

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©

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© 2008-2011 by Beyond

Gastar ExplEnergy: Oil & G

Price: $4.52 (

52-week rang

Market value:

Enterprise va

Shares out: 6

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25

$30

$35


loration (GSGas Operations

Trading Data

(as of 2/18/11)

ge: $2.85 - $5.77

: $282 million

lue: $299 million

62.4 million

Ownership Data

rship: 2%

(last six months)

(last six months)

wnership: 47%

ept

12/31

me

(0.

g)

rations

ments

ssets

ts

t

bilities

y

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ST) — BP Ca

n

a

: 1

): 5

Op

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2 6

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(5) (10)

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21 22

(2) (1)

5 34

(7) (35)

1 16

1 18

0 0

39 84

2 0

5 2

7 58

15 62

0 0

24 22

5% -21%

Ten-Year Sto

Feb 0eb 03

SUBSCRIBE TODA

Capital

This quarter

Next quarte

FYE 12/31/1

FYE 12/31/1

FYE 12/30/1

LT growth

EPS Surpris

n/a

perating Perform

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12/31/05 12

27

0

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(26)

(0.99)

26

3

84

(80)

61

70

0

240

0

14

91

119

0

121

-11%

ock Price Perfor

Feb 0504

AY! www.manualo

Houston,

Consensus EP

Lat

r

r

10

11

12

se Actu

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Years Ended

2/31/06 12/31/

27

0

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55

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94 1

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rmance and Tra

Feb 06

Value-oriented Eq

ofideas.com

, TX, 713-739-1800

PS Estimates

Month

test Ago

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

al Esti

a n

ncial Position

/07 12/31/08

35 63

0 0

58) (1)

31) (5)

75) (0.13)

41 41

7 40

65 131

58) (91)

86 16

93 25

0 0

262 288

0 152

29 182

133 0

167 187

0 0

95 102

2% -1%

ading Volume Dy

FebFeb 07

quity Investment Id

# of P/

Ests P/

n/a P/

n/a P/

n/a EV

n/a EV

n/a P

n/a

mate LT

n/a LT

L

12/31/09 9/

33

0

(93)

49

1.06

46

13

49

(36)

96

122

0

296

17

113

0

131

0

165

-57%

ynamics

Feb 09b 08



Valuatio

/E FYE 12/31/09

/E FYE 12/31/10

/E FYE 12/31/11

/E FYE 12/30/12

V/ LTM revenue

V/ LTM EBIT

/ tangible book

Greenblatt C

TM EBIT yield

TM pre-tax ROC

LTME FQE

/30/10 9/30/09

44 4

0 0

(13) (22)

3 109

0.07 2.21

47 49

9 (3)

52 8

(43) (11)

7 80

22 87

0 0

236 266

0 20

39 106

24 0

79 114

0 0

157 152

-9% n/m

Feb 10

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www.gastar.com

on

4x

n/a

n/a

n/a

6.8x

n/m

1.8x

Criteria

-4%

-9%

E FQE

9 9/30/10

4 14

0 0

) (17)

9 (16)

1 (0.33)

9 49

) 3

8 19

) (16)

0 7

7 22

0 0

6 236

0 0

6 39

0 24

4 79

0 0

2 157

m n/m

Feb 11

©

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© 2008-2011 by Beyond

BUSINESS OVEGastar owns anareas: Bossier (Pennsylvania),

NVESTMENT H U.S. u

billionat year~90% East T~7 yea

$70 mAtinuThe deacres toriginMarceDecem

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NVESTMENT R Prove

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HIGHLIGHTS unconventionaln cubic feet equrend 2009 (95+of reserves are

Texas. ~60% ofars based on tra

million JV dealm validates Meal implies a vato be assigned al acreage). Af

ellus acres frommber 2010, it owsted enterpriseellus acre of l

y the estimated ved reserves (mon NYMEX-s

nt EV to “net rr oil-equivalen2.4+ trillion cfeaverage cash c2005 (1Q-3Q1even levels at B3.90 per thousamillion of pro-ed for net deriveds from 13.8 m0/share), a $21 s initial cash in

RISKS & CONCEed reserves jusing in explora the Atinum de

significant valu0 Marcellus acrenergy and Sag

re dilution cannneeds despite $

inum. 2011 cap-time sharehole stake at ~$3 id Gastar to splral gas price h

INE gy is to explore deal with Kor

ove recent entermay ultimately

isk-reward, and

erved.

tural gas reservMarcellus (Weser River (Wyom

l natural gas puivalent (Bcfe) o+% of which are located at thef reserves, whicailing productiol with Korean

Marcellus resoalue of $4,100/to Atinum (50

fter Gastar’s pum Megaenergy/Swns ~80,000 ace value assumless than $2,00$134 million a

mostly at Bosstrip pricing as resource potennt barrel basede) of resources costs of $3-4 p0: $3.90). Gas

Bossier and Maand cubic feet e-forma net casvatives, ~$52 mmillion new shmillion litigati

n/outflow from

ERNS stify only half ation and deveeal indicates Gue above recentres (~80% of tga implies onlynot be ruled o$40 million futpital budget is $lder Palo Altoin 2010. Palo Ait the CEO andedges limit ne

e unconventionrean investmenrprise value. Gy accrue to exid tempering ou

SUBSCRIBE TODA

ves in three U.st Virginia andming/Montana

producer with of proved reserre natural gas)e Bossier sandsch have a life o

on, are producininvestment fi

urce potential/acre for 17,10% of Gastar’s

urchase of ~62,0Saga Petroleumcres at Marcellu

mes a value per00, after reduciafter-tax PV-10ier/Powder Rivof yearend ‘09ntial” is less thd on 400+ millper Gastar. er thousand cftar estimates arcellus of $3.5equivalent. sh at 9/30/10, million of net hares in Decemion settlement,

m Marcellus dea

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1 Bcf(e) = b2 Present vbefore incobeen incluSEC methmethodolounder the “3 After unre4 Includes 5 Excludesobligation, 6 2009 net 7 Includes

MAJOR CEO PoBlackRo RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * Based on“Unconvecompletio** EV is alshares, a li

resources in thappears to val

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Value-oriented Eq

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D OPERATING

cember 31 gas reserves (period-eserves ral gas ucing oved reserves ($mn reserves producing

ction e

on (Bcfe) ($mn)3 items as % of reven

perating expenses4

me6 from operations

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perating4

equity/assets out (avg) billions of cubic feevalue, discounted aome tax of estimateded based on tax-lodology (“flat price

ogy (“average price“old” method and $ealized natural gasproduction taxes a

s natural gas/oil pro litigation expense

t income includes pdrilling advances.

HOLDERS orter 2% | Otheock 6% | Tocqu



n “new” SEC methentional” because pon technologies, prlso adjusted for allitigation settlemen

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quity Investment Id

DATA1

2006 200-end) (Bcfe):

31.3 5499% 100%36% 40%

n)2 40 13-5% 75%61% 91%23% 40%

-2 29%4.7 627 3

nue: 32% 25%51% 49%

-44% -36%-317% -88%

-5% 22%61% 62%

241% 202%mn) -1 cf) 5.60 5.1cfe):

1.82 1.32.87 2.53.46 3.243% 36%31% 19%

et (equivalents); Mcat 10% per annum,ed proved reservesloss carryforwards)

es held constant”). 2es held constant”). 2$134 million if "NYMs hedge gain/loss. and transportation aoperties’ impairmenand mineral resou

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M Fundamentals imrom economic and shod (69 Bcfe at “Nprior to advances iroduction from sucl transactions in 4Qnt, and the Marcell

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onal control by l gas giant Chees likely justify



07 2008 2009

.9 63.8 48.9% 100% 99%% 50% 59%32 110 46% 16% -23%% 47% -10%% 29% 9%% 83% -48%.6 8.5 9.3

35 63 33

% 17% 26%% 23% 48%% 21% -24%% -8% 149%% 63% 41%% 39% 50%% 218% 168%7 40 13

18 6.63 4.36

31 1.28 0.9255 1.68 1.6824 2.87 1.77% 35% 56%% 2% 11%cf(e) = thousands o of estimated futures (no future taxes p). 2006-08 is based2009 is based on “2009 PV-10 is $113MEX strip" prices a

and treating costs.nt, accretion of assrce properties expesale of Australian a

| Chesapeake 1iver Road 4%



NYMEX strip pricein drilling, fracturich reserves was unQ10, including thelus sale and purch

le and coalbed ate a value of G

Gastar, much esapeake Energfy only half of r

ed Investors

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9 YTD

9/30/10

9 n/a % n/a % n/a 6 n/a

% n/a % n/a % -26% % 44% 3 5.3 3 36

% 25% % 32% % 26% % -26% % 22% % 17% % 121% 3 8 6 4.13

2 1.71 8 2.20 7 1.15

% 67% % 9% of cf(e). e net revenue payable have d on “old” new” SEC 3 million re used.

et retirement ense.

assets.

13% | Rima 3%

es”). ing and neconomic. e issue of new ase deals.

methane. Gastar’s

of that gy (CHK). recent EV.

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© 2008-2011 by Beyond

GASTAR EXPLO ($ in millions)

Valuation metho

Value of East TProved reservesFair value “multFair value of pro 12/31/09 PV-1 implied fair v“Net resource pFair value “multFair value of resEstimated enter implied enteValue of AppalProved reservesFair value “multFair value of pro 12/31/09 PV-1 implied fair v“Net resource pFair value “multFair value of resEstimated enter implied enteEstimated ente Gastar net ac implied enteEstimated totaPlus: Estimated

Estimated fair

Implied price-toImplied trailing nImplied EV as %Implied EV per Implied EV per Implied EV per

100% operated; 50months of 2010, Ga90+% of total Gast

gas (based on an eMercantile Exchangncreased from $5.7energy content, tranevenue before inco

carryforwards and cBased on the com100% operated; 95

nine months of 2010company's presentaadjustments for acrepurchase and sale aGastar assigned to 34,200 net) acres a

valued at $70 milliodrilling costs (“drillinown a 50% interest $29 million. The acqVirginia. After allocaransaction (see foo

acreage owned) impconservative value working interest in ~adjacent fields (coairst nine months of

net derivatives) adju4Q10). On October million shares outstaorma shareholders

~$9 million of net camillion for drilling, deo focus on oil/liquid

per MMBtu to $8.51

Source: Company f


ORATION – OUR

odology

Texas assets (Bs as of 12/31/092

tiple” oved reserves (A10, East Texas pvalue as % of PVotential”4

tiple” sources (B) rprise value of Eaerprise value per lachia assets (Ms as of 12/31/096

tiple” oved reserves (D10, Appalachia pvalue as % of PVotential”8

tiple” sources (E) rprise value of Aperprise value per erprise value of res in Powder Ri

erprise value per l enterprise val

d net cash (9/30/1

value of the equ

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% of PV-10 (12/3boe of proved reboe of "net resounet acre

0-67% working inteastar's average net ar proved reservesnergy equivalence

ge for crude oil and 79 per MMBtu to $8nsportation fees, anome tax of estimatecurrent and future p

mpany's presentatio5-100% working int0, Gastar's averageation from Februaryeage sold to Atinumagreement with AtiAtinum an initial 21

and a 50% workingn. Atinum paid Gas

ng carry”). Upon coin the 34,200 net a

quisition consists oating value to existiotnote 9) implies a ~plies a ~$410 per is based on the $10~43,400 gross (19,6lbed methane prop2010, Gastar's ave

usted to include ~$1, 2010, Gastar's banding (includes 13' equity of $210 milash from operationsependent on antici

ds. 4Q10 capex is e per MMBtu over t

ilings, The Manual

erved.

R ESTIMATE OF

Bossier):1 2

A) proved reserves (V-10 value

ast Texas assetsr acre, net to GasMarcellus Shale)

6

D) proved reserves (V-10 value

ppalachia assetsr acre, net to Gas

Powder River Biver Basin

r acre, net to Gasue (C) + (F) + (G10 net cash plus

uity of Gastar13

alue multiple14 perations to impli31/09 1P, NYMEXeserves urce potential"

erest. Assets are loproduction from Ea

s) has been convertapplicable at the bnatural gas as of D

8.51 per MMBtu ovnd regional price died proved reservesproperty tax basis, nn from February 20terest. Assets are le net production froy 2011 (net resourcm JV in Septembernum Partners, a Ko1.4% interest in all g interest in 16 prodstar $30 million in cmpletion of the funacres of Marcellus Sf ~62,000 net acresng wells, a gatherin~$4,100 per acre vacre value (see foo0 million PV-10 val600 net) acres in th

perties). The majorierage net productio52 million of net prborrowing base wa3.8 million new shallion, as reported ins for the year endepated oil drilling resestimated at ~$19 mhe life of the prope

of Ideas analysis,

SUBSCRIBE TODA

F THE EQUITY

(NYMEX strip pr

s (A) + (B) = (C)star (17.9K acres):5

(NYMEX strip pri

s (D) + (E) = (F)star (80K acres) 9

Basin assets11 (G

star G)

adjustments)12

ied equity value15

X strip, after taxe

ocated at the Deep ast Texas was ~17ted to barrels of oil

burner tip). 3 TDecember 31, 2009er the life of the profferentials. PV-10 r. Gastar has ~$50 no future taxes pay011 (net resource pocated in the Marc

om Appalachia wasce potential of ~1.9r 2010 as well as thorean investment fiof its existing Marc

ducing shallow convcash at the closing ding of the drilling Shale rights ownes of leasehold in thng system and wor

value for Marcellus otnote 9). The wideue of proved reserv

he Powder River Baty of the remaining

on from the Powderroceeds from the iss increased to $47

ares issued in Decen Gastar's Februaryed September 30, 2sults at Glen Rose,million. 16 Basrties). ~85% of the

assumptions and e

AY! www.manualo

FAIR VALUE RACo

Lowprov

8 $$

icing)3 $

83$

$s)

1 $

icing)7 $

317$0

9, 10 G) $

$1$

$1$2.0

5 es)16

Bossier Sands, Ea7 MMcfe/day.

equivalent (boe) oThe NYMEX strip p9. For gas volume, operties and was arepresents the presmillion of tax carry

yable have been inpotential of ~0.5 trilcellus fairway in nors ~0.4 MMcfe/day. trillion cubic feet e

he acquisition of acirm. Pursuant to thecellus Shale assetsventional wells andand will pay an addcarry, Gastar will md by Gastar. In Dece Marcellus Shale rk program, Gastaracreage. The Dece

e range of values peves, based on NYMasin of Wyoming. P

g working interest isr River Basin was ~sue of new shares

7.5 million, increasinember 2010 at a puy 2011 presentation2010. Gastar has a , Eagle Ford/Woodsed on a PV-10 val PV-10 value is at

estimates.

Value-oriented Eq

ofideas.com

ANGE onservative w valuation of ved reserves

million boe 10 per boe $85 million 114 million

74% 3 million boe $0 per boe

$0 $85 million

$4,734

million boe 10 per boe $8 million

$10 million 86%

7 million boe 0.00 per boe $0 million $8 million

$104 $10 million

19,600 $510

103 million $25 million 130 million 00 per share

0.6x 7%

77% $9

$0.26 $877

agleford, Glen Rose2 Based on NYME

on the basis of one pricing is based on t

the price was baseadjusted by lease insent value, discounyforwards for federacluded in the deterlion cubic feet equirthern West Virgini 6 See footnot

equivalents was concreage in Decembee agreement, at the

s in West Virginia ad one non-producinditional $40 million

make additional asscember 2010, Gasconcentrated in Pr

r paid ~$410 per acember 2010 Gastaer acre is reflected MEX strip pricing asPrimary areas of acs owned by the ope~2 MMcfe/day. , the Marcellus tranng availability for bublic offering price on (includes adjustm$54-73 million tota

dbine. ~57% of drilliue of $134 million East Texas, ~8% a

quity Investment Id

Base Cas1P, plus low v

of resource

8 million bo$12 per bo$102 millio$114 millio

89% 83 million b$0.50 per b

$42 million$143 millio

$8,008

1 million bo$12 per bo$10 million$10 million

103% 317 million b$0.50 per b$158 millio$168 millio

$2,105 $15 millio

19,600 $765

$327 millio$25 million

$350 millio$5.50 per sh

1.7x 2%

245% $28

$0.82 $2,780

e and Knowles LimEX strip pricing. Rep

barrel of oil to six tthe forward closinged on a Henry Hubn accordance with snted at 10% per anal income tax purpormination of discouivalents was convea and southwesterte 2. 7 See fonverted to barrels o

er 2010. In Septembe closing of transacnd Pennsylvania, w

ng vertical Marcelluover time to cover

signments to Atinumstar completed a Mareston, Tucker and cre. 10 The Ser acquisition of Ma in our various valus of yearend 2009.ctivity are the Squaerator, Pinnacle Ga 12 Net cash as of

nsactions, and a litiorrowing to $23.5 mof $4.00 per share)

ments for 4Q10 tranal capital budget foing capex in East T(Henry Hub natura

at the Powder Rive



e Aggvalue es

1P, pvalue o

oe 8 mioe $14on $11on $11

1oe 83 moe $1.00n $83

on $20$1

oe 1 mioe $14n $12n $10

1boe 317 moe $1.00

on $31on $32

$n $20

1$

on $550n $25on $580hare $9.00

4

$$

mestone. During theported natural gas vthousand cubic feeg prices on the Newb natural gas price, sales contracts, qunum, of estimated oses. Based on thented future net cas

erted to barrels of orn Pennsylvania. Dotnote 3. 8 Baof oil equivalent). ber 2010, Gastar ections in Novemberwhich consists of ~s Shale well, in a t

r a portion of the Com, as necessary, sarcellus property acPendleton Countie

eptember 2010 Atinrcellus acreage (~8

uation cases. . Gastar owns a 40

aw Creek, Ring of Fas Resources, Inc. f September 30, 20igation settlement (million. 13 Bas). 14 Based onnsactions). 15

r 2011. This includeTexas and Appalacal gas price increasr Basin, and ~7% a

ed Investors

of 170

gressive plus higher of resources

illion boe 4 per boe

9 million 4 million

104% million boe

0 per boe 3 million

02 million 11,283

illion boe 4 per boe 2 million 0 million 121% million boe 0 per boe 7 million

28 million $4,105 0 million 9,600

$1,020 0 million 5 million 0 million per share 2.8x 1%

412% $48

$1.38 $4,684

e first nine volume

et of natural w York

which uality for future net

ese sh flows. oil equivalent). During the first ased on the 9 After ntered into a r 2010, 37,600 gross ransaction ompany’s o Atinum will cquisition for es, West num 80% of

11 Our 0% average Fire and During the

010 (including (all during sed on 64 n the pro-Based on es $38-57

chia is planned ed from $5.79 at Appalachia.

©

N

G

G

S

© 2008-2011 by Beyond

NATURAL GAS

GASTAR EXPLO

GASTAR EXPLO

Source: Company p


INDUSTRY – P

ORATION – PRO

ORATION – 201

presentation dated

erved.

PRICE LEVEL RE

O FORMA BALA

11 DRILLING P

February 2011.

SUBSCRIBE TODA

EQUIRED FOR 1

ANCE SHEET (S

PROGRAM

AY! www.manualo

10% IRR ($ pe

eptember 30,

Value-oriented Eq

ofideas.com

er mmbtu) (sel

2010)

quity Investment Id

ected geograp



phic areas)

ed Investors

of 170

©

G

© 2008-2011 by Beyond

GM (GM) —Consumer Cyc

T

Price: $36.51

52-week rang

Market value:

Enterprise va

Shares out: 1

Ow

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45


— Appaloosaclical: Auto & Tr

Trading Data

(as of 2/18/11)

ge: $33.07 - $39.

: $54.8 billion

lue: $36.9 billion

,500.0 million

wnership Data

rship: 11%

(last six months)

(last six months)

wnership: 30%

ept

me

g)

rations

ments

ssets

ts

t

bilities

y

mployed

erved.

sa , Blueruck Manufactu

48

n

: 22

): 11

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Ten-Year Sto

SUBSCRIBE TODA

ue Ridge rers

Con

This quarter

Next quarter

FYE 12/31/10

FYE 12/31/11

FYE 12/30/12

LT growth

EPS Surprise

11/10/10

perating Perform

1/0/00 1/0/0

ock Price Perfor

AY! www.manualo

, GlenviewDetroit, MI, 313-5

nsensus EPS Es

Latest

$0.46

0.98

2.86

4.20

5.22

10.9%

Actual

n/a

mance and Finan

Fisc

00 12/31/07

179,984

14,411

(4,309)

(38,542)

(76.13)

566

7,731

7,542

189

rmance and Tra

Value-oriented Eq

ofideas.com

w , Pen556-5000

stimates

Month

Ago

$0.48

0.98

2.90

4.22

5.25

6.7%

Estimate

n/a

ncial Position

cal Years Ended

12/31/08 12

148,979 1

(278)

(21,187) 1

(30,943) 1

(53.44)

579

(12,065) (

7,530

(19,595) (2

14,194

44,267

265

91,039 1

16,920

75,608

29,018

176,599 1

0

(85,560)

-369%

ading Volume Dy

quity Investment Id

nnant ,

# of P/E F

Ests P/E F

17 P/E F

15 P/E F

18 EV/ LT

19 EV/ LT

15 P / tan

2

e LTM E

LTM p

LT

2/31/09 9/30

104,589 131,0

(7,606) 12,3

105,943 7

104,690 6

253.49 (3.

413 6

17,630) 6,7

5,379 4,0

23,009) 2,6

22,813 33,4

59,247 61,5

45,219 43,0

136,295 137,2

10,221 5,6

52,435 52,5

5,562 2,9

108,048 107,4

6,998 6,9

21,249 22,7

>100%

ynamics



Pershing

Valuation

YE 12/31/09

YE 12/31/10

YE 12/31/11

YE 12/30/12

TM revenue

TM EBIT

ngible book

Greenblatt Crit

EBIT yield

pre-tax ROC

ME FQE

0/10 9/30/09

037 26,784

392 1,411

733 0

638 127,090

11) 307.72

685 413

701 (535)

093 1,264

608 (1,799)

476 25,229

584 68,344

010 46,018

238 144,344

621 12,815

569 58,780

945 2,659

493 124,034

998 1,741

747 18,569

9% n/m

ed Investors

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www.gm.com

n/m

13x

9x

7x

0.3x

50x

n/m

teria

2%

9%

FQE

9/30/10

34,060

4,592

1,852

1,959

1.20

1,500

2,624

1,261

1,363

33,476

61,584

43,010

137,238

5,621

52,569

2,945

107,493

6,998

22,747

n/m

Feb 11

©

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© 2008-2011 by Beyond

BUSINESS OVEGeneral Motors

GM emerged frand completed

NVESTMENT H One o

globalGM haglobal(~60%

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ding a $4.0 billimotive has ~$2cost base after

as lowered ann2008. EBIT mahe ~4% achiev

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SUBSCRIBE TODA

nd other vehicl

on in July 2009November 2010

makers, with 11d on vehicles sorket (~25% of i% share in carsshare in trucks.utomotive ed 2010 revenand a 7.5% EB

plied EBIT of ~CF yield basedash flow in 201

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D OPERATING cember 31 ($bn) nue items as % of revenofit

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MV ($mn) (

160,800 26

56,350 15

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DATA — AUTO

nue:

d (mn) ed by geography:

dated entities) ntures)

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and Pontiac vehich February 2010.

DATA — GM F

assets: s receivables at spey has been added a

n independent auto5 billion in cash.

COMPANY AN

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55,050 1.2x

84,620 .7x

36,860 .3x

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OMOTIVE 2008 2009 2

149 105 -17% -30% 2

0% -7%

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36% 28% 2

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33% 12% 45% 4

cle sales data. GM S

FINANCIAL1

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s result of the Octoomobile finance com

NALYSIS P / This

Tang. FY Book P/E

1.3x 46x

n/m 8x

1.5x 20x

n/m 13x

tors Liquidationgov’t 9% | Cap



with a cyclicavenue remains dme. Another poature of the aute, but not comp

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19x

9x

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©

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1 2 3 4 S G

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© 2008-2011 by Beyond

GENERAL MOTO($ in billions)

Valuation metho

Automotive bu

Normalized reve

Normalized EBI

Estimated norm

Fair value multip

Estimated enter

Plus: Automotiv

Estimated equ

Financial Servi

Tangible shareh

Fair value multip

Estimated equ

Other assets/li

Plus: Estimated

Less: Post-emp

Less: Preferred

Less: Non-contr

Estimated fair

Implied valuatio2010 FCF yield payment EV-to-2010 EBI

EV-to-2010 reve

EV-to-2008 reve

Implied valuatio

Implied P/E ass

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Source: Company f

GENERAL MOTO

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odology

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IT

enue

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on ratios of GM F

suming a 15% RO

ue was ~$135 billiotive EBIT margin wad 2010 automotive nmated 1.9 billion diluilings, The Manual

ORS – POST-BA

presentation dated

erved.

TIMATE OF THE

utomotive

omotive

GM Financial):

s of December 3

Financial

investees

provisions

uity of General

motive: motive FCF excl. p

Financial:

OE

on in 2010. as ~4% in 2010, banet cash, excludinguted shares outstanof Ideas analysis,

ANKRUPTCY R

January 11, 2011.

SUBSCRIBE TODA

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Sval

normon a$13GM

1

1, 2010

Motors4

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REDUCTION IN

AY! www.manualo

R VALUE RANGConservative

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0.55x

0.50x

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8.6

ed Investors

of 170

essive

the-parts Automotive at 10x

EBIT (based T margin on of revenue); al valued at ible book

60.0

0%

9.6

.0x

6.0

2.0

8.0

2.3

0x

4.6

8.5

.8)

.9)

0)

billion

r share

%

.5x

71x

64x

6x

©

G

* S I

S

© 2008-2011 by Beyond

GENERAL MOTO

GM U.S. market shSource: Company p

NDUSTRY – U.

Source: Company p


ORS – U.S. MA

hare based on Buicpresentation dated

.S. TOTAL AUTO

presentation dated

erved.

ARKET SHARE *

ck, Cadillac, ChevroJanuary 11, 2011.

O SALES PEAK-

January 11, 2011.

SUBSCRIBE TODA

olet & GMC only

-TROUGH SWI

AY! www.manualo

NGS

Value-oriented Eq

ofideas.com



ed Investors

of 170

©

H

© 2008-2011 by Beyond

Hain CelestiConsumer Non

Price: $30.88

52-week rang

Market value:

Enterprise va

Shares out: 4

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25

$30

$35

$40


tial (HAIN) —n-Cyclical: Food

Trading Data

(as of 2/18/11)

ge: $15.53 - $31.

: $1.3 billion

lue: $1.5 billion

43.0 million

Ownership Data

rship: 2%

(last six months)

(last six months)

wnership: 93%

ept

6/30

5

1

me

0

g)

rations

ments

ssets 1

ts 3

6

t

bilities

1

1

y 4

mployed 2

FFeb 02

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— Icahn d Processing, M

25

: 16

): 4

Op

0/04 6/30/05

544 620

160 171

46 41

27 24

0.74 0.65

35 36

31 35

10 10

21 25

28 24

198 194

389 412

684 707

7 3

68 70

104 92

187 179

0 0

497 528

23% 21%

Ten-Year Sto

Feb 0eb 03

SUBSCRIBE TODA

Member of S&P S

Co

This quarter

Next quarter

FYE 6/30/11

FYE 6/29/12

FYE 6/29/13

LT growth

EPS Surprise

2/3/11

perating Perform

Fiscal Ye

6/30/06 6/3

739

213

65

36

0.93

38

54

15

40

49

261

483

878 1

1

88

151

260

0

618

30%

ock Price Perfor

Feb 0504

AY! www.manualo

SmallCap 600

onsensus EPS E

Latest

$0.34

r 0.32

1.29

2 1.48

3 1.58

12.0%

e Actual

$0.39

mance and Finan

ars Ended

30/07 6/30/08

900 1,047

261 275

84 77

48 41

1.16 0.99

39 40

66 25

11 20

55 5

61 59

316 393

606 687

,059 1,259

1 0

118 146

215 308

362 517

0 0

697 743

34% 26%

rmance and Tra

Feb 06

Value-oriented Eq

ofideas.com

Mel

Estimates

Month

Ago E

$0.34

0.32

1.28

1.44

1.61

12.0%

Estimate

$0.37

ncial Position

6/30/09 6/

1,123

246

(9)

(25)

(0.61)

40

22

13

9

41

349

606

1,124

0

137

258

422

0

701

-3%

ading Volume Dy

FebFeb 07

quity Investment Id

lville, NY, 631-730-2200

# of P/E FY

Ests P/E FY

11 P/E FY

10 P/E FY

11 EV/ LTM

11 EV/ LTM

4 P / tang

3

e LTM EB

LTM pr

LTM

/30/10 12/31/

917 99

251 27

71 8

29 3

0.69 0.8

41 4

71 7

11

60 6

17 2

314 35

715 75

1,198 1,28

0

139 18

225 24

432 47

0

766 80

26% 29

ynamics

Feb 09b 08



www.h

Valuation

YE 6/30/10

YE 6/30/11

YE 6/29/12

YE 6/29/13

M revenue

M EBIT

gible book

Greenblatt Crite

BIT yield

re-tax ROC

ME FQE

10 12/31/09

95 242

75 70

80 22

35 11

80 0.27

41 41

71 19

11 2

60 17

26 27

53 347

59 609

82 1,121

0 0

82 128

40 235

75 389

0 0

07 732

9% n/m

Feb 10

ed Investors

of 170

ain-celestial.com

45x

24x

21x

20x

1.6x

19x

27.6x

eria

5%

29%

FQE

12/31/10

292

85

30

16

0.37

43

23

2

20

26

353

759

1,282

0

182

240

475

0

807

n/m

Feb 11

©

BH I

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C

THTththo

© 2008-2011 by Beyond

BUSINESS OVEHain Celestial p

NVESTMENT H Niche

organcustom(cereaCelest

ValueBased (~5% EBIT to-con

Icahnmay leanotheafter in

High Rat scaproduc

NVESTMENT R Share

with anhas turHain’s

A saleCEO whichIcahn acquisM&A

Will ocreatiand th

EuroprewarThe Arevenu

~$245incl. ~

COMPARABLE P MV ($mn)

KFT 53,990

GIS 22,950

HAIN 1,330

THE BOTTOM LIHain owns leadThe company’shese positives hat funds contr

of the company


RVIEW produces food

HIGHLIGHTS food produce

nic markets.* Hmers with brandals), Earth’s Betial Seasoningse to a trade bu

on estimated Sof revenue), wto a trade buye

ntribution EBIT funds’ 16% sead to a sale. Cer Icahn nominnitial stake-buiROIC due to ble. Only ~40%cts manufactur

RISKS & CONCEes appear fairln implied EV-trn-around potens total EBIT me may not be sSimon (52), w

h agreed not to owns <20%, m

sition-led growsince FY06, w

organic industion? Powerful he rise of privatpean rival Werd to profit fro

Amsterdam-listeue multiple of 05 million of adj~$30 million of

PUBLIC COMPA

EV EV($mn) Re

80,230 1.6

29,430 2.0

1,540 1.5

INE ding natural ands strong brandsappear alreadyrolled by Carl y. While we can

erved.

and personal c

er focused on nHain targets heds including A

est (infant foods (teas), and 40uyer is likely aSG&A synergie

we estimate the er at ~$160 milT, shares are wstake and boarCarl Icahn’s so

nee, became boilding by Icahnbranded, capi

% of revenue is red at company

ERNS ly valued on stto-EBIT of ~15ntial, it is only

margin is at fiveupported by c

who founded Haenact a "poison

may favor a conwth. Hain spent with questionabtry growth tradistributor/retate label producssanen may of

om organic inded company tra0.4x versus Haj. net debt (~2

f debt due to M

ANY ANALYSISP / Th

V / Tang. Fv. Book P/

6x n/m 14

0x n/m 15

5x 27.7x 24

d organic foods, as well as decy reflected in reIcahn own 16%n conjure up a

SUBSCRIBE TODA

care products.

natural and alth-conscious

Arrowhead Mills), Terra (chips+ other brandsbove recent Ees of $50+ milltotal contributllion. At 12x E

worth nearly $40rd involvemenon Brett and oard members n funds in 2010ital-light modederived from

y-owned facilit

tand-alone ba5x. While Europ~10% of reven

e-year highs. chairman andain in 1993. Han pill" as long ntinuation of $400+ million

ble value creatianslate into vaailer customerscts are challengffer better riskdustry growthades at an EV-ain’s 1.5x. 2.0x EBITDA)

M&A in 2011.

S his Next Y FY /E P/E

4x 12x

5x 13x

4x 21x

d brands that shcent scale, servecent valuation% – and have btake-out scena

AY! www.manualo

ls s), s.

EV. ion

tion EV-0. nt

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d ain, as

n on ion. alue s ges. k-h. to-

),

SELECTEFYE June∆ revenu∆ employRevenue % of reveGrocery Snacks Tea Personal Other3 Revenue Grocery Snacks Tea Personal % of reveU.S. InternatioPre-tax mU.S. Internatio

Total pSelected Gross proEBIT EBIT ex sNet incomNet cash D&A Capex EmployeeReturn onTang. equ∆ shares

1 Financialof acquisit2 Reflects t30, 2009. Imillion andaccounted3 Includes 4 Primarily 5 Includes 6 Excludes

MAJOR CEO Sim RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * Organic fpesticidesmodified ogenerally r

hould enable it ve as competitin, with shares tboard representario above rece

Value-oriented Eq

ofideas.com

D OPERATING e 30 200

ue 19yees 39 ($bn) 0

enue by product cate511314

care 616

growth by selected 1010

0 care 61

enue by geography: 81

onal4 19margin by geography

8onal 9pre-tax margin 8 items as % of revenofit 29

9special items6 9me 5 from ops 7

22

es (000s) 2n tang. equity 29uity/assets 36 out (avg) 3ls are not comparaions and the deconthe deconsolidationIn the year to Juned a pre-tax loss of $d for under the equi

meat alternatives ay Canada and Euro

impairment of goos acquisition-related

HOLDERS mon 4% | Othe


Able to sustain high GS MOMENTUM Poised to benefit frfood, which requir, artificial fertilizeorganisms. “Naturreferring to food t

to benefit fromive barriers thatrading at an imtation – may haent market pric

quity Investment Id

DATA1 06 2007 2008

9% 22% 17%9% 3% 40%0.7 0.9 1.0egory: % 51% 50%

3% 11% 9%4% 10% 9%6% 10% 116% 17% 20% product category:

0% 23% 14%0% 0% 2%0% -9% 0%

% 100% 24% % 75% 78%

9% 25% 22%y: 8% 8% 7%9% 11% 6%8% 9% 7%nue: 9% 29% 26%9% 9% 7%9% 9% 8%5% 5% 4%7% 7% 2%2% 2% 2%2% 1% 2%2.1 2.1 3.09% 42% 56%6% 27% 14%3% 4% 2%able for the periods nsolidation of HPP n of the protein pro

e 2009, U.S.-based $22 million. Hain coity method ($1.7 mand fresh preparedpean countries. dwill/intangibles of d costs, restructurin

er insiders 4%


M Fundamentals imrom economic and sres appropriate cer

ers, antibiotics, groral” is a wider termthat does not conta

m the ongoing at result in highmplied EV-to-Eave increased t

ces, the risk-rew



8 2009 2010% 7% -18%2

% -32%2 2%0 1.1 0.9

% 48% 61%% 8% 11%% 8% 10%1 11% 10%

% 25% 9%2

% 3% 3%% -5% 4%% -6% 5%% 2% -22%

% 81% 79%% 19% 21%

% 3% 9%% -24% -4%% -2%5 6%

% 22% 27%% -1% 8%% 4% 9%% -2% 3%% 2% 8%% 2% 2%% 1% 1%0 2.0 2.1

% -33% 39%% 14% 15%% 1% 1%

presented due to $in FY10 (see note

oduct business HPPHPP had revenue

ontinues to own 48illion of related inco

d food (and HPP th

$53 million, mainlyng charges and im

| Icahn 16% | D


mproving? secular trends? rtification, is growowth hormones or m with no legal defain artificial ingred

shift to healthih ROIC. UnforEBIT of ~15x. the probabilityward is unfavo

ed Investors

of 170

0 1H11 2 16%

% n/a 9 0.5

% n/a % n/a % n/a % n/a

2 n/a

% n/a % n/a % n/a % n/a

% 82% % 18%

% 10% % -3% % 8%

% 28% % 9% % 9% % 5% % 2% % 2% % 1% 1 n/a

% 59% % 17% % 5% $400+ million 2).

P as of June of $166

8% of HPP, ome in FY10). rough FY09).

y in Europe. pairments.

DFA 7%

wn without genetically finition, dients.

ier eating. rtunately, The fact

y of a sale rable.

©

H

1 2 eEm3 4 5 6 7 8 S H

© 2008-2011 by Beyond

HAIN CELESTIA

($ in millions)

Valuation metho

Conservative an

Normalized reve

Normalized EBI

Normalized EBI

Fair value multip

Estimated enter

Aggressive case

Estimated M&A

Fair value multip

Estimated value

Estimated value

Estimated total

implied EV to

Minus: Net debt

Minus: World G

Plus: Value of e

Estimated fair

Implied earning

Implied trailing F

Implied EV-to-re

Our “normalized” rAverage EBIT mar

excluding special iteEBIT margin assummargin assumption

The use of a 12x EBased on 5% of esBased on balanceBased on 44.3 milNon-GAAP EPS gRevenue guidance

Source: Company f

HAIN CELESTIA

Brand Natural food (gArrowhead MillsBreadshop Casbah DeBoles Earth's Best Greek Gods Hain Pure FoodHealth Valley Hollywood Imagine Foods MaraNatha Nile Spice Spectrum SunSpire Walnut Acres Westbrae Natur


AL – OUR ESTIM

odology

nd base case me

enue1

T margin2

T

ple3

rprise value

e metrics:

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enterprise value

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mption in the base cin the conservative

EBIT multiple reflecstimated normalize sheet values at yelion diluted shares

guidance is $1.24-1e is $1,060-1,080 milings, The Manual

AL – OVERVIEW

grocery): s

ds

ral

erved.

MATE OF THE E

etrics:

ies

h flow (assumes

(M&A scenario)

IT (1H11 ann. EB

nt consideration

uity of Hain Cel

n midpoint of FY1

n midpoint of FY

of $1.1 billion appro0 was ~7.5%, exclu

ncludes a roughly bcase is that U.S. ope case approximatects the company's sed revenue of $1.1 earend 2010 (net de

outstanding. .31 for the year en

million for the year eof Ideas analysis,

W OF SELECTED

Descrip PioneerReady-tA compPasta bFirst coAuthentOffers nCategorU.S. leaReady-tLeader Natural Offers cNatural OrganicProvide

SUBSCRIBE TODA

QUITY FAIR VA

"base case" valu

BIT plus potentia

estial6

11 non-GAAP EP

11 revenue guida

oximates FY 2011 guding special items

break-even contribuperations maintain res the 5-year historstrong brands and billion. ebt excludes ~$30

ded June 30, 2011ended June 30, 20assumptions and e

BRANDS

ption

r in organic bakinto-eat cereals wi

plete line of vegetbrand known espemplete line of orgtic Greek-style prnatural crackers, ry leader in fat-frader in safflower to-serve, organicin the organic ansoup cups.

culinary oils, vineand organic cho

c juices, canned ses products for m

AY! www.manualo

ALUE RANGE

uation)

l synergies)

PS guidance7

ance8

guidance, adjusted s (with a peak of 9%ution from non-U.Srecent margins andrical average. attractive prospects

million of additiona

. Non-GAAP financ11 (includes five m

estimates.

ng, mixes, grainsth both kids' andtarian prepared mecially for its Jerganic foods for inroducts includingcookies, oils, co

ree, natural soupoil; known for ca

c soups and brothnd all-natural nut

egars, condimentocolate products soups, salsas aneals centered ar

Value-oriented Eq

ofideas.com

Conservative

12x estimated normalized EBIT(based on $1.1

billion of revenuand an 8% EBIT

margin)

$1,100

8.0%

$88

12.0x

$1,056

(214)

(30)

45

$858 million

$19 per share

7%

7%

1.0x

for the revenue co% in FY07 and a tro. operations, which

d non-U.S. operatio

ts for future revenu

al net debt as a res

cials exclude transmonths of revenue f

s, cereals and nud adult products.mixes and side drusalem artichokenfants. g yogurts. ondiments, and fups, baked producanola/peanut oilshs in aseptic pact butter category.

ts and butter subfor baking, snac

nd sauces. round vegetables

quity Investment Id

Base C

T

1 ue T

12x estimnormalized(based on

billion of reand a 12%

margi

$1,10

12.0%

$132

12.0x

$1,58

(214

(30)

45

$1,386 m

e $31 per s

4%

4%

1.5x

ontribution from recough of 4% in FY09h represent ~20% oons are turned-arou

e growth.

sult of acquisitions m

action costs and acfrom acquisitions co

ut butters since 1

dishes. e flour products.

unctional snackscts, and cereals. s and carrot juiceckaging. .

bstitutes as well acking and candy m

s, whole grains, s


February 28, 2011 – P

ase Ag

mated d EBIT n $1.1 evenue % EBIT n)

~12xEBIT

to aa

00

%

2

x

84

$

)

)

million $1,6

share $38

x

cent M&A on a full-y9). F2Q11 EBIT maof total revenue). Ound. Our normalize

made in Jan./Feb.

cquisition integratioompleted in Jan./F

960.

s.

e.

as nutritional supmaking.

soups and beans

ed Investors

of 170

ggressive

x estimated contribution

a potential acquirer

$55

5.0x

$275

1,584

$1,859

11.9x

(214)

(30)

45

672 million

per share

3%

4%

1.7x

year basis. argin,

Our normalized ed EBIT

2011).

on expenses. eb. 2011).

pplements.

s since 1970.

©

H

S S

* S

© 2008-2011 by Beyond

HAIN CELESTIABrand Natural beveraCelestial SeasoMountain Sun Rice Dream Soy Dream WestSoy Natural snacksBoston's Garden of EatinBearitos Little Bear Sensible PortionTerra Refrigerated prYves Frozen producEthnic GourmetLinda McCartneRosetto Hain Pure ProtFreeBird Personal care pAlba Botanica Avalon OrganicJason Orjene Queen Helene Zia Natural SkinBrands with EuGrains Noirs Lima Natumi Specialty prodAlba Estee

Source: Company d

SELECTED FINA(in millions, excRecent stock prRecent date

Diluted shares o Market value Plus: Debt Plus: Non-contrPlus: Post-retireMinus: Cash Enterprise val

Selected trailingRevenue EBIT excl. spec EBIT margin Tangible shareh

Selected valuatEV/trailing revenEV/trailing EBITP/TB P/E (this FY) P/E (next FY)

Wessanen turnTurned-around Trailing revenueTurned around implied EV-to

Interestingly, howeSource: Company d


AL – OVERVIEW

ages: onings

s:

n'

ns

roducts:

cts: t ey (under license

tein (JV):

products:

s

ncare uropean presen

ducts:

data.

ANCIALS OF EUept per share darice

out

rolling interest ement liabilities, n

lue

g financials (year

cial items

holders' equity (9

tion ratios: nue

T

ned-around valuEBIT margin ass

e EBIT estimate o-EBIT

ever, Hain is also stdata, The Manual o

erved.

W OF SELECTED Descript FoundedOffers juDairy freNon-dair#1 brand Pioneer #1 organNatural bOrganic Lifestyle Pioneere The Nort Offers a

e) Pioneer Offers a Offers or Offers 10Offers 10Offers peBeauty aLeader inFounded

nce: #1 cateriOffers naGerman Known fo#1 brand

ROPEAN ORGAata)

net

r to 9/30/2010):

9/30/10)

uation assumingsumption

truggling in Europeof Ideas analysis.

SUBSCRIBE TODA

BRANDS (conttion

d in 1970, it is theices with no adde beverages with

ry beverages withd in non-dairy soy

in kettle-popped nic tortilla brand ibrand of chilis, sasnack products tbrand including

ed varieties of po

th American lead

variety of frozenin the meat-free variety of frozen

rganic chickens.

00% vegetarian p00% vegetarian personal care prodand personal caren quality health &d in 1084, Zia offe

ing provider in Beatural foods sinceproducer of non

or its non-fat dry d in the medically

ANIC FOOD PR

€ 2.739/2/2011

74.6€ 204

1016

2243

€ 291

709

172.4%

49

0.41x

17x4x

n/mn/a

g various EBIT 5.0%

70935

8.2x

e. Hain's European

AY! www.manualo

tinued)

e leading brand oed artificial flavoh as much calciuh the health beney beverages (ava

popcorn. n the U.S., Gardauce mixes, and that appeal to kidproducts such a

otato/vegetable c

der in the produc

meals from all ocategory with its pastas and auth

personal care propersonal care products since 1959e products free o& beauty producters skincare prod

elgium (salads, se 1957, mostly in-dairy beverages

milk, shake, andy-directed/diet ca

ODUCER ROYA

margins (Hain C 7.5% 709 53 5.5x

operations, which

Value-oriented Eq

ofideas.com

of natural and spors or colors. um and vitamins efits of soy. ailable in aseptic

den of Eatin' is kn snacks, includinds of all ages.

as veggie straws,chips that have c

ction of meatless

over the world. s range of sausaghentic pasta mea

roducts since 197roducts since 1999. of mineral oils ants for professionaducts to nourish

sandwiches); supn France, Germas and desserts.

d hot cocoa prodategory for over 5

AL WESSANEN

$/€: $1.36

$277

$395

Celestial recent10.0%

709 71

4.1x

represent 10-15%

quity Investment Id

pecialty teas in N

A and D as milk

c, wedge, and ref

nown for its best-ng the first snack

, pita bites and barved new niche

, low fat and cho

ges, ready mealsals that can be re

79. 94.

nd artificial colorsal and personal uskin and minimiz

pplies prepared many and Belgium

ducts. 50 years, Estee m

(AMSTERDAM

t EBIT margin is

of total revenue, a



North America.

.

frigerated varietie

-selling Blue Corks to carry the "N

agel tops. e in upscale natu

olesterol free prod

s, and pastry proeady in 10 minute

s. use since 1930.ze the signs of a

meals to high-sp.

markets foods fo

: WES)

s ~10%):*

are loss-making.

ed Investors

of 170

es).

rn chips. o-GEI" seal.

ral snacks.

ducts.

oducts. es.

aging.

peed trains.

or diabetics.

©

L

© 2008-2011 by Beyond

Lions Gate EServices: Motio

Price: $6.12 (

52-week rang

Market value:

Enterprise va

Shares out: 1

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$2

$4

$6

$8

$10

$12

$14


Entertainmeon Pictures

Trading Data

(as of 2/18/11)

ge: $5.21 - $7.84

: $837 million

lue: $1.3 billion

36.7 million

Ownership Data

rship: 3%

(last six months)

(last six months)

wnership: 92%

ept

3/31/

3

1

me (7

(9

(1.3

g)

rations (11

(11

ments

ssets

ts 1

7

t 3

bilities

6

y

mployed -22

erved.

ent (LGF) —

: 12

): 10

Op

/04 3/31/05

376 838

95 484

76) 48

95) 20

35) 0.19

71 98

16) 96

1 3

17) 93

7 113

0 0

71 163

763 855

326 1

0 0

84 409

693 738

0 0

70 117

2% 36%

Ten-Year Sto

Feb 0

SUBSCRIBE TODA

— Icahn ,

Con

This quarter

Next quarter

FYE 3/31/11

FYE 3/30/12

FYE 3/30/13

LT growth

EPS Surprise

n/a

perating Perform

Fiscal Yea

3/31/06 3/31

945 9

488 5

15

(5)

(0.09) 0

103 1

55

6

50

47

0

185 1

1,053 1,1

15

0

385 3

904 8

0

149 2

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% 88% 85%% 12% 15%% 0% 0%

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LIONS GATE – O

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Lionsgate purchasnvestment arm of JIncludes EPIX, a J

video-on-demand seBased on estimate

million of other cashpriority notes (carrierom $8.25-14 per s

and residuals of $28Based on 137 mill

$8.25+ per share; cEnterprise value isInvestment in filmsBased on manage

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FILM INDUSTRY

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OUR ESTIMATE

odology

enue1

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stake in TV Guide

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t5

value of the equ

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during FY08-10 is $des equity-methods in films and televhly variable EBIT m~0%. Our EBIT mased TV Guide NetwJPMorgan Chase, iJV with Viacom's Pervice. Lionsgate ined net debt guaranth and $625 million oed at $226 million; mshare), and $66 mil82 million and film oion shares outstand

convertible debt is ins reduced by the ess and television proement, the companymployees as of May

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y 2010 (excludes TVof Ideas analysis,

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18 months

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© 2008-2011 by Beyond

LIONS GATE – S

Complementary as

Estimated pro form

Illustrative valuati

Source: SEC filing,


SELECTED INFO

ssets:

ma cash flow ($ m

ion ($ billions):

available at http://w

erved.

ORMATION FRO

millions):

www.sec.gov/Archi

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ves/edgar/data/929

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0 PRESENTATIO

9351/00009501231

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10095415/v57635e

quity Investment Id

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exv99w1.htm



GF DEAL

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© 2008-2011 by Beyond

Mastercard Financial: Con

Price: $250.7

52-week rang

Market value:

Enterprise va

Shares out: 1

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$50

$100

$150

$200

$250

$300

$350


d (MA) — Aksumer Financia

Trading Data

4 (as of 2/18/11)

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SELECTEFYE DeceΔ processΔ gross dΔ GDV (lo∆ revenu∆ employRevenue Selected G&A AdvertisinLitigation EBIT Net incomNet cash D&A Capex ProcesseGross do% of GDVMasterCaMasterCa% of GDVU.S. Europe Asia PaciLatin AmeGDV growU.S. Europe Asia PaciEquity owPublic invPrincipal/aFoundatio∆ shares

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dollar volume (GDV)ocal currency) e

yees ($bn) items as % of reven

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me from ops

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RABLE PUBLIC

Price ($)

MarkeValue($mn

75.80 54,04

45.50 54,81

21.90 11,92

250.70 32,81



and a sustainabronic paymentsng P/E of ~17xely on third-paro reduce netwo

quity Investment Id

DATA 2006 218%

)2 14% 15% 13%

7% 3.3

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7% 2%

20% 3% 3%

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48% 27% 15% 10%

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0 3.4x

20 2.0x

17 8.2x



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ork growth and/



2007 2008 2016% 12% 18% 11% -14% 11% 22% 23%

9% 10% -4.1 5.0

43% 38% 327% 20% 1

1% 50% 27% -11% 427% -5% 219% 8% 2

2% 2% 4% 3%

18.7 21.0 22.3 2.5

72% 71% 628% 29% 3

45% 42% 429% 31% 315% 17% 211% 11% 1

11% 4% -27% 17% -24% 19% 1/%):3 57/85 66/86 7433/0 24/0 1

10/15 10/14 100% -4%

ard (including PIN-bchase volume plus er share and has di

dividend rights). Thecorporated in CanaMasterCard and its

NALYSIS This FY P/E

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F

16x 13x S

12x 11x D

11x 10x N

15x 13x D



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009 2010 7% 3%

-3% 11% 2% 9% 2% 9%

-7% n/a 5.1 5.5

38% 33%

5% 14% 0% 0%

44% 50% 29% 33% 27% 31%

3% 3% 3% 3%

22.4 23.1 2.5 2.7

66% 65% 34% 35%

40% 36% 30% 30% 20% 23%

1% 12%

-7% 0% -6% 11% 6% 27%

4/88 84/89 15/0 6/0 0/12 10/11 0% 1%

based online cash volume. vidend rights, e MasterCard ada. It is s members.

FY End Date

Sep-30

Dec-31

Nov-30

Dec-31

these s, and the nly tied to ard issuers. materially.

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© 2008-2011 by Beyond

MASTERCARD –

($ in billions)

Valuation metho

2010 revenue

2010 EBIT marg

2010 EBIT

Fair value multip

Estimated enter

Plus: Net cash1

Minus: Litigation

Estimated fair

Implied valuatio

FCF yield

Earnings yield4

EV-to-revenue

EV-to-EBITDA

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ncluding merchant with other defendanmerchant litigation,

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Source: Company f

MASTERCARD –

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Source: Company p


– OUR ESTIMA

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gin

ple

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value of the equ

on metrics based

heet value of cash litigation settlemenlawsuits related to

nts, including Visa, the company facesion shares outstandrgeting 20+% annuilings, The Manual

– MANAGEMEN

agement’s project

presentation dated

erved.

ATE OF THE EQU

es2

uity of MasterCa

d on 2010 financia

and investment secnts were $0.3 billioninterchange fees. Wthe dollar amount os potentially adversding.

ual EPS growth in 2of Ideas analysis,

NT’S LONGER-

ted 2010-2015 rev

September 2010.

SUBSCRIBE TODA

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10x trailin

$5.

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12-14% constant-cestimates.

RMANCE OBJEC

Value-oriented Eq

ofideas.com

se Case

railing EBIT 14

$5.5

50%

$2.8

12.0x

$33.0

4.3

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CTIVES

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14.0x

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CAGR and “minimu



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um” 50% EBIT mar

ed Investors

of 170

tigation risks ponsibilities ition to rd business.

rgins annually.

©

P

S M

S M

S

© 2008-2011 by Beyond

PAYMENTS IND

Source: Company p

MASTERCARD –

Source: Company p

MASTERCARD –

Source: Company p


DUSTRY – GLO

presentation dated

– GROWTH OP

presentation dated

– MANAGEMEN

presentation dated

erved.

OBAL PERSONA

September 2010.

PORTUNITY IN

September 2010.

NT’S CAPITAL

September 2010.

SUBSCRIBE TODA

AL CONSUMPTI

N EUROPE

STRUCTURE “G

AY! www.manualo

ON EXPENDIT

GUIDING PRIN

Value-oriented Eq

ofideas.com

URES, 2005-2

NCIPLES”

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©

P

© 2008-2011 by Beyond

PDL BioPhaHealth Care: B

Price: $4.93 (

52-week rang

Market value:

Enterprise va

Shares out: 1

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25

$30

$35


arma (PDLI) iotechnology &

Trading Data

(as of 2/18/11)

ge: $4.81 - $7.30

: $688 million

lue: $926 million

39.5 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 80%

ept

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71 96

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492 232

502 242

32 31

742 714

1 1

35 44

259 258

294 301

0 0

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Feb 0Feb 03

SUBSCRIBE TODA

st

C

This quarter

Next quarter

FYE 12/31/1

FYE 12/31/1

FYE 12/30/1

LT growth

EPS Surprise

11/10/10

perating Perform

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12/31/05 12/

128

0

110

(167)

0.89

104

32

41

(10)

285

379

455

1,163

1

72

507

637

0

526

45%

ock Price Perfor

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AY! www.manualo

Consensus EPS

Lates

$0.2

r 0.2

0 0.9

1 1.1

2 1.4

n/

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0

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1.20 1.3

114 11

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55 9

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333 41

380 72

356 9

1,142 1,19

1

106 12

537 53

674 68

0

468 50

59% 49%

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Feb 06

Value-oriented Eq

ofideas.com

S Estimates

Month

st Ago

21 $0.21

20 0.25

90 0.90

16 1.18

49 1.49

/a n/a

l Estim

4 $0.

ancial Position

07 12/31/08

25 294

0 0

84 243

1) 68

34 1.48

16 119

67 80

95 3

8) 77

13 144

20 181

91 0

92 191

1 0

22 32

35 511

85 544

0 0

08 (353)

% 93%

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quity Investment Id

Incline Village, NV, 775-

# of P/

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318

0

299

190

1.07

119

187

0

187

303

316

0

338

278

294

461

754

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-832-8500

Valuatio

E FYE 12/31/09

E FYE 12/31/10

E FYE 12/31/11

E FYE 12/30/12

V/ LTM revenue

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/ tangible book

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TM EBIT yield

TM pre-tax ROC

LTME FQE

9/30/10 9/30/09

327 7

0 0

274 67

145 46

0.85 0.29

121 119

209 29

0 0

209 29

227 222

235 250

0 0

258 265

112 200

209 267

353 239

562 507

0 0

(305) (242

n/m n/m

Feb 109

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4x

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1 86

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9 31

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*

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© 2008-2011 by Beyond

BUSINESS OVEPDL BioPharmhumanization p

NVESTMENT H “Roya

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HIGHLIGHTS alty-collector”mer drug disco

mercial operatiothen is its patenes to biotech anties comprise 1

es appear to ofeward, where n-off value of tial upside couldng royalties; 2)L’s legal claimof Synagis-relg underlying yn by royalties reAvastin (34% nd Herceptin (tial for new ro

ations of existinvals.* PDL’s tentibodies to treabe entitled “upeaches of the 2en PDL and Gs as outlined inJohn McLaug

mizing return fe experience as97 may be invaand paid specia

RISKS & CONCEts expire in 20o longer receivees. Unless PDue, royalties wiating against ith accounts for es of Genentec

de the U.S. – thounted for ~30%tial change ino grow the buseen shareholderess may be prefed investment requ

INE a lucrative patevide a favorablespects for ongoroyalties from -appeared on P

erved.

portfolio of antiated royalty ass

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(33% of revenuoyalties from ang products andechnology has bat cancer and op to $1 billion”2003 settlementenentech, base

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siness. While Pr-friendly so faferred over a ru

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ent portfolio ane, asymmetric oing return of cexisting drugs

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SUBSCRIBE TODA

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del. PDL divescturing and primary asset hich PDL

mpanies. 2010 revenue.le, asymmetri

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1) the growth royalties; and

entech are uphes in 2010 maskrowth of ~20%of Genentech

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PDL managemear, running a un-off scenariofor R&D.

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FYE DeceRevenue ∆ revenSelected G&A expeEBIT Net incomD&A Capex % of reveRoyaltiesLicense aRevenue RoyaltiesLicense a% of reveGenentecMedImmuOther (inc% of reveAvastin (GHerceptinLucentis Synagis (Revenue Avastin HerceptinLucentis Synagis Tangible ∆ shares

1 Based onresults relaoperationsany busine2 Revenue3 G&A expmillion rela4 Per repor

MAJOR Insiders Arrowst RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO

yalties mainly fownside may bother hand, sig

ties; and 3) a secember quarte

Value-oriented Eq

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D OPERATING

cember 31 ($mn) nue items as % of revenense

me

enue by type: s and other growth by type:

s and other enue by licensee: ch une cl. Elan, some Geneenue by selected undGenentech) n (Genentech) (Genentech) (MedImmune) growth by selected

n

equity/assets4 out (avg) n continuing operatating to former biots, which were sold desses classified as e is up 20% y-y, excpense totaled $29 mates to professionarted balance sheet

$350 million 2010, adjusteannounced sein February 2converts (mo

HOLDERS <1% | FMR 9treet 6% | RenT



from Genentecbe protected bygnificant value

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quity Investment Id

DATA1

2007 225

21% nue:

18% 82% 80%

0% 0%

100%

%

21% -59%

73% 16%

entech) 11% derlying product:

26% 38%

9% 16%

underlying product:n/a n/a n/a n/a

43% 2%

tions only, unless stechnology, manufaduring 2008, are nodiscontinued oper

cluding Synagis in million YTD (3Q10: l services (3Q10: $t values at each pe

of pro-formaed to include caettlements with2011. Debt inclst of which con

% | BlackRockTech 6% | Iridi



ch. At the receny the run-off vae may accrue, digation-related s share price e



2008 2009 294 318

31% 8%

18% 7% 82% 93% 81% 60%

0% 0% 0% 0%

95% 96%

5% 4%

24% 9% >100% -15%

67% 66% 14% 13% 19% 21%

25% 27% 33% 29%

9% 10% 14% 13%

: 26% 17% 14% -5% 31% 20% 14% 0%

-184% -123% 2% 1%

stated otherwise. Tacturing and commot included. PDL drations in the year-t2009 (no royalties $11 million), of wh

$9 million), mainly lriod-end.

a net debt as ofash outflow/infh MedImmune ludes potentialnvert at $7.11 p

k 7% | BNY Mian 6% | Baupo



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269 3%2

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0% 0%

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9% -100%

81%

0% 19%

34% 33% 14%

0%

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-100% -118%

2% he financial

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f yearend flow from and UCB ly dilutive per share).

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valuation g royalties potential Klarman’s

t levels.

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PDL BIOPHARM($ in millions)

Valuation metho

2010 revenue (s

Less: estimated

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Estimated annu

Remaining roya

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MA – OUR ESTI

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MA – ROYALTIE

presentation dated

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IMATE OF THE

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of the Genentech Pand sold anywhere

ech litigation are muech litigation, PDL 10 Based on 140

nancial liabilities). 0 million, was paid of Ideas analysis,

ES BY PRODUC

January 18, 2011.

SUBSCRIBE TODA

EQUITY FAIR V

- assuming 2010

existing royalties

oyalties based o

4 (not time-adju

/31/107

enentech litigatio

her litigation9

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CT, 2000-2010

AY! www.manualo

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0 revenue kept fl

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a halt in royalty payy remedies set forthther terminate our

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0 ($ in millions)

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Conserv

Run-off v(detail

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$345

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197

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200

0

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3

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million to be paid tongs related to U.S. shares related to ct special dividend,



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as

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20)

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306

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3.5

803

300

0

3 million $1,

353)

0

0

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ated to litigation, G&ngoing dispute with010. While interest emay be able to mo/14. Unless PDL dey royalties related tosed on yearend 201with MedImmune a

nt with UCB calls fo(convertible at $7.1. Most of the conve

he pending Genenteccounted for ~30%has countersued apunitive damages or be paid a flat roy.75% on past salese significant upside

o Genentech in the patent interferenceconvertible debt, wtotaling $60 million

ed Investors

of 170

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un-off value (detailed

ssumptions follow)

$345

(10)

(19)

$316

253

3.5

$884

400

100

384 million

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150

0

1.18 billion

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11%

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% of PDL’s nd seeks and yalty of 3.75% s of the e potential for conservative

e and which is fully n, was paid in

©

P

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© 2008-2011 by Beyond

PDL BIOPHARM

Source: Company p

PDL BIOPHARM

Source: Company p

PDL BIOPHARM

Source: Company p


MA – GENENTE

presentation dated

MA – DEBT RED

presentation dated

MA – DIVIDEN

presentation dated

erved.

ECH/ROCHE RO

January 18, 2011.

DUCTIONS AND

January 18, 2011.

D POLICY

January 18, 2011.

SUBSCRIBE TODA

OYALTIES

D MODIFICATIO

AY! www.manualo

ONS

Value-oriented Eq

ofideas.com

quity Investment Id



ed Investors

of 170

©

S

© 2008-2011 by Beyond

Seagate TecTechnology: C

Price: $13.72

52-week rang

Market value:

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Insider owner

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Institutional o

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per share data)

Revenue

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Diluted EPS

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Total current as

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Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25

$30

$35


chnology (STComputer Storag

Trading Data

(as of 2/18/11)

ge: $9.84 - $21.5

: $6.2 billion

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453.0 million

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(last six months)

(last six months)

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224 7,553

459 1,673

444 722

529 707

.06 1.41

452 468

635 1,428

605 691

30 737

183 1,836

461 3,502

0 3

942 5,244

4 4

248 1,780

739 736

087 2,703

0 0

855 2,541

3% 52%

Ten-Year Sto

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FYE 7/1/12

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840

1.60 1

495

1,457

1,008

449

1,733 1,

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2,782 2,

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330

3,337 2,

640 1,

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n/a

n/a

n/a

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n/a

n/a

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614 1,376

913 1,251

1.56 2.34

558 512

943 2,538

906 930

37 1,608

144 1,141

801 4,272

488 2,463

472 10,120

330 360

649 3,287

733 1,670

735 5,534

0 0

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n/a

n/a

n/a

n/a

n/a

n/a

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7/3/09 7

9,805 1

1,410

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488

823

633

190

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771

3,194

1,926

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n/a P/E FY

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1,932 1

639 1

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2,515 2

5,418 5

38

8,247 8

329

2,997 3

2,173 2

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0

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YE 7/2/11

YE 7/1/12

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M EBIT

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646 650

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0 0

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560 96

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0 0

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529

206

150

0.31

469

507

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305

2,814

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560

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BUSINESS OVESeagate manufa

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SEAGATE TECHN

($ in billions)

Valuation metho

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Minus: Net debt

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Earnings yield

EV-to-EBITDA

EV-to-EBITDA m

EV-to-EBIT

EV-to-revenue

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EV-to-EBITDA

EV-to-EBITDA m

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NOLOGY – FRE

presentation dated

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ble. 8 Based oof Ideas analysis,

EE CASH FLOW,

January 19, 2011.

SUBSCRIBE TODA

F THE EQUITY

5

cials:6

ncials during FY

tion of Maxtor in FYed December 2010Average EBIT marh of -4% in FY09 (a

ever, it was only 8% 3 Per balance she

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x estimated malized EBIT

$10.0

7.5%

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12%

22%

2.8x

5.3x

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15%

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0.5x

2.0x

$114,068

$31

$58

lion, with a peak ofur normalized reve0 was 7% (adjustedthe impairment of gstrong June-Decemcember 31, 2010 (eeagate is a defendg others. Our litigan the year ended Dthe year ended Ju

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17%

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6.6x

5.4x

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11%

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7.8x

8.9x

0.7x

2.6x

$142,586

$39

$58

f $12.7 billion in FYenue estimate of $1d for impairment ofgoodwill and other lmber period, compexcludes restrictedant in various intell

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$

7

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0 per share

7%

13%

4.2x

7.9x

6.5x

0.8x

9%

5.3x

9.7x

10.6x

0.8x

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171,103

$47

$58

f $9.8 billion in erefore be r long-lived The EBIT

e year-ago ents of $97

wsuits brought urther als exclude

©

S

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S

© 2008-2011 by Beyond

SEAGATE TECHN

Source: Company p

SEAGATE TECHN

Source: Company p


NOLOGY – FIN

presentation dated

NOLOGY – UN

presentation dated

erved.

NANCIAL HIGH

January 19, 2011.

ITS BY MARKE

January 19, 2011.

SUBSCRIBE TODA

LIGHTS, LAST E

ET, LAST 16 QU

AY! www.manualo

EIGHT QUARTE

UARTERS

Value-oriented Eq

ofideas.com

ERS



ed Investors

of 170

©

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© 2008-2011 by Beyond

Sprint NextServices: Com

Price: $4.50 (

52-week rang

Market value:

Enterprise va

Shares out: 2

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Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

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Total current as

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Total current lia

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$0

$5

$10

$15

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tel (S) — Chmmunications Se

Trading Data

(as of 2/18/11)

ge: $3.21 - $5.31

: $13.4 billion

lue: $28.2 billion

2,987.0 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 87%

ept

200

21,64

11,80

me (1,99

(1,02

(1.4

g) 1,44

rations 6,63

4,0

2,6

ments 4,62

ssets 9,97

ts 7,83

41,32

t 1,28

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15,9

27,55

24

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04 2005

47 28,771

09 16,234

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40) 0.40

43 2,033

33 10,679

15 5,207

18 5,472

21 10,666

75 19,092

36 49,307

21 102,760

88 5,045

02 14,051

16 19,969

53 50,576

47 247

21 51,937

9% 9%

Ten-Year Sto

Feb 0eb 03

SUBSCRIBE TODA

ldenTree r of S&P 500

Con

This quarter

Next quarter

FYE 12/31/11

FYE 12/30/12

FYE 12/30/13

LT growth

EPS Surprise

2/10/11

perating Perform

iscal Years Ende

2006 2

41,003 40,

24,240 22,

2,484 (28,7

1,327 (29,4

0.33 (10

2,950 2,

10,958 9,

8,378 7,

2,580 2,

2,061 2,

10,304 8,

60,057 28,

97,161 64,

1,143 1,

9,742 9,

21,011 20,

44,030 42,

0

53,131 22,

10% -11

ock Price Perfor

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, Greenlig

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Latest

-$0.21

-0.18

1 -0.79

2 -0.59

3 -0.03

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mance and Finan

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007 2008

146 35,635

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740) (2,642)

444) (2,796)

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874 2,863

245 6,179

157 4,683

088 1,496

440 3,719

661 8,642

139 22,886

295 58,550

661 618

102 6,281

469 20,992

160 38,635

0 0

135 19,915

13% -11%

rmance and Tra

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Value-oriented Eq

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-$0.19 2

-0.16 2

-0.73 2

-0.47 2

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2009 2

32,260 32

15,825 15

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4,891 4

2,194 2

2,697 2

3,924 5

8,593 9

23,462 22

55,424 51

768 1

6,785 7

20,293 18

37,329 37

0

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and Park, KS, 703-433-40

of P/E FYE

sts P/E FYE

24 P/E FYE

23 P/E FYE

29 EV/ LTM

27 EV/ LTM

2 P / tangi

2 G

LTM EB

LTM pre

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2010 12/31/

2,563 32,5

5,071 15,0

(595) (59

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1.16) (1.1

2,988 2,9

4,815 4,8

2,394 2,3

2,421 2,4

5,473 5,4

9,880 9,8

2,704 22,7

1,654 51,6

1,656 1,6

7,891 7,8

8,535 18,5

7,108 37,1

0

4,546 14,5

-4% -4

ynamics

Feb 09b 08



000

Valuation

E 12/31/10

E 12/31/11

E 12/30/12

E 12/30/13

M revenue

M EBIT

ble book

Greenblatt Crite

IT yield

e-tax ROC

ME FQE

/10 12/31/09

563 7,868

071 3,789

95) (544)

65) (980)

16) (0.34)

988 2,899

815 1,215

394 604

421 611

473 3,924

880 8,593

704 23,462

654 55,424

656 768

891 6,785

535 20,293

08 37,329

0 0

546 18,095

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of 170

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n/m

n/m

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n/m

n/m

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-2%

-4%

FQE

12/31/10

8,301

3,733

(139)

(929)

(0.31)

2,991

1,467

626

841

5,473

9,880

22,704

51,654

1,656

7,891

18,535

37,108

0

14,546

n/m

Feb 11

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BUSINESS OVESprint Nextel p

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ERNS TDA margin ets for handset sher costs, to staT&T/Verizon its may increasaintenance costnd technology-e is $3 billion (debt (2.6x 201

ANY ANALYSIS P /

EV / Tang. Rev. Book

1.4x n/m

2.0x n/m

1.8x 295.0x

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ess communicaand a weak ecofor new custommay be worth twctive (at recent

SUBSCRIBE TODA

vices in the U.S

with 50 milliollion) and VerizSA (34 millionis attractive evments. Free cadue to GAAP tive to 2006-08Sprint’s wirelesce revenue was

mpares to 25+%&T and Verizouybacks. Whilds as long as dher debt paydo capital return.eless networksSprint’s WiMArwire (CLWR)ence, enabling nologies such

TE (Verizon). O in 2007, hasomer service android devices.venue to grow% data growthrce: T-Mobile)

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ss postpaid customess prepaid customersireless customers

ss retail service revee

yees2 ($bn)

enue by segment: 3

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me from ops

ent in FCC licenses r FCC licenses ($bn customers (mn)

eless customers by ty

le/affiliate wireless churn by cu

equity/assets6 out (avg) ls are not compara

SA (2009), the contr(2008) and the Spris spun-off in 2006. Ccline is due to the E2010 revenue is re

s severance, exit codes contribution of

s goodwill impairmeue of FCC licenses

HOLDERS <1% | FMR 14



which “postpaid” (mpany relies on W

has declined fy CEO Hesse areless margin c

EBITDA stays febt paydown, d

quity Investment Id

DATA1 2006 200-3% -3

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12% 0nue 12% 0

43% -2-19% -741.0 40

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ment:4 20% 2918% 20

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25% 2323% 2218% 16

2% 2) 1.7 2

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able due to acquisitribution of the next nt-Nextel merger (2Certain 2006 y-y fig

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4% | Dodge & C


M Fundamentals imrom economic and s(contract) versus p

WiMAX, CDMA an

from $20+ in 2are finally showcan be improveflat at the depr

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07 2008 20093% -5% 0%9% 0% 10%3% -10% -7%4% -21% 197%0% -9% 0%0% -11% -8%2% -11% -9%7% -7% -29%0.1 35.6 32.3

6% 85% 86%4% 15% 14%

9% 22% 19%0% 23% 27%7% 22% 20%

7% 53% 49%2% -5% -4%3% -8% -8%3% 17% 15%2% 24% 23%6% 11% 5%2% 2% 2%2.1 1.5 2.73.0 48.3 48.1

7% 76% 71%9% 7% 22%4% 17% 7%

2% 2.2% 2.2%8% 8.4% 6.3%6% -8% -17%3% 0% 1%ions of PCS affiliatgeneration wireles

2005). Financials exgures are pro-form010 figure is estimaue; rest mostly equiand merger/integraer equity-method inn of equity-method

m equity and assets

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9 2010 % -2% % -15% % -3% % 15% % 4% % 2% % 1% % -3% 3 32.6

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© 2008-2011 by Beyond

SPRINT NEXTEL

($ in billions)

Valuation metho

Wireless busine

2010 service rev

Normalized EBI

Normalized EBI

Minus: Normaliz

Estimated norm

Fair value multip

Estimated enter

Wireline busine

Normalized reve

Normalized EBI

Normalized EBI

Minus: Normaliz

Estimated norm

Fair value multip

Estimated enter

Estimated tota

Plus: Equity-acc

Minus: Net debt

Minus: Net post

Estimated fair

Implied 2010 FC

Implied FCF yie

Implied EV-to-2

Implied EV-to-2

Implied EV per

Implied fair valu

Service revenue re2010 adjusted EB

goodwill and asset ismaller competitor T

Normalized capitacenses, as a perce

corporate capex wh2010 wireline reve2010 wireline adjuBased on 10% of eWe do not accoun

segment EBITDA aThe company had

CLWR), a wholesaof the wireless busin

Based on $403 mi0 Based on 2,991 m1 Based on ~50 mil

Source: Company f


L – OUR ESTIM

odology

ess:

venue1

TDA margin2

TDA

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ss:

enue4

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TDA

zed capex6

malized EBITDA m

ple

rprise value of wi

l enterprise val

counted investme

t (12/31/2010)

t-retirement liabil

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CF yield

eld on average 20

2010 adj. EBITDA

2010 revenue

wireless custome

ue of the equity p

epresented ~90% oITDA margin was 1impairments, and mT-Mobile USA and l expenditure is ass

entage of wireless rhich totaled $0.5 bilenue was $4.0 billiousted EBITDA margestimated normaliz

nt for value drag fropproximate reporte $3.9 billion of "inve

ale provider of 4G nness in our valuatioillion of underfundinmillion diluted sharellion total wireless cilings, The Manual

erved.

MATE OF THE EQ

minus capex

ireless business

minus capex

ireline business

ue (A) + (B)7

ents8

ity9

uity of Sprint Ne

006-10 FCF

A

er11

per wireless custo

of wireless revenue17.5% (based on admerger and integrat40+% at AT&T andsumed at 8%, 10%revenue is ~13% (2lion in 2010.

on, down 11% y-y. gin was 27.5%, rouzed wireline revenum corporate overhe

ed company EBITDestments and othe

network services to on (reported segmeng at December 31es outstanding. customers at yeareof Ideas analysis,

SUBSCRIBE TODA

QUITY FAIR VA

norminbilli

2010 caplice

(A)

(B)

extel10 $

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% and 12% of reven2010: $1.9 billion o

ghly flat y-y. e. 2010 wireline caeads as these have

DA. r assets" on its balathe company. We

ent EBITDA, howev, 2009, when the fa

end 2010 (of which assumptions and e

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ALUE RANGE

Conservative

10x estimated rmalized EBITDAus capex of ~$3on (approximateadj. EBITDA minex, including FC

ense expenditure

$25.9

17.5%

$4.5

(2.0)

$2.5

10.0x

$25.3

$3.0

25.0%

$0.8

(0.3)

$0.5

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$4.5

$29.8

0.0

(14.7)

(0.4)

$15 billion

$4.90 per share

16%

14%

5.3x

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$597

$294

remainder from equvided by non-equiprint's wireless adjus

ue, respectively. Ar ~7.5%) . 2011 ca

apex was ~$230 mie not been significa

ance sheet as of yedo not value this in

ver, excludes the coair value of projecte

66% are postpaid,estimates.

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$25.9

25.0%

$6.5

(2.5)

$4.0

10.0x

$39.7

$3.5

27.5%

$1.0

(0.4)

$0.6

10.0x

$6.1

$45.9

0.0

(14.7)

(0.4)

31 billion

30 per share

8%

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1.4x

$919

$616

djusted EBITDA exin on service reven

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main component isas we assume it is

quity-method investons was $1.6 billion

d 9% wholesale/affi



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10x estnormalized

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$25

30.0

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$4

10.

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s an interest in Cleas effectively reflectetments including Cn.

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116

13

exit costs, 5+% at

on FCC eline and

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© 2008-2011 by Beyond

SPRINT NEXTEL

FCF is the cash prSource: Sprint Next

NDUSTRY – AN

Based on Sprint PSource: Sprint Next

NDUSTRY – RE

For T-Mobile USASource: T-Mobile U


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g activities less theted February 10, 20

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PROFITABILITY

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BER CHANGE V

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Vulcan MatCapital Goods

Price: $46.73

52-week rang

Market value:

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Shares out: 1

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Insider owner

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Insider sales

Institutional o

($ millions, exce

per share data)

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Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

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Total liabilities

Preferred stock

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EBIT/capital em

$0

$20

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terials (VMC: Construction -

Trading Data

(as of 2/18/11)

ge: $35.40 - $59.

: $6.0 billion

lue: $8.7 billion

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rship: <1%

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FYE 12/31/1

FYE 12/30/1

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695 7

470 45

4.81 4.6

98 9

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2/30/12

2/30/13

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Greenblatt Criter

yield

ax ROC

E FQE

0 12/31/09

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1 622

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3 4,488

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51

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BUSINESS OVEVulcan provide

NVESTMENT H #1 U.S

whichin dowis alsobough

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Ownsreservlocatio

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~50%and mhighwwater/comm

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Aggregates comprVulcan’s asphalt/co* Figures do not fu

THE BOTTOM LIAs the largest pof the U.S. Deshigh weight-to-attracted by higreflect a return


RVIEW es construction

HIGHLIGHTS S. producer of

h drive ~95% ownstream asphao a large producht Rock Industriweight-to-valurkets that aretages in most mes, Vulcan is n permitted an

ves totaling 14ons and quality y is highly geand for constru

egates shipmenpeak level in 20gates sold in 20

% of aggregatesmaintain publiways, bridges, ro/sewer systems

mercial and induect aggregatesase…leading triver of demandtained positiveating $343 mill

RISKS & CONCEation appears talized economBITDA is 12x

age 2006-10 FCeld (6% on prioited from workbillion of net drend 2010. Neacember 2012, wguidance is $1

date, the econoicant effect on on managemen

gates pricing an0 due to weakn

rise ~95% of asphaoncrete business is ully capture the con

INE producer of conspite the comm-value ratio of gh operating anto normalized e

erved.

n materials in th

f constructionf company revalt/concrete opcer of cement iies for $3+ billiue ratio of agge local in naturmarkets, as wellnot just a commnd proven/prob4+ billion tons

of reserves areared to an impuction materiants in 2010 are r006 (cash earn

010 are 10+% hs produced arcly funded proads, airports,

s. Other uses inustrial buildings shipments anto earnings grod is U.S. stimue FCF throughion in 2009, $1

ERNS to reflect a ret

mics. EV-to-ave(9x prior peak

CF of ~$180 mor peak FCF in

king capital infldebt (~7x 2010arest significanwhen $300 mil125 million (upomic recovery

some of our knt comments innd shipments dness in Florida

alt mix and 78% of largely supplied frontribution from Flo

nstruction aggrmodity nature of

aggregates andnd financial levearnings. Given

SUBSCRIBE TODA

he U.S.

aggregates, venue, including

erations.* Vulcin Florida afterion in 2007. gregates resultre. Given its scl as own aggreg

modity player.bable stone . The competit

e barriers to entprovement in als in the U.S. roughly half ofings per ton of

higher versus ’0re used to buildojects includinrailroads, and

nclude residentg construction.nd pricing to owth in 2011.”

ulus funding. h the downtur

116 million in ‘

turn to more erage 2006-10 k in 2007).

million implies an 2009, which lows).** adj. EBITDA

nt debt maturitylion is due. 20

p 45% y-y). has not had a

key end marken February. Bodeclined 2% y-a and Californiaf concrete by weighom its own aggregaorida Rock Industr

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SELECTEFYE DeceΔ aggregΔ aggreg∆ revenuRevenue % of reveAggregatConcreteCement6 Gross maAggregatConcreteCement

Total gSelected EBIT (excNet incomNet cash DD&A Capex Unit ShipAggregatConcreteAsphalt mCement (Average AggregatReady-mAsphalt mCement Tangible ∆ shares

1 Vulcan a2 Freight-aremote dis3 Excludes4 Produces5 Aggregat6 Produces

COMPAR

MLM

VMC

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n provides basihe company’s ostrategically lo

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D OPERATING cember 31 gates tons shipped gates avg unit sale pue ($bn)3

enue by segment: tes4

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pments (excludes inttes (‘000s tons)

e (cubic yards) mix (‘000s tons) (tons) unit sales price in $ tes (freight-adjusted)

mixed concrete mix

equity to assets out (avg) cquired Florida Ro

adjusted, i.e. total sstribution sites divids delivery revenue, s crushed stone, sates for the segmens cement in Florida

RABLE PUBLIC

MV EV($mn) ($mn

4,200 5,16

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HOLDERS mes 1% | OtherimeCap 6% | S



ic materials essoperations hav

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quity Investment Id

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ock Industries for $3sales dollars (internded by total sales uwhich has a grossnd, gravel and othet’s production are a

a, mainly for use in

COMPANY AN P

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007 2008 200% -14% -263% 7% 32% 12% -263.1 3.5 2

75% 64% 6625% 35% 33

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NALYSIS / This Ne

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1x 36x 27

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©

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© 2008-2011 by Beyond

VULCAN MATER

($ in millions)

Valuation metho

Normalized EBI

Minus: Normaliz

Estimated norm

Fair value multip

Estimated enter

Minus: Net debt

Minus: Net post

Estimated fair

Implied valuatio

FCF yield

EV-to-EBITDA (

EV-to-EBITDA m

EV-to-revenue

Implied valuatio

FCF yield

EV-to-EBITDA (

EV-to-EBITDA m

EV-to-revenue

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EV-to-EBITDA (

Other valuation

Implied fair valu

Implied dividend

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s. Vulcan spent $11a relatively high muthe high weight-to-vnd post-retirement r ended December o not include a full cries acquired in Noilings, The Manual

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minus capex

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items, was ~$700 ml contribution of Flopenditure required 10 million and $86 multiple of normalizedvalue ratio of aggreobligations at year2010. 7 This

contribution of Florovember 2007. of Ideas analysis,

EGATES RESER

November 2010.

SUBSCRIBE TODA

HE EQUITY FAI

Materials5

cials:6

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als (2007):8

million during 2006orida Rock Industrieto maintain "norma

million on capex in d cash flow due to tegates and control rend 2009 (gross bis likely reflective oida Rock Industries 9 Based on annuassumptions and e

RVES

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4.4x

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15x

26x

3.6x

11x

43x

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NDUSTRY FUN

Source: Company p

VULCAN MATER

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NDAMENTALS –

presentation dated

RIALS – U.S. F

y funding proje

presentation dated

erved.

– U.S. AGGREG

November 2010.

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November 2010.

SUBSCRIBE TODA

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WAY FUNDING

ressional Budg

AY! www.manualo

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get Office, 2009

Value-oriented Eq

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9-2013



ed Investors

of 170

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© 2008-2011 by Beyond

Wendy’s/ArServices: Rest

Price: $4.87 (

52-week rang

Market value:

Enterprise va

Shares out: 4

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$5

$10

$15

$20

$25


Arby’s (WEN)taurants, Membe

Trading Data

(as of 2/18/11)

ge: $3.83 - $5.55

: $2.0 billion

lue: $3.1 billion

418.4 million

Ownership Data

rship: 6%

(last six months)

(last six months)

wnership: 70%

ept

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me

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a

: 3

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28/03 1/2/05

294 329

142 158

1 2

(11) 14

(0.22) 0.02

60 63

(37) (13)

5 12

(42) (26)

734 566

773 670

72 157

1,043 1,067

36 53

162 206

483 447

755 764

0 0

288 303

4% 6%

Ten-Year Sto

Feb 0eb 03

SUBSCRIBE TODA

eastern ap 400

C

This quarter

Next quarte

FYE 12/31/1

FYE 12/30/1

FYE 12/30/1

LT growth

EPS Surpris

1/26/11

perating Perform

Fiscal Y

1/1/06 12/3

727

285

(67)

(55)

(0.83) (

70

(587)

35

(622)

974

1,655

594

2,810

27

1,359

895

2,414

0

396

n/m >

ock Price Perfor

Feb 0504

AY! www.manualo

Consensus EPS

Late

r $0.0

r 0.0

11 0.1

12 0.2

13 0.2

15.0

se Actual

$0.01

mance and Finan

Years Ended

31/06 12/30/0

1,243 1,26

429 34

31 2

(11) 1

(0.12) 0.1

87 9

602 2

80 7

522 (5

270 8

392 17

592 51

1,560 1,45

23 2

231 20

702 71

1,083 1,00

0

478 44

100% 7

rmance and Tra

Feb 06

Value-oriented Eq

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S Estimates

Month

est Ago

02 $0.02

07 0.06

16 0.16

22 0.22

26 0.29

% 16.1%

l Estim

$0.0

ncial Position

07 12/28/08

64 1,823

44 407

20 (414)

16 (480)

16 (3.50)

92 138

20 72

73 107

53) (35)

81 90

70 381

14 2,265

55 4,646

28 30

07 503

12 1,081

06 2,262

0 0

49 2,383

% -48%

ading Volume Dy

FebFeb 07

quity Investment Id

Atlanta, GA, 678-514-

# of P/E

Ests P/E

8 P/E

8 P/E

13 EV/

5 EV/

2 P / t

5

mate LTM

00 LTM

LT

1/3/10 10/

3,581 3

852

112

5

0.01 (0

467

295

102

193

592

879

2,274 2

4,975 4

22

475

1,501 1

2,639 2

0

2,336 2

8%

ynamics

Feb 09b 08



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Valuation

FYE 1/3/10

FYE 12/31/11

FYE 12/30/12

FYE 12/30/13

LTM revenue

LTM EBIT

angible book

Greenblatt Cr

M EBIT yield

M pre-tax ROC

TME FQE

/3/10 9/27/09

3,477 903

827 219

78 57

(7) 15

0.02) 0.03

455 468

212 104

131 25

81 79

521 645

855 920

2,250 2,277

4,855 5,068

18 18

457 459

,560 1,508

2,680 2,669

0 0

2,175 2,400

5% n/m

Feb 10

ed Investors

of 170

wendysarbys.com

n

487x

30x

22x

19x

0.9x

40x

n/m

riteria

3%

5%

FQE

10/3/10

861

194

20

(1)

0.00

418

65

42

23

521

855

2,250

4,855

18

457

1,560

2,680

0

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n/m

Feb 11

©

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© 2008-2011 by Beyond

BUSINESS OVEWendy’s/Arby

Wendy’s is the segment. Out oand ~20% are c

Arby’s is the #2Out of a total ~are company-op

NVESTMENT H Wend

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SONC 580

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THE BOTTOM LILess than threeo focus on We

and seems inceBurger King’s r


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#3 U.S. fast-foof a total ~6,550company-opera

2 U.S. sandwich~3,660 stores, ~perated (of wh

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RISKS & CONCEning system-wlready high coDA growth depompetition in thness globally, a

ution risk tied h has not grownof Arby’s francn royalty or othbillion of net d

PUBLIC COMPA

EV EV) ($mn) Re

0 89,370 3.

0 26,080 2.

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0 1,100 2.

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d franchises fas

ood franchisor 0 stores, ~90%

ated (of which m

h franchisor (b~97% are in thehich most are le

ger chain in N.(16K) and Bur

or ~90% of comic alternativesthe brand,” peom Arby’s, whon including n, may allow moued relative toiple of 9x EV-to-EBITDA is 8ofitability, the mrma company 2011, based on

s. Long-term Eper year, beginn

offerings and filiates own 24 Arby’s-ownerate Wendy’s/A

ERNS wide Wendy’s sompany-store pendent on newhe U.S., and a laare challenges to the planne

n same-store sachised stores arher payments todebt (2.7x adju

ANY ANALYSIS P / TV / Tang. Fev. Book P

.7x 7.2x 1

.3x 54.1x 1

7x 3.0x 1

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9x n/m 3

elson Peltz engthe strategy U-taximize value fultiple), and A

SUBSCRIBE TODA

st food stores:

in the hambur% are in the U.Smost are owned

ehind Subway)e U.S. and ~30eased).

.A.: 6,200 storrger King (7.5Kmpany EBITDAs for Arby's, er a statement ihich we estimanet debt (~20%ore capital returo Burger Kingto-EBITDA.

8x (assuming multiple is <7xEBITDA of n a sale of Arb

EBITDA growtning in 2012. Kglobal expansi

4%. Peltz has r Triarc merged

Arby’s in 2008.

same-store salmargins, mak

w stores. Saturatack of brand to franchising.d sale of Arby

ales since 2006re 60+ days paso the companysted EBITDA)


15x 14x

18x 16x

15x 13x

18x 15x

30x 22x

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FYE Dece∆ Wendy∆ Arby’s ∆ Wendy∆ Arby's s∆ revenuRevenue % of reveWendy's Arby's Adj. EBITWendy's Arby's Corporate

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1 FinancialWendy’s InTriarc ‘07 f2 Based on3 Reflects t4 90+% of Canada. 95 Excludes6 Company7 Based on

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D OPERATING

cember 31 y's same-store sales same-store sales2 y's system-stores system-stores e ($bn)

enue by segment:4

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e adj. EBITDA margin enue by type: y-operated store sales/franchise fees items as % of revenjusted)5 me

Wendy’s metrics: stores (period-end) pany-operated nue/company store

ant margin6 from franchisees ($ Arby’s metrics: stores (period-end) pany-operated nue/company store

ant margin6 from franchisees ($ out (avg) ls reflect the mergenternational to formfinancials are adjusn North America sythe addition of WenWendy’s revenue

99+% of Arby’s reves impairment of gooy-operated store En annualized 4Q08

HOLDERS an Peltz and af1% | SoutheastTrian Partners and



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quity Investment Id

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0% 0% 3% 4% 1.2

n/m

100% ment:5

n/m 14%

-11% 3%

es 93%

7% nue:

-2% 1% 5% 6%

6,645 621%

($mn) 1.3 11%

$mn) 290

3,688 330%

($mn) 1.0 20%

$mn) 87 7% 1

er of Triarc Companm Wendy’s/Arby’s Gsted to exclude theystem-stores (U.S. ndy’s from its acquis derived from theenue is derived fromodwill and other lonBITDA margin befo

8 figures.

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the company iltz retains a maworth 9x trailinA, shares appea



2008 2009 14% -1%

-4% -9% 0% -1% 2% -1%

52%3 96%3 1.8 3.6

n/m 68%

67% 32%

9% 13% 11% 7% -2% -1% 8% 11%

91% 89%

9% 11%

4% 5% -26% 0%

5% 5% 6% 3%

6,630 6,541 21% 21% 1.47 1.4

12%7 15% 2987 303

3,756 3,718 31% 31%

1.0 0.9 16% 14%

86 80 101% 151% nies (franchisor of AGroup on Septembee divested asset mgstores only in 2007

uisition in 2008. e U.S. with the rest m the U.S. ng-lived assets. ore corp. SG&A/sp

s 24%* | Non-PkRock 6% | VanMay and Edward G



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-1% -8% -1% -2% -4% 2.6

70% 30%

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6,554 21%

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WENDY’S/ARB

($ in millions)

Valuation metho

Value of Wendy

2011 pro-forma

Minus: Estimate

Estimated EBIT

Fair value multip

Estimated enter

implied EV-to-

implied EV-to-

Value of Arby's:

Trailing adj. Arb

Fair value multip

Estimated enter

implied EV-to-

Estimated total

Minus: Net debt

Estimated fair

Implied trailing F

Implied trailing E

Implied EV-to-tr

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rom franchisees. WArby's has approxim

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BURGER KING

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ana

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VALUE RANGE

Conservative

Sum-of-the-partnalysis (see detaassumptions belo

$350

(100)

$250

10.0x

$2,500

7.6x

8.3x

$56

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$334

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12.0x

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5.2x

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8.9x

9.0x

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WENDY’S/ARB(beginning in 2012)

QUARTERLY SS

BENEFITS OF P

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Source: Company p


BY’S – 2011 M

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ANAGEMENT G

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ERM EBITDA G

SELECTED HAM

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d January 27, 2011

SUBSCRIBE TODA

GUIDANCE

GROWTH TARGE

MBURGER CHAI

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; available at http:/

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52-week rang

Market value:

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Diluted EPS

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Total current as

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Short-term debt

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$20

$30

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$50

$60

$70

$80

$90

$100


ldings (ZMHMedical Equipme

Trading Data

(as of 2/18/11)

ge: $46.27 - $65.

: $12.6 billion

lue: $12.8 billion

97.4 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 82%

ept

2

2

me

g)

rations

ments

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5

t

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y 3

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2004 2005

2,981 3,286

2,201 2,547

763 1,055

542 733

2.19 2.93

244 247

862 878

240 255

622 623

155 233

1,561 1,576

3,324 3,185

5,696 5,722

28 0

701 607

624 82

1,753 1,039

0 0

3,943 4,683

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BUSINESS OVEZimmer manufrauma devices,

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NALYSIS P / This

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Zimmer is guiding primarily related to

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1

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ZIMMER HOLD

Source: Company p

ZIMMER HOLD

Source: Company p


INGS – MARK

presentation dated

INGS – MARK

presentation dated

erved.

ET POSITION I

January 10, 2011.

ET POSITION I

January 10, 2011.

SUBSCRIBE TODA

N KNEES

N HIPS

AY! www.manualo

Value-oriented Eq

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©

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© 2008-2011 by Beyond

Reduced oBroadridge

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52-week rang

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ge: $18.51 - $24.

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lenview Lake Success, NY, 516

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BUSINESS OVEBroadridge promutual funds an

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MarkeValue($mn)

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ng recurring reval fund proxy vw reverts back tat a high single-



2009 2010 -3% 7% 4% 7% 2.1 2.2

74% 76% 27% 24%

16% 16% 24% 19% -2% -1% 17% 15%

54% 51% 37% 35% 10% 13%

5% 1%

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de securities clearen most proxies arevenue from mutual urring fees split ~50/revenue is based o

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NALYSIS This FY P/E

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F

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FY End Date

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Dec-31

| Harris 7% eenlight 2%

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©

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© 2008-2011 by Beyond

BROADRIDGE F

($ in millions)

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Normalized reve

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Estimated enter

Minus: Net debt

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Implied trailing F

Implied FCF yie

Implied FCF yie

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assume that marginBased on 129 millBased on guidanc

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odology

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FINANCIAL – M

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OUR ESTIMATE

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ring FY08-10 7

atrix Financial SolutMarch 2012).

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MANAGEMENT

February 8, 2011.

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OF THE EQUIT

dge4

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tions acquisition in

ontinuing ops). Wempany's historic mar

ncreased efficienci

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assumptions and e

’S FINANCIAL

AY! www.manualo

Y FAIR VALUE

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11.9x

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e assume slightly hrgins have been vees and the introduc

June 2011). Guidaoutsourcing service

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GUIDANCE

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RANGE

ve B

d BIT

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re $3

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© 2008-2011 by Beyond

BROADRIDGE F

Source: Company p

BROADRIDGE F

Source: Company p


FINANCIAL – R

presentation dated

FINANCIAL – E

presentation dated

erved.

RECURRING FEE

February 8, 2011.

VENT-DRIVEN

February 8, 2011.

SUBSCRIBE TODA

E REVENUE AN

FEE AND DIST

AY! www.manualo

ND CLOSED SAL

TRIBUTION REV

Value-oriented Eq

ofideas.com

LES, FY05-FY1

VENUE, FY05-

quity Investment Id

1

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© 2008-2011 by Beyond

China MobiServices: Com

Price: $47.66

52-week rang

Market value:

Enterprise va

Shares out: 3

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$20

$40

$60

$80

$100

$120


ile (CHL) — mmunications Se

Trading Data

(as of 2/18/11)

ge: $44.41 - $54.

: $190.4 billion

lue: $144.7 billio

3,995.6 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 2%

ept

12/31/

28,2

23,9

me 9,0

5,9

1.

g) 3,9

rations 12,9

6,5

6,4

ments 8,5

ssets 10,5

ts 5,2

46,6

t 1,9

bilities 11,8

2,9

16,4

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mployed 40

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erved.

— Kleinheinzervices

70

on

: 0

): 0

Op

/03 12/31/04

217 31,945

991 28,246

000 9,798

994 6,834

.52 1.73

934 3,935

972 15,739

564 8,852

408 6,887

547 9,920

534 12,398

213 0

605 50,654

996 1,251

852 14,812

943 1,972

455 20,608

0 0

50 30,046

0% 40%

Ten-Year Sto

Feb 0eb 03

SUBSCRIBE TODA

z

C

This quarter

Next quarter

FYE 12/31/1

FYE 12/31/1

FYE 12/30/1

LT growth

EPS Surprise

3/18/10

perating Perform

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12/31/05 12/

36,557 4

33,746 4

11,080 1

8,055

2.03

3,948

19,975 2

10,014 1

9,961 1

16,134 2

18,766 2

0

58,482 7

10

16,675 2

1,958

22,501 2

0

35,981 4

44%

ock Price Perfor

Feb 0504

AY! www.manualo

Hong Kong

Consensus EPS

Lates

$0.7

r 0.6

0 4.0

1 4.3

2 3.7

n/

e Actua

n/a

mance and Finan

ears Ended

/31/06 12/31/0

44,521 54,21

41,301 50,60

3,802 18,76

9,920 13,13

2.47 3.2

3,979 4,00

22,650 25,57

1,680 14,94

0,970 10,62

23,274 28,59

26,010 31,48

5,701 5,66

75,021 85,56

465 1

21,324 23,91

1,508

26,642 29,19

0

48,379 56,36

58% 78%

rmance and Tra

Feb 06

Value-oriented Eq

ofideas.com

g, 852--312-8888

S Estimates

Month

st Ago

74 $0.74

60 0.60

09 3.79

33 4.33

71 3.71

/a n/a

l Estim

n/a

ncial Position

07 12/31/08

14 62,454

00 58,677

62 21,595

37 17,081

23 4.20

01 4,009

71 29,368

46 18,328

25 11,040

94 33,101

89 36,424

66 5,641

61 99,856

10 10

19 27,838

0 1,504

95 33,123

0 0

65 66,733

% 77%

ading Volume Dy

FebFeb 07

quity Investment Id

# of P/E

Ests P/E

1 P/E

1 P/E

3 EV/

3 EV/

1 P / t

n/a

mate LTM

a LTM

LT

12/31/09 6/3

68,565 71

64,796 67

22,295 22

17,466 35

4.30

4,012 4

31,412 4

17,562

13,850 4

40,115 47

43,580 51

5,706 5

113,951 125

10

31,819 39

1,504

37,099 43

0

76,852 81

70%

ynamics

Feb 09b 08



www.chi

Valuation

FYE 12/31/09

FYE 12/31/10

FYE 12/31/11

FYE 12/30/12

LTM revenue

LTM EBIT

tangible book

Greenblatt Cr

M EBIT yield

M pre-tax ROC

TME FQE

0/10 6/30/08

,353 29,643

,331 27,721

,866 10,539

,016 8,272

4.40 2.03

,012 4,008

,094 (10,467)

0 0

,094 (10,467)

,214 31,274

,985 35,586

,701 5,653

,539 94,531

762 10

,289 27,434

755 1,516

,827 32,726

0 0

,713 61,805

79% n/m

Feb 10

ed Investors

of 170

inamobileltd.com

n

11x

12x

11x

13x

2.0x

6x

2.5x

riteria

16%

79%

FQE

6/30/10

34,854

32,960

11,131

8,742

2.15

4,012

(12,214)

0

(12,214)

47,214

51,985

5,701

125,539

762

39,289

755

43,827

0

81,713

n/m

Feb 11

©

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© 2008-2011 by Beyond

BUSINESS OVEChina Mobile, communication

NVESTMENT H #1 pro

in ma(~69%provid

Sharedividehas grat 25+

Net cabased June 3

EBITDdrivencustomdeclinpressu

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NVESTMENT R Vulne

intervmandaadditio

ChineTelecoby encprovid

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CMCand spand 35

Technongoinon theversus

THE BOTTOM LIChina Mobile iFCF yield, valustrong currencyntervention app

2008. Minoritybrand and 3G s


RVIEW incorporated in

ns services in m

HIGHLIGHTS ovider of mobinland China,

% share), aheadders China Unies trade at an ~end yield) on aown at a 10%

+% of revenue. ash representson an estimate

30, 2010 (at theDA grew 6%

n by 8% revenumer growth, maning revenue peure and lower uading 2nd-geneMA technologyation” customees, totaled 21 med Chinese mvia purchase o

lion. Initiatives

RISKS & CONCEerable to negatvention, as evidated in 2008. Monally at risk oese regulatory om and Chinacouraging “threders of compararolled by statemunications Can indirect 74%C owns the “Cpectrum, whic5 MHz for 3G nology risk andng high networe TD-SCDMA s rival WCDMA

INE is one of the thruation is cheap y) for years to cpears to be the

y holders are adspectrum. As a

erved.

n Hong Kong, mainland China

ile communic, with 584 mill

d of the two othcom and China~8% trailing Fa net cash balaCAGR since ‘0EV-to-trailing

s ~22% of receed $43 billion oe recent RMB/$y-y through S

ue growth. Conainly in rural aer user (due to usage from ruraeration GSM ny, a “3G” staners, who use momillion at yeareobile e-comm

of a 20% stake include mobile

ERNS tive impact ofdenced by the i

Minority sharehof exclusion fro

reforms are ma Unicom moree telecommunable scale and -owned China

Corporation (C% equity stake.China Mobile”ch includes 40 (plus 50 MHz d related requirrk capex. Chinstandard for itsA/CDMA2000

ree licensed mbased on the o

come. Our maine driving force dditionally at th

result, we are

SUBSCRIBE TODA

provides mobia and Hong Ko

ations serviceion customers*

her licensed a Telecom. FCF yield (4%ance sheet. FC05 despite cape

g EBITDA: ~4.ent market vaof net cash as o$ exchange rat

September 201ntinued strong reas, is offsettiregulatory tarial customers). networks to Tndard. “Thirdore lucrative dend 2010. erce market inin SPD Bank fe finance servic

f regulatory industry reform

holders are om value creatimaking Chinare viable rivalsnications servicstanding.” **

a Mobile CMCC), which. ” trademark**

MHz for GSMindoor coveragrements for a Mobile reliess 3G networks0 technologies.

mobile service povercapitalizedn concerns are behind market

he mercy of stanot enticed to

AY! www.manualo

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SELECTE

FYE DeceΔ customΔ minutesΔ ARPU ∆ revenuRevenue % of reveUsage feeValue-addMonthly fInterconnSelected EBIT Net incomNet cash D&A Capex Custome of whichMarket shAvg minuMonthly AAvg montDividendsReturn onTangible ∆ shares

1 Financial2 Includes 3 China Mo4 Estimate5 Per 2010 COMPAR

VOD

CHA

CHU

CHL

MAJOR Non-CM RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * At yearen** Unlike i*** China M

providers in mad balance sheet

regulatory riskt share loss to “ate-owned majoown the shares

Value-oriented Eq

ofideas.com

D OPERATING

cember 31 mers

s/customer

e (RMB, bn)

enue by type: es d services fees2 fees nect fees/other items as % of reven

me from ops

rs, ending (mn) h corporate hare3 utes/user/month ARPU (RMB) thly churn s/net income n tangible equity equity to assets out (avg) ls are based on IFRSMS/non-SMS dat

obile customers/mad based on 1H10 r

0 dividend payout g

RABLE PUBLIC

MV E($mn) ($m

152,360 204,

47,710 56,

40,730 50,

190,430 144,

HOLDERS MCC insiders <


Able to sustain high GS MOMENTUM Poised to benefit frnd 2010 (majority its rivals, China MMobile pays no tra

ainland China. t and prospectsk and the contr“favored” Chinority owner CMs, even at the s

quity Investment Id

DATA1

2005 2006 2021% 22% 213% 14% 1-2% 0% -26% 21% 2243 294 3

64% 65% 621% 24% 210% 7%

5% 4% nue:

30% 31% 322% 22% 254% 51% 423% 22% 128% 26% 2247 301 3

27% 26% 266% 68% 6335 381 490 90

1.9% 2.7% 2.39% 48% 425% 25% 261% 61% 6

0% 1% RS (except 2005, wta business as welainland China total reported results. guidance. 6 Annu

COMPANY AN V EV / T

mn) Rev. B

,320 2.8x

,880 1.2x

,450 2.0x

,730 2.0x

<1% | CMCC (



y of customers are pMobile offers only mademark license fe

With shares trs for growing crolled companyna Telecom andMCC, who alsoseemingly attra



007 2008 20023% 24% 14%

9% 8% 0%-1% -7% -7%22% 15% 10%357 412 45

63% 63% 63%26% 28% 29%

6% 4% 3%5% 5% 4%

35% 35% 33%24% 27% 25%48% 48% 47%

9% 17% 18%28% 30% 26%369 457 52

29% 28% 35%69% 72% 71%455 492 4989 83 7

.6% 2.7% 3.3%46% 43% 43%28% 31% 26%62% 64% 65%

1% 0% 0%which is based on Ul as voice value-admobile customers

ualized.

NALYSIS P / This N

Tang. FY Book P/E

5.7x 11x

1.7x 19x

1.3x 69x

2.5x 12x

(Chinese gov’t)


mproving? secular trends? pre-paid, i.e. withomobile services (nee to CMCC throug

rading at an ~8cash generationy structure. Chd China Unicoo owns the Chi

active 4% divid

ed Investors

of 170

09 YTD

9/30/10 % 12% % 6% % -4% % 8% 52 353

% n/a % n/a % n/a % n/a

% 32%4 % 25% % 55%4 % 18%4 % 27%4 22 570 % n/a % 69% 94 520 77 72 % n/a % 43%5 % 24%6 % 65%4 % 0%4 U.S. GAAP). dded services.

(period-end).

Next FY P/E

10x

16x

37x

11x

) 74%

out contract).

no fixed-line).

gh 2012.

% trailing n (in a hinese state om since ina Mobile

dend yield.

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© 2008-2011 by Beyond

CHINA MOBILE

(RMB in billions

Valuation metho

Normalized reve

Normalized EBI

Normalized EBI

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Estimated norm

Fair value multip

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Plus: Value of e

Estimated fair

Implied trailing F

Implied dividend

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Implied value of

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EBITDA margin wmargin mainly due tservices providers oMobile. China Mobisubscribers, howeve

1H10 annualized E

Based on 25% of rnormalized" capex o keep up with cust

allocated to it (its pa

The company entenitiatives are to incl

Based on 4,063 mU.S. dollars at the re

Based on the estim

Based on 584 mill

Based on dividing 0 Vodafone, which

Source: Company f


E – OUR ESTIM

s)

odology

enue1

TDA margin2

TDA3

zed capex4

malized EBITDA m

ple

rprise value

(6/30/2010)

e-commerce oppo

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FCF yield

d yield7

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railing EBITDA

railing EBITDA m

customer (US$)8

f mainland Chine

m/(discount) of thice of Vodafone's

s RMB 478 billion foby a 4% decline in

as 51% in the first to increased compeof comparable scalele had an estimateder, is likely significa

EBITDA is RMB 23

revenue. Capex asrequirements at 25tomer growth and marent CMCC owns

ered the Chinese mlude mobile phone

million diluted ADS oecent RMB/$ excha

mated dividend for

ion mobile custome

our estimated ente

owned a 3.2% equ

ilings, The Manual

erved.

MATE OF THE EQ

minus capex

ortunity5

uity of China Mo

minus capex

8

ese mobile indus

he equity fair valus 3% stake10

or the year ended Saverage revenue p

half of 2010 and avetition following thee and standing,” had ~68% market shaantly lower at an es

33 billion (1H10 EB

s a proportion of rev5% of revenue maymake it competitiveit), and the existing

mobile e-commercepayments and othe

outstanding (1ADSange rate of RMB 6

2010 per the comp

ers as of yearend 2

erprise values for C

uity stake in China M

of Ideas analysis,

SUBSCRIBE TODA

QUITY FAIR VA

obile6

try (US$bn)9

ue

September 2010. Rper customer.

veraged 52-53% due regulatory reformsave led to recent mare of mobile subscstimate ~45%.

ITDA increased 6%

venue averaged 27y be too high, Chinae with the latest tecg allocation of 35 M

e market in 2010 byer mobile finance a

=5 ordinary shares6.60 per U.S. dolla

pany announcemen

2010.

China Mobile by the

Mobile, sold the en

assumptions and e

AY! www.manualo

ALUE RANGE

Conservativ

10x estimatenormalized EBminus capex of

~85 billion (~2below trailing EB

minus cape

RMB 550

40%

RMB 220

(138)

RMB 83

10.0x

RMB 825

284

0

RMB 1,109 bi

US$ 168 bill

$41 per AD

9%

5%

1.7x

3.5x

7.4x

$214

$184

-18%

Revenue growth in

uring 2005-09. We s in 2008. The refo

market share gains bcribers in mainland

% y-y).

7-28% during 2005-a Mobile's 2G/3G n

chnologies includingMHz may be limiting

y purchasing a 20%applications across

s, which are listed inr.

nt of a dividend pay

e company's estima

ntire stake to a cons

estimates.

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ofideas.com

ve

ed ITDA

f RMB 25% BITDA

ex)

1normminu~12

abovem

llion RM

ion US

DS $

the first nine month

assume normalizeorms, which are desby China Unicom a

d China at yearend

-09. 1H10 capex wnetwork is likely to g "LTE." Moreover,g, this could lead to

% equity stake in SP mainland China.

n Hong Kong). The

yout ratio of 43% of

ated 68% market sh

sortium of investme

quity Investment Id

Base Case

0x estimated malized EBITDA us capex of RMB20 billion (~10% e trailing EBITDAminus capex)

RMB 600

45%

RMB 270

(150)

RMB 120

10.0x

RMB 1,200

284

40

MB 1,523 billion

S$ 231 billion

$57 per ADS

7%

3%

2.5x

5.0x

10.7x

$311

$268

12%

hs of 2010 was 8%

ed EBITDA margin signed to encouragand China Telecom2010 (2009: 71%)

was 27% of revenueneed significant bu, as China Mobile d

o ongoing capex req

PD Bank for $6 billi

e estimated renmin

f 2010 net income

hare in mainland C

ent banks in Septe



Aggre

B

A

10x esnormalizeminus cap~165 billi

above trailiminus

RMB

50

RMB

(16

RMB

10

RMB

28

7

RMB 1,9

US$ 30

$74 pe

5

3

3.

6.

14

$4

$3

47

% y-y, driven by a 12

will be lower than hge “three telecomm

m at the expense of . China Mobile's sh

e. While our assumuildout and upgradedoes not own the 3quirements for yea

ion. Targeted joint

nbi market value is t

(the payout ratio is

China at yearend 20

mber 2010.

ed Investors

of 170

essive

stimated ed EBITDA pex of RMB ion (~45% ing EBITDA capex)

B 650

0%

B 325

63)

B 163

0.0x

1,625

84

79

88 billion

1 billion

er ADS

5%

3%

.4x

.8x

4.5x

422

363

7%

2% increase

historical munications

China hare of "3G"

mption of e expenditure G spectrum rs to come.

development

translated into

s flat y-y).

010.

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© 2008-2011 by Beyond

CHINA MOBILE

CHINA MOBILEPROFIT ATTRIB

CHINA MOBILE

Source for above ch


E – CAPITAL EX

E – EBITDA, PRBUTABLE TO SH

E – CASH FLOW

harts: China Mobile

erved.

XPENDITURES

ROFIT FROM OPHAREHOLDERS

W (RMB millions)

e Limited annual re

SUBSCRIBE TODA

(RMB billions)

PERATIONS, (RMB millions)

port 2009.

AY! www.manualo

CHINA M

CHINA M

Value-oriented Eq

ofideas.com

MOBILE – OPE

MOBILE – VAL

quity Investment Id

RATING REVEN

UE-ADDED SER



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RVICES FEES

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UTION

©

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© 2008-2011 by Beyond

Harvest NatEnergy: Oil & G

Price: $12.84

52-week rang

Market value:

Enterprise va

Shares out: 3

O

Insider owner

Insider buys (

Insider sales

Institutional o

($ millions, exce

per share data)

Revenue

Gross profit

Operating incom

Net income

Diluted EPS

Shares out (avg

Cash from oper

Capex

Free cash flow

Cash & investm

Total current as

Intangible asset

Total assets

Short-term debt

Total current lia

Long-term debt

Total liabilities

Preferred stock

Common equity

EBIT/capital em

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20


atural ResouGas Operations

Trading Data

(as of 2/18/11)

ge: $4.95 - $14.2

: $435 million

lue: $453 million

33.8 million

Ownership Data

rship: <1%

(last six months)

(last six months)

wnership: 68%

ept

12/31

1

me

0

g)

rations

(

ments 1

ssets 1

ts

3

t

bilities

1

y 2

mployed 1

FFeb 02

erved.

urces (HNR)

0

n

a

: 0

): 1

Op

/03 12/31/04

106 186

0 0

34 88

27 34

0.74 0.90

35 36

39 74

61 39

(22) 35

139 85

183 172

0 0

374 368

6 12

46 83

97 0

175 124

0 0

200 243

8% 45%

Ten-Year Sto

Feb 0eb 03

SUBSCRIBE TODA

) — Pabrai

This quarter

Next quarte

FYE 12/31/1

FYE 12/31/1

FYE 12/30/1

LT growth

EPS Surpris

11/9/10

perating Perform

Fiscal Y

12/31/05 12

237

0

105

39

1.01

37

115

16

99

163

240

0

401

6

62

0

103

0

298

55%

ock Price Perfor

Feb 0504

AY! www.manualo

i

Consensus EP

Lat

r -$0

r 0

10 0

11 1

12 1

se Actu

0 $0.0

mance and Finan

Years Ended

2/31/06 12/31/

60

0

1 (2

(63)

(1.68) 1

37

(24) (2

2

(26) (2

148 1

200 1

0

468 4

38

82

67

187 1

0

281 3

1% -278

rmance and Tra

Feb 06

Value-oriented Eq

ofideas.com

PS Estimates

Month

test Ago

.01 $0.05

.22 0.30

.45 0.80

.23 1.68

.17 n/a

n/a n/a

al Esti

02 $0

ncial Position

/07 12/31/08

11 0

0 0

20) (54)

60 (22)

.58 (0.63)

37 34

21) 50

1 26

21) 24

121 97

154 116

0 0

417 362

9 0

43 39

0 0

101 89

0 0

317 273

8% -1577%

ading Volume Dy

FebFeb 07

quity Investment Id

Houston, TX, 281-899

# of P/

Ests P/

2 P/

2 P/

1 EV

2 EV

1 P

n/a

mate LT

0.13 LT

L

12/31/09 9/

0

0

(31)

(3)

(0.09)

33

(35)

28

(63)

32

51

0

349

0

17

0

74

0

275

-94%

ynamics

Feb 09b 08



9-5700 ww

Valuatio

/E FYE 12/31/09

/E FYE 12/31/10

/E FYE 12/31/11

/E FYE 12/30/12

V/ LTM revenue

V/ LTM EBIT

/ tangible book

Greenblatt C

TM EBIT yield

TM pre-tax ROC

LTME FQE

/30/10 9/30/09

8 0

0 0

(26) (7)

24 1

0.62 0.02

33 33

(24) (4)

40 11

(64) (15)

13 49

38 68

0 0

430 341

0 0

33 19

32 0

133 73

0 0

297 268

-35% n/m

Feb 10

ed Investors

of 170

w.harvestnr.com

on

n/m

29x

10x

11x

56.0x

n/m

1.5x

Criteria

-6%

-35%

E FQE

9 9/30/10

0 2

0 1

) (9)

1 (5)

2 (0.15)

3 34

) (8)

1 11

) (18)

9 13

8 38

0 0

1 430

0 0

9 33

0 32

3 133

0 0

8 297

m n/m

Feb 11

©

BHw I

I

TDseHPp

© 2008-2011 by Beyond

BUSINESS OVEHarvest is an oiwith its main pr

NVESTMENT H Owns

Harve9/30/1~85%

Recenhalf opre-taxreserveThe N

Retain“exploof assereportexpres

Potenreserv“2P” amillion

Low Pat $18costs a$45-10

Positivincludof pro

NVESTMENT R Main

governHarvethe oththe ass

Liquidregulathe capis inten$10 m2010,

Octobaddedof diluHarveconver

Explo Mohn

THE BOTTOM LIDespite materiastake in Venezuequivalent reseHarvest is explPetrodelta, whiprice may have


RVIEW il and gas explroducing asset

HIGHLIGHTS 32% of Veneest proved res0, up 9% fromof reserves, of

nt market valuf proved reserx present valuees at Petrodelta

NPV assumes a ned Merrill Lyore strategic aets or a sale or ed that it had rssions of interetial for signifi

ves given Petroand “3P” reservn boe (~65% aPetrodelta cas-33/boe after aand various tax00. 2009 actuave developme

de ramp-up of pved reserves w

RISKS & CONCEproducing ass

nment entity PDst owns 80% oher 40%. Harveset if the Venezdity constrain

ar dividends anpex program onded to be self

million dividendthe first since

ber 2010 finand $60 million outive warrants. st had $13 milrtible debt (con

oration capex mnish Pabrai sol

INE al share price auela-based oil prves on a provoring strategic ich has paid litte led respected

erved.

oration and prolocated onsho

ezuela-based Perves of 50 mi

m yearend 2009f which 25-30%ue approximatrves, based on e of ~24 milliona’s El Salto fielWTI oil price ynch in Septem

alternatives” inmerger.” At th

received “prelimest” from third icant increasesodelta’s large ves**, net to Haat El Salto) andh costs. Cash m

a 33% royalty, xes, based on Wal cash margin wnts outside of production in U

was $5 million a

ERNS set is in VenezDVSA owns 6

of HNR Financest may not bezuelan governmnts due to Petrod Harvest needutside of Venef-funding). Hard from Petrodea $75 million p

ncing deal withof expensive dAs of Septemblion of cash annversion price may prove valld most of its s

appreciation, Hproducer Petroed basis, plus salternatives, in

tle dividends tovalue investor

SUBSCRIBE TODA

oduction firm, re in Venezuel

Petrodelta, givillion boe* as o

9. Oil represent% are developetes NPV of ona ~$570 million boe of proveld, net to Harveof $77 per barmber 2010 toncluding a “salhe time, Harvesminary parties. s in proved resource base

arvest, are 103 d 227 million bmargin is forec~$10/boe of ca

WTI oil prices owas ~$25/boe.Venezuela

Utah, U.S. (PVat yearend 200

zuela, where 60% of Petrodece, which ownse able to monetment is in the wodelta not payinding cash to funezuela (Petrodervest received alta in October payout in 2008h MSD Capitaebt and 6 milliber 30, 2010,

nd $32 million of $5.71/sharelue-destructivstake in 4Q10

Harvest remainsodelta. Harvestsignificant resoncluding a poteo Harvest over r Pabrai to sell

AY! www.manualo

la.

ving of ts ed. ly on* ed est. rrel.

le st

e.

oe. cast ash of

-10 09).

elta. s ize

way. ng nd elta a

8. al ion

of e). ve. .

SELECTE

FYE DeceSelected Proved re % oil % deveAfter-tax Selected Crude oil Natural g Total saAvg oil saAvg gas sAvg opexSelected Net cash4

Revenue5

EBIT Net incomNet incomVenezuelIndonesiaU.S. and Net incoAssets byVenezuelIndonesiaU.S. and Intersegm Total asTangible ∆ shares

1 Harvest’sconverted owns 60%other 40%,2 Petrodelt4 YTD excl5 2008/09 framp-up o

MAJOR CEO EdSoros 6%* Excludinin Februarmillion wa2010, MSD RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * Based on** 2P = pro

s undervalued b’s share of Petrource potentialential sale. Mathe years. Themost of his fun

Value-oriented Eq

ofideas.com

D OPERATING

cember 31 Petrodelta metrics, eserves (million boe)

eloped PV-10 ($mn) Petrodelta metrics ( sales (‘000 bbls) as sales ('000 Mcf) ales (‘000 boe) ales price ($/bbl) sales price ($/Mcf)3 x ($/boe) Harvest GAAP finan4 5

me from affiliates me by geography ($mla a other ome to Harvest y geography ($mn, pla a other ment eliminations ssets equity to assets out (avg) s former subsidiaryinto a “mixed comp

% of Petrodelta. Har, giving it a 32% ecota was formed in 20ludes $32 million ofigures reflect deco

of production from o

HOLDERS* dmiston 2% | O% | Porter Orlinng shares issuable ury 2010 at a convearrants (issued to MD Capital owned s



n Ryder Scott Co. oved+probable res

based on the inrodelta gives itl. This may be ain risk remainse less attractivend’s stake duri

quity Investment Id

DATA1

2006 2007 net to Harvest (32%) n/m2 43.6

n/m 87%n/m 30%n/m 523

(100%): n/m 5,374n/m 13,456n/m 7,617n/m 58.61n/m 1.54n/m 4.20

ncials ($mn): 132 11860 11

1 -200 55

mn): -47 80

0 -0-16 -20-63 60

period-end): 352 307

0 0156 127-40 -16468 417

67% 68%1% -2%

y Petrodelta, which pany” in 2007. As arvest owns 80% of onomic stake (acco007. 3 Reflects c

of convertible debt (onsolidation of Petroil and gas properti

Other insiders 5n 5% | Cumberupon conversion o

ersion price of $5.7MSD Capital in Oshares, convertible


M Fundamentals imrom economic and sas of 9/30/2010; b

serves; 3P = prove

ntrinsic value ot 50 million baattractive to ans Venezuelan ge risk-reward ding the fourth q



7 2008 2009%): 6 43.2 46.3

% 79% 82%% 34% 32%3 111 400

4 5,505 7,8356 10,700 4,3977 7,288 8,5681 83.22 57.624 1.54 1.540 10.90 8.46

8 97 321 0 00 -54 -315 35 36

0 33 400 -9 -50 -46 -380 -21 -3

7 232 2490 2 67 152 1146 -23 -207 362 349

% 76% 77%% -7% -3%

operates in Veneza result, state-owneHNR Finance, whic

ounted for as an equcontractual price. (convertible at $5.7rodelta. YTD revenes in the U.S.

5% | DFA 8% |rland 5% | Pabof $32 million of d71/share) and exerctober 2010). As oe debt and warrant


mproving? secular trends? boe = barrel of oil-d+probable+possi

of its key asset arrels of low-con acquirer, espegovernment codue to the risingquarter of 2010

ed Investors

of 170

9 YTD

9/30/10

3 50.4 % 83% % 27% 0 n/a

5 6,142 7 1,780 8 6,439 2 68.77 4 1.54 6 5.03

2 13 0 8 1 -21 6 53

0 50 5 -5 8 -25 3 19

9 281 6 12 4 166 0 -29 9 430

% 73% % 1% zuela, was ed PDVSA ch owns the uity affiliate).

71 per share). nue reflects

KVO 7% brai 3% debt (issued rcise of 6.0 of October ts in Harvest.

-equivalent. ible reserves.

– a 32% ost, oil-ecially as

ontrol of g share 0.

©

H

1 aP

2 reSpu

3 ino

4 soOw$

5 fr

6 in

S

© 2008-2011 by Beyond

HARVEST NATU

($ in millions)

Valuation metho

Value of Venez

Value of proved

Proved reserv

Fair value “m

Fair value of p

Value of probab

Probable rese

Fair value “m

Fair value of p

Value of possib

Possible rese

Fair value “m

Fair value of p

Estimated ente

Estimated enter

Estimated tota

Plus: Net cash a

Minus: Share of

Estimated fair

Implied EV per

Implied EV per

Our Petrodelta valas well as the lowerPetrodelta asset, no

As of yearend 200eserves. This was

Salto field was repoproved reserves at undeveloped). Our c

Harvest also has pnsignificance of theon 1x and 2x Harve

Based on Septemshare count. It also ongoing cash burn tOctober 2012, carrieworking capital need$35 million on cape

Based on reportedree. Petrodelta had

Based on 39 millionclude dilution relat

Source: Company f


URAL RESOURC

odology

zuela-based Pet

d reserves:

ves as of 9/30/10

ultiple”

proved reserves

ble reserves:

erves as of 9/30/

ultiple”

probable reserve

le reserves:

erves as of 9/30/1

ultiple”

possible reserve

erprise value of

rprise value of no

l enterprise val

at Harvest4

f net debt at Petr

value of the equ

boe of proved Pe

boe of "3P" Petro

uation does not attr price point of Venotwithstanding the e

09, the after-tax PVbased on a WTI oi

orted as ~$570 milliEl Salto. El Salto reconservative case

producing and explese assets compareest's capex reported

ber 30, 2010. Figurexcludes a $10 mithrough yearend 20es interest at an inds and general corx in the period.

d Petrodelta IFRS fd total assets of $1.

on shares includingted to 6 million of w

ilings, The Manual

erved.

CES – OUR ESTI

trodelta, net to H

0

(A)

/10

es (B)

10

s (C)

Petrodelta - ne

on-Venezuela oil

ue

rodelta5

uity of Harvest

etrodelta reserve

odelta reserves,

tempt to reflect Venezuela oil relative terratic (and low) ca

-10 value attributabl price of $62/bbl anion as of Septembeepresents nearly 50valuation approxim

oration assets in thed to its Petrodelta d during 1Q-3Q of 2

re excludes $32 million cash dividend010). In October 20itial rate of 10%, whrporate purposes. H

financials (as disclo.0 billion and net eq

g shares issuable uwarrants issued to M

of Ideas analysis,

SUBSCRIBE TODA

IMATE OF THE

Harvest:1

t to Harvest2 (A

and gas assets3

Natural Resourc

es, net to Harves

net to Harvest

nezuela "country risto WTI. As a result,ash dividends recei

ble to Harvest was nd Venezuela oil per 30, 2010, up 80%0% of Harvest’s pro

mates the recent pre

he U.S. as well as easset, we omit a m

2010.

illion of convertible , net to Harvest, re010, Harvest issuedhich increases to 1Harvest had net cas

osed in Harvest's 1quity of $471 million

pon conversion of cMSD Capital as pa

assumptions and e

AY! www.manualo

EQUITY FAIR V

A) + (B) + (C) 3

ces6

st

sk". The various "m, our valuation caseved from Petrodelt

~$400 million for 1rice of $57/bbl. Pre

% y-y. The y-y increoved reserves relate-tax PV-10 value o

exploration assets more detailed valua

debt (convertible aceived from Petrodd a $60 million term5% in July 2011. Hsh from operations

0Q), Petrodelta hasn as of September

convertible debt issrt of the October 20

estimates.

Value-oriented Eq

ofideas.com

VALUE RANGE

Conservative

Conservative valuation of

proved Petrodelreserves only

50 million boe

$10.00 per boe

$504 million

53 million boe

$0 per boe

$0

124 million boe

$0 per boe

$0

$504 million

$0

$504 million

$13 million

$0

$520 million

$13.10 per shar

$10

$2

multiples" of reservees are based on thta since it was natio

1P reserves, ~$665etax PV-10 value, aease is a result of hted to Petrodelta (9of only ~50% of Pe

in Indonesia, Westation in our analysis

at $5.71 per share)delta in October 20m loan to an affiliateHarvest intends to u of negative $13 m

s little or no interes30, 2010 (it only h

sued in February 2010 financing.

quity Investment Id

E

Base C

ta

Valuation Petrode

reserves plmillion for

Venezuela asset

50 million

e $12.00 pe

$605 mi

53 million

$2.00 pe

$105 mi

e 124 millio

$0 per b

$0

$710 mi

$35 mil

$745 mi

$13 mil

$0

$760 mi

re $16.70 per

$15

$3

es mainly reflect rise assumption that onalized in 2007.

5 million for 2P reseattributable to Harvhigher oil prices as 95+% of El Salto pretrodelta's proved r

t Africa, China and s. Our base and ag

) as related potentia010 (we assume thee of MSD Capital, Luse the net proceed

million during Janua

st expense, leadingas $33 million of no

2010. Additionally, t



ase Ag

of 2P elta lus $35 r non-oil/gas

ts

ValuPe

reservmillio

Venez

n boe 50 m

er boe $14.

llion $70

n boe 53 m

r boe $4.0

llion $21

on boe 124

boe $1.0

$12

llion $1,0

lion $7

llion $1,1

lion $1

llion $1.

r share $24.7

5

sks around actual rHarvest is able to m

erves, and $1.6 billvest, related to Petr

well as a ~30% incroved reserves arereserves net to Har

Oman. Due to the ggressive valuation

al shares are include dividend has beeL.P. The loan, whicds of $59.5 million ry-September of 20

g us to assume thaton-current liabilities

the base and aggre

ed Investors

of 170

ggressive

ation of 3P etrodelta ves plus $70 on for non-zuela oil/gas assets

million boe

00 per boe

06 million

million boe

00 per boe

10 million

million boe

00 per boe

24 million

040 million

70 million

10 million

3 million

$0

12 billion

0 per share

$22

$5

recoverability monetize its

ion for 3P rodelta's El crease in

e rvest.

relative s are based

ded in our n spent on

ch mature in for capex, 010 and spent

t it is debt s).

essive cases

©

H V

U

I

G

S

© 2008-2011 by Beyond

HARVEST NATU

Venezuela:

HarveOctob

In the approxincrea

Capita

Petrod

Produ

The 20injecto

United States:

HarveequivaDecem

Four wbeen sFebruaduring

Five oto totamillionphase

Indonesia:

The LHarve

Gabon:

The Ccontra

Statements by

“We aachievreservSeptemmillioncontin

“Our aencourWe exdrilledExtens

“We aexplorquartesufficiannou


URAL RESOURC

st received payer 22, 2010;

twelve monthsximately 8.6 m

ase of 9% over

al expenditures

delta’s current p

ction target for

011 capital budor wells, one ga

st’s net share oalent (BOE) fomber 2010 was

wells of a six-wsuccessfully driary, respectiveg the first quart

of the seven weal depth (TD) an cubic feet pedrilling progra

ariang LG-1 Wst exercised its

Company has isacts are being te

CEO James E

are pleased to aved since 2005es net to Harvember 30, 2010,n with a signif

nue developing

appraisal and draging results.

xpect to have thd and completesion drilling pr

are excited to aration well in Iner of 2011. Finaient liquidity to

unced in Septem

erved.

CES – MANAGE

yment of Petro

s ended Decemmillion barrels o

the same perio

s were estimate

production rate

r 2011 is 36,00

dget is approxias injector wel

of production fr the twelve m 540 barrels of

well Lower Greilled with two ly. Drilling is iter of 2011.

ells related to thand are producier day (MMCFDam is expected

Well was spud os first refusal ri

ssued purchase endered in prep

Edmiston:

announce that P. With the receest in Venezue, a 26% increasficant portion o

the Temblado

development drWe have drille

hese wells comed during the firogram, six we

nnounce commndonesia on Jaally, with the $o fund our apprmber of 2010.”

SUBSCRIBE TODA

EMENT’S OPER

delta dividend

mber 31, 2010, of oil (MMBO)od in 2009;

ed to be $97.0 m

e is approxima

00 BOPD with

imately $224 mll and construct

from the Antelomonths ended Df oil equivalent

een River/Uppeon production in progress on

he second phasing at a restrictD) of gas. Theto be drilled b

on January 6, 2ight to acquire

orders for longparation to spu

Petrodelta prodent drilling succla have increasse over year-en

of that total relar and El Salto

rilling campaiged four of the s

mpleted and fracirst quarter of 2ells of which ar

mencement of danuary 6, 2011$60.0 million crroved drilling p

”

AY! www.manualo

RATIONAL UPD

s in the amoun

Petrodelta dril) for a daily av

million in 2010

ately 28,000 ba

a first quarter

million, which ition costs for p

ope project in UDecember 31, 2t per day (BOE

er Wasatch deland two expecthe fifth well.

se of the Monuted combined r sixth well is c

by the end of Fe

2011, in the Buan additional

g lead items reud the explorati

duction is at 28cess in the Temsed to 103.0 mnd 2009. The 2ated to infrastruoil fields.”

gn on our Antesix wells of thectured by mid 2011. We also re operated by N

drilling operati. The second eredit facility wprograms and p

Value-oriented Eq

ofideas.com

DATE, dated Ja

nt of $9.8 millio

lled and complverage of appro

0;

arrels of oil per

average of 29,

includes provispipeline and rel

Utah totaled ap010. Net produ

EPD).

lineation and dcted to be hydrThe remaining

ument Butte Fierate of approximcurrently drillinebruary 2011.

udong Block, W10% equity in

equired for drilion well in the

8,000 BOPD, wmblador and El

million barrels o2011 Petrodeltaucture costs fo

lope project ine Green River/WFebruary of 20expect to compNewfield Expl

ions on the muexploration welwhich closed in

pursue the stra

quity Investment Id

nuary 11, 201

on, net to Harv

leted 16 wells aoximately 23,6

r day (BOPD);

000 BOPD;

sions to drill 2lated facilities.

pproximately 1uction to Harve

development drraulically fractug well will be d

eld Extension pmately 170 grong, and the sev

West Sulawesi.the Budong Bl

ling. Also, oth second quarte

which are levell Salto fields, pof oil equivalena capital budgeor pipeline and

n Utah, continuWasatch appra011. The remaiplete our sevenloration, in Feb

uch anticipated ll is expected to

n October of 20ategic alterative



11

vest’s 32% inte

and produced 00 barrels per

8 oil wells, two.

193,100 barrelsest during the m

rilling programured in Januarydrilled and com

project have beoss BOPD and

venth well of th

. On January 5lock PSC.

her related drillier of 2011.

s of productionproved and pront (MMBOE) aet is approximarelated faciliti

ues to provide aisal drilling prining two welln well Monumebruary 2011.”

Lariang LG-1o spud during

010, Harvest hae process whic

ed Investors

of 170

erest on

day, an

o water

s of oil month of

m have y and

mpleted

een drilled d 2.0 gross he second

, 2011,

ing

n not obable (2P) at ately $224 es to

rogram. s will be ent Butte

the first as h was

©

S

I

© 2008-2011 by Beyond

Snapshot o

In Alphabet

Company / Ticker

AbitibiBowater / A

Alere / ALR

American Tower /

Amylin Pharma / A

Anadarko Petroleu

Anheuser-Busch /

Applied Materials

Arris Group / ARR

Asbury Automotiv

BP / BP

Broadridge Financ

Cardinal Health / C

CareFusion / CFN

CBS / CBS

Charter Comms / C

Chesapeake Energ

China Mobile / CH

Cisco Systems / C

Coca-Cola / KO

Comcast / CMCSA

CommScope / CTV

Copart / CPRT

Corporate Executi

DaVita / DVA

Dean Foods / DF

Electronic Arts / E

Ensco / ESV

Enstar Group / ES

Express Scripts /

Exxon Mobil / XOM

Fiserv / FISV

Flextronics / FLEX

Flowserve / FLS

Fortune Brands / F

Foster Wheeler / F

Gap / GPS

Gastar Exploration

General Growth / G

General Motors / G

H&R Block / HRB

Hain Celestial / HA

Harvest Natural / H

Hewlett-Packard /

International Pape

ITT Corp. / ITT

J.C. Penney / JCP

Johnson & Johns

Kraft Foods / KFT

Lab Corp. of Amer

Lamar Advertising


of 100 Su

tical Order

Indus

ABH Pape

Biote

AMT Com

AMLN Biote

um / APC Oil &

/ BUD Beve

/ AMAT Semi

RS Com

ve / ABG Reta

Oil &

cial / BR Busin

CAH Biote

Medi

Broad

CHTR Broad

gy / CHK Oil &

L Com

CSCO Com

Beve

A Broad

V Com

Reta

ive / EXBD Busin

Healt

Food

ERTS Softw

Oil W

SGR Insur

ESRX Reta

M Oil &

Com

X Semi

Misc.

FO Cong

FWLT Cons

Reta

n / GST Oil &

GGP Real

GM Auto

Perso

AIN Food

HNR Oil &

HPQ Com

er / IP Pape

Misc.

Reta

on / JNJ Majo

Food

rica / LH Healt

g / LAMR Adve

erved.

perinvesto

stry

er Products

echnology & Drugs

ms Services

echnology & Drugs

Gas Operations

erages (alcoholic)

iconductors

ms Equipment

il (specialty)

Gas - Integrated

ness Services

echnology & Drugs

cal Equipment

dcasting & Cable

dcasting & Cable

Gas Operations

ms Services

puter Peripherals

erages (non-alcoh.)

dcasting & Cable

ms Equipment

il (specialty)

ness Services

thcare Facilities

d Processing

ware

Well Services

rance (misc.)

il (drugs)

Gas Operations

puter Services

iconductors

. Capital Goods

glomerates

struction Services

il (apparel)

Gas - Integrated

Estate Operations

& Truck Makers

onal Services

d Processing

Gas Operations

puter Hardware

er Products

. Capital Goods

il (dep't & discount)

r Drugs

d Processing

thcare Facilities

ertising

SUBSCRIBE TODA

or Holding

YTD Market

Price Value

($mn

na 2,868

4% 3,223

5% 21,654

11% 2,344

6% 40,123

-4% 87,416

17% 21,757

21% 1,684

-1% 599

9% 149,865

6% 2,912

10% 14,739

9% 6,255

20% 15,605

19% 5,324

17% 19,899

-4% 190,430

-7% 104,481

-2% 149,887

17% 70,563

1% 2,991

11% 3,404

10% 1,417

15% 7,744

17% 1,886

18% 6,446

0% 7,618

-2% 1,087

5% 29,991

16% 426,096

8% 9,447

7% 6,399

9% 7,277

4% 9,562

14% 4,911

4% 14,161

5% 282

2% 19,896

-1% 54,765

22% 4,436

14% 1,328

6% 435

16% 105,835

7% 12,695

15% 10,987

15% 8,759

-1% 167,824

-2% 53,993

1% 9,052

4% 3,830

AY! www.manualo

gs

t Enter. P/

e Value Thi

) ($mn) FY

8 3,711 nm

3 5,200 14

4 26,045 58

4 2,688 nm

3 49,456 35

6 129,734 17

7 19,378 13

4 1,266 16

9 1,455 13

5 170,757 8

2 3,049 17

9 16,061 16

5 6,154 17

5 21,126 16

4 17,843 nm

9 33,800 10

0 144,734 12

1 79,493 12

7 161,967 17

3 95,913 17

1 3,668 18

4 3,143 19

7 1,304 25

4 11,170 18

6 5,861 17

6 4,475 29

8 6,979 15

7 -2,128 9

1 31,961 18

6 432,131 12

7 12,240 14

9 7,032 n

7 7,530 19

2 12,978 19

1 4,066 n

1 12,507 12

2 299 n

6 36,194 nm

5 36,853 13

6 4,636 10

8 1,542 24

5 453 29

5 117,205 9

5 19,293 11

7 11,320 13

9 10,192 24

4 157,723 13

3 80,236 14

2 11,009 14

0 6,264 nm

Value-oriented Eq

ofideas.com

/E (Est.)

s Next

Y FY Notab

m 11x Fairfax

4x 12x Baupo

8x 49x Akre, V

m nm Icahn

5x 24x Paulso

7x 14x Marke

3x 12x Appalo

6x 14x Sagev

3x 10x MSD

8x 7x Blue R

7x 14x Brave

6x 14x Green

7x 15x Green

6x 12x Ancien

m 53x Golde

0x 11x Icahn,

2x 11x Kleinh

2x 11x Appalo

7x 15x BRK,

7x 15x Brave

8x 13x Paulso

9x 16x Force

5x 22x Bares

8x 15x Lone P

7x 13x Appalo

9x 22x Hawks

5x 14x Green

9x 8x Akre

8x 15x Glenv

2x 10x BRK,

4x 13x Brave

a na Glenv

9x 16x Breed

9x 16x Marke

a na Force

2x 12x ESL, G

a na BP Ca

m 53x Blue R

3x 9x Appalo

0x 9x Breed

4x 21x Icahn

9x 10x Pabra

9x 9x Appalo

x 9x Appalo

3x 12x Atlant

4x 21x Force

3x 12x BRK,

4x 12x BRK,

4x 13x Brave

m nm Akre,

quity Investment Id

ble Shareholders

x, Markel, Paulson

ost

Viking

on

el

oosa, Edinburgh

view

Ridge, Greenlight

Warrior, Greenlight

nlight

nlight, Third Point

nt Art, Childrens

enTree

, Southeastern

heinz

oosa, ESL, Pennant

Childrens, Markel

Warrior, Paulson

on, Tiger Global

, Gates

, Hawkshaw

Pine, Pennant, Vikin

oosa

shaw, Tiger Global

nlight, Hound

view, Lone Pine

Markel, Viking

Warrior, Glenview

view

den, Scout

el, Pershing Square

, H Partners, Penna

Gates

apital

Ridge, Pershing Sq.

oosa, Pershing Sq.

den, ESL, Viking

ai

oosa, Brave Warrior

oosa, Paulson

ic

, Pershing Square

Fairfax, Markel

Fairfax, Pershing Sq

Warrior, Glenview

Force, Scout



Website

www.abitibibow

www.invmed.c

www.american

www.amylin.co

www.anadarko

www.ab-inbev

www.appliedm

www.arrisi.com

www.asburyau

www.bp.com

t www.broadridg

www.cardinal.

www.carefusio

www.cbscorpo

www.charter.c

www.chk.com

www.chinamo

t www.cisco.com

thecoca-colac

www.comcast

www.commsc

www.copart.co

www.executive

ng www.davita.co

www.deanfood

www.ea.com

enscointernati

www.enstargro

www.express-

www.exxonmo

www.fiserv.co

www.flextronic

www.flowserve

www.fortuneb

ant www.fwc.com

www.gapinc.c

www.gastar.co

www.ggp.com

www.gm.com

www.handrblo

www.hain-cele

www.harvestn

r www.hp.com

internationalpa

www.itt.com

www.jcpenney

www.jnj.com

q. kraftfoodscom

www.labcorp.c

www.lamar.co

ed Investors

of 170

water.com

com

ntower.com

om

o.com

v.com

materials.com

m

uto.com

ge.com

com

on.com

oration.com

com

obileltd.com

m

company.com

t.com

ope.com

om

eboard.com

om

ds.com

onal.com

oup.com

-scripts.com

obil.com

m

cs.com

e.com

rands.com

om

om

m

ock.com

estial.com

nr.com

aper.com

y.net

mpany.com

com

om

©

© 2008-2011 by Beyond

Company / Ticker

Leap Wireless / LE

Learning Tree / LT

Level 3 Comms / L

Liberty Global / LB

Liberty Interactive

Life Technologies

Lions Gate / LGF

Loral Space / LOR

LyondellBasell / L

Massey Energy / M

MasterCard / MA

McDonald's / MCD

McKesson / MCK

Microsoft / MSFT

Molson Coors / TA

MRV Comms / MR

Omnicare / OCR

Owens Illinois / OI

PDL BioPharma /

Pfizer / PFE

Plains Exploration

POSCO / PKX

Praxair / PX

Procter & Gamble

Radian Group / RD

Raytheon / RTN

Ross Stores / ROS

Schlumberger / SL

Seagate Technolo

Sears Holdings / S

Snap-on / SNA

Spectrum Brands

Sprint Nextel / S

Stanley Black Dec

Steris / STE

Teck Resources /

Texas Industries /

Theravance / THR

Time Warner Cabl

Tyco International

Vail Resorts / MTN

Valeant Pharma / V

Vishay Precision /

Vulcan Materials /

W.R. Grace / GRA

Wal-Mart / WMT

Watson Pharma / W

Wendy's Arby's / W

Zimmer Holdings

ZipRealty / ZIPR


Indus

EAP Com

TRE Scho

LVLT Com

BTYA Broad

e / LINTA Broad

s / LIFE Biote

Motio

RL Elect

LYB Chem

MEE Coal

Finan

D Resta

Biote

Softw

AP Beve

RVC Semi

Reta

I Pack

PDLI Biote

Majo

n / PXP Oil &

Iron &

Chem

/ PG Hous

DN Prope

Cong

ST Reta

LB Oil W

ogy / STX Com

SHLD Reta

Appli

/ SPB Elect

Com

cker / SWK Appli

Medi

TCK Meta

TXI Cons

X Biote

e / TWC Broad

l / TYC Cong

N Recre

VRX Biote

/ VPG Elect

VMC Cons

Chem

Reta

WPI Biote

WEN Resta

/ ZMH Medi

Real

erved.

stry

ms Services

ools

ms Services

dcasting & Cable

dcasting & Cable

echnology & Drugs

on Pictures

tronic Instruments

micals - Plastics

ncial Services

aurants

echnology & Drugs

ware

erages (alcoholic)

iconductors

il (drugs)

kaging

echnology & Drugs

r Drugs

Gas Operations

& Steel

micals

sehold Products

erty & Casualty

glomerates

il (apparel)

Well Services

puter Storage

il (dep't)

ances & Tools

tronic Instruments

ms Services

ances & Tools

cal Equipment

l Mining

struction Materials

echnology & Drugs

dcasting & Cable

glomerates

eational Activities

echnology & Drugs

tronic Instruments

struction Materials

micals

il (discount)

echnology & Drugs

aurants

cal Equipment

Estate Operations

SUBSCRIBE TODA

YTD Market

Price Value

($mn

14% 1,090

-3% 125

49% 2,437

19% 10,033

10% 20,220

-2% 10,160

-6% 837

3% 1,636

10% 21,467

20% 6,565

12% 32,817

-1% 80,432

15% 20,504

-3% 227,369

-9% 8,470

-2% 276

6% 3,135

3% 5,182

-21% 688

10% 153,711

21% 5,467

1% 38,257

4% 30,359

0% 179,988

-9% 981

13% 19,015

14% 8,553

14% 129,349

-9% 6,215

26% 10,234

8% 3,572

-7% 1,471

6% 13,442

14% 12,632

-4% 2,086

-11% 32,547

-8% 1,172

-10% 1,665

9% 25,574

14% 22,423

-5% 1,774

43% 11,989

-11% 224

5% 6,000

12% 2,879

3% 197,263

8% 7,388

5% 2,038

19% 12,583

13% 60

AY! www.manualo

t Enter. P/

e Value Thi

) ($mn) FY

0 3,264 nm

5 85 23

7 8,269 nm

3 28,883 35

0 24,700 17

0 12,380 14

7 1,326 n

6 1,461 n

7 23,327 n

5 7,554 19

7 28,619 15

2 89,373 15

4 21,353 16

9 195,788 11

0 9,214 12

6 274 22

5 4,992 13

2 8,820 11

8 926 5

1 174,695 9

7 8,259 33

7 37,299 9

9 35,877 18

8 210,467 16

1 -4,215 nm

5 18,987 10

3 7,968 16

9 132,471 25

5 6,326 n

4 13,481 72

2 4,170 15

1 3,120 16

2 28,160 nm

2 14,322 15

6 2,104 16

7 37,342 n

2 1,685 nm

5 1,528 nm

4 45,948 16

3 24,514 n

4 2,269 47

9 14,627 n

4 154 21

0 8,670 nm

9 1,918 13

3 243,441 14

8 8,110 14

8 3,095 30

3 12,791 14

0 26 nm

Value-oriented Eq

ofideas.com

/E (Est.)

s Next

Y FY Notab

m nm H Part

3x 16x Lane F

m nm Fairfax

5x 39x Blue R

7x 23x South

4x 13x Glenv

a na Icahn,

a na MHR

a na Green

9x 13x Third

5x 13x Brave

5x 14x Eagle

6x 14x Glenv

x 10x Bares

2x 11x Childr

2x 13x Spenc

3x 12x Weitz

x 9x Atlant

5x 4x Baupo

9x 8x Appalo

3x 23x BP Ca

9x 9x Pabra

8x 16x Eagle

6x 15x BRK,

m 9x Harbin

0x 9x Atlant

6x 14x Akre

5x 19x Eagle

a na ESL, G

2x 82x ESL, F

5x 13x Gates

6x 13x Harbin

m nm Golde

5x 13x Atlant

6x 15x Breed

a na Lone P

m nm South

m nm Baupo

6x 13x Edinb

a na Glenv

7x 38x Paulso

a na Chou,

x 14x Gates

m >99x South

3x 13x Gates

4x 12x BRK,

4x 11x Chou,

0x 22x South

4x 12x Bares

m nm Ancien

quity Investment Id

ble Shareholders

tners, MHR

Five

x, Southeastern

Ridge, Tiger Global

eastern, Third Point

view, Sageview

, MHR

nlight, Third Point

Point

Warrior, Tiger Glob

, Markel, Scout

view, Viking

, Greenlight, Weitz

rens, West Coast

cer

ic

ost

oosa, Paulson

apital, Third Point

ai

, Weitz

Markel, Viking

nger

ic

, Lone Pine, Markel

Glenview, Paulson

Fairholme, Force

s

nger

enTree, Greenlight

ic, Breeden

den

Pine, Pabrai

eastern

ost, Blue Ridge

urgh, Viking

view, Weitz

on, Southeastern

, Viking, Blue Ridge

s

eastern, Weitz

s, Hound, H Partners

Eagle, Markel

, Viking

eastern

, Edinburgh, Gates

nt Art



Website

www.leapwire

www.learningt

www.level3.co

www.lgi.com

t www.libertyme

www.lifetechn

www.lionsgate

www.loral.com

www.lyondellb

www.masseye

bal www.masterca

www.mcdonal

www.mckesso

www.microsof

www.molsonc

www.mrv.com

www.omnicare

www.o-i.com

www.pdl.com

www.pfizer.co

www.pxp.com

www.posco.co

www.praxair.c

www.pg.com

www.radiangro

www.raytheon

www.rossstore

www.slb.com

www.seagate.

www.searshol

www.snapon.c

www.spectrum

www.sprint.co

www.stanleyw

www.steris.co

www.teck.com

www.txi.com

www.theravan

www.timewarn

www.tyco.com

www.vailresor

www.valeant.c

www.vishaypg

www.vulcanm

s www.grace.co

walmartstores

www.watson.c

www.wendysa

www.zimmer.c

www.ziprealty

ed Investors

of 170

less.com

tree.com

om

edia.com

ologies.com

e.com

m

basell.com

energyco.com

ard.com

ds.com

on.com

ft.com

oors.com

m

e.com

om

om

com

oupinc.com

n.com

es.com

.com

dings.com

com

mbrands.com

om

works.com

m

m

nce.com

nercable.com

m

rts.com

com

g.com

aterials.com

om

s.com

com

arbys.com

com

.com

©

B

© 2008-2011 by Beyond

By Market V

Company / Ticker

Exxon Mobil / XOM

Microsoft / MSFT

Wal-Mart / WMT

China Mobile / CHL

Procter & Gamble /

Johnson & Johnson

Pfizer / PFE

Coca-Cola / KO

BP / BP

Schlumberger / SLB

Hewlett-Packard / H

Cisco Systems / CS

Anheuser-Busch / B

McDonald's / MCD

Comcast / CMCSA

General Motors / G

Kraft Foods / KFT

Anadarko Petroleum

POSCO / PKX

MasterCard / MA

Teck Resources / T

Praxair / PX

Express Scripts / E

Time Warner Cable

Tyco International /

Applied Materials /

American Tower / A

LyondellBasell / LY

McKesson / MCK

Liberty Interactive /

Chesapeake Energ

General Growth / G

Raytheon / RTN

CBS / CBS

Cardinal Health / C

Gap / GPS

Sprint Nextel / S

International Paper

Stanley Black Deck

Zimmer Holdings / Z

Valeant Pharma / V

ITT Corp. / ITT

Sears Holdings / SH

Life Technologies /

Liberty Global / LBT

Fortune Brands / FO

Fiserv / FISV

Lab Corp. of Americ

J.C. Penney / JCP

Ross Stores / ROS


Value

Indust

M Oil & G

Softwa

Retail (

L Comm

/ PG House

n / JNJ Major D

Major D

Bevera

Oil & G

B Oil We

HPQ Compu

SCO Compu

BUD Bevera

Restau

Broadc

M Autos &

Food P

m / APC Oil & G

Iron &

Financ

TCK Metal M

Chemi

SRX Retail (

e / TWC Broadc

/ TYC Conglo

AMAT Semico

AMT Comm

YB Chemi

Biotech

LINTA Broadc

gy / CHK Oil & G

GGP Real E

Conglo

Broadc

AH Biotech

Retail (

Comm

r / IP Paper

ker / SWK Applian

ZMH Medica

VRX Biotech

Capita

HLD Retail (

LIFE Biotech

TYA Broadc

O Conglo

Compu

ca / LH Health

Retail (

T Retail (

erved.

R

try

Gas

are

(discount)

s Services

hold Products

Drugs

Drugs

ages

Gas

ell Services

uter Hardware

uter Peripherals

ages

urants

casting/Cable

& Trucks

Processing

Gas

Steel

cial Services

Mining

cals

(drugs)

casting/Cable

omerates

onductors

s Services

cals - Plastics

hnology

casting/Cable

Gas

Estate

omerates

casting/Cable

hnology

(apparel)

s Services

Products

nces & Tools

al Equipment

hnology

l Goods

(dep't)

hnology

casting/Cable

omerates

uter Services

care Facilities

(dep't)

(apparel)

SUBSCRIBE TODA

Recent YTD

Price Price

($)

84.50 16%

27.06 -3%

55.38 3%

47.66 -4%

64.30 0%

61.11 -1%

19.19 10%

64.55 -2%

47.93 9%

95.04 14%

48.67 16%

18.85 -7%

54.90 -4%

76.13 -1%

25.67 17%

36.51 -1%

30.91 -2%

80.96 6%

108.42 1%

250.74 12%

55.08 -11%

99.09 4%

56.77 5%

71.89 9%

47.33 14%

16.47 17%

54.26 5%

37.95 10%

80.64 15%

17.41 10%

30.43 17%

15.76 2%

52.16 13%

22.91 20%

42.14 10%

23.05 4%

4.50 6%

29.02 7%

76.09 14%

63.73 19%

40.47 43%

59.84 15%

93.03 26%

54.41 -2%

42.19 19%

62.67 4%

63.52 8%

89.01 1%

37.02 15%

71.82 14%

AY! www.manualo

Market Enter

Value Value

($mn) ($mn)

426,096 432,131

227,369 195,788

197,263 243,441

190,430 144,734

179,988 210,467

167,824 157,723

153,711 174,695

149,887 161,967

149,865 170,757

129,349 132,471

105,835 117,205

104,481 79,493

87,416 129,734

80,432 89,373

70,563 95,913

54,765 36,853

53,993 80,236

40,123 49,456

38,257 37,299

32,817 28,619

32,547 37,342

30,359 35,877

29,991 31,961

25,574 45,948

22,423 24,514

21,757 19,378

21,654 26,045

21,467 23,327

20,504 21,353

20,220 24,700

19,899 33,800

19,896 36,194

19,015 18,987

15,605 21,126

14,739 16,061

14,161 12,507

13,442 28,160

12,695 19,293

12,632 14,322

12,583 12,791

11,989 14,627

10,987 11,320

10,234 13,481

10,160 12,380

10,033 28,883

9,562 12,978

9,447 12,240

9,052 11,009

8,759 10,192

8,553 7,968

Value-oriented Eq

ofideas.com

r. EV/ Price/

e LTM Tang

) Sales Book

1 1.1x 2.9x

8 3.1x 6.5x

1 .6x 4.0x

4 2.1x 2.5x

7 2.7x nm

3 2.6x 6.8x

5 2.6x nm

7 4.6x 36.6x

7 .6x 2.1x

1 4.6x 10.7x

5 .9x nm

3 2.0x 4.0x

4 3.5x nm

3 3.7x 7.2x

3 2.5x nm

3 .4x nm

6 1.6x nm

6 4.5x 2.6x

9 1.1x 2.2x

9 5.2x 8.2x

2 4.8x 2.3x

7 3.5x 8.4x

1 .7x nm

8 2.4x nm

4 1.4x 19.2x

8 2.0x 3.7x

5 15.1x nm

7 .6x 2.3x

3 .2x 20.3x

0 3.0x nm

0 4.4x 1.6x

4 11.5x 54.9x

7 .8x nm

6 1.5x nm

1 .2x 12.9x

7 .9x 3.4x

0 .9x nm

3 .8x 2.8x

2 1.7x nm

1 3.0x 5.3x

7 17.8x nm

0 1.0x nm

1 .3x 2.7x

0 3.5x 2.3x

3 2.6x nm

8 1.8x nm

0 3.0x nm

9 2.2x nm

2 .6x 1.8x

8 1.1x 6.7x

quity Investment Id

/ P/E (Est.)

. This Next

k FY FY

12x 10x

11x 10x

14x 12x

12x 11x

16x 15x

13x 12x

9x 8x

x 17x 15x

8x 7x

x 25x 19x

9x 9x

12x 11x

17x 14x

15x 14x

17x 15x

13x 9x

14x 12x

35x 24x

9x 9x

15x 13x

na na

18x 16x

18x 15x

16x 13x

x na na

13x 12x

58x 49x

na na

x 16x 14x

17x 23x

10x 11x

x nm 53x

10x 9x

16x 12x

x 16x 14x

12x 12x

nm nm

11x 9x

15x 13x

14x 12x

na na

13x 12x

72x 82x

14x 13x

35x 39x

19x 16x

14x 13x

14x 13x

24x 21x

16x 14x



Selected

Superinvestor

Shareholders

BRK, Markel, Vikin

Bares, Greenlight,

BRK, Eagle, Mark

Kleinheinz

BRK, Markel, Vikin

BRK, Fairfax, Mar

Appaloosa, Paulso

BRK, Childrens, M

Blue Ridge, Green

Eagle, Lone Pine,

Appaloosa, Brave

Appaloosa, ESL, P

Markel

Eagle, Markel, Sco

Brave Warrior, Pa

Appaloosa, Persh

BRK, Fairfax, Pers

Paulson

Pabrai

Brave Warrior, Tig

Lone Pine, Pabrai

Eagle, Weitz

Glenview, Lone Pi

Edinburgh, Viking

Glenview, Weitz

Appaloosa, Edinbu

Akre, Viking

Greenlight, Third P

Glenview, Viking

Southeastern, Thi

Icahn, Southeaste

Blue Ridge, Persh

Atlantic

Ancient Art, Childr

Greenlight

ESL, Gates

GoldenTree, Gree

Appaloosa, Paulso

Atlantic, Breeden

Bares, Edinburgh,

Chou, Viking, Blue

Atlantic

ESL, Fairholme, F

Glenview, Sagevie

Blue Ridge, Tiger

Markel, Pershing S

Brave Warrior, Gle

Brave Warrior, Gle

Force, Pershing S

Akre

ed Investors

of 170

ng

, Weitz

el

ng

rkel

on

Markel

nlight

Markel

Warrior

Pennant

out

ulson

ing Sq.

shing Sq.

ger Global

ine

urgh

Point

rd Point

ern

hing Sq.

rens

enlight

on

Gates

e Ridge

Force

ew

Global

Square

enview

enview

Square

©

© 2008-2011 by Beyond

Company / Ticker

Molson Coors / TAP

DaVita / DVA

Ensco / ESV

Watson Pharma / W

Flowserve / FLS

Massey Energy / M

Electronic Arts / ER

Flextronics / FLEX

CareFusion / CFN

Seagate Technolog

Vulcan Materials / V

Plains Exploration /

Charter Comms / C

Owens Illinois / OI

Foster Wheeler / FW

H&R Block / HRB

Lamar Advertising /

Snap-on / SNA

Copart / CPRT

Alere / ALR

Omnicare / OCR

CommScope / CTV

Broadridge Financia

W.R. Grace / GRA

AbitibiBowater / AB

Level 3 Comms / LV

Amylin Pharma / AM

Steris / STE

Wendy's Arby's / W

Dean Foods / DF

Vail Resorts / MTN

Arris Group / ARRS

Theravance / THRX

Loral Space / LORL

Spectrum Brands /

Corporate Executiv

Hain Celestial / HA

Texas Industries / T

Leap Wireless / LEA

Enstar Group / ESG

Radian Group / RD

Lions Gate / LGF

PDL BioPharma / P

Asbury Automotive

Harvest Natural / H

Gastar Exploration

MRV Comms / MRV

Vishay Precision / V

Learning Tree / LTR

ZipRealty / ZIPR


Indust

P Bevera

Health

Oil We

WPI Biotech

Capita

MEE Coal

RTS Softwa

Semico

Medica

gy / STX Compu

VMC Constr

/ PXP Oil & G

CHTR Broadc

Packag

WLT Constr

Person

/ LAMR Advert

Applian

Retail (

Biotech

Retail (

V Comm

al / BR Busine

Chemi

BH Paper

VLT Comm

MLN Biotech

Medica

WEN Restau

Food P

Recrea

S Comm

X Biotech

L Electro

SPB Electro

ve / EXBD Busine

IN Food P

TXI Constr

AP Comm

GR Insuran

N Proper

Motion

PDLI Biotech

/ ABG Retail (

NR Oil & G

/ GST Oil & G

VC Semico

VPG Electro

RE Schoo

Real E

erved.

R

try

ages

care Facilities

ell Services

hnology

l Goods

are

onductors

al Equipment

uter Storage

ruction

Gas

casting/Cable

ging

ruction

nal Services

ising

nces & Tools

(specialty)

hnology

(drugs)

s Equipment

ess Services

cals

Products

s Services

hnology

al Equipment

urants

Processing

ational

s Equipment

hnology

onics/Satellites

onics

ess Services

Processing

ruction

s Services

nce (misc.)

rty & Casualty

n Pictures

hnology

(specialty)

Gas

Gas

onductors

onics

ls

Estate

SUBSCRIBE TODA

Recent YTD

Price Price

($)

45.60 -9%

79.67 15%

53.29 0%

55.75 8%

130.33 9%

64.28 20%

19.28 18%

8.42 7%

28.04 9%

13.72 -9%

46.73 5%

39.02 21%

46.44 19%

31.65 3%

39.48 14%

14.54 22%

41.54 4%

61.28 8%

41.41 11%

37.99 4%

26.96 6%

31.48 1%

23.24 6%

39.40 12%

29.53 na

1.46 49%

16.28 11%

35.16 -4%

4.87 5%

10.35 17%

49.30 -5%

13.63 21%

22.50 -10%

78.91 3%

28.88 -7%

41.31 10%

30.88 14%

42.11 -8%

13.92 14%

83.18 -2%

7.38 -9%

6.12 -6%

4.93 -21%

18.30 -1%

12.84 6%

4.52 5%

1.76 -2%

16.80 -11%

9.24 -3%

2.94 13%

AY! www.manualo

Market Enter

Value Value

($mn) ($mn)

8,470 9,214

7,744 11,170

7,618 6,979

7,388 8,110

7,277 7,530

6,565 7,554

6,446 4,475

6,399 7,032

6,255 6,154

6,215 6,326

6,000 8,670

5,467 8,259

5,324 17,843

5,182 8,820

4,911 4,066

4,436 4,636

3,830 6,264

3,572 4,170

3,404 3,143

3,223 5,200

3,135 4,992

2,991 3,668

2,912 3,049

2,879 1,918

2,868 3,711

2,437 8,269

2,344 2,688

2,086 2,104

2,038 3,095

1,886 5,861

1,774 2,269

1,684 1,266

1,665 1,528

1,636 1,461

1,471 3,120

1,417 1,304

1,328 1,542

1,172 1,685

1,090 3,264

1,087 -2,128

981 -4,215

837 1,326

688 926

599 1,455

435 453

282 299

276 274

224 154

125 85

60 26

Value-oriented Eq

ofideas.com

r. EV/ Price/

e LTM Tang

) Sales Book

4 2.8x 5.1x

0 1.7x nm

9 3.6x 1.4x

0 2.3x 60.3x

0 1.7x 8.5x

4 2.5x 4.0x

5 1.2x 5.9x

2 .3x 3.3x

4 1.6x 6.4x

6 .6x 2.2x

0 3.4x 34.0x

9 7.0x 1.9x

3 2.6x nm

0 1.3x nm

6 .8x 6.5x

6 1.2x nm

4 5.9x nm

0 1.6x 9.0x

3 4.1x 3.9x

0 2.4x nm

2 .8x nm

8 1.2x >99x

9 1.4x 38.4x

8 .7x nm

1 .9x nm

9 2.3x nm

8 4.0x 6.8x

4 1.7x 4.8x

5 .9x nm

1 .5x nm

9 2.6x 4.6x

6 1.2x 2.8x

8 63.1x nm

1 1.5x 3.3x

0 1.2x nm

4 3.0x 35.7x

2 1.7x 27.6x

5 2.7x 1.6x

4 1.4x nm

8 nm 1.3x

5 nm 1.1x

6 .8x nm

6 2.9x nm

5 .4x 2.1x

3 >99x 1.5x

9 9.1x 1.8x

4 .6x 1.9x

4 .7x 1.4x

5 .7x 3.4x

6 .2x 1.8x

quity Investment Id

/ P/E (Est.)

. This Next

k FY FY

12x 11x

18x 15x

15x 14x

x 14x 11x

19x 16x

19x 13x

29x 22x

na na

17x 15x

na na

x nm >99x

33x 23x

nm 53x

11x 9x

na na

10x 9x

nm nm

15x 13x

19x 16x

14x 12x

13x 12x

x 18x 13x

x 17x 14x

13x 13x

nm 11x

nm nm

nm nm

16x 15x

30x 22x

17x 13x

47x 38x

16x 14x

nm nm

na na

16x 13x

x 25x 22x

x 24x 21x

nm nm

nm nm

9x 8x

nm 9x

na na

5x 4x

13x 10x

29x 10x

na na

22x 13x

21x 14x

23x 16x

nm nm



Selected

Superinvestor

Shareholders

Childrens, West C

Lone Pine, Penna

Greenlight, Hound

Chou, Viking

Breeden, Scout

Third Point

Hawkshaw, Tiger

Glenview

Greenlight, Third P

ESL, Glenview, Pa

Southeastern, We

BP Capital, Third P

GoldenTree

Atlantic

Force, H Partners

Breeden, ESL, Vik

Akre, Force, Scou

Gates

Force, Gates

Baupost

Weitz

Paulson, Tiger Glo

Brave Warrior, Gre

Gates, Hound, H P

Fairfax, Markel, Pa

Fairfax, Southeast

Icahn

Breeden

Southeastern

Appaloosa

Paulson, Southeas

Sageview

Baupost, Blue Rid

MHR

Harbinger

Bares, Hawkshaw

Icahn

Southeastern

H Partners, MHR

Akre

Harbinger

Icahn, MHR

Baupost

MSD

Pabrai

BP Capital

Spencer

Gates

Lane Five

Ancient Art

ed Investors

of 170

Coast

nt, Viking

d

Global

Point

aulson

eitz

Point

, Pennant

king

t

obal

eenlight

Partners

aulson

tern

stern

ge

w

©

B

© 2008-2011 by Beyond

By Stock Pr

Company / Ticker

Leap Wireless / LEA

Dean Foods / DF

H&R Block / HRB


PDL BioPharma / P

Molson Coors / TAP

China Mobile / CHL

Omnicare / OCR

Wendy's Arby's / W

Wal-Mart / WMT

Johnson & Johnson

Raytheon / RTN

BP / BP

Procter & Gamble /

Exxon Mobil / XOM

Pfizer / PFE

Learning Tree / LTR

ZipRealty / ZIPR

Lions Gate / LGF

Time Warner Cable

Kraft Foods / KFT

Cisco Systems / CS

Owens Illinois / OI



McDonald's / MCD

ITT Corp. / ITT

Hewlett-Packard / H

Lab Corp. of Americ

Microsoft / MSFT

Enstar Group / ESG

Coca-Cola / KO

POSCO / PKX

Steris / STE

Amylin Pharma / AM

Fortune Brands / FO

Comcast / CMCSA

Copart / CPRT

Snap-on / SNA

Zimmer Holdings / Z

DaVita / DVA

Hain Celestial / HA

Applied Materials /

Praxair / PX


Foster Wheeler / FW

Cardinal Health / C

Arris Group / ARRS

Gap / GPS

Fiserv / FISV


rice PerformRecen

Price

($

AP 13.92

10.35

14.54

VMC 46.73

PDLI 4.93

P 45.60

L 47.66

26.96

WEN 4.87

55.38

n / JNJ 61.11

52.16

47.93

/ PG 64.30

M 84.50

19.19

RE 9.24

2.94

6.12

e / TWC 71.89

30.91

SCO 18.85

31.65

RTS 19.28

TXI 42.11

76.13

59.84

HPQ 48.67

ca / LH 89.01

27.06

GR 83.18

64.55

108.42

35.16

MLN 16.28

O 62.67

25.67

41.41

61.28

ZMH 63.73

79.67

IN 30.88

AMAT 16.47

99.09

/ PXP 39.02

WLT 39.48

AH 42.14

S 13.63

23.05

63.52

erved.

mance (sorted

nt to

e 52-Week

$) Low High

2 -32% 37%

5 -31% 64%

4 -30% 46%

3 -24% 28%

3 -2% 48%

0 -13% 12%

6 -7% 15%

6 -29% 14%

7 -21% 14%

8 -14% 5%

1 -7% 8%

6 -18% 15%

3 -44% 27%

0 -39% 4%

0 -34% 1%

9 -27% 1%

4 -13% 79%

4 -22% 86%

2 -15% 28%

9 -37% 1%

1 -11% 6%

5 -2% 47%

5 -21% 20%

8 -27% 5%

1 -35% 13%

3 -17% 6%

4 -30% 7%

7 -23% 12%

1 -20% 4%

6 -16% 17%

8 -35% 8%

5 -23% 2%

2 -19% 16%

6 -20% 9%

8 -42% 49%

7 -41% 1%

7 -39% 0%

1 -24% 1%

8 -36% 0%

3 -27% 2%

7 -29% 1%

8 -50% 1%

7 -38% 1%

9 -27% 0%

2 -51% 0%

8 -49% 1%

4 -30% 2%

3 -40% 6%

5 -28% 14%

2 -29% 1%

SUBSCRIBE TODA

d by price decline

Price Perfor

Since Decem

h 2010 200

% 14% -48%

% 17% -42%

% 22% -36%

% 5% -33%

% -21% -20%

% -9% -7%

% -4% -6%

% 6% -3%

% 5% -1%

% 3% -1%

% -1% 2%

% 13% 2%

% 9% 3%

% 0% 4%

% 16% 6%

% 10% 8%

% -3% 8%

% 13% 11%

% -6% 11%

% 9% 12%

% -2% 15%

% -7% 16%

% 3% 16%

% 18% 20%

% -8% 22%

% -1% 22%

% 15% 30%

% 16% 34%

% 1% 38%

% -3% 39%

% -2% 41%

% -2% 43%

% 1% 44%

% -4% 47%

% 11% 50%

% 4% 52%

% 17% 52%

% 11% 52%

% 8% 56%

% 19% 58%

% 15% 61%

% 14% 62%

% 17% 63%

% 4% 67%

% 21% 68%

% 14% 69%

% 10% 70%

% 21% 71%

% 4% 72%

% 8% 75%

AY! www.manualo

e since Decembe

rmance Mark

mber 31, Val

8 2006 ($m

% -77% 1,0

% -76% 1,8

% -37% 4,4

% -48% 6,0

% -66% 6

% 19% 8,4

% 10% 190,4

% -30% 3,1

% -77% 2,0

% 20% 197,2

% -7% 167,8

% -1% 19,0

% -29% 149,8

% 0% 179,9

% 10% 426,0

% -26% 153,7

% 4% 1

% -61%

% -43% 8

% na 25,5

% -13% 53,9

% -31% 104,4

% 72% 5,1

% -62% 6,4

% -34% 1,1

% 72% 80,4

% 5% 10,9

% 18% 105,8

% 21% 9,0

% -9% 227,3

% -13% 1,0

% 34% 149,8

% 31% 38,2

% 40% 2,0

% -55% 2,3

% -27% 9,5

% -9% 70,5

% 38% 3,4

% 29% 3,5

% -19% 12,5

% 40% 7,7

% -1% 1,3

% -11% 21,7

% 67% 30,3

% -18% 5,4

% 43% 4,9

% -9% 14,7

% 9% 1,6

% 18% 14,1

% 21% 9,4

Value-oriented Eq

ofideas.com

er 31, 2008)

ket Enter.

lue Value L

mn) ($mn) S

090 3,264 1

886 5,861

436 4,636 1

000 8,670 3

688 926 2

470 9,214 2

430 144,734 2

135 4,992

038 3,095

263 243,441

824 157,723 2

015 18,987

865 170,757

988 210,467 2

096 432,131 1

711 174,695 2

125 85

60 26

837 1,326

574 45,948 2

993 80,236 1

481 79,493 2

182 8,820 1

446 4,475 1

172 1,685 2

432 89,373 3

987 11,320 1

835 117,205

052 11,009 2

369 195,788 3

087 -2,128

887 161,967 4

257 37,299 1

086 2,104 1

344 2,688 4

562 12,978 1

563 95,913 2

404 3,143 4

572 4,170 1

583 12,791 3

744 11,170 1

328 1,542 1

757 19,378 2

359 35,877 3

467 8,259 7

911 4,066

739 16,061

684 1,266 1

161 12,507

447 12,240 3

quity Investment Id

EV/ P/E (Est.)

LTM This Ne

Sales FY F

1.4x nm n

.5x 17x 13

1.2x 10x 9

3.4x nm >99

2.9x 5x 4

2.8x 12x 1

2.1x 12x 1

.8x 13x 12

.9x 30x 22

.6x 14x 12

2.6x 13x 12

.8x 10x 9

.6x 8x 7

2.7x 16x 15

1.1x 12x 10

2.6x 9x 8

.7x 23x 16

.2x nm n

.8x na n

2.4x 16x 13

1.6x 14x 12

2.0x 12x 1

1.3x 11x 9

1.2x 29x 22

2.7x nm n

3.7x 15x 14

1.0x 13x 12

.9x 9x 9

2.2x 14x 13

3.1x 11x 10

nm 9x 8

4.6x 17x 15

1.1x 9x 9

1.7x 16x 15

4.0x nm n

1.8x 19x 16

2.5x 17x 15

4.1x 19x 16

1.6x 15x 13

3.0x 14x 12

1.7x 18x 15

1.7x 24x 2

2.0x 13x 12

3.5x 18x 16

7.0x 33x 23

.8x na n

.2x 16x 14

1.2x 16x 14

.9x 12x 12

3.0x 14x 13



) Selected

ext Superinvesto

FY Shareholders

nm H Partners, M

3x Appaloosa

9x Breeden, ESL

9x Southeastern,

4x Baupost

1x Childrens, We

1x Kleinheinz

2x Weitz

2x Southeastern

2x BRK, Eagle, M

2x BRK, Fairfax,

9x Atlantic

7x Blue Ridge, G

5x BRK, Markel,

0x BRK, Markel,

8x Appaloosa, Pa

6x Lane Five

nm Ancient Art

na Icahn, MHR

3x Edinburgh, Vi

2x BRK, Fairfax,

1x Appaloosa, ES

9x Atlantic

2x Hawkshaw, T

nm Southeastern

4x Eagle, Markel

2x Atlantic

9x Appaloosa, Br

3x Brave Warrior

0x Bares, Greenl

8x Akre

5x BRK, Children

9x Pabrai

5x Breeden

nm Icahn

6x Markel, Persh

5x Brave Warrior

6x Force, Gates

3x Gates

2x Bares, Edinbu

5x Lone Pine, Pe

1x Icahn

2x Appaloosa, Ed

6x Eagle, Weitz

3x BP Capital, Th

na Force, H Partn

4x Greenlight

4x Sageview

2x ESL, Gates

3x Brave Warrior

ed Investors

of 170

or

s

MHR

L, Viking

, Weitz

est Coast

Markel

Markel

Greenlight

Viking

Viking

aulson

king

Pershing Sq.

SL, Pennant

iger Global

, Scout

rave Warrior

r, Glenview

light, Weitz

ns, Markel

hing Square

r, Paulson

urgh, Gates

ennant, Viking

dinburgh

hird Point

ners, Pennant

r, Glenview

©

© 2008-2011 by Beyond

Company / Ticker

MasterCard / MA

Theravance / THRX

American Tower / A

Broadridge Financia

Vail Resorts / MTN

Corporate Executiv

Ensco / ESV

J.C. Penney / JCP

Chesapeake Energ

Radian Group / RD

Alere / ALR

CommScope / CTV

Express Scripts / E

McKesson / MCK

Level 3 Comms / LV

Watson Pharma / W

Anadarko Petroleum


Stanley Black Deck

Schlumberger / SLB

MRV Comms / MRV

Life Technologies /

Sears Holdings / SH

Ross Stores / ROS

Sprint Nextel / S

International Paper

Flowserve / FLS


Gastar Exploration

CBS / CBS

Harvest Natural / H

Seagate Technolog

Flextronics / FLEX

Lamar Advertising /

Asbury Automotive

Valeant Pharma / V

Massey Energy / M

Loral Space / LORL


W.R. Grace / GRA

Teck Resources / T

General Growth / G

Anheuser-Busch / B

General Motors / G

LyondellBasell / LY

CareFusion / CFN

Charter Comms / C

AbitibiBowater / AB

Spectrum Brands /



Recen

Price

($

250.74

X 22.50

AMT 54.26

al / BR 23.24

49.30

ve / EXBD 41.31

53.29

37.02

gy / CHK 30.43

N 7.38

37.99

V 31.48

SRX 56.77

80.64

VLT 1.46

WPI 55.75

m / APC 80.96

/ TYC 47.33

ker / SWK 76.09

B 95.04

VC 1.76

LIFE 54.41

HLD 93.03

T 71.82

4.50

r / IP 29.02

130.33

TYA 42.19

/ GST 4.52

22.91

NR 12.84

gy / STX 13.72

8.42

/ LAMR 41.54

/ ABG 18.30

VRX 40.47

MEE 64.28

L 78.91

LINTA 17.41

39.40

TCK 55.08

GGP 15.76

BUD 54.90

M 36.51

YB 37.95

28.04

CHTR 46.44

BH 29.53

SPB 28.88

VPG 16.80

erved.

nt to

e 52-Week

$) Low High

4 -24% 7%

0 -55% 28%

6 -30% 5%

4 -20% 3%

0 -34% 10%

1 -45% 1%

9 -37% 5%

2 -48% 1%

3 -36% 6%

8 -32% 153%

9 -33% 8%

8 -42% 11%

7 -34% 4%

4 -28% 0%

6 -43% 21%

5 -33% 3%

6 -57% 2%

3 -28% 0%

9 -36% 1%

4 -46% 0%

6 -54% 8%

1 -24% 5%

3 -36% 35%

2 -35% 0%

0 -29% 18%

2 -33% 5%

3 -38% 3%

9 -46% 2%

2 -37% 28%

1 -46% 1%

4 -61% 11%

2 -28% 57%

2 -42% 1%

4 -43% 1%

0 -47% 9%

7 -66% 4%

8 -60% 4%

1 -60% 8%

1 -42% 0%

0 -50% 1%

8 -48% 19%

6 -40% 2%

0 -21% 18%

1 -9% 8%

5 -61% 2%

4 -26% 7%

4 -37% 2%

3 -100% -98%

8 -24% 27%

0 -42% 21%

SUBSCRIBE TODA

Price Perfor

Since Decem

h 2010 200

% 12% 75%

% -10% 82%

% 5% 85%

% 6% 85%

% -5% 85%

% 10% 87%

% 0% 88%

% 15% 88%

% 17% 88%

% -9% 101%

% 4% 101%

% 1% 103%

% 5% 107%

% 15% 108%

% 49% 109%

% 8% 110%

% 6% 110%

% 14% 119%

% 14% 123%

% 14% 125%

% -2% 129%

% -2% 133%

% 26% 139%

% 14% 142%

% 6% 146%

% 7% 146%

% 9% 153%

% 19% 165%

% 5% 171%

% 20% 180%

% 6% 199%

% -9% 210%

% 7% 229%

% 4% 231%

% -1% 300%

% 43% 328%

% 20% 366%

% 3% 443%

% 10% 458%

% 12% 560%

% -11% >999%

% 2% >999%

% -4% na

% -1% na

% 10% na

% 9% na

% 19% na

% na na

% -7% na

% -11% na

AY! www.manualo

rmance Mark

mber 31, Val

8 2006 ($m

% 155% 32,8

% -27% 1,6

% 46% 21,6

% na 2,9

% 10% 1,7

% -53% 1,4

% 6% 7,6

% -52% 8,7

% 5% 19,8

% -86% 9

% -2% 3,2

% 3% 2,9

% 217% 29,9

% 59% 20,5

% -74% 2,4

% 114% 7,3

% 86% 40,1

% 2% 22,4

% 51% 12,6

% 50% 129,3

% -50% 2

% 92% 10,1

% -45% 10,2

% 145% 8,5

% -76% 13,4

% -15% 12,6

% 158% 7,2

% 45% 10,0

% -58% 2

% -27% 15,6

% 21% 4

% -48% 6,2

% -27% 6,3

% -36% 3,8

% -22% 5

% 91% 11,9

% 177% 6,5

% 94% 1,6

% -19% 20,2

% 99% 2,8

% 46% 32,5

% -60% 19,8

a na 87,4

a na 54,7

a na 21,4

a na 6,2

a na 5,3

a na 2,8

a na 1,4

a na 2

Value-oriented Eq

ofideas.com

ket Enter.

lue Value L

mn) ($mn) S

817 28,619 5

665 1,528 6

654 26,045 1

912 3,049 1

774 2,269 2

417 1,304 3

618 6,979 3

759 10,192

899 33,800 4

981 -4,215

223 5,200 2

991 3,668 1

991 31,961

504 21,353

437 8,269 2

388 8,110 2

123 49,456 4

423 24,514 1

632 14,322 1

349 132,471 4

276 274

160 12,380 3

234 13,481

553 7,968 1

442 28,160

695 19,293

277 7,530 1

033 28,883 2

282 299 9

605 21,126 1

435 453 >

215 6,326

399 7,032

830 6,264 5

599 1,455

989 14,627 1

565 7,554 2

636 1,461 1

220 24,700 3

879 1,918

547 37,342 4

896 36,194 1

416 129,734 3

765 36,853

467 23,327

255 6,154 1

324 17,843 2

868 3,711

471 3,120 1

224 154

quity Investment Id

EV/ P/E (Est.)

LTM This Ne

Sales FY F

5.2x 15x 13

63.1x nm n

15.1x 58x 49

1.4x 17x 14

2.6x 47x 38

3.0x 25x 22

3.6x 15x 14

.6x 24x 2

4.4x 10x 1

nm nm 9

2.4x 14x 12

1.2x 18x 13

.7x 18x 15

.2x 16x 14

2.3x nm n

2.3x 14x 1

4.5x 35x 24

1.4x na n

1.7x 15x 13

4.6x 25x 19

.6x 22x 13

3.5x 14x 13

.3x 72x 82

1.1x 16x 14

.9x nm n

.8x 11x 9

1.7x 19x 16

2.6x 35x 39

9.1x na n

1.5x 16x 12

>99x 29x 10

.6x na n

.3x na n

5.9x nm n

.4x 13x 10

17.8x na n

2.5x 19x 13

1.5x na n

3.0x 17x 23

.7x 13x 13

4.8x na n

11.5x nm 53

3.5x 17x 14

.4x 13x 9

.6x na n

1.6x 17x 15

2.6x nm 53

.9x nm 1

1.2x 16x 13

.7x 21x 14



) Selected

ext Superinvesto

FY Shareholders

3x Brave Warrior

nm Baupost, Blue

9x Akre, Viking

4x Brave Warrior

8x Paulson, Sout

2x Bares, Hawks

4x Greenlight, Ho

1x Force, Pershin

1x Icahn, Southe

9x Harbinger

2x Baupost

3x Paulson, Tige

5x Glenview, Lon

4x Glenview, Vik

nm Fairfax, South

1x Chou, Viking

4x Paulson

na Glenview, We

3x Atlantic, Breed

9x Eagle, Lone P

3x Spencer

3x Glenview, Sag

2x ESL, Fairholm

4x Akre

nm GoldenTree, G

9x Appaloosa, Pa

6x Breeden, Sco

9x Blue Ridge, T

na BP Capital

2x Ancient Art, C

0x Pabrai

na ESL, Glenview

na Glenview

nm Akre, Force, S

0x MSD

na Chou, Viking,

3x Third Point

na MHR

3x Southeastern,

3x Gates, Hound

na Lone Pine, Pa

3x Blue Ridge, P

4x Markel

9x Appaloosa, Pe

na Greenlight, Th

5x Greenlight, Th

3x GoldenTree

1x Fairfax, Marke

3x Harbinger

4x Gates

ed Investors

of 170

or

s

r, Tiger Global

e Ridge

r, Greenlight

theastern

shaw

ound

ng Square

eastern

er Global

ne Pine

ing

heastern

eitz

den

Pine, Markel

geview

me, Force

Greenlight

aulson

ut

iger Global

Childrens

w, Paulson

Scout

Blue Ridge

, Third Point

d, H Partners

abrai

Pershing Sq.

ershing Sq.

hird Point

hird Point

el, Paulson

©

B

© 2008-2011 by Beyond

By Estimate

Company / Ticker

PDL BioPharma / P

BP / BP

Enstar Group / ESG

Pfizer / PFE

Hewlett-Packard / H

Radian Group / RD

General Motors / G

POSCO / PKX

International Paper

H&R Block / HRB

Owens Illinois / OI

Raytheon / RTN

Microsoft / MSFT

Asbury Automotive

Exxon Mobil / XOM

Harvest Natural / H

Cisco Systems / CS

Watson Pharma / W

AbitibiBowater / AB

China Mobile / CHL

Molson Coors / TAP

Chesapeake Energ

ITT Corp. / ITT

Gap / GPS

Johnson & Johnson

Applied Materials /

Omnicare / OCR

CBS / CBS

Kraft Foods / KFT

Zimmer Holdings / Z

Wal-Mart / WMT

Alere / ALR

Lab Corp. of Americ

MRV Comms / MRV

Life Technologies /

Stanley Black Deck

Fiserv / FISV

Massey Energy / M

Spectrum Brands /

Snap-on / SNA

MasterCard / MA

Dean Foods / DF

Time Warner Cable

W.R. Grace / GRA

CommScope / CTV

Arris Group / ARRS


McDonald's / MCD

Ensco / ESV

Cardinal Health / C


ed Forward Recen

Pric

($

PDLI 4.9

47.9

GR 83.1

19.1

HPQ 48.6

N 7.3

M 36.5

108.4

r / IP 29.0

14.5

31.6

52.1

27.0

/ ABG 18.3

M 84.5

NR 12.8

SCO 18.8

WPI 55.7

BH 29.5

L 47.6

P 45.6

gy / CHK 30.4

59.8

23.0

n / JNJ 61.1

AMAT 16.4

26.9

22.9

30.9

ZMH 63.7

55.3

37.9

ca / LH 89.0

VC 1.7

LIFE 54.4

ker / SWK 76.0

63.5

MEE 64.2

SPB 28.8

61.2

250.7

10.3

e / TWC 71.8

39.4

V 31.4

S 13.6

VPG 16.8

76.1

53.2

AH 42.1

erved.

d P/E (sorted b

nt EPS (Est.)

ce This Nex

$) FY FY

93 0.90 1.16

93 5.89 6.45

8 9.50 11.00

9 2.24 2.28

67 5.24 5.72

38 (0.45) 0.85

51 2.86 4.20

42 11.44 12.45

02 2.76 3.22

54 1.43 1.60

65 2.86 3.38

6 4.98 5.57

06 2.55 2.76

30 1.45 1.85

50 7.10 8.10

84 0.45 1.23

85 1.60 1.77

75 4.12 5.16

53 (8.49) 2.72

66 4.09 4.33

60 3.86 4.07

43 2.92 2.65

84 4.77 5.15

05 1.86 1.94

1 4.84 5.13

47 1.27 1.36

96 2.07 2.21

91 1.47 1.87

91 2.25 2.51

73 4.69 5.15

38 4.05 4.44

99 2.72 3.04

01 6.31 7.11

76 0.08 0.14

41 3.88 4.32

09 4.94 6.03

52 4.49 5.03

28 3.40 5.08

88 1.78 2.28

28 3.96 4.78

74 16.66 19.52

35 0.61 0.80

89 4.46 5.48

40 2.97 3.00

48 1.79 2.36

63 0.86 1.00

80 0.79 1.22

3 5.02 5.50

29 3.54 3.78

4 2.60 2.98

SUBSCRIBE TODA

by P/E based on

P/E P/E (

xt Last This

Y FY FY

6 5x 5x

5 nm 8x

0 8x 9x

8 19x 9x

2 13x 9x

5 nm nm

0 nm 13x

5 10x 9x

2 20x 11x

0 10x 10x

8 20x 11x

7 11x 10x

6 13x 11x

5 25x 13x

0 14x 12x

3 nm 29x

7 14x 12x

6 38x 14x

2 nm nm

3 11x 12x

7 13x 12x

5 nm 10x

5 17x 13x

4 15x 12x

3 13x 13x

6 24x 13x

1 13x 13x

7 22x 16x

1 21x 14x

5 21x 14x

4 15x 14x

4 nm 14x

1 17x 14x

4 >99x 22x

2 27x 14x

3 58x 15x

3 19x 14x

8 nm 19x

8 nm 16x

8 19x 15x

2 18x 15x

0 22x 17x

8 20x 16x

0 14x 13x

6 37x 18x

0 27x 16x

2 20x 21x

0 17x 15x

8 10x 15x

8 26x 16x

AY! www.manualo

estimated EPS

(Est.) Price/

Next Tang.

FY Book

4x nm

7x 2.1x

8x 1.3x

8x nm

9x nm

9x 1.1x

9x nm

9x 2.2x

9x 2.8x

9x nm

9x nm

9x nm

10x 6.5x

10x 2.1x

10x 2.9x

10x 1.5x

11x 4.0x

11x 60.3x

11x nm

11x 2.5x

11x 5.1x

11x 1.6x

12x nm

12x 3.4x

12x 6.8x

12x 3.7x

12x nm

12x nm

12x nm

12x 5.3x

12x 4.0x

12x nm

13x nm

13x 1.9x

13x 2.3x

13x nm

13x nm

13x 4.0x

13x nm

13x 9.0x

13x 8.2x

13x nm

13x nm

13x nm

13x >99x

14x 2.8x

14x 1.4x

14x 7.2x

14x 1.4x

14x 12.9x

Value-oriented Eq

ofideas.com

for next fiscal ye

Market Ente

Value Valu

($mn) ($mn

688 92

149,865 170,75

1,087 -2,12

153,711 174,69

105,835 117,20

981 -4,21

54,765 36,85

38,257 37,29

12,695 19,29

4,436 4,63

5,182 8,82

19,015 18,98

227,369 195,78

599 1,45

426,096 432,13

435 45

104,481 79,49

7,388 8,11

2,868 3,71

190,430 144,73

8,470 9,21

19,899 33,80

10,987 11,32

14,161 12,50

167,824 157,72

21,757 19,37

3,135 4,99

15,605 21,12

53,993 80,23

12,583 12,79

197,263 243,44

3,223 5,20

9,052 11,00

276 27

10,160 12,38

12,632 14,32

9,447 12,24

6,565 7,55

1,471 3,12

3,572 4,17

32,817 28,61

1,886 5,86

25,574 45,94

2,879 1,91

2,991 3,66

1,684 1,26

224 15

80,432 89,37

7,618 6,97

14,739 16,06

quity Investment Id

ear)

er. EV/

ue LTM Div.

n) Sales Yield

26 2.9x -

57 .6x 4%

28 nm -

95 2.6x 4%

05 .9x 1%

5 nm 0%

53 .4x -

99 1.1x 2%

93 .8x 3%

36 1.2x 4%

20 1.3x -

87 .8x 3%

88 3.1x 2%

55 .4x -

31 1.1x 2%

53 >99x -

93 2.0x -

0 2.3x -

1 .9x -

34 2.1x 4%

4 2.8x 2%

00 4.4x 1%

20 1.0x 2%

07 .9x 2%

23 2.6x 4%

78 2.0x 2%

92 .8x 0%

26 1.5x 1%

36 1.6x 4%

91 3.0x -

41 .6x 2%

00 2.4x -

09 2.2x -

74 .6x -

80 3.5x -

22 1.7x 2%

40 3.0x -

54 2.5x 0%

20 1.2x -

70 1.6x 2%

9 5.2x 0%

61 .5x -

48 2.4x 3%

8 .7x -

68 1.2x -

66 1.2x -

54 .7x -

73 3.7x 3%

79 3.6x 3%

61 .2x 2%



Selected

Superinvestor

d Shareholders

Baupost

Blue Ridge, Gre

Akre

Appaloosa, Pau

Appaloosa, Bra

Harbinger

Appaloosa, Per

Pabrai

Appaloosa, Pau

Breeden, ESL,

Atlantic

Atlantic

Bares, Greenlig

MSD

BRK, Markel, V

Pabrai

Appaloosa, ESL

Chou, Viking

Fairfax, Markel,

Kleinheinz

Childrens, Wes

Icahn, Southea

Atlantic

ESL, Gates

BRK, Fairfax, M

Appaloosa, Edi

Weitz

Ancient Art, Ch

BRK, Fairfax, P

Bares, Edinburg

BRK, Eagle, Ma

Baupost

Brave Warrior,

Spencer

Glenview, Sage

Atlantic, Breede

Brave Warrior,

Third Point

Harbinger

Gates

Brave Warrior, T

Appaloosa

Edinburgh, Viki

Gates, Hound,

Paulson, Tiger

Sageview

Gates

Eagle, Markel, S

Greenlight, Hou

Greenlight

ed Investors

of 170

eenlight

ulson

ave Warrior

rshing Sq.

ulson

Viking

ght, Weitz

Viking

L, Pennant

, Paulson

t Coast

stern

Markel

nburgh

ildrens

Pershing

gh, Gates

arkel

Glenview

eview

en

Glenview

Tiger Gl.

ng

H Partners

Global

Scout

und

©© 2008-2011 by Beyond

Company / Ticker

Ross Stores / ROS

Broadridge Financia

Anheuser-Busch / B

McKesson / MCK

Steris / STE

Express Scripts / E

Procter & Gamble /

DaVita / DVA

Comcast / CMCSA

CareFusion / CFN

Coca-Cola / KO

Copart / CPRT

Learning Tree / LTR

Praxair / PX

Fortune Brands / FO

Flowserve / FLS

Schlumberger / SLB

J.C. Penney / JCP

Hain Celestial / HA

Corporate Executiv

Wendy's Arby's / W




Anadarko Petroleum

Vail Resorts / MTN


American Tower / A

General Growth / G

Charter Comms / C

Sears Holdings / SH


ZipRealty / ZIPR

Flextronics / FLEX

Seagate Technolog

LyondellBasell / LY

Foster Wheeler / FW

Lions Gate / LGF

Sprint Nextel / S

Leap Wireless / LEA


Loral Space / LORL

Level 3 Comms / LV


Amylin Pharma / AM

Teck Resources / T

Lamar Advertising /

Gastar Exploration

Valeant Pharma / V

Theravance / THRX


Recen

Pric

($

T 71.8

al / BR 23.2

BUD 54.9

80.6

35.1

SRX 56.7

/ PG 64.3

79.6

25.6

28.0

64.5

41.4

RE 9.2

99.0

O 62.6

130.3

B 95.0

37.0

IN 30.8

ve / EXBD 41.3

WEN 4.8

RTS 19.2

LINTA 17.4

/ PXP 39.0

m / APC 80.9

49.3

TYA 42.1

AMT 54.2

GGP 15.7

CHTR 46.4

HLD 93.0

VMC 46.7

2.9

8.4

gy / STX 13.7

YB 37.9

WLT 39.4

6.1

4.5

AP 13.9

/ TYC 47.3

L 78.9

VLT 1.4

TXI 42.1

MLN 16.2

TCK 55.0

/ LAMR 41.5

/ GST 4.5

VRX 40.4

X 22.5

erved.

nt EPS (Est.)

ce This Nex

$) FY FY

82 4.62 5.07

24 1.35 1.64

90 3.17 3.82

64 4.94 5.60

6 2.20 2.41

77 3.22 3.89

30 3.98 4.37

67 4.37 5.34

67 1.47 1.72

04 1.62 1.87

55 3.88 4.27

41 2.19 2.61

24 0.40 0.57

09 5.39 6.11

67 3.24 3.82

33 6.89 7.92

04 3.87 4.98

02 1.56 1.79

88 1.29 1.48

31 1.63 1.90

87 0.16 0.22

28 0.67 0.86

41 1.02 0.75

02 1.17 1.67

96 2.30 3.34

30 1.06 1.31

9 1.21 1.08

26 0.94 1.11

76 (1.67) 0.30

44 (1.23) 0.87

03 1.30 1.13

73 (0.36) 0.21

94 (0.85) (0.27

42 na na

72 na na

95 na na

48 na na

2 na na

50 (0.79) (0.59

92 (2.98) (1.88

33 na na

91 na na

46 (0.38) (0.32

1 (1.47) (0.56

28 (0.89) (0.88

08 na na

54 (0.42) (0.02

52 na na

47 na na

50 (1.23) (1.33

SUBSCRIBE TODA

P/E P/E (

xt Last This

Y FY FY

7 20x 16x

4 14x 17x

2 19x 17x

0 17x 16x

1 16x 16x

9 26x 18x

7 18x 16x

4 20x 18x

2 20x 17x

7 36x 17x

7 13x 17x

1 23x 19x

7 29x 23x

1 26x 18x

2 20x 19x

2 17x 19x

8 28x 25x

9 35x 24x

8 45x 24x

0 35x 25x

2 >99x 30x

6 nm 29x

5 40x 17x

7 36x 33x

4 53x 35x

1 59x 47x

8 nm 35x

1 92x 58x

0 nm nm

7 0x nm

3 47x 72x

1 nm nm

7) nm nm

a >99x na

a 4x na

a 2x na

a 14x na

a nm na

9) nm nm

8) nm nm

a 20x na

a 10x na

2) nm nm

6) nm nm

8) nm nm

a 16x na

2) nm nm

a 4x na

a 36x na

3) nm nm

AY! www.manualo

(Est.) Price/

Next Tang.

FY Book

14x 6.7x

14x 38.4x

14x nm

14x 20.3x

15x 4.8x

15x nm

15x nm

15x nm

15x nm

15x 6.4x

15x 36.6x

16x 3.9x

16x 3.4x

16x 8.4x

16x nm

16x 8.5x

19x 10.7x

21x 1.8x

21x 27.6x

22x 35.7x

22x nm

22x 5.9x

23x nm

23x 1.9x

24x 2.6x

38x 4.6x

39x nm

49x nm

53x 54.9x

53x nm

82x 2.7x

>99x 34.0x

nm 1.8x

na 3.3x

na 2.2x

na 2.3x

na 6.5x

na nm

nm nm

nm nm

na 19.2x

na 3.3x

nm nm

nm 1.6x

nm 6.8x

na 2.3x

nm nm

na 1.8x

na nm

nm nm

Value-oriented Eq

ofideas.com

Market Ente

Value Valu

($mn) ($mn

8,553 7,96

2,912 3,04

87,416 129,73

20,504 21,35

2,086 2,10

29,991 31,96

179,988 210,46

7,744 11,17

70,563 95,91

6,255 6,15

149,887 161,96

3,404 3,14

125 8

30,359 35,87

9,562 12,97

7,277 7,53

129,349 132,47

8,759 10,19

1,328 1,54

1,417 1,30

2,038 3,09

6,446 4,47

20,220 24,70

5,467 8,25

40,123 49,45

1,774 2,26

10,033 28,88

21,654 26,04

19,896 36,19

5,324 17,84

10,234 13,48

6,000 8,67

60 2

6,399 7,03

6,215 6,32

21,467 23,32

4,911 4,06

837 1,32

13,442 28,16

1,090 3,26

22,423 24,51

1,636 1,46

2,437 8,26

1,172 1,68

2,344 2,68

32,547 37,34

3,830 6,26

282 29

11,989 14,62

1,665 1,52

quity Investment Id

er. EV/

ue LTM Div.

n) Sales Yield

68 1.1x 1%

49 1.4x 3%

34 3.5x 1%

53 .2x 1%

04 1.7x 2%

61 .7x -

67 2.7x 3%

70 1.7x -

3 2.5x 2%

54 1.6x -

67 4.6x 3%

43 4.1x -

85 .7x -

77 3.5x 2%

78 1.8x 1%

30 1.7x 1%

71 4.6x 1%

92 .6x 2%

42 1.7x -

04 3.0x 1%

95 .9x 2%

75 1.2x -

00 3.0x -

59 7.0x -

56 4.5x 0%

69 2.6x -

83 2.6x -

45 15.1x -

94 11.5x 1%

43 2.6x -

81 .3x -

70 3.4x 2%

26 .2x -

32 .3x -

26 .6x -

27 .6x -

66 .8x -

26 .8x -

60 .9x -

64 1.4x -

4 1.4x 2%

61 1.5x -

69 2.3x -

85 2.7x 1%

88 4.0x -

42 4.8x 1%

64 5.9x -

99 9.1x -

27 17.8x -

28 63.1x -



Selected

Superinvestor

d Shareholders

Akre

Brave Warrior,

Markel

Glenview, Vikin

Breeden

Glenview, Lone

BRK, Markel, VLone Pine, PenViking

Brave Warrior,

Greenlight, Thir

BRK, Childrens

Force, Gates

Lane Five

Eagle, Weitz

Markel, Pershin

Breeden, Scout

Eagle, Lone Pin

Force, Pershing

Icahn

Bares, Hawksh

Southeastern

Hawkshaw, Tig

Southeastern, T

BP Capital, Thir

Paulson

Paulson, South

Blue Ridge, Tig

Akre, Viking

Blue Ridge, Per

GoldenTree

ESL, Fairholme

Southeastern, W

Ancient Art

Glenview

ESL, Glenview,

Greenlight, Thir

Force, Pennant

Icahn, MHR

GoldenTree, Gr

H Partners, MH

Glenview, Weitz

MHR

Fairfax, Southe

Southeastern

Icahn

Lone Pine, Pab

Akre, Force, Sc

BP Capital

Chou, Viking, B

Baupost, Blue R

ed Investors

of 170

Greenlight

ng

e Pine

Viking nnant,

Paulson

rd Point

s, Markel

ng Square

t

ne, Markel

g Square

aw

er Global

Third Point

rd Point

eastern

ger Global

rshing Sq.

e, Force

Weitz

, Paulson

rd Point

t

reenlight

HR

z

astern

brai

cout

Blue Ridge

Ridge

©

B

© 2008-2011 by Beyond

By Average

Company / Ticker

LyondellBasell / LY

Leap Wireless / LEA

Corporate Executiv

Charter Comms / C

Express Scripts / E

Microsoft / MSFT

Exxon Mobil / XOM

Coca-Cola / KO

Johnson & Johnson

Ross Stores / ROS

Schlumberger / SLB

DaVita / DVA

Broadridge Financia

Foster Wheeler / FW

MasterCard / MA

Procter & Gamble /

McDonald's / MCD

China Mobile / CHL

Lab Corp. of Americ

Praxair / PX

Enstar Group / ESG

Teck Resources / T

Cisco Systems / CS

Gap / GPS

Wal-Mart / WMT

Dean Foods / DF

BP / BP

ITT Corp. / ITT

Anheuser-Busch / B

Anadarko Petroleum

Stanley Black Deck

Fiserv / FISV

POSCO / PKX

H&R Block / HRB

Ensco / ESV

Pfizer / PFE

Hewlett-Packard / H

Copart / CPRT

Cardinal Health / C

Seagate Technolog

Flowserve / FLS

Zimmer Holdings / Z

Raytheon / RTN

Fortune Brands / FO

Valeant Pharma / V

Applied Materials /

Steris / STE

McKesson / MCK

J.C. Penney / JCP

Snap-on / SNA


e Annual RO7-Yr

Avg

ROE

YB 349

AP 56

ve / EXBD 56

CHTR 54

SRX 44

33

M 32

32

n / JNJ 31

T 30

B 29

28

al / BR 27

WLT 26

26

/ PG 25

25

L 24

ca / LH 24

23

GR 23

TCK 22

SCO 21

21

21

20

20

20

BUD 19

m / APC 18

ker / SWK 18

18

18

17

17

17

HPQ 16

16

AH 15

gy / STX 15

15

ZMH 15

14

O 14

VRX 14

AMAT 13

13

12

12

12

erved.

OE (past sevG

LTM 1

127 769

-45 -15

57 61 1

736 -265

34 33

44 44

24 27

43 42

25 29

44 41

23 17

18 17

20 22

28 57 1

41 42

18 21

36 36

47 24

25 24

21 22

16 19

13 15

17 19

26 24

22 21

12 6

-4 -4

19 19

16 18

4 4

3 4

16 16

49 12

47 34

15 15

9 11

21 22

15 15

18 9

43 75 -1

21 27

14 11

19 19

9 9

-4 14

13 13

6 18

16 18

7 6

14 14

SUBSCRIBE TODA

ven years) GAAP Return on Eq

… Years

2 3 4

38 241 --

-9 -5 -2

125 99 42

27 22 25

36 88 62

38 53 40

16 38 36

30 28 31

29 31 27

31 28 28

17 34 41

19 20 26

27 30 25

108 124 -189

54 -10 40

20 18 16

32 28 16

28 25 24

29 27 26

27 27 24

15 16 30

7 24 47

17 25 27

22 18 15

21 20 20

25 60 14

17 23 23

19 23 22

9 30 --

-1 18 26

12 18 20

17 23 18

16 15 17

40 -26 -24

27 29 27

14 12 12

19 22 19

16 19 16

14 17 24

102 27 18

33 22 12

13 15 15

21 16 22

5 6 15

16 15 17

-4 13 24

16 10 11

13 16 15

12 23 28

11 19 15

AY! www.manualo

uity (%)

Ago

5 6

-- --

2 317

23 21

21 190

37 30

29 20

37 38

31 30

31 34

25 22

41 32

28 33

32 --

25 41

3 25

22 42

24 20

24 23

22 20

23 19

42 27

35 22

24 23

22 24

22 22

12 14

27 28

21 14

-- --

41 23

19 20

18 21

23 24

24 33

12 4

29 12

17 6

13 16

12 13

22 32

2 3

17 17

12 8

20 18

22 17

20 13

9 12

13 -3

25 10

10 9

Value-oriented Eq

ofideas.com

P/E P

Last Th

7 FY F

-- 2x n

100 nm n

19 35x 25

361 0x n

23 26x 18

12 13x 11

31 14x 12

32 13x 17

33 13x 13

33 20x 16

20 28x 25

54 20x 18

-- 14x 17

19 14x n

29 18x 15

40 18x 16

21 17x 15

21 11x 12

19 17x 14

21 26x 18

10 8x 9

8 16x n

16 14x 12

25 15x 12

22 15x 14

10 22x 17

23 nm 8

21 17x 13

-- 19x 17

18 53x 35

35 58x 15

16 19x 14

16 10x 9

40 10x 10

5 10x 15

27 19x 9

9 13x 9

14 23x 19

19 26x 16

33 4x n

6 17x 19

15 21x 14

4 11x 10

27 20x 19

-3 36x n

16 24x 13

15 16x 16

13 17x 16

-17 35x 24

8 19x 15

quity Investment Id

P/E (Est.) EV/

his Next LTM

FY FY Sales

na na .6x

nm nm 1.4x

5x 22x 3.0x

nm 53x 2.6x

8x 15x .7x

1x 10x 3.1x

2x 10x 1.1x

7x 15x 4.6x

3x 12x 2.6x

6x 14x 1.1x

5x 19x 4.6x

8x 15x 1.7x

7x 14x 1.4x

na na .8x

5x 13x 5.2x

6x 15x 2.7x

5x 14x 3.7x

2x 11x 2.1x

4x 13x 2.2x

8x 16x 3.5x

9x 8x nm

na na 4.8x

2x 11x 2.0x

2x 12x .9x

4x 12x .6x

7x 13x .5x

8x 7x .6x

3x 12x 1.0x

7x 14x 3.5x

5x 24x 4.5x

5x 13x 1.7x

4x 13x 3.0x

9x 9x 1.1x

0x 9x 1.2x

5x 14x 3.6x

9x 8x 2.6x

9x 9x .9x

9x 16x 4.1x

6x 14x .2x

na na .6x

9x 16x 1.7x

4x 12x 3.0x

0x 9x .8x

9x 16x 1.8x

na na 17.8x

3x 12x 2.0x

6x 15x 1.7x

6x 14x .2x

4x 21x .6x

5x 13x 1.6x



Selected

Superinvestor

s Shareholders

Greenlight, Thir

H Partners, MH

Bares, Hawksh

GoldenTree

Glenview, Lone

Bares, Greenlig

BRK, Markel, V

BRK, Childrens

BRK, Fairfax, M

Akre

Eagle, Lone Pin

Lone Pine, Pen

Brave Warrior,

Force, H Partne

Brave Warrior,

BRK, Markel, V

Eagle, Markel, S

Kleinheinz

Brave Warrior,

Eagle, Weitz

Akre

Lone Pine, Pab

Appaloosa, ESL

ESL, Gates

BRK, Eagle, Ma

Appaloosa

Blue Ridge, Gre

Atlantic

Markel

Paulson

Atlantic, Breede

Brave Warrior,

Pabrai

Breeden, ESL,

Greenlight, Hou

Appaloosa, Pau

Appaloosa, Bra

Force, Gates

Greenlight

ESL, Glenview,

Breeden, Scout

Bares, Edinburg

Atlantic

Markel, Pershin

x Chou, Viking, B

Appaloosa, Edi

Breeden

Glenview, Vikin

Force, Pershing

Gates

ed Investors

of 170

r

rd Point

HR

aw

e Pine

ght, Weitz

Viking

s, Markel

Markel

ne, Markel

nnant, Viking

Greenlight

ers, Pennant

Tiger Global

Viking

Scout

Glenview

brai

L, Pennant

arkel

eenlight

en

Glenview

Viking

und

ulson

ave Warrior

, Paulson

t

gh, Gates

ng Square

Blue Ridge

nburgh

ng

g Square

©

© 2008-2011 by Beyond

Company / Ticker

CareFusion / CFN

Chesapeake Energ

Kraft Foods / KFT

Owens Illinois / OI


Molson Coors / TAP

Omnicare / OCR


Arris Group / ARRS

Vail Resorts / MTN

Learning Tree / LTR

International Paper


Comcast / CMCSA

CommScope / CTV

Harvest Natural / H

Theravance / THRX

Hain Celestial / HA


Watson Pharma / W

Life Technologies /


Time Warner Cable

Massey Energy / M

Sears Holdings / SH

Lamar Advertising /


American Tower / A


Asbury Automotive

General Growth / G

Wendy's Arby's / W

ZipRealty / ZIPR

PDL BioPharma / P

Alere / ALR

W.R. Grace / GRA

MRV Comms / MRV

CBS / CBS

Flextronics / FLEX

Sprint Nextel / S

Radian Group / RD


Gastar Exploration

AbitibiBowater / AB

Amylin Pharma / AM

Lions Gate / LGF

Loral Space / LORL

Level 3 Comms / LV

Spectrum Brands /

General Motors / G


7-Yr

Avg

ROE

12

gy / CHK 11

11

10

VMC 10

P 8

8

/ PXP 7

S 7

6

RE 6

r / IP 6

TXI 6

6

V 6

NR 5

X 5

IN 4

/ TYC 4

WPI 3

LIFE 3

LINTA 2

e / TWC 2

MEE 1

HLD 0

/ LAMR 0

RTS -2

AMT -3

TYA -4

/ ABG -5

GGP -6

WEN -7

-8

PDLI -9

-10

-13

VC -15

-16

-17

-18

N -21

VPG -30

/ GST -30

BH -38

MLN -48

-54

L -73

VLT -88

SPB -110

M -127

erved.

G

LTM 1

3 4

8 -43

12 13

11 -3

-2 -2

10 10

1 6

5 5

6 6

4 4

8 9

10 10

-10 -5

8 8

7 6

8 -1

83 79

5 4

11 8

6 6

9 9

11 4

14 15

-9 -11

2 3

-7 -7

-15 -23

10 8

38 -13

13 6

-118 -97

0 0

-37 -28

-35 -49

-37 -39

-142 -111

18 0

8 8

26 1 -1

-22 -21

-115 -126

7 7

2 37

68 121 -3

-40 -40

-235 -41 -1

31 72 -1

-373

-16 -22 -5

3 -326

SUBSCRIBE TODA

GAAP Return on Eq

… Years

2 3 4

11 13 21

4 12 27

13 12 10

13 18 159

1 0 16

11 6 8

4 3 6

-25 7 65

10 -14 11

7 14 9

2 17 25

13 -20 14

-2 11 17

9 6 6

-20 20 21

-7 20 -22

53 93 --

-3 6 7

-13 10 -7

9 12 8

4 0 7

-11 6 6

8 -35 5

9 5 13

1 7 12

0 3 3

-29 -11 2

12 2 1

-17 -7 9

-85 8 11

0 18 3

-34 4 -3

-21 -18 -22

88 -4 -26

0 -1 -15

-20 -31 -20

-54 -8 -5

3 -78 6

122 -10 9

-13 -13 -78

-7 -17 -38

1 -99 --

-6 -32 -77

314 -36 -14

-40 -60 -36

155 -40 8

164 -2 -4

-82 -30 -159

515 165 -363

72 -- --

AY! www.manualo

uity (%)

Ago

5 6

-- --

24 23

11 9

-56 -85

23 19

7 4

9 13

-27 1

28 15

8 5

-5 -3

13 13

1 15

6 2

10 17

14 16

-270 -115

6 5

11 10

-24 6

-10 7

4 5

9 6

5 -13

11 33

2 1

7 16

-6 -17

-1 -1

12 11

4 14

-16 5

22 0

-36 -12

-3 -6

-2 -11

-11 -8

7 -22

3 7

3 5

15 14

-- --

-36 -56

-9 -6

-62 --

-4 22

-494 19

202

-67 8

-- --

Value-oriented Eq

ofideas.com

P/E P

Last Th

7 FY F

-- 36x 17

30 nm 10

9 21x 14

26 20x 11

15 nm n

14 13x 12

13 13x 13

23 36x 33

-11 27x 16

-1 59x 47

-1 29x 23

0 20x 11

5 nm n

2 20x 17

-15 37x 18

15 nm 29

188 nm n

6 45x 24

10 20x n

7 38x 14

5 27x 14

-- 40x 17

7 20x 16

2 nm 19

-66 47x 72

-5 nm n

26 nm 29

-20 92x 58

1 nm 35

4 25x 13

18 nm n

-4 >99x 30

10 nm n

-26 5x 5

-6 nm 14

102 14x 13

-18 >99x 22

-33 22x 16

-8 >99x n

-8 nm n

15 nm n

-- 20x 21

-41 4x n

-12 nm n

-- nm n

-170 nm n

60 10x n

-- nm n

22 nm 16

-- nm 13

quity Investment Id

P/E (Est.) EV/

his Next LTM

FY FY Sales

7x 15x 1.6x

0x 11x 4.4x

4x 12x 1.6x

1x 9x 1.3x

nm >99x 3.4x

2x 11x 2.8x

3x 12x .8x

3x 23x 7.0x

6x 14x 1.2x

7x 38x 2.6x

3x 16x .7x

1x 9x .8x

nm nm 2.7x

7x 15x 2.5x

8x 13x 1.2x

9x 10x >99x

nm nm 63.1x

4x 21x 1.7x

na na 1.4x

4x 11x 2.3x

4x 13x 3.5x

7x 23x 3.0x

6x 13x 2.4x

9x 13x 2.5x

2x 82x .3x

nm nm 5.9x

9x 22x 1.2x

8x 49x 15.1x

5x 39x 2.6x

3x 10x .4x

nm 53x 11.5x

0x 22x .9x

nm nm .2x

5x 4x 2.9x

4x 12x 2.4x

3x 13x .7x

2x 13x .6x

6x 12x 1.5x

na na .3x

nm nm .9x

nm 9x nm

1x 14x .7x

na na 9.1x

nm 11x .9x

nm nm 4.0x

na na .8x

na na 1.5x

nm nm 2.3x

6x 13x 1.2x

3x 9x .4x



Selected

Superinvestor

s Shareholders

Greenlight, Thir

Icahn, Southea

BRK, Fairfax, P

Atlantic

Southeastern, W

Childrens, Wes

Weitz

BP Capital, Thi

Sageview

Paulson, South

Lane Five

Appaloosa, Pau

Southeastern

Brave Warrior,

Paulson, Tiger

x Pabrai

x Baupost, Blue R

Icahn

Glenview, Weitz

Chou, Viking

Glenview, Sage

Southeastern, T

Edinburgh, Viki

Third Point

ESL, Fairholme

Akre, Force, Sc

Hawkshaw, Tig

x Akre, Viking

Blue Ridge, Tig

MSD

x Blue Ridge, Pe

Southeastern

Ancient Art

Baupost

Baupost

Gates, Hound,

Spencer

Ancient Art, Ch

Glenview

GoldenTree, Gr

Harbinger

Gates

BP Capital

Fairfax, Markel,

Icahn

Icahn, MHR

MHR

Fairfax, Southe

Harbinger

Appaloosa, Per

ed Investors

of 170

r

rd Point

stern

Pershing Sq.

Weitz

st Coast

rd Point

eastern

ulson

Paulson

Global

Ridge

z

eview

Third Point

ng

e, Force

cout

er Global

ger Global

rshing Sq.

H Partners

ildrens

reenlight

, Paulson

eastern

rshing Sq.

©

p

h

© 2008-2011 by Beyond

“Above-inpower is rar

need somethave it. One

be a produsignificantly

to cu


nflation pricire, and I thinthing unusuasuch thing w

uct that is priy below its vstomers.”

erved.

ing nk you al to would iced value

SUBSCRIBE TODA

Essay: “OJosh Ta

delivered the

Pricing increases thrstrong busine

Defined better to be ab

But I dovirtue. If I weleast want myThat is the mbusiness.

Moreovegeneral incre

So I conbusiness to babout. What inflation.

What doobviously necaptivity, or ssome factor oon price. This

So you example, Coca consolidateraises prices w

Above-inunusual to habelow its vanominal) pric

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One reasperiod of timprices. I have

Verisk isUS property provided Verthat would al

Verisk cabsolutely crwas owned b

AY! www.manualo

On Pricingarasoff, gener

following spee

power is ofteough to custo

ess.

in this way, pble to pass alon

on’t think thatere an entreprey income to st

minimum I wo

er, inflationary ase in price lev

nsider inflationbe considered a

I do get exci

o you need feed franchise simply a consoor set of factors is nothing mo

need franchisca-Cola has oned industry witwith inflation,

nflation pricinave it. One suchalue to customce increases wo

son situations pricing producthe same sense ithe inefficienc

ncy will be corrr.

son a companyme in the compe in mind here

s an American and casualty

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Value-oriented Eq

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g Power,” ral partner ofech at VALUEx

en defined as omers, and it i

pricing power ng your cost in

t inflationary peneur and my btay constant in

ould want; othe

y pricing powervels.

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like this are ts. What we ainvestors look

cy, and you prorected over tim

y might chargpany’s history,a company cal

company that insurance comclaims data in

ry to analyze r

vide data, anacustomers to cd to serve its

quity Investment Id

by Josh Taof Greenlea L

Ex Zurich/Klost

the ability tois often mentio

is indeed a goncreases than to

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r is not unusua

ower a (near) nit’s not really

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ation pricing cs. You needry with rationait so competitioard competitive

ics, but that igest brands in tmpetitive behavof inflation.

are, and I thibe a product th

ch a product, arily hurt dema

unusual is thaare looking forfor mispriced

obably want tome, because tha

ge prices that a, there was nolled Verisk An

was founded impanies. Thesen order to crearisk better.

alytics, and oconduct busine

customers, V



arasoff Lane Capitalters on Februar

o pass inflatiooned as a key

ood thing. It io be unable to

is a particulamy livelihood,chasing power ld be inclined

al, because infla

necessary condy something I graise prices in

power? Welld a brand, oral competitive bon is not basede analysis.

s not all you the world and vior, but I bel

ink you need hat is priced sireal (as opposand.

at markets arer, in fact, is asecurities. The

o have an idea at is how you w

are too low is o incentive to calytics (Nasdaq

in the 1970s bye companies cate a centralize

other services ess. However, erisk didn’t ch

ed Investors

of 170

Partners, ry 2, 2011.

onary cost y sign of a

is certainly do so.

arly special I would at over time. to sell my

ation is the

dition for a get excited

n excess of

l first you r customer behavior—d primarily

need. For operates in ieve that it

something ignificantly sed to just

e generally a mispriced ere must be about how

will benefit

that, for a charge full q: VRSK).

y the major collectively ed database

that were because it

harge high

©

p

A

© 2008-2011 by Beyond

“One reasmight chargtoo low is th

of time in history,

incentive prices. I hav

companyAnalytics (N


son a compage prices thahat, for a pethe companythere was noto charge fu

ve in mind hey called VerisNasdaq: VRS

erved.

any at are eriod y’s o ull ere a sk

SK).”

SUBSCRIBE TODA

prices. This converted to

Today, Vcollective revfact that its pthink Verisk

A key this the operatioperating incoperating mabecause it ma

Verisk’s this is impresresults in only

Another Miracle-Gro means that aoperating inc

This is vits products bunit growth to

SMG is tthe US—thinhave existed

Historicawas still conleverage with

In early fertilizer, spikin order to mreaction that retailers’ attitof store traffi

SMG raia portion of very nervousdeep consumdropped only

In retrospand engagedpractically syaffordable. I cover 5,000 fertilize only

I will cltrailing free cas good as ththese multipl

AY! www.manualo

seems to hava for-profit cor

Verisk’s revenvenues and onlproducts are uncould raise pri

hing I look at ining margin. If come growth argin. So, in thakes above-infl

operating marssive, it meansy 2.5% operati

company that(NYSE: SMGa 1% price income growth.

very powerful, by only 1% peo achieve doub

the dominant mngs like fertilizfor decades an

ally the compansolidating its

h retailers.

2009, the coked up about 4

maintain its maretailers woul

tude turned ouic, that SMG sh

ised fertilizer pthe increase, b

s about what thmer-led recessioy 2%.

pect, this mighd in keeping tynonymous wrecently saw square feet oftwice per year

lose by sayingcash flow, resphey seem, theyes. However, I

Value-oriented Eq

ofideas.com

ve persisted orporation in 19

nues are only ly 1-2% of thenique, indispenices above infla

n relation to thprices go up Xis equal to X

his context it iflation price inc

rgin in the moss that each 1%ing income gro

t I think has aG). SMG’s operncrease above

because it meer year over tible-digit, long-

manufacturer ozer, grass seednd completely d

any has not puss market posi

ost of urea, w4x, and the comargins. Initiallyld have to a v

ut to be that SMhould have the

prices by 30% but prices stillhe effect on von that was oc

ht not be so surtheir lawns an

with the categoa bag of Sco

f lawn—sellinr.

g that VRSK apectively. I ac

y are reasonablI don’t own eit

quity Investment Id

over the decad997 and went p

about 2 basis eir operating exnsible, and havation.

he ability to raiX% in excess X multiplied bis good to havcreases more m

st recent quarte% price increasowth.

above-inflationrating margin i

its cost infla

ans that if SMime, it would -term earnings

of branded lawd, weed killer, dominate their

shed hard on pition and esta

which is the pmpany decided

y, managementvery large priceMG’s products e power to set p

on average. Rel went up 20-2olumes would

ccurring at the

rprising. Amernd gardens, anory. Moreoverotts Turf Buildng for under $

and SMG tradctually think thle, or even goother of them.



des, even thoupublic in 2009.

points of its xpenses. This ve enormous v

ise prices abovof inflation, thby the reciprove low operatinmeaningful.

er was about 4e above its co

n pricing poweis only about 1ation would pr

MG raises the retake only a mgrowth.

wn and garden pand even dirt.categories.

pricing, largelyablishing its n

primary raw md to raise fertilt was uncertaine increase. Howere such stro

prices as it saw

etailers actually25% at retail.

d be, especiallytime. Howeve

ricans are very nd SMG’s prr, the productder fertilizer—$20. On avera

de at about 25hat if their busod, investment

ed Investors

of 170

ugh Verisk

customers’ despite the

value-add. I

ve inflation he resultant ocal of the ng margins

40%. While st inflation

er is Scotts 4%, which roduce 7%

eal price of minimum of

products in Its brands

y because it negotiating

material in lizer prices n about the owever, the ong drivers

w fit.

y absorbed SMG was

y given the er, volumes

passionate roducts are s are very

—enough to age, people

5x and 15x inesses are ts—even at

©

F“C

© 2008-2011 by Beyond

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Mov

Price 52-Wr ($) Low

8.33 -21%

73.80 -15%

8.38 -6%

4.93 -2%

8.49 -50%

72.67 -31%

19.42 -34%

41.00 -58%

5.15 -56%

57.83 -56%

45.82 -26%

23.35 -69%

27.84 -24%

21.64 -9%

28.94 -47%

12.99 -69%

A 17.64 -15%

O 24.37 -33%

37.55 -34%

14.54 -30%

R 9.26 -63%

E 6.00 -24%

O 17.29 -36%

15.43 -27%

D 38.08 -40%

D 7.12 -33%

O 49.12 -40%

7.26 -30%

7.08 -15%

M 17.30 -42%

G 3.08 -44%

3.59 -37%

9.23 -20%

C 16.11 -30%

39.30 -19%

G 23.85 -31%

5.32 -47%

25.99 -36%

10.82 -33%

15.88 -39%

14.53 -17%

3.22 -35%

T 27.06 -16%

26.64 -20%

55.18 -34%

Y! Price

creening criteria:

SUBSCRIBE TODA

alue Investling Operati

, trading at high

ve To Week MV

High ($mn)

42% 301

4% 102

12% 908

48% 688

10% 321

68% 2,319

42% 1,014

1% 1,748

3% 208

2% 2,867

46% 6,559

6% 1,500

11% 1,688

124% 426

5% 245

54% 634

31% 890

47% 1,980

19% 3,407

46% 4,436

41% 988

56% 367

11% 382

14% 29,784

69% 1,105

22% 612

11% 1,960

39% 120

25% 369

8% 1,349

23% 186

158% 233

74% 126

15% 209

26% 31,906

0% 738

90% 157

2% 1,333

21% 316

78% 352

88% 145

76% 189

17% 227,369

21% 2,344

35% 3,821

e Charts

► Market value

AY! www.manualo

tors ing Income trailing EBIT-to-e

EV EV ($mn) Sal

47 .2

25 .7

515 .8

926 2.8

176 .6

2,156 1.4

785 1.2

1,743 .4

167 .5

2,119 .4

5,700 1.1

1,142 1.2

1,207 1.7

308 .5

221 .3

560 2.8

415 1.4

1,533 .7

4,196 .5

4,636 1.2

816 .8

338 3.8

240 1.0

4 21,416 .3

1,170 .7

800 .9

1,425 1.5

125 .5

203 1.6

1,045 2.6

78 1.6

414 .7

49 .2

330 .4

6 26,588 3.3

1,000 1.4

110 1.0

2,071 1.5

225 .8

375 .6

103 1.9

134 .8

9 195,788 2.9

2,104 .9

3,359 1.6

e > $100 million

Value-oriented Eq

ofideas.com

enterprise value

▼

Trailing V/ EBIT/ les EV E

2x 52%

7x 47%

8x 36%

8x 32%

6x 29%

4x 28%

2x 26%

4x 22%

5x 23%

4x 21%

1x 24%

2x 40%

7x 20%

5x 19%

3x 19%

8x 19%

4x 30%

7x 21%

5x 30%

2x 18%

8x 36%

8x 17%

0x 25%

3x 16%

7x 19%

9x 15%

5x 19%

5x 57%

6x 15%

6x 18%

6x 14%

7x 14%

2x 18%

4x 18%

3x 16%

4x 23%

0x 57%

5x 14%

8x 20%

6x 32%

9x 13%

8x 13%

9x 13%

9x 19%

6x 14%

► ADRs and b

quity Investment Id

yield

▼

EBIT/ Capital Tax

Employed Rate

infinite 35%

infinite 37%

11606% 41%

infinite 37%

infinite 63%

infinite 39%

infinite 42%

infinite 26%

1422% 38%

infinite 37%

1053% 48%

380% 37%

infinite 41%

infinite 24%

infinite 39%

infinite 45%

360% 45%

789% 33%

341% 33%

infinite 38%

243% 41%

infinite n/m

265% 31%

infinite 21%

298% 39%

infinite 40%

248% 4%

138% 27%

1068% n/m

252% 43%

infinite n/m

infinite 40%

219% 36%

218% 44%

271% 26%

131% 16%

114% 24%

478% 35%

137% 25%

110% 41%

infinite 27%

infinite 15%

2353% 24%

128% 39%

334% 33%

banks excluded



Price/ I

Tangible % Book Own

1.3x 1%

1.5x 4%

1.4x 1%

n/m 0%

1.0x 0%

>9.9x 0%

5.0x 1%

n/m 0%

3.8x 3%

3.2x 2%

6.8x 3%

3.3x 1%

3.4x 1%

2.0x 0%

1.3x 9%

>9.9x 0%

1.7x 1%

4.6x 0%

n/m 0%

n/m 0%

3.8x 2%

6.6x 0%

2.2x 1%

>9.9x 12%

>9.9x 0%

n/m 6%

2.8x 0%

1.3x 0%

2.1x 0%

6.3x 0%

1.6x 0%

n/m 1%

1.7x 0%

n/m 1%

6.8x 1%

n/m 2%

1.6x 16%

n/m 1%

2.3x 48%

3.2x 4%

>9.9x 0%

>9.9x 1%

6.5x 11%

4.7x 0%

6.8x 10%

Proxy

ed Investors

of 170

nsiders

Buys/ n. Sells

3 / 9

- / 1

12 / 6

- / -

- / -

13 / 2

7 / 7

18 / 7

4 / 4

11 / 12

10 / 11

4 / 5

- / 2

- / -

8 / 7

2 / 3

4 / 4

6 / 5

14 / 6

14 / 2

9 / 2

- / -

5 / 4

% 5 / 6

2 / 1

3 / 10

3 / 5

- / -

- / 1

5 / 6

- / -

- / 4

- / -

- / 2

8 / 5

6 / 3

% - / 2

8 / 3

% 2 / -

4 / 8

- / -

2 / 2

% 15 / 13

1 / 1

% 18 / 3

y Y!

©

“C

© 2008-2011 by Beyond

“Magic FormCompanies with h

Company

1 GTx

2 ITT Educatio

3 VirnetX

4 Metropolitan

5 Impax Labs

6 ePlus

7 Dell

8 Career Educa

9 * China Cera

10 Bridgepoint E

11 GT Solar

12 Cornerstone

13 * Power-One

14 Amedisys

15 Nephros

16 Apollo Group

17 Rigel Pharma

18 Forest Labs

19 Lincoln Educ

20 Gilead Scien

21 Veeco Instru

22 Lihua Interna

23 Microsoft

24 America's Ca

25 Endo Pharma

26 Cephalon

27 GameStop

28 Corinthian Co

29 Actuate

30 China Valves

31 Kulicke and S

32 Exceed Com

33 Lam Researc

34 Amerigroup

35 SciClone Pha

36 * Cisco Syst

37 Aeropostale

38 Teradyne

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Mov

Price 52-Wr ($) Low

2.75 -31%

72.67 -31%

12.99 -69%

5.15 -56%

23.35 -69%

28.94 -47%

15.43 -27%

O 24.37 -33%

7.26 -30%

19.42 -34%

R 11.40 -57%

X 5.43 -12%

R 9.26 -63%

D 38.08 -40%

5.32 -47%

45.82 -26%

7.08 -15%

34.33 -30%

15.88 -39%

39.30 -19%

O 49.12 -40%

10.82 -33%

T 27.06 -16%

T 24.33 -16%

P 34.49 -43%

58.63 -6%

19.95 -14%

O 5.28 -26%

5.20 -24%

6.72 -6%

10.04 -48%

8.00 -24%

56.10 -42%

57.83 -56%

4.33 -52%

O 18.85 -2%

26.64 -20%

18.92 -53%

27.84 -24%

4.76 -15%

E 8.97 -30%

L 18.89 -27%

55.18 -34%

38.36 -39%

13.17 -20%

Y! Price

creening criteria:

SUBSCRIBE TODA

Year’s EPS , trading at high

ve To Week MV

High ($mn)

56% 140

68% 2,319

54% 634

3% 208

6% 1,500

5% 245

14% 29,784

47% 1,980

39% 120

42% 1,014

5% 1,424

39% 139

41% 988

69% 1,105

90% 157

46% 6,559

25% 369

1% 9,822

78% 352

26% 31,906

11% 1,960

21% 316

17% 227,369

24% 263

11% 3,987

24% 4,440

29% 3,020

266% 447

17% 234

121% 240

5% 717

31% 157

0% 6,931

2% 2,867

4% 207

47% 104,481

21% 2,344

1% 3,432

11% 1,688

70% 122

46% 311

21% 12,289

35% 3,821

15% 355

55% 385

e Charts

► MV > $100 m

AY! www.manualo

S Estimates earnings yields (

EV EV ($mn) Sal

120 1.9

2,156 1.4

560 2.8

167 .5

1,142 1.2

221 .3

4 21,416 .3

1,533 .7

125 .5

785 1.2

1,243 1.5

91 .7

816 .8

1,170 .7

110 1.0

5,700 1.1

203 1.6

6,087 1.4

375 .6

6 26,588 3.3

1,425 1.5

225 .8

9 195,788 2.9

314 .9

3,555 2.2

4,323 1.5

3,088 .3

638 .3

194 1.5

233 1.5

613 .8

62 .1

5,920 2.0

2,119 .4

154 1.9

1 79,493 1.9

2,104 .9

2,778 1.7

1,207 1.7

86 1.1

237 1.6

9 9,614 2.7

3,359 1.6

316 1.0

295 .2

million ► ADRs

Value-oriented Eq

ofideas.com

(based on this FY

▼

This FY V/ EPS les Yield E

9x 14%

4x 13%

8x 12%

5x 12%

2x 13%

3x 11%

3x 11%

7x 11%

5x 39%

2x 11%

5x 10%

7x 12%

8x 13%

7x 11%

0x 23%

1x 10%

6x 10%

4x 13%

6x 17%

3x 10%

5x 10%

8x 13%

9x 9%

9x 11%

2x 10%

5x 14%

3x 13%

3x 18%

5x 9%

5x 20%

8x 12%

x 23%

0x 11%

4x 9%

9x 11%

9x 8%

9x 10%

7x 9%

7x 8%

1x 20%

6x 16%

7x 9%

6x 8%

0x 9%

2x 18%

s and banks excl

quity Investment Id

Y EPS estimates

▼ EBIT/

Capital Tax Employed Rate

infinite n/m

infinite 39%

infinite 45%

1422% 38%

380% 37%

infinite 39%

infinite 21%

789% 33%

138% 27%

infinite 42%

infinite 36%

255% 26%

243% 41%

298% 39%

114% 24%

1053% 48%

1068% n/m

151% 27%

110% 41%

271% 26%

248% 4%

137% 25%

2353% 24%

211% 37%

293% 25%

93% 32%

97% 35%

87% >99%

infinite 26%

80% 19%

104% 2%

78% 8%

124% 13%

infinite 37%

97% 4%

3441% 16%

128% 39%

165% 4%

infinite 41%

66% 31%

67% 27%

204% 2%

334% 33%

183% 41%

61% n/m

luded ► Enterp



s)

Price to Tangible %

Book Ow

8.7x 20%

>9.9x 0%

>9.9x 0%

3.8x 3%

3.3x 1%

1.3x 9%

>9.9x 12%

4.6x 0%

1.3x 0%

5.0x 1%

>9.9x 0%

3.3x 56%

3.8x 2%

>9.9x 0%

1.6x 16%

6.8x 3%

2.1x 0%

2.2x 1%

3.2x 4%

6.8x 1%

2.8x 0%

2.3x 48%

6.5x 11%

1.5x 6%

9.6x 0%

7.4x 1%

6.0x 1%

2.8x 1%

7.6x 4%

1.9x 0%

2.6x 2%

.7x 0%

3.7x 1%

3.2x 2%

2.7x 0%

4.0x 0%

4.7x 0%

3.4x 0%

3.4x 1%

1.2x 0%

1.7x 16%

4.0x 0%

6.8x 10%

5.9x 1%

1.1x 0%

Prox

prise value to MV

ed Investors

of 170

Insiders

% Buys/ wn. Sells

% 6 / -

% 13 / 2

% 2 / 3

% 4 / 4

% 4 / 5

% 8 / 7

% 5 / 6

% 6 / 5

% - / -

% 7 / 7

% 9 / 14

% 2 / 3

% 9 / 2

% 2 / 1

% - / 2

% 10 / 11

% - / 1

% 8 / 10

% 4 / 8

% 8 / 5

% 3 / 5

% 2 / -

% 15 / 13

% 3 / 2

% 8 / 4

% 10 / 10

% 16 / 5

% 19 / 3

% 6 / 4

% - / -

% 14 / 12

% - / -

% 7 / 10

% 11 / 12

% - / -

% 21 / 10

% 1 / 1

% 5 / 5

% - / 2

% - / -

% 6 / -

% 2 / 3

% 18 / 3

% 1 / 1

% - / -

xy Y!

V < 1.5

©

“C

© 2008-2011 by Beyond

“Magic FormCompanies with h

Company

1 Bridgepoint E

2 * Nabi Bioph

3 GT Solar

4 * China Cera

5 Dell

6 Power-One

7 ePlus

8 ITT Educatio

9 Endo Pharma

10 Lihua Interna

11 America's Ca

12 Gilead Scien

13 Nephros

14 Forest Labs

15 * Actuate

16 Career Educa

17 Lincoln Educ

18 Metropolitan

19 Microsoft

20 Kulicke and S

21 GameStop

22 China Valves

23 Apollo Group

24 Exceed Com

25 Teradyne

26 Cisco System

27 LTX-Credenc

28 Medicis Phar

29 SkyPeople Ju

30 Gulf Resourc

31 PMC-Sierra

32 Lam Researc

33 Xyratex

34 Aeropostale

35 * USANA He

36 DeVry

37 Lexmark

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40 * Amtech Sy

41 * Amgen

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Mov

Price 52-W ($) Low

19.42 -34%

5.65 -22%

11.40 -57%

7.26 -30%

15.43 -27%

9.26 -63%

28.94 -47%

72.67 -31%

34.49 -43%

10.82 -33%

24.33 -16%

39.30 -19%

5.32 -47%

34.33 -30%

5.20 -24%

24.37 -33%

15.88 -39%

5.15 -56%

27.06 -16%

10.04 -48%

19.95 -14%

6.72 -6%

45.82 -26%

8.00 -24%

18.92 -53%

18.85 -2%

9.60 -48%

27.84 -24%

4.76 -15%

8.97 -30%

8.22 -17%

56.10 -42%

13.17 -20%

26.64 -20%

34.28 -21%

55.18 -34%

38.89 -19%

11.32 -36%

18.89 -27%

25.05 -68%

52.24 -4%

48.65 -17%

58.63 -6%

22.14 -21%

9.13 -38%

Y! Price

creening criteria:

SUBSCRIBE TODA

t Year’s EPS, trading at high

ve To Week MV

High ($mn)

42% 1,014

14% 240

5% 1,424

39% 120

14% 29,784

41% 988

5% 245

68% 2,319

11% 3,987

21% 316

24% 263

26% 31,906

90% 157

1% 9,822

17% 234

47% 1,980

78% 352

3% 208

17% 227,369

5% 717

29% 3,020

121% 240

46% 6,559

31% 157

1% 3,432

47% 104,481

18% 474

11% 1,688

70% 122

46% 311

18% 1,902

0% 6,931

55% 385

21% 2,344

33% 547

35% 3,821

24% 3,055

374% 236

21% 12,289

23% 236

17% 49,357

12% 6,224

24% 4,440

10% 123,497

10% 436

Charts

► MV > $100 m

AY! www.manualo

S Estimates earnings yields (

EV EV($mn) Sale

785 1.2x

136 3.3x

1,243 1.5x

125 .5x

21,416 .3x

816 .8x

221 .3x

2,156 1.4x

3,555 2.2x

225 .8x

314 .9x

26,588 3.3x

110 1.0x

6,087 1.4x

194 1.5x

1,533 .7x

375 .6x

167 .5x

195,788 2.9x

613 .8x

3,088 .3x

233 1.5x

5,700 1.1x

62 .1x

2,778 1.7x

79,493 1.9x

358 1.4x

1,207 1.7x

86 1.1x

237 1.6x

1,805 2.8x

5,920 2.0x

295 .2x

2,104 .9x

523 1.0x

3,359 1.6x

2,487 .6x

266 3.9x

9,614 2.7x

183 1.2x

45,297 3.0x

7,390 1.3x

4,323 1.5x

103,727 2.4x

426 .6x

million ► ADRs

Value-oriented Eq

ofideas.com

s (based on next F

▼

Next FY V/ EPS Ces Yield Em

x 13% i

x 13% i

x 12% i

x 33%

x 11% i

x 15%

x 11% i

x 11% i

x 12%

x 17%

x 12%

x 12%

x 19%

x 13%

x 10% i

x 10%

x 14%

x 10%

x 10%

x 14%

x 15%

x 23%

x 10%

x 24%

x 10%

x 9%

x 13%

x 9% i

x 22%

x 19%

x 9% i

x 10%

x 19%

x 10%

x 10%

x 9%

x 12%

x 15%

x 9%

x 10%

x 11%

x 10%

x 10%

x 10%

x 10%

s and banks excl

quity Investment Id

FY EPS estimate

▼ EBIT/

Capital Tax mployed Rate

infinite 42%

infinite n/m

infinite 36%

138% 27%

infinite 21%

243% 41%

infinite 39%

infinite 39%

293% 25%

137% 25%

211% 37%

271% 26%

114% 24%

151% 27%

infinite 26%

789% 33%

110% 41%

1422% 38%

2353% 24%

104% 2%

97% 35%

80% 19%

1053% 48%

78% 8%

165% 4%

3441% 16%

88% 1%

infinite 41%

66% 31%

67% 27%

infinite 27%

124% 13%

61% n/m

128% 39%

123% 34%

334% 33%

66% 19%

61% 13%

204% 2%

99% 39%

76% 13%

85% 33%

93% 32%

90% 29%

96% 39%

luded ► Enterp



es)

Price to InTangible %

Book Own

5.0x 1%

3.7x 1%

>9.9x 0%

1.3x 0%

>9.9x 12%

3.8x 2%

1.3x 9%

>9.9x 0%

9.6x 0%

2.3x 48%

1.5x 6%

6.8x 1%

1.6x 16%

2.2x 1%

7.6x 4%

4.6x 0%

3.2x 4%

3.8x 3%

6.5x 11%

2.6x 2%

6.0x 1%

1.9x 0%

6.8x 3%

.7x 0%

3.4x 0%

4.0x 0%

3.3x 2%

3.4x 1%

1.2x 0%

1.7x 16%

6.5x 0%

3.7x 1%

1.1x 0%

4.7x 0%

4.3x 51%

6.8x 10%

2.9x 1%

3.4x 0%

4.0x 0%

2.8x 2%

4.8x 0%

>9.9x 1%

7.4x 1%

2.7x 0%

4.9x 4%

Proxy

prise value to MV

ed Investors

of 170

nsiders

Buys/ . Sells

7 / 7

- / 3

9 / 14

- / -

5 / 6

9 / 2

8 / 7

13 / 2

8 / 4

2 / -

3 / 2

8 / 5

- / 2

8 / 10

6 / 4

6 / 5

4 / 8

4 / 4

15 / 13

14 / 12

16 / 5

- / -

10 / 11

- / -

5 / 5

21 / 10

- / 5

- / 2

- / -

6 / -

5 / 8

7 / 10

- / -

1 / 1

13 / 15

18 / 3

2 / 7

- / -

2 / 3

8 / 8

3 / 7

9 / 9

10 / 10

4 / 4

5 / 2

y Y!

V < 1.5

©

CN

© 2008-2011 by Beyond

Contrarian: Non-financial com

Company

1 * Ambow Ed

2 * China Xiniy

3 Smith Micro S

4 * SemiLEDs

5 China Valves

6 * China Agrit

7 * TEKELEC

8 Novatel Wire

9 * TAL Educa

10 * Duoyuan G

11 China Real E

12 * Monster W

13 * Trident Mic

14 Vanda Pharm

15 * Dolby Labo

16 * Acorda The

17 * China Lodg

18 * EnerNOC

19 * USANA He

20 * Rosetta Sto

21 * Symmetric

22 * Lentuo Inte

23 * Tessera Te

24 * Entropic Co

25 * K-Swiss

26 * Infinera

27 LeapFrog

28 * Albany Mo

29 * Telestone T

30 * SIGA Tech

31 * Tellabs

32 Fuel Tech

33 * China Fina

34 Universal Tec

35 * Golden Min

36 * Rex Energ

37 * Alimera Sc

38 * Vimicro

39 Cree

40 Standard Mic

41 China Cord B

42 * Home Inns

43 * Myriad Gen

44 * ChinaCach

45 * Axcelis Tec

Company we

* New additions are


: Biggest YTmpanies with no

Tick

ducation AMB

ya Fashion XN

Software SM

LED

s CVV

tech CAG

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Global Water DG

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TD Losers (dnet debt, positive

Price MVker ($) ($m

BO 8.18 58

NY 5.41 31

SI 9.37 32

DS 17.60 48

VT 6.72 24

GC 8.14 16

LC 8.08 55

TL 6.85 21

RS 11.90 88

GW 9.44 23

IC 7.25 1,03

WW 17.99 2,34

ID 1.37 24

DA 7.35 20

LB 51.93 5,81

OR 21.27 83

HT 17.14 1,01

OC 18.82 46

NA 34.28 54

ST 16.76 34

MM 5.63 24

AS 5.57 16

RA 17.64 89

TR 9.65 82

WS 9.97 35

FN 8.28 83

F 4.49 29

RI 4.55 13

TC 8.63 10

GA 11.40 54

AB 5.54 2,04

EK 7.95 19

JC 5.35 11

TI 18.11 44

MN 22.06 33

XX 11.28 49

IM 8.59 26

MC 3.09 11

EE 54.68 5,98

SC 23.93 54

O 3.34 24

IN 34.19 1,37

GN 19.07 1,71

IH 17.37 40

LS 2.89 30

EC Y!

creening criteria:

SUBSCRIBE TODA

deleveragede analyst estimat

PrV EV

mn) ($mn) 200

3 460 n/m

4 277 n/m

1 264 5%

0 478 n/m

0 233 -60

9 123 -78

4 333 -60

7 69 -65

7 708 n/m

2 77 n/m

36 723 n/m

42 2,304 -47

2 149 -84

6 8 n/m

19 5,115 n/m

1 599 n/m

10 820 n/m

9 316 n/m

7 523 0%

9 240 n/m

5 166 -42

4 162 n/m

0 415 -53

3 677 n/m

3 238 -66

8 557 n/m

0 270 -67

8 109 -59

6 105 90%

6 527 587

44 909 -36

3 171 70%

8 92 -51

1 358 -52

6 215 n/m

4 493 n/m

8 219 n/m

4 20 n/m

80 4,869 36%

7 400 34%

6 202 n/m

74 1,229 n/m

14 1,323 78%

3 391 n/m

3 257 -64

S

► Positive net

AY! www.manualo

d & profitabtes for next year'

▼

rice Change Since December 31,

04 2009 2010

m n/m -41%

m n/m -41%

% 2% -40%

m n/m -39%

% -27% -36%

% -42% -34%

% -47% -32%

% -14% -28%

m n/m -26%

m -74% -26%

m -34% -24%

% 3% -24%

% -26% -23%

m -35% -22%

m 9% -22%

m -16% -22%

m n/m -21%

m -38% -21%

% 7% -21%

m -7% -21%

% 8% -21%

m n/m -21%

% -24% -20%

m 214% -20%

% 0% -20%

m -7% -20%

% 15% -19%

% -50% -19%

% -57% -19%

7% 97% -19%

% -2% -18%

% -3% -18%

% -27% -18%

% -10% -18%

m 127% -17%

m -6% -17%

m n/m -17%

m -37% -17%

% -3% -17%

% 15% -17%

m -49% -17%

m -3% -17%

% -27% -17%

m n/m -16%

% 105% -16%

Stock Price Charts

cash ► Positiv

Value-oriented Eq

ofideas.com

ble) 's EPS, and large

Price to Ne

Tangible F0 Book P

% 4.9x 1

% 5.4x 8

% 3.7x 2

% 6.2x 1

% 1.9x 4

% 1.2x 8

% 1.5x 1

% 1.2x 3

% 6.2x 3

% .9x 6

% 3.1x 1

% n/m 2

% 1.7x 1

% 7.3x 6

% 4.8x 1

% 6.4x 1

% 3.3x 3

% 2.4x 3

% 4.3x 1

% 2.8x 1

% 1.4x 1

% 2.8x 7

% 1.7x 1

% 3.3x 1

% 1.6x 3

% 2.0x 3

% 1.7x 1

% .6x 4

% 1.4x 4

% 80.3x 4

% 1.3x 6

% 3.5x 3

% 1.3x 1

% 4.4x 1

% 2.6x 3

% 1.6x 2

% 5.9x 1

% 1.2x 4

% 3.4x 2

% 2.0x 1

% 2.0x 1

% 4.0x 2

% 3.1x 1

% 34.8x 4

% 1.5x 9

ve next FY EPS e

quity Investment Id

e YTD price drop

ext Insiders FY % BuyP/E Own. Se

2x 0% - /

8x 0% - /

8x 4% 4 /

6x 7% 6 /

4x 0% - /

8x 2% - /

9x 0% 2 /

38x 0% 2 /

35x 0% - /

6x 0% - /

3x 0% - /

4x 3% 2 /

7x 1% 6 /

67x 1% - /

7x 0% 15

6x 1% 2 /

31x 0% - /

37x 10% 2 /

0x 51% 13 /

6x 1% - /

2x 1% 14

7x 0% - /

5x 1% 4 /

0x 0% 7 /

38x 1% 3 /

38x 0% 9 /

2x 3% 7 /

46x 0% - /

4x 0% - /

4x 0% 2 /

62x 5% 2 /

35x 0% - /

8x 0% - /

3x 2% 9 /

31x 42% 13

9x 19% 11

6x 0% 2 /

44x 0% - /

3x 1% 11

4x 1% 11

5x 0% - /

3x 0% - /

6x 0% - /

46x 0% - /

9x 2% 7 /

Proxy Y

estimate ► Ma



p

ys/ lls

/ -

/ -

/ 9

/ -

/ -

2

/ 6

/ 1

/ -

/ -

/ -

/ 6

/ 1

1

/ 8

/ 6

/ -

/ 7

/ 15

/ -

/ 1

/ -

/ 4

/ 7

/ 3

/ 8

/ 7

1

/ -

/ 1

12

/ -

/ -

/ 8

/ 1

/ 1

/ -

/ -

/ 7

/ 3

/ -

/ -

1

/ -

/ 5

Y!

arket value > $10

ed Investors

of 170

00 million

©

VC

© 2008-2011 by Beyond

Value with Companies that m

Company

1 Elron Electro

2 Endurance S

3 Allied World

4 Scorpio Tank

5 * Vishay Inte

6 FPIC Insuran

7 ITT Educatio

8 * Aspen Insu

9 Fox Chase B

10 * Telenor

11 * Chubb

12 * Tyson Foo

13 * XL Group

14 Scholastic

15 Platinum Und

16 * Corinthian

17 Aetna

18 H&R Block

19 Employers H

20 Best Buy

21 Lukoil

22 * Hawaiian H

23 * O2Micro

24 * PAA Nat. G

25 America's Ca

26 * ArvinMerito

27 Hewlett-Pack

28 * Multi-Fineli

29 Forest Labs

30 Gilead Scien

31 White Mounta

32 * Alterra Cap

33 PartnerRe

34 * AstraZenec

35 Torchmark

36 Stage Stores

37 W.R. Berkley

38 * Axis Capita

39 Blyth

40 * Raytheon

41 * Exxon Mob

42 Qlogic

43 * Rent-A-Ce

44 ProAssuranc

45 LSI Corp.

Company we

* New additions are


Catalyst: Chmay be creating v

Tick

nic ELR

Specialty EN

AW

kers STN

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nce FP

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CB

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Cheap Repurvalue by reducin

Price ker ($) (

RNF 5.61

NH 48.75 2

WH 62.13 2

NG 10.27

SH 18.43 3

IC 36.88

SI 72.67 2

HL 29.81 2

CB 13.22

LNY 47.99 2

B 61.31 1

SN 18.63 7

L 24.65 7

HL 30.61

TP 44.49 1

CO 5.28

ET 38.29 1

RB 14.54 4

G 18.56

BY 33.04 1

KOY 65.75 5

A 7.34

IM 8.73

NG 24.33

MT 24.33

RM 18.92 1

PQ 48.67 10

LX 29.84

RX 34.33 9

LD 39.30 3

TM 370.25 3

TE 22.05 2

RE 82.10 6

ZN 49.38 6

MK 65.45 5

SI 17.30

RB 30.37 4

XS 37.81 4

TH 34.25

TN 52.16 1

OM 0.00 42

GC 0.00 1

CII 0.00 2

RA 0.00 1

SI 0.00 4

EC Y!

iteria: ► MV < 2

SUBSCRIBE TODA

rchasers of ng their shares ou

MV EV $mn) ($mn)

167 110

2,378 n/m

2,625 n/m

246 325

3,040 2,574

339 n/m

2,319 2,156

2,286 n/m

192 n/m

6,475 29,930

8,695 n/m

7,033 8,459

7,968 n/m

894 1,125

1,747 n/m

447 638

5,320 n/m

4,436 4,636

739 n/m

3,024 13,921

5,964 63,302

369 267

316 213

769 1,028

263 314

1,783 2,538

05,835 117,205

715 616

9,822 6,087

1,906 26,588

3,073 n/m

2,544 n/m

6,116 n/m

8,443 65,115

5,240 n/m

634 630

4,405 n/m

4,674 n/m

282 276

9,015 18,987

26,096 432,131

1,930 1,587

2,131 2,646

1,811 n/m

4,162 3,485

2 * BV ► Next

AY! www.manualo

f Stock utstanding at rela

▼ Q-Q Nex

Change FYin Shares P/E

-23.3% -

-9.9% 9x

-9.3% -

-7.0% -

-6.6% 9x

-6.1% 14x

-6.0% 9x

-6.0% 9x

-5.9% 34x

-5.8% 12x

-5.8% 11x

-5.6% 9x

-4.8% -

-4.7% 12x

-4.5% 9x

-4.0% 11x

-4.0% 9x

-4.0% 9x

-4.0% 16x

-4.0% 9x

-3.9% 6x

-3.9% 10x

-3.8% 13x

-3.8% 21x

-3.6% 8x

-3.3% 8x

-3.1% 9x

-3.0% 11x

-2.9% 8x

-2.9% 9x

-2.8% 24x

-2.8% 9x

-2.8% 9x

-2.7% 8x

-2.6% 9x

-2.6% 16x

-2.5% 12x

-2.5% 9x

-2.5% 12x

-2.3% 9x

-2.3% 10x

-2.2% 12x

-2.2% 10x

-2.1% 12x

-2.1% 11x

FY P/E < 12 ►

Value-oriented Eq

ofideas.com

atively cheap pric

xt Price to NY Tangible aE Book

.9x

x .9x

.9x

1.2x

x 2.2x

x 1.3x

x 18.1x

x .7x

x .9x

x 4.2x

x 1.2x

x 2.1x

.8x

x 2.3x

x .9x

x 2.8x

x 3.5x

x n/m

x 1.5x

x 4.1x

x 1.0x

x 14.2x

x 1.8x

x 1.1x

x 1.5x

x n/m

x n/m

x 1.9x

x 2.2x

x 6.8x

x .8x

x .9x

x .9x

x 57.8x

x 1.4x

x 1.4x

x 1.2x

x .9x

x 1.3x

x n/m

x 2.9x

x 4.3x

x 25.3x

x 1.1x

x 7.3x

► Debt/equity < 0

quity Investment Id

ces

Net Cash Insias % of %

MV Own.

34% 0%

n/m 0%

n/m 0%

-32% 0%

15% 0%

n/m 3%

7% 0%

n/m 0%

n/m 0%

-13% 0%

n/m 0%

-20% 1%

n/m 0%

-26% 1%

n/m 2%

-43% 1%

n/m 0%

-4% 0%

n/m 0%

-7% 0%

-13% 0%

28% 0%

33% 0%

-34% 0%

-19% 6%

-42% 3%

-11% 0%

14% 0%

38% 1%

17% 1%

n/m 0%

n/m 0%

n/m 0%

5% 0%

n/m 1%

1% 1%

n/m 6%

n/m 0%

2% 0%

0% 0%

-1% 0%

18% 0%

-24% 2%

n/m 1%

16% 0%

Proxy

0.4 ► MV > $10



ders

Buys/ Sells

- / -

- / -

- / -

- / -

7 / 1

4 / 3

13 / 2

- / -

- / -

- / -

8 / 10

16 / 8

- / -

10 / 6

13 / 4

19 / 3

3 / 2

14 / 2

4 / -

7 / 3

- / -

- / -

- / -

- / -

3 / 2

17 / 13

15 / 12

5 / 5

8 / 10

8 / 5

- / -

- / -

- / -

- / -

21 / 14

4 / 1

3 / 4

- / -

- / 1

3 / 3

30 / 20

8 / 4

7 / -

6 / 6

3 / 1

Y!

00mn ► Q-Q

ed Investors

of 170

shares < 0

©

PD

© 2008-2011 by Beyond

Profitable DDividend-paying c

Company

1 Two Harbors

2 Life Partners

3 Himax Tech

4 PennyMac M

5 TICC Capital

6 NGP Capital

7 Mesabi Trust

8 Crexus Inves

9 Lorillard

10 Gladstone In

11 BGC Partner

12 Nokia

13 CTC Media

14 BBVA Banco

15 Colony Finan

16 Telecom Arg

17 * Old Repub

18 American So

19 * NY Commu

20 Nat'l Australia

21 Westpac Ban

22 Bristol Myers

23 AstraZeneca

24 * Tower Ban

25 Australia and

26 People's Unit

27 THL Credit

28 * Banco Arge

29 * Bank of Ea

30 American Ec

31 Renasant

32 Santander Br

33 United Banks

34 Baldwin & Ly

35 * Canon

36 Safety Insura

37 * Electrolux

38 Female Heal

39 * Chemical F

40 * China Mob

41 Electro Rent

42 Washington T

43 Credit Suisse

44 GFI Group

45 * Intersil

Company we

* New additions are


Dividend Pacompanies with n

Ticke

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LPHI

HIMX

Mortgage PMT

TICC

NGPC

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LO

vestment GAIN

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ted PBCT

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CAJ

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ayors with Dno net debt and

M

Price 5r ($) Low

10.77 -26%

8.09 -15%

X 2.66 -25%

18.17 -14%

12.66 -53%

C 9.65 -30%

36.57 -58%

13.25 -11%

79.53 -12%

7.77 -37%

P 9.20 -57%

9.19 -13%

M 22.10 -42%

11.90 -55%

Y 21.01 -21%

25.30 -42%

12.84 -14%

WA 6.78 -33%

18.85 -24%

Y 26.78 -31%

123.02 -30%

25.49 -13%

49.38 -18%

C 22.69 -22%

Y 25.10 -35%

T 13.39 -9%

D 13.17 -32%

A 12.76 -32%

Y 4.16 -22%

L 17.00 -24%

T 16.06 -20%

R 12.52 -22%

28.53 -23%

B 24.31 -18%

49.22 -25%

T 49.38 -31%

Y 50.00 -23%

O 5.02 -13%

C 20.60 -9%

47.66 -7%

C 15.94 -30%

H 22.38 -25%

47.63 -24%

G 5.40 -19%

12.97 -24%

Y! Pr

iteria: ► Positiv

SUBSCRIBE TODA

Decent BalaEPS estimates in

Move To 52-Week MVw High ($m

% 1% 416

% 142% 15

% 23% 476

% 4% 479

% 4% 342

% 13% 209

% 58% 480

% 6% 240

% 13% 11,8

% 6% 172

% 0% 870

% 73% 34,1

% 14% 3,45

% 16% 2,21

% 1% 365

% 8% 2,34

% 21% 3,09

% 6% 175

% 3% 8,21

% 0% 57,9

% 9% 73,6

% 10% 43,6

% 8% 68,4

% 23% 264

% 4% 65,3

% 25% 4,94

% 2% 26

% 21% 56,9

% 12% 8,61

% 7% 31

% 13% 402

% 25% 95,8

% 12% 1,24

% 10% 353

% 6% 65,7

% 1% 743

% 17% 7,81

% 48% 139

% 22% 565

% 15% 190,4

% 8% 382

% 3% 362

% 14% 56,1

% 30% 656

% 31% 1,61

rice Charts

ve net cash ► P

AY! www.manualo

ance Sheets n excess of 75%

V EV Ln) ($mn) M

6 n/m

1 n/m

6 428

9 n/m

2 n/m

9 n/m

0 n/m

0 n/m

899 11,605

2 n/m

0 n/m

27 24,134

59 3,313

16 n/m

5 n/m

42 2,114

96 n/m

5 137

11 n/m

957 n/m

677 n/m

631 41,994

443 65,115

4 n/m

360 n/m

41 n/m

1 n/m

983 n/m

15 n/m

1 281

2 n/m

865 n/m

44 n/m

3 n/m

725 54,406

3 n/m

12 7,725

9 136

5 n/m

430 144,734

2 351

2 n/m

87 n/m

6 n/m

13 1,505

Positive EPS est

Value-oriented Eq

ofideas.com

s % of the indicated

▼

Dividend Yield Last 12 AnnualMonths Indicate

14% 15%

12% 10%

19% 9%

7% 9%

6% 8%

7% 7%

7% 7%

4% 7%

5% 7%

6% 6%

5% 6%

6% 6%

1% 6%

6% 6%

3% 6%

8% 5%

5% 5%

5% 5%

5% 5%

6% 5%

6% 5%

5% 5%

5% 5%

5% 5%

5% 5%

5% 5%

1% 5%

3% 4%

3% 4%

4% 4%

4% 4%

2% 4%

4% 4%

5% 4%

3% 4%

3% 4%

4% 4%

4% 4%

4% 4%

4% 4%

3% 4%

4% 4%

3% 4%

4% 4%

4% 4%

timates for this F

quity Investment Id

annual dividend

Est. P/E

l This Next d FY FY

7x 8x

5x 5x

13x 10x

8x 7x

14x 12x

18x 11x

13x 12x

11x 9x

11x 10x

11x 14x

12x 10x

13x 11x

24x 18x

9x 12x

18x 12x

11x 10x

20x 10x

24x 19x

14x 13x

11x 10x

12x 12x

12x 13x

7x 8x

11x 11x

11x 11x

23x 17x

44x 12x

8x 9x

17x 15x

30x 22x

16x 13x

12x 11x

17x 15x

24x 16x

20x 16x

14x 15x

10x 10x

21x 17x

17x 14x

12x 11x

17x 16x

13x 12x

10x 8x

19x 13x

20x 15x

FY and next FY



d

Price to ITangible %

Book Own

1.1x 1%

2.2x 0%

1.3x 0%

1.5x 0%

1.4x 1%

.9x 1%

>9.9x 0%

.9x 0%

n/m 0%

.9x 1%

3.7x 9%

3.8x 0%

>9.9x 0%

2.8x 0%

1.3x 0%

1.9x 0%

.8x 1%

3.5x 0%

2.7x 1%

1.8x 0%

2.7x 0%

5.4x 0%

>9.9x 0%

1.2x 11%

2.4x 0%

1.5x 1%

1.0x 0%

1.5x 0%

1.7x 0%

3.4x 0%

1.4x 1%

3.9x 0%

2.6x 3%

.9x 4%

2.2x 0%

1.1x 3%

3.4x 0%

9.0x 17%

1.3x 0%

2.5x 0%

1.7x 17%

1.8x 1%

2.2x 0%

3.2x 42%

4.7x 0%

Prox

► MV > $100 m

ed Investors

of 170

Insiders Buys/ n. Sells

% 5 / 1

% 1 / -

% - / -

% 1 / 1

% 1 / -

% 4 / -

% - / -

% - / -

% 11 / 3

% 3 / -

% 7 / 4

% - / -

% 7 / 7

% - / -

% 4 / -

% - / -

% 2 / 1

% 2 / -

% 11 / 6

% - / -

% - / -

% 4 / 8

% - / -

% 31 / -

% - / -

% 5 / 12

% 5 / -

% - / -

% - / -

% 7 / 1

% 12 / 10

% - / -

% 3 / 8

% 5 / 4

% - / -

% 3 / 5

% - / -

% 8 / 3

% 7 / 2

% - / -

% 3 / 3

% 5 / 7

% - / -

% 8 / 8

% - / -

xy Y!

million

©

DC

© 2008-2011 by Beyond

Deep ValueCompanies that t

Company

1 Ingram Micro

2 Eastman Kod

3 Tech Data

4 Amerisource

5 World Fuel S

6 Systemax

7 Cardinal Hea

8 Office Depot

9 Sunoco

10 Kelly Service

11 Insight Enter

12 SYNNEX

13 McKesson

14 Barnes & No

15 * Delek US H

16 Supervalu

17 BJ's Wholesa

18 Celestica

19 Owens & Min

20 Tesoro

21 Flextronics

22 Brightpoint

23 Kroger

24 Valero Energ

25 Best Buy

26 General Moto

27 IDT Corp.

28 Administaff

29 Fred's

30 Tyson Foods

31 Manpower

32 Kindred Heal

33 * Coca-Cola

34 Rite Aid

35 Tutor Perini

36 Avnet

37 Arrow Electro

38 Sears Holdin

39 Western Refi

40 Sonic Autom

41 Safeway

42 Sanmina-SC

43 EMCOR Gro

44 Centene

45 * Bunge

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Price 52-W($) Low

20.39 -28%

3.71 -6%

51.20 -32%

37.79 -28%

39.99 -42%

14.80 -23%

42.14 -30%

5.47 -39%

43.75 -41%

22.74 -56%

18.32 -33%

34.99 -35%

80.64 -28%

18.61 -36%

10.65 -43%

8.78 -20%

49.53 -32%

11.57 -36%

31.42 -18%

24.15 -57%

8.42 -42%

12.84 -54%

23.10 -17%

29.42 -47%

33.04 -6%

36.51 -9%

26.47 -83%

29.45 -43%

14.17 -30%

18.63 -22%

67.63 -41%

25.14 -54%

76.00 -20%

1.39 -38%

25.16 -38%

36.97 -39%

42.10 -48%

93.03 -36%

16.94 -76%

14.80 -45%

22.39 -16%

16.77 -47%

32.34 -32%

30.37 -42%

74.24 -39%

Y! Price

iteria: ► EV to

SUBSCRIBE TODA

w Enterprisenue

ve To Week MV

High ($mn)

3% 3,197

145% 998

0% 2,387

0% 10,358

3% 2,764

64% 543

2% 14,739

68% 1,516

2% 5,275

1% 832

7% 848

4% 1,270

0% 20,504

33% 1,121

15% 579

104% 1,863

2% 2,705

3% 2,254

4% 1,990

7% 3,457

1% 6,399

3% 866

5% 14,691

3% 16,658

48% 13,024

8% 54,765

14% 601

3% 769

2% 557

10% 7,033

3% 5,516

2% 993

12% 2,063

27% 1,237

1% 1,185

1% 5,618

2% 4,834

35% 10,234

8% 1,496

1% 781

21% 8,347

21% 1,344

1% 2,149

1% 1,571

1% 10,757

Charts

trailing revenue

AY! www.manualo

e Value

▼

EV EV/

($mn) Sales

2,678 .08x

619 .09x

2,204 .09x

10,360 .13x

2,356 .14x

545 .15x

16,061 .16x

1,924 .16x

6,219 .17x

830 .17x

817 .17x

1,557 .18x

21,353 .19x

1,568 .23x

836 .23x

9,008 .24x

2,649 .24x

1,548 .25x

2,040 .25x

4,965 .25x

7,032 .25x

915 .25x

21,741 .27x

22,342 .27x

13,921 .28x

36,853 .28x

408 .29x

491 .29x

523 .29x

8,459 .29x

5,442 .29x

1,264 .29x

2,556 .29x

7,524 .30x

1,073 .30x

6,886 .30x

5,730 .31x

13,481 .31x

2,512 .31x

2,099 .32x

13,006 .32x

2,090 .32x

1,658 .32x

1,446 .33x

15,021 .33x

less than 0.5x ►

Value-oriented Eq

ofideas.com

Est. P/E

This Next FY FY

9x 8x

n/m n/m

12x 11x

16x 14x

18x 16x

11x 9x

16x 14x

n/m 91x

22x 17x

20x 14x

10x 10x

9x 9x

16x 14x

n/m n/m

n/m 31x

7x 7x

20x 18x

- -

15x 14x

13x 11x

- -

13x 11x

13x 12x

11x 10x

10x 9x

13x 9x

- -

28x 19x

19x 16x

9x 9x

24x 17x

15x 14x

18x 15x

n/m n/m

11x 11x

9x 9x

9x 8x

72x 82x

>99x 12x

16x 12x

15x 13x

9x 7x

18x 15x

15x 13x

13x 11x

► MV does not e

quity Investment Id

Price to InTangible %

Book Own.

1.0x 0%

n/m 0%

1.2x 0%

>9.9x 1%

3.5x 2%

1.6x 0%

>9.9x 0%

2.0x 1%

1.7x 0%

1.5x 2%

1.8x 1%

1.5x 1%

>9.9x 0%

n/m 2%

1.3x 0%

n/m 0%

2.4x 0%

1.6x 0%

3.4x 2%

1.2x 0%

3.3x 0%

>9.9x 2%

3.6x 0%

1.1x 0%

4.1x 0%

n/m 11%

3.4x 15%

3.5x 3%

1.4x 6%

2.1x 1%

5.2x 1%

1.4x 2%

.4x 0%

n/m 1%

1.9x 29%

2.2x 0%

2.5x 0%

2.7x 0%

2.4x 39%

n/m 1%

1.9x 1%

1.9x 2%

4.3x 2%

3.2x 6%

.9x 0%

Proxy

exceed revenue



siders

Buys/ Sells

5 / 5

5 / 3

1 / 5

10 / 4

2 / 2

1 / -

13 / 10

4 / -

6 / 2

11 / 3

10 / 8

6 / 6

10 / 11

9 / 10

1 / 1

1 / -

2 / -

- / -

14 / 12

4 / 5

- / -

16 / 14

16 / 9

9 / 9

7 / 3

22 / 11

7 / 1

8 / 6

2 / 6

16 / 8

11 / 5

12 / 12

- / -

- / 4

2 / 3

17 / 15

7 / 7

1 / 3

6 / 2

3 / 3

9 / 10

8 / 7

12 / 7

16 / 11

- / -

Y!

► MV > $500

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of 170

million

©

DC

© 2008-2011 by Beyond

Deep ValueCompanies that t

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1 Stewart Infor

2 Winn-Dixie S

3 Five Star Qua

4 WellCare

5 * Kindred He

6 Eastman Kod

7 Charming Sh

8 Blyth

9 E.W. Scripps

10 * Village Sup

11 Office Depot

12 Humana

13 Imation

14 * Hudson Hig

15 MedCath

16 * Coca-Cola

17 * Natuzzi

18 Haverty Furn

19 American Eq

20 Coldwater Cr

21 Molina Health

22 Corinthian Co

23 Gleacher & C

24 Hot Topic

25 Liz Claiborne

26 Christopher &

27 * Lawson Pr

28 RadioShack

29 Barnes & No

30 Retail Ventur

31 Core-Mark

32 Stein Mart

33 Celadon Gro

34 Brown Shoe

35 Spartan Store

36 Kenneth Cole

37 Lincoln Educ

38 PC Connectio

39 Skechers

40 * Kimball

41 42 43

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d Gross Profiples of gross pro

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C 11.50 -32%

N 6.97 -15%

E 6.72 -60%

G 38.45 -42%

D 25.14 -54%

3.71 -6%

S 3.48 -18%

H 34.25 -19%

P 9.56 -30%

EA 31.46 -23%

P 5.47 -39%

M 61.44 -30%

11.25 -25%

P 6.46 -55%

H 13.77 -51%

F 76.00 -20%

Z 4.53 -42%

T 12.93 -26%

L 13.85 -46%

R 3.03 -11%

H 34.79 -40%

O 5.28 -26%

H 1.91 -21%

T 5.59 -18%

4.99 -22%

K 6.23 -19%

S 24.35 -48%

H 15.70 -5%

S 18.61 -36%

17.62 -59%

E 34.18 -25%

T 8.28 -29%

16.07 -33%

S 15.37 -33%

N 15.58 -18%

P 13.92 -23%

C 15.88 -39%

C 9.38 -39%

X 21.63 -12%

LB 7.59 -37%

No othe

Y! Pric

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SUBSCRIBE TODA

ofiteers ofit

ove To 2-Week MV

w High ($mn)

% 30% 211

% 99% 389

% 13% 240

% 2% 1,635

% 2% 993

145% 998

% 99% 402

% 75% 282

% 23% 554

% 8% 222

% 68% 1,516

% 5% 10,342

% 12% 435

% 9% 208

% 7% 280

% 12% 2,063

% 31% 249

% 40% 283

% 1% 812

% 189% 280

% 2% 1,052

% 266% 447

% 149% 251

% 78% 249

% 95% 472

% 86% 222

% 12% 208

53% 1,787

% 33% 1,121

% 6% 886

% 9% 372

% 32% 360

% 5% 361

% 30% 674

% 14% 353

% 58% 254

% 78% 352

% 6% 252

% 108% 1,030

% 14% 207

r companies had en

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t more than traili

AY! www.manualo

E

EV ) ($mn) Sales

130 .1x

323 .0x

240 .2x

5 275 .1x

1,264 .3x

619 .1x

437 .2x

276 .3x

361 .5x

196 .2x

6 1,924 .2x

2 3,874 .1x

130 .1x

180 .2x

189 .5x

3 2,556 .3x

182 .2x

225 .4x

744 .6x

241 .2x

2 465 .1x

638 .3x

211 .7x

191 .3x

1,027 .4x

138 .3x

167 .5x

7 1,745 .4x

1,568 .2x

704 .4x

343 .0x

280 .2x

369 .7x

908 .4x

503 .2x

184 .4x

375 .6x

219 .1x

0 879 .4x

176 .1x

nterprise value to gro

ng gross profit

Value-oriented Eq

ofideas.com

▼ Enterprise Value /

Gross s Profit EBIT

.1x .1x

.2x n/m

.2x 11.5

.3x 35.7

.3x 13.2

.3x 3.4x

.4x n/m

.5x 5.2x

.6x 19.8

.6x 4.4x

.6x n/m

.6x 2.1x

.6x n/m

.6x n/m

.6x n/m

.6x 2.0x

.6x 17.1

.7x 20.4

.7x .6x

.7x n/m

.7x 4.4x

.8x 130.2

.8x n/m

.8x 956.0

.8x n/m

.8x n/m

.9x 9.9x

.9x 4.3x

.9x n/m

.9x 4.4x

.9x 9.2x

.9x 6.5x

.9x 17.2

.9x 11.9

.9x 8.3x

.9x n/m

.9x 3.1x

1.0x 5.7x

1.0x 4.5x

1.0x 117.5

oss profit of less than

► MV not more

quity Investment Id

Est. P/E

This Next T FY FY

x 26x 9x

m n/m n/m

5x 11x 10x

7x 14x 12x

2x 15x 14x

x n/m n/m

m n/m >99x

x 12x 12x

8x 14x 38x

x - -

m n/m 91x

x 10x 9x

m n/m 40x

m 15x 10x

m 81x >99x

x 18x 15x

x n/m 38x

4x 46x 18x

x 8x 7x

m n/m n/m

x 16x 14x

2x 6x 11x

m 48x 9x

0x n/m 40x

m n/m 9x

m n/m n/m

x - -

x 9x 9x

m n/m n/m

x >99x -

x 16x 12x

x 9x 12x

2x 26x 17x

9x 16x 11x

x 12x 11x

m 25x 18x

x 6x 7x

x 10x 9x

x 16x 10x

5x - -

n 1x.

than 2x gross p



Price/ Ins

Tang. % Book Own.

1.0x 0%

.6x 2%

1.7x 2%

2.3x 1%

1.4x 2%

n/m 0%

1.7x 0%

1.3x 0%

1.1x 0%

1.1x 5%

2.0x 1%

2.6x 1%

.9x 1%

2.2x 2%

.9x 2%

.4x 0%

.5x 0%

1.1x 2%

.8x 4%

1.2x 0%

2.6x 3%

2.8x 1%

1.1x 12%

1.1x 0%

n/m 1%

1.2x 2%

1.8x 0%

2.1x 0%

n/m 2%

4.4x 0%

1.1x 3%

1.4x 2%

2.5x 8%

2.0x 1%

7.2x 0%

1.8x 0%

3.2x 4%

1.2x 2%

1.1x 2%

.6x 1%

Proxy

rofit ► MV > $2

ed Investors

of 170

siders

Buys/ Sells

1 / -

19 / 13

5 / -

8 / 10

12 / 12

5 / 3

3 / -

- / 1

3 / 8

3 / 4

4 / -

6 / 6

4 / 2

6 / 6

- / 5

- / -

- / -

1 / 3

6 / 6

- / -

4 / 7

19 / 3

- / 3

2 / -

9 / -

3 / 5

- / 2

2 / 3

9 / 10

- / -

14 / 8

14 / 6

8 / 4

1 / 4

2 / 2

- / -

4 / 8

2 / 3

4 / 6

6 / 1

Y!

200 million

©

AC

© 2008-2011 by Beyond

Activist TargCompanies that m

Company

1 Qiao Xing Mo

2 Qiao Xing Un

3 Audiovox

4 Maxygen

5 Crexus Inves

6 Myriad Pharm

7 Exceed Com

8 Alvarion

9 Sycamore Ne

10 Tuesday Mor

11 Sprott Physic

12 Ingram Micro

13 Imation

14 Flexsteel Ind

15 Movado

16 * China Agrit

17 FormFactor

18 Rimage

19 Xyratex

20 PC Connectio

21 * Kimball

22 Colony Finan

23 InfoSpace

24 * Telestone T

25 Benchmark E

26 QLT

27 Tech Data

28 ModusLink

29 Callaway Go

30 PennyMac M

31 Exar

32 Cutera

33 * Cytokinetic

34 Nam Tai Elec

35 * China Fire

36 BigBand Netw

37 RTI Biologics

38 Force Protec

39 Universal Tra

40 West Marine

41 Hardinge

42 Cogo Group

43 * G. Willi-Foo

44 TomoTherap

45 * Richardson

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Price 52er ($) Low

M 4.79 -57%

G 2.52 -46%

X 8.26 -25%

Y 4.09 -24%

S 13.25 -11%

X 3.95 -10%

S 8.00 -24%

R 2.04 -13%

R 22.17 -27%

S 4.55 -23%

S 12.36 -22%

20.39 -28%

11.25 -25%

S 15.85 -36%

V 14.88 -36%

C 8.14 -11%

M 9.06 -24%

G 14.64 -4%

X 13.17 -20%

C 9.38 -39%

B 7.59 -37%

Y 21.01 -21%

P 8.33 -21%

C 8.63 -18%

E 19.86 -30%

I 6.97 -34%

D 51.20 -32%

K 6.87 -16%

8.14 -29%

T 18.17 -14%

R 6.33 -15%

R 9.60 -28%

K 1.52 -3%

7.65 -47%

G 5.93 -5%

D 2.62 -6%

X 2.71 -25%

T 5.63 -31%

A 7.03 -54%

R 12.75 -34%

G 11.55 -36%

O 8.93 -34%

C 7.44 -30%

O 3.73 -31%

L 13.03 -43%

Y! Pric

iteria: ► Tang.

SUBSCRIBE TODA

Liquidationorate event

ove To 2-Week MV High ($mn)

% 24% 228

% 56% 232

% 18% 189

% 6% 123

% 6% 240

% 33% 101

% 31% 157

% 102% 115

% 55% 633

% 93% 196

% 4% 1,197

% 3% 3,197

% 12% 435

% 24% 106

% 15% 368

% 278% 169

% 132% 460

25% 140

% 55% 385

% 6% 252

% 14% 207

% 1% 365

% 42% 301

% 157% 106

% 15% 1,210

% 24% 356

% 0% 2,387

% 62% 300

% 25% 524

% 4% 479

% 23% 282

% 25% 131

146% 100

% 1% 343

178% 164

39% 181

% 69% 149

% 20% 396

% 55% 140

% 7% 288

% 1% 134

% 7% 316

% 2% 101

% 12% 209

% 2% 234

ce Charts

book > 50% of M

AY! www.manualo

ns or Recaps

Price

EV Tangib ($mn) Boo

(79) .6x

(182) .5x

142 .7x

(30) .8x

(31) .9x

(13) .7x

62 .7x

24 .9x

38 1.0x

179 .7x

115 1.1x

2,678 1.0x

130 .9x

99 .9x

305 1.0x

123 1.2x

112 1.1x

33 1.1x

295 1.1x

219 1.2x

176 .6x

88 1.3x

47 1.3x

105 1.4x

875 1.1x

158 .9x

2,204 1.2x

154 1.1x

469 1.0x

(55) 1.5x

95 1.2x

41 1.4x

29 1.4x

124 1.1x

134 1.3x

38 1.4x

121 .9x

290 1.2x

75 1.5x

250 1.2x

108 .9x

254 1.6x

55 1.3x

57 1.3x

219 1.5x

MV ► ST asset

Value-oriented Eq

ofideas.com

ps

to ble Net Cash

ok (% of MV)

x 134%

x 178%

x 25%

x 124%

x 113%

x 113%

x 61%

x 79%

x 94%

x 9%

x 90%

x 16%

x 70%

x 7%

x 17%

x 27%

x 76%

x 76%

x 24%

x 13%

x 15%

x 76%

x 84%

x 1%

x 28%

x 56%

x 8%

x 49%

x 10%

x 111%

x 66%

x 69%

x 71%

x 64%

x 18%

x 79%

x 18%

x 27%

x 46%

x 13%

x 19%

x 19%

x 45%

x 73%

x 6%

ts - liabilities > 50

quity Investment Id

▼

NCAV EV/(% of MV) Sale

171% n/m

141% n/m

118% .2x

116% n/m

112% n/m

110% n/m

110% .1x

100% .1x

93% .6x

93% .2x

90% n/m

86% .1x

85% .1x

81% .3x

80% .8x

80% 1.2x

79% .6x

78% .4x

77% .2x

77% .1x

77% .1x

76% 4.7x

76% .2x

72% 1.0x

71% .4x

70% 3.5x

70% .1x

68% .2x

68% .5x

67% n/m

67% .6x

67% .8x

66% 11.0

65% .3x

65% 1.6x

65% .3x

64% .7x

64% .4x

64% .5x

63% .4x

63% .4x

63% .7x

62% .6x

62% .3x

61% .6x

0% of MV ► Ne



Next In

/ FY % es P/E Own.

m - 0%

m - 0%

x - 8%

m - 0%

m 9x 0%

m n/m 1%

x 4x 0%

x - 0%

x n/m 0%

x 9x 2%

m - 0%

x 8x 0%

x 40x 1%

x - 16%

x 39x 4%

x 8x 2%

x n/m 0%

x 20x 0%

x 5x 0%

x 9x 2%

x - 1%

x 12x 0%

x 22x 1%

x 4x 0%

x 12x 1%

x - 1%

x 11x 0%

x - 2%

x 21x 1%

m 7x 0%

x n/m 1%

x n/m 0%

0x n/m 0%

x 19x 0%

x 6x 0%

x n/m 1%

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