View
154
Download
1
Category
Preview:
DESCRIPTION
Interviews with Brian Bares of Bares Capital and Bryan Lawrence of Oakcliff Capital, as well as analysis of other superinvestor portfolios.
Citation preview
CB
IG
T
S (
S (
Z (
A
E
I
I
P
N
R
1
E
F
T
A
Oidbqhatofo
Oeain“ginrae
Copyright WarningBeyondProxy LLC.
nvesting In TheGraham, Buffett
Year IV, VolumFebruary 28, 20
When asked hosuccessful, Buf“We read hundof annual repor
Top Ideas In Thi
Seagate Technolog(Nasdaq: STX) …
Sprint Nextel (NYSE: S) ………
Zimmer Holdings (NYSE: ZMH) …
Also Inside
Editor’s Commenta
nterview with Bri
nterview with Bry
Portfolios with Sig
New or Increased
Reduced or Offsett
00 Superinvestor
Essay by Josh Tara
Favorite Value Scr
This Month’s Top W
About The Manu
Our goal is to brindeas that are combasis of value verquest for value, wholdings of top fualso use a proprieo identify stocks ollowed by institu
Our research teaexperience in indanalysis, equity vnvestment manabuy side” mindse
generation procendustries and maanges in our sea
equity investment
g: It is a violation oEmail support@ma
Tradition of t, Klarman
me II 011
ow he became soffett answered:
dreds and hundrerts every year.”
s Report
gy ……………………
………………......
…………………
ary ………………
ian Bares ………
yan Lawrence ……
gnal Value™ ……
Holdings ………
ting Holdings ….
r Stocks …………
asoff ……………
reens ……………
Web Links ……..
ual of Ideas
ng you investmenmpelling on the rsus price. In our
we analyze the tond managers. Wetary methodologthat are not wide
utional investors.
m has extensiveustry and securit
valuation, and agement. We brinet to the idea ss, cutting acrosarket capitalizatioarch for compellint opportunities.
V
“
f federal copyright anualofideas.com if
o
eds
…114
..118
..130
…... 5
… 8
… 12
… 18
. 70
134
…146
156
… 158
167
nt
r op
We gy ely .
ty
ng a
s on ng
Value-orient
A Monthly Pub
“If our efforts ca
law to reproduce af you wish to have
TH
► Snaps
► 1
► Proprie
►
► Pl
► Plu
SupeAbitibiBo
Anadarko PBP, Br
CareFusionCisco
CorporatEnstar G
Flowserve,Gener
Harvest NaJ.C. Penne
Lamar AdLiberty
Loral SpaceMcKess
Owens IlliPraxair, P
SchlumSpectru
Teck ResoTyco Inter
Vulcan Mater
ted Equity In
blication of Bey
an further the gover other mar
all or part of this pubmultiple copies sen
HE SUP
shot of 100
► Latest h
9 companie
etary select
Plus: Exclu
us: Exclusi
us: Favorite
erinvestor comowater, AccuriPetroleum, Anroadridge Finan, CBS, Charteo Systems, Cote Executive, DGroup, Expres, Fortune Branral Growth, Geatural Resourcey, Johnson & dvertising, Leay Global, Libere, LyondellBasson, Microsofinois, PDL BioProcter & Gam
mberger, Seagaum Brands, Spources, Texasrnational, Vailrials, W.R. Gra
Zimmer H
(analyze
nvestment Id
yondProxy LLC
goals of our memrket participants
blication for any punt to you. © 2008-2
PERINVE
companies
holdings of
es profiled
ion of Top 3
usive interv
ve interview
e stock scre
mpanies mentiide, Alere, Am
nheuser-Buschancial, Brookfer Comms, Ch
oca-Cola, ComDaVita, Dean F
ss Scripts, Exxnds, Foster Weneral Motors,ces, Hewlett-P Johnson, Kraap Wireless, Lrty Interactivesell, Massey Eft, Molson CoooPharma, Pfizmble, Radian Gate Technologprint Nextel, S
s Industries, Tl Resorts, Valeace, Wal-Mart,Holdings, ZipR
ed companies
deas for Sop
Subscribe
mbers by givingts, we have succ
urpose without the p2011 by BeyondPro
ESTOR
s owned by
f 50 top inve
by MOI rese
3 candidate
view with Br
w with Brya
eens for val
tioned in this imerican Towerh InBev, Applifield Infrastruchesapeake Ene
mcast, CommSFoods, Electroxon Mobil, Fis
Wheeler, Gap, G, H&R Block, H
Packard, Internaft Foods, LabLearning Tree,e, Lions Gate EEnergy, Masteors, MRV Comzer, Plains ExpGroup, Raythegy, Sears HoldStanley Black
Theravance, Tieant Pharma, , Watson PharRealty, and mo
s are underline
phisticated In
e at manualofide
g them a discernceeded.”
prior written consenoxy LLC. All rights
ISSUE
superinves
estors
earch team
es for inves
rian Bares
an Lawrence
ue investor
issue includer, Amylin Pharied Materials, cture Partnersergy, China M
Scope, Copart,onic Arts, Ens
serv, FlextroniGastar ExploraHain Celestialnational Paperb Corp. of Ame, Level 3 ComEntertainment
erCard, McDonmms, Omnicarploration, POSeon, Ross Stordings, Snap-oDecker, Steris
ime Warner CaVishay Precisrma, Wendy's/ore.
ed)
nvestors
eas.com
rnible edge
nt of reserved.
stors
stment
e
rs
rma, Arris,
s, Mobile, , sco, ics, ation, l, r, ITT, erica,
mms, t, nald's, re, SCO, res,
on, s, able, sion, /Arby's,
©© 2008-2011 by Beyond
Proxy LLC. All rights res
erved.
TaED
EX
EX
50+
AAABBBBBBBCCCEEEFFFGGGGHHHHILLLMMMPPPPSSSSSTTTVWWWW
SUBSCRIBE TO
ble of ConDITORIAL CO
XCLUSIVE INT
XCLUSIVE INT
+ PORTFOLI
AKRE CAPITAL (CAPPALOOSA (DAV
ATLANTIC INVESTM
BARES CAPITAL (BBAUPOST (SETH KBERKSHIRE HATH
BLUE RIDGE (JOH
BP CAPITAL (BOO
BRAVE WARRIOR
BREEDEN CAPITA
CENTAUR VALUE (CHILDREN’S INVES
CHOU ASSOCIATE
EAGLE (BOYKIN CEDINBURGH PART
ESL INVESTMENT
FAIRFAX (PREM WFAIRHOLME (BRUC
FORCE CAPITAL (RGATES CAPITAL (JGLENVIEW (LARRY
GOLDENTREE (ST
GREENLIGHT (DAV
H PARTNERS (REH
HARBINGER (PHIL
HAWKSHAW (KIAN
HOUND PARTNERS
CAHN CAPITAL (CLANE FIVE (LISA RLEUCADIA (IAN CU
LONE PINE (STEV
MARKEL GAYNER
MHR (MARK RAC
MSD CAPITAL (GL
PABRAI FUNDS (MPAULSON & CO. (JPENNANT (ALAN FPERSHING SQUAR
SAGEVIEW (ED GI
SCOUT (JAMES CR
SECOND CURVE (SOUTHEASTERN (SPENCER (KEN SH
TETON (QUINCY LTHIRD POINT (DAN
TIGER GLOBAL (CVIKING GLOBAL (AWEITZ FUNDS (WA
WEST COAST (LA
WINTERGREEN (DWL ROSS & CO. (
DAY! www.manua
ntents OMMENTARY
TERVIEW W
TERVIEW W
OS WITH SIG
HUCK AKRE) .......VID TEPPER) ........MENT (ALEXANDE
BRIAN BARES) .....KLARMAN) ...........AWAY (WARREN BN GRIFFIN) .........
ONE PICKENS) ......(GLENN GREENB
L (RICHARD BREE
(ZEKE ASHTON) ..STMENT (CHRIS H
ES (FRANCIS CHOU
CURRY) ................TNERS (SANDY NA
S (EDDIE LAMPER
WATSA)................CE BERKOWITZ) ..ROBERT JAFFE) ..JEFF GATES).......Y ROBBINS) ........TEVE TANANBAUM
VID EINHORN) .....HAN JAFFER) ......
L FALCONE) .........N GHAZI) .............S (JONATHAN AUE
CARL ICAHN) ........RAPUANO) ...........UMMING AND JOE
E MANDEL) .........(TOM GAYNER) ..HESKY) ..............LENN FUHRMAN A
MOHNISH PABRAI)JOHN PAULSON) .
FOURNIER) ..........RE (BILL ACKMAN)ILHULY AND SCOT
RICHTON)............TOM BROWN) .....MASON HAWKINS
HUBIN STEIN) ......LEE) ....................N LOEB) ..............
CHASE COLEMAN)ANDREAS HALVOR
ALLY WEITZ) .......NCE HELFERT AND
DAVID WINTERS) ..(WILBUR ROSS) ...
Value-oriented
alofideas.com
Y ...................
WITH BRIAN B
WITH BRYAN
GNAL VALU
..........................
..........................ER ROEPERS) ..........................................................BUFFETT) ...............................................................ERG) .................
EDEN) ...........................................
HOHN) ................U) ................................................AIRN) ..................RT) .......................................................................................................................................................
M) ...............................................................................................................................ERBACH) ................................................................STEINBERG) ....................................................................................
AND JOHN PHELAN
.............................................................................) ........................TT STUART) ............................................................
S) ..............................................................................................................................
RSEN) ...........................................D PAUL ORFALEA
..........................
..........................
d Equity Investment
.....................
BARES .........
LAWRENCE
E™ ...............
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................N) ...................................................................................................................................................................................................................................................................................................................................................................................................
A) ............................................................................
t Ideas for Sophistic
February 28, 2011
......................
......................
E.....................
......................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
cated Investors
– Page 3 of 170
............. 5
............. 8
........... 12
........... 18
................ 19
................ 20
................ 21
................ 22
................ 23
................ 24
................ 25
................ 26
................ 27
................ 28
................ 29
................ 30
................ 31
................ 32
................ 33
................ 34
................ 35
................ 36
................ 37
................ 38
................ 39
................ 40
................ 41
................ 42
................ 43
................ 44
................ 45
................ 46
................ 47
................ 48
................ 49
................ 50
................ 51
................ 52
................ 53
................ 54
................ 55
................ 56
................ 57
................ 58
................ 59
................ 60
................ 61
................ 62
................ 63
................ 64
................ 65
................ 66
................ 67
................ 68
................ 69
©© 2008-2011 by Beyond
Proxy LLC. All rights res
erved.
NE
AAABBGGHLMPSSVWZ
RE
BCH
SN
IBBBB
ES
FA
“““CVPDDA
TH
SUBSCRIBE TO
EW OR INCRE
ABITIBIBOWATER
ACCURIDE (ACW)ANHEUSER-BUSC
BP (BP) — BLUE
BROOKFIELD INFR
GASTAR EXPLORA
GM (GM) — APPA
HAIN CELESTIAL (LIONS GATE ENTE
MASTERCARD (MAPDL BIOPHARMA
SEAGATE TECHNO
SPRINT NEXTEL (SVULCAN MATERIA
WENDY’S/ARBY’S
ZIMMER HOLDING
EDUCED OR
BROADRIDGE (BRCHINA MOBILE (CHARVEST NATURA
NAPSHOT OF
N ALPHABETICAL
BY MARKET VALU
BY STOCK PRICE
BY ESTIMATED FO
BY AVERAGE ANN
SAY: “ON P
AVORITE STO
“MAGIC FORMULA
“MAGIC FORMULA
“MAGIC FORMULA
CONTRARIAN: BIG
VALUE WITH CATA
PROFITABLE DIVID
DEEP VALUE: LOT
DEEP VALUE: NEG
ACTIVIST TARGET
IS MONTH’S
DAY! www.manua
EASED SUPE
(ABH) — FAIRFA
) — THIRD POINT
H INBEV (BUD) —RIDGE , BP CA
RASTRUCTURE PA
ATION (GST) — BALOOSA , BLU
HAIN) — ICAHN ERTAINMENT (LGFA) — AKRE , BR
(PDLI) — BAUPO
OLOGY (STX) — ES) — CHOU , G
ALS (VMC) — SOU
(WEN) — SOUTH
S (ZMH) — BARE
OFFSETTING
R) — BRAVE WAR
HL) — KLEINHEIN
AL RESOURCES (H
F 100 SUPER
ORDER ..............E .......................PERFORMANCE ..
ORWARD P/E .......NUAL ROE (PAST S
RICING POW
OCK SCREEN
A,” BASED ON TRAI
A,” BASED ON THIS
A,” BASED ON NEXT
GGEST YTD LOSER
ALYST: CHEAP RE
DEND PAYORS WIT
TS OF REVENUE, LGLECTED GROSS
S: POTENTIAL SA
S TOP 10 WE
Value-oriented
alofideas.com
ERINVESTO
AX , MARKEL ..................
— MARKEL ......APITAL , CHOU
ARTNERS (BIP) —BP CAPITAL ..UE RIDGE , GL
.......................F) — ICAHN , MRAVE WARRIOR OST .............ESL , GLENVI
GOLDENTREE UTHEASTERN , WHEASTERN ......ES , EDINBURG
G SUPERINV
RIOR , CENTAUR
NZ ..................HNR) — PABRAI
RINVESTOR H
..........................
..........................
..........................
..........................SEVEN YEARS) ...
WER,” BY JO
NS FOR VAL
ILING OPERATING
S YEAR’S EPS ES
XT YEAR’S EPS ES
RS (DELEVERAGE
EPURCHASERS OF
TH DECENT BALA
LOW ENTERPRISE
PROFITEERS ......ALES, LIQUIDATION
EB LINKS .....
d Equity Investment
R HOLDINGS
, PAULSON ...................................................., GREENLIGHT PABRAI .................................
LENVIEW , PEN
..........................MHR ................, LONE PINE
..........................EW , PAULSO
, GREENLIGHT WEITZ ......................................GH , GATES
VESTOR HOL
R , GLENVIEW
.......................... .......................
HOLDINGS ..
..........................
..........................
..........................
..........................
..........................
OSH TARASO
LUE INVESTO
G INCOME ............STIMATES ............STIMATES ...........
ED & PROFITABLE)STOCK ..............NCE SHEETS ......
E VALUE ........................................
NS OR RECAPS ....
.....................
t Ideas for Sophistic
February 28, 2011
S ...................
, THIRD POINT .................................................... ........................................................................
NNANT , PERS
..........................
.........................., TIGER .....................................N ................. ........................................................................... .........................
LDINGS ........
W , GREENLIGH
..........................
..........................
......................
..........................
..........................
..........................
..........................
..........................
OFF ...............
ORS ..............
..........................
..........................
.......................... ............................................................................................................................................................
......................
cated Investors
– Page 4 of 170
........... 70
........... 70 ................ 74 ................ 78 ................ 82 ................ 86 ................ 90
SHING . 94 ................ 98 .............. 102 .............. 106 .............. 110 .............. 114 .............. 118 .............. 122 .............. 126 .............. 130
......... 134
HT ..... 134 .............. 138 .............. 142
......... 146
.............. 146
.............. 148
.............. 150
.............. 152
.............. 154
......... 156
......... 158
.............. 158
.............. 159
.............. 160
.............. 161
.............. 162
.............. 163
.............. 164
.............. 165
.............. 166
......... 167
©© 2008-2011 by Beyond
Proxy LLC. All rights res
erved.
Ed
featsnaby t
covourwitbuytypdurAppof C
wor
Sea
throThemarinvprivend
altepric
qua
$
$
$1
$1
$2
$2
$3
$3
SUBSCRIBE TO
ditorial CoWe are pleas
turing the topapshots of “supthe superinves
We try to avvering Cisco Syr top ideas amoh interest in 1
ying Cisco. Peically known
ring the fourthpaloosa, Alan Centaur also in
We find the rthy of closer c
agate Technolo
Disk drive mough the cyclee company hasrket position, estors. It is thevate equity firded in late 2010
While conceernative storagced, trading at
Three superiarter—Eddie L
$0
$5
10
15
20
25
30
35
DAY! www.manua
mmentaryed to bring yoequity ideas ofperinvestor” potors.
oid repeating cystems (Nasdaong large-cap 3F-HR filings
erhaps most infor preferring
h quarter. SanFournier of Pe
ncreased their o
following thrconsideration:
ogy (Nasdaq: S
maker Seagate e, despite operas capable and p
both of whicerefore not surprms regarding 0, for now anyw
rns around thege technologiesa low teens fre
investors estabampert, John P
Feb 04Feb 03
Value-oriented
alofideas.com
y ou a new Superf 50 leading inortfolios as we
company analyaq: CSCO) in th
public compan with the SEC
nterestingly, Edtechnology c
ndy Nairn of Eennant, Larry Rownership of C
ree companies
STX, $12.70 p
has shown it cating in a capiproperly incentch seem to bprising that Se
g a going privway).
e sustainabilitys may be legitee cash flow yi
blished new pPaulson, and L
Feb 06Feb 05
d Equity Investment
rinvestor Issuenvestment manell as analysis
yses in short shis report. Wenies last mont
C that several sddie Lampert oompanies, purEdinburgh Par
Robbins of GleCisco.
that superinve
per share; MV
can generate sital-intensive ativized manage
be underapprecagate was rece
vate transaction
y of disk drivtimate, we finield on average
positions in Searry Robbins.
Feb 08Feb 07
t Ideas for Sophistic
February 28, 2011
of The Manuanagers. Inside,
of 19 compan
succession, so e featured Ciscoth. This monthsuperinvestors of ESL Investrchased a stakrtners, David enview, and Ze
estors have be
$5.7 billion)
significant freeand competitivement as well ciated by pubently in “discusn” (the talks
ve growth in tnd the shares ae FCF during 2
eagate during
Feb Feb 098
cated Investors
– Page 5 of 170
al of Ideas, you’ll find
nies owned
we are not o as one of
h, we noted have been
tments, not ke in Cisco
Tepper of eke Ashton
een buying
e cash flow ve industry. as a strong
blic market ssions with apparently
the face of attractively
2007-10.
the fourth
Feb 1110
©© 2008-2011 by Beyond
Proxy LLC. All rights res
erved.
Spr
decweasuc201USEB(assenv
whi
Zim
worhavproandAgilarg~8%
Jeff
$
$
$1
$1
$2
$2
$3
$
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
SUBSCRIBE TO
rint Nextel (NY
The share prclined from $20ak economy.
ccess in the for10. If wirelessA, Sprint NexITDA stays flsuming recentvision Sprint us
David Einhorile Francis Cho
mmer Holdings
Zimmer has rldwide (27%
ve a defensibleoducts, technold payors positiing populationgely non-cycli% trailing FCF
Brian Bares f Gates added t
$0
$5
10
15
20
25
30
Feb 02
$0
10
20
30
40
50
60
70
80
90
00
Feb 02
DAY! www.manua
YSE: S, $4.25 p
rice of U.S. w0+ in 2006 as Turnaround efrm of multi-yes margin can bxtel shares malat at the deprt capex) attracsing cash flow
rn and Steve Tou maintained
s (NYSE: ZMH
market-leadinglobal share ine moat and glogical knowhoion the compans, rising livincal demand d yield on a stro
and Sandy Nato his existing
Feb 04Feb 03
Feb 04Feb 03
Value-oriented
alofideas.com
per share; MV
wireless comma result of Nefforts by CEOear bests for nbe improved tay be worth twressed 2010 levctive. Followinto institute a d
Tananbaum esthis existing ho
H, $61 per sha
ng positions inn knees, 21%
generates high ow and strong
any to take advng standards a
drivers. The vaong balance sh
airn built new holdings in the
Feb 06Feb 05
Feb 06Feb 05
d Equity Investment
V $12.7 billion)
munications proxtel merger in
O Hesse are fnew customer eto the level ofwice the recenvel, we find tng additional
dividend and/or
tablished new poldings in the c
are; MV $12 bi
n knee and hipshare in hips).returns on in
g mindshare avantage of conand new prodaluation appea
heet.
equity stakes e company.
Feb 0Feb 07
Feb 0Feb 07
t Ideas for Sophistic
February 28, 2011
n)
ovider Sprint Nntegration probfinally showinenrollments anf smaller rivalnt market pricthe high-teens
debt paydowr buyback prog
positions in Spcompany.
illion)
p reconstructio The business
nvested capitalamong patientsntinued industducts provide ars quite attrac
in Zimmer in
Feb Feb 098
FebFeb 098
cated Investors
– Page 6 of 170
Nextel has lems and a
ng signs of nd churn in l T-Mobile ce. Even if
FCF yield wn, we can gram.
print in Q4,
on markets appears to
l. Patented s, surgeons try growth. long-term,
ctive at an
Q4, while
Feb 1110
Feb 11 10
©
© 2008-2011 by Beyond
Proxy LLC. All rights res
erved.
Spiin amadfellcamwaswitCun
Lawin torieremresuparwasfouchatranplea
Joshas
capby in f“mofirmandandTopwanBri
SUBSCRIBE TO
I had the pleier of Aquamara gracious yet de the event a low value inveme was impress a great learnih and learningnningham, Sha
One of the pwrence of Oakthe past and nentation. Guy
markable breedults speak for tnership Bryans the only per
unding Brave Wairman of Pubnsforming the ased to bring y
Another VALh Tarasoff of G
s graciously agr
Finally, we ap value managefocusing on smfavor of maintaove the needle
m has grown tod an ability to d bad. Most rep Endowments nts to benefit an’s book as a
DAY! www.manua
asure of co-horine Capital inefficient mannhuge success.
estors from allsive. Most graing opportunityg from several ai Dardashti, O
participants wkcliff Capital, anow manages Spier told us
d who likes to themselves. In
n started after arson invited b
Warrior. But peblic Prep, a gpublic school
you an exclusiv
LUEx participGreenlea Lane reed to let us re
are pleased to er Brian Bares.mall-cap value aining an abilite” for his clieno several hundattract investo
ecently, Brian and Foundatiofrom investinmust read.
Value-oriented
alofideas.com
osting VALUEn early Februarner — not to mWe were over
l over the woratifying to me wy and a fun timfolks, includin
Ori Eyal, and Je
whose wisdom an investor wha firm with athe following
do much, say n addition to ra successful ca
by Glenn Greeerhaps the mosgroup of charl education lanve and rare inte
pant whose inCapital. Josh seprint his essay
bring you an Brian has posin a concentratty to have his
nts. Despite thedred million doors who have sauthored the bons Turn Smalng in small, u
Sincer
John M
and Th
d Equity Investment
Ex Zurich/Klosry. Guy’s abilimention his abrwhelmed by thrld, and the quwas the sharedme. I had the png Ethan Berg
effrey Hamm, t
I particularlyho has partnerean exemplary g about Bryanlittle and allowracking up gre
areer as a partnenberg (of Chst extraordinarrter schools thndscape in theerview with Br
sights I foundspoke on the toy in this report
exclusive intersted impressiveted way. He hainvestments in
e lack of aggreollars in assets,stuck with hisbook The Small Stocks into Bundervalued c
rely,
Mihaljevic, CF
The Manual of I
t Ideas for Sophistic
February 28, 2011
sters with my fty to steer the ility on the skihe level of atteuality of the pd sentiment thapleasure of speg, David Coynto name a few.
y appreciated wed with Glenn
structure and n: “[He] is thaw actions or, eeat returns at O
ner at Lazard Bieftain) to parry is Bryan’s what have a ree United Statesryan in this rep
d thought-provopic of pricing t.
rview with fame returns over mas eschewed asn small public essive marketin, driven by stros approach in gall-Cap AdvanBig Returns. Ancompanies sho
FA
Ideas research
cated Investors
– Page 7 of 170
friend Guy discussion i slopes — endance by people who at the event ending time ne, Graham
was Bryan Greenberg long-term
at rare and even better, Oakcliff, a
Brothers, he rtner up in work as the eal shot at s.” We are
port.
voking was power. He
med small-many years sset growth companies ng, Brian’s ong returns good times
ntage: How nyone who
ould regard
team
©
“
bute
© 2008-2011 by Beyond
“Our contenmarket c
undervaluesusinesses aneams. Today
more of thebefo
Proxy LLC. All rights res
tion is that thronically s exceptiona
nd managemwe are findi
ese than everfore.”
erved.
the
al ent ing r
SUBSCRIBE TODA
ExclusiveWe are pleasBrian Bares. on investmenstrategy in 20the growth onewly publisFoundations
Our firstof The Manumonth’s inter
The Manuainterviewed affected your
Brian BaresWe do not scvalue as a strun by excepinstead of undervalues finding morebase, but wequalitative faunderlying bumarket pricin2009. We aBecause we between the d
MOI: We rethe small capinvestment inand what is th
Bares: TheropportunitiesCapping assespace. Most significant aoutperformanincreased divpotential ideaincreases com
The secchallenges oftheir consultahow they camanagers ancapital to the
AY! www.manualo
e Interviewsed to present aBares Capital
nts in micro-ca001. Brian has
of assets undershed book TheTurn Small Sto
t interview withual of Ideas arview focuses o
al of Ideas: Min August 20
r ability to find
: Our investmcreen for low tarting point foptional managequantitative. exceptional b
e of these than e are finding actors has yet usiness value ang. Our worriare concerned
run concentradrivers of value
ecently had thep value processn this part of the key messag
re are a fews available to ets is critical f
professional asset inflowsnce. An increasversification was. The first chmpetition for in
cond differentif growing an inants should bean increase pend what extra se managers.
Value-oriented Eq
ofideas.com
w with Brian interview wManagement w
ap public comps adhered to ar managemente Small-Cap Aocks into Big R
h Brian Bares wand focused onon some of the
Much has hap009. How ha
d bargains? Wh
ment process is prices in comp
or our researchers. In this respOur contenti
businesses andever before. Popportunities to manifest it
and earnings pies today are n
with the ecoated strategiese within our po
e pleasure of rs. You generouthe equities un
ge you are hopi
w differentiatosmall stock
for managers wsmall-cap inve. This handsed asset base within the pohoice crimps pnvestment idea
iator is that nstitutionally-fe able to comeerformance by
due diligence
quity Investment Id
ian Bares with Austin, Tewas founded in
mpanies. The fira disciplined but over time. BAdvantage: HoReturns.
was published n Brian’s invee topics covere
ppened in theave rapidly rehat are you wor
different fromparison to earnh. We seek oupect, our searcion is that td managementPrices have riswhere the rec
tself in markepower has recono different thonomic exposs, we attempt ortfolio.
reading your nusly provide a bniverse. What ing to get acros
ors. First, theinvestors wh
who wish to mestors who ex
dicaps their pleaves a mana
ortfolio, or inpotential returnas.
the book offfocused small-ce away with a y investing wie may be requ
eas for Sophisticate
February 28, 2011 –
exas-based valun 2000, initiallrm launched ausiness strategrian is the aut
ow Top Endow
in the August estment philosod in Brian’s ne
e markets sincebounding equrried about mo
m that of other nings, cash flout competitive ch for value is the market ct teams. Toda
sen since we lacognition of e
et prices. In movered more quhan our worrieures of our bto minimize
newly publisheblueprint for indifferentiates y
ss?
e book focuseho cap their amaintain flexibxperience succpotential for ager with two ncreased markns, and the seco
fers a windowcap firm. Institgreater unders
ith small entreuired before c
ed Investors
– Page 8 of 170
ue investor ly focusing a small-cap gy, limiting thor of the
wments and
2009 issue ophy. This ew book.
ce we last uity prices
ost today?
managers. ow or book
businesses qualitative
chronically ay we are ast touched exceptional
many cases, uickly than es were in businesses. correlation
ed book on nstitutional your book,
es on the asset base.
bility in the cess attract
sustained choices —
ket cap of ond choice
w into the tutions and standing of epreneurial committing
©
ca
© 2008-2011 by Beyond
“Successfulwho operatetend to attrgraduate to
aps, while thpeers leave
Proxy LLC. All rights res
l professionae in small ca
ract assets an mid and lar
heir unsuccesthe business
erved.
als aps nd rge ssful s.”
SUBSCRIBE TODA
MOI: The hiare well docdisadvantage
Bares: One despite the pspace is still to attract asspeers leave ttrading, and their researchvacuum in pfirms focused
Another to understandforward finapresence of researcher, tadvantage. Th
MOI: You hon your bestdesigning a minvestors rath
Bares: Whenparamount imretaining all high-quality endowment allow them tmeasured in attract this tyreally effectipresence andcapital are udiligence on ideas about pqualities sucslowly and mcreate invaluaalso builds tru
MOI: At theCapital madereflected at lcondition thewhen it come
Bares: I advoa service, notare thinking aSince we fun
AY! www.manualo
istorical outpeumented. Whas of investing i
advantage thaproliferation ofinefficient. Suc
sets and graduthe business. Wother fees shy
h departments participation prd on doing thei
advantage of id. They tend tancial structurtroubled or ohese companihey may also i
have limited yot ideas while marketing strateher than the qua
n capacity is lmportance. Weof our institutroster of clienspace. Their pto be patient wmonths or quaype of investoive. Prospectivd your investmusually the dithe part of an
prospective mah as honesty
methodically anable reputationust.
e recent VALUe the point thaleast in part vaeir investors fes to communic
ocate completet a product. Cliat all times. Th
nction as a rese
Value-oriented Eq
ofideas.com
erformance of at are some oin small cap va
at is misundef hedge fundsccessful profes
uate to mid anWall Street firy away from ttend to focus orovides a real ir own homewo
investing in smto have singleres. The disaoverly speculaies may not ointroduce the re
our assets undeavoiding markegy if you are antity of assets
limited, the que were able totional clients ants that we haperpetual timewith us. Their arters, but insteor, we have fove clients mu
ment approachfference betw
n institution. Managers, which
and integritynd placing a prnal capital. Del
UEx in Zurich/at investor redalue managersfor tough timecating with you
e transparency,ients deserve this helps engenearch arm for o
quity Investment Id
small caps andf the less welalue?
erstood by thes and other prssionals who o
nd large caps, rms dependentthe space for pon the largest copportunity f
ork.
maller compane product linesadvantages of ative companieoffer any oppeal risk of perm
er managemenket cap creep.primarily concs?
uality of a mao survive the 2and capital. Thave attracted fe horizon andassessment of
ead over rollinfound that tradst obviously b, but word of
ween passing iMany institutio
heightens the . Building the
rimacy on the ilivering on pro
/Klosters, Brydemptions in la’ failure to pro
es. What best ur investors?
, and I view into know what wnder trust. It aour clients in s
eas for Sophisticate
February 28, 2011 –
d their relativell-known advan
e general publrofessional invoperate in smalwhile their un
t on investmenprofitability recompanies. Th
for individuals
nies is that theys and relativel
the space ines. For the fuportunity for manent loss of
nt in order to c. How do youcerned with the
anager’s client 2008-‘09 downhis is a testamfrom the foun
d limited liquif our performang multi-year pditional marketbe made awarf mouth and reinterest and s
ons and consulimportance of
e managementinterests of the
omises like cap
an Lawrence oate 2008 and operly commupractices can
nvestment manawe are doing analso keeps us osmall stocks an
ed Investors
– Page 9 of 170
e illiquidity ntages and
lic is that, vestors, the ll caps tend nsuccessful nt banking, easons, and he resulting
and small
y are easier ly straight-nclude the undamental a research capital.
concentrate u go about e quality of
base is of nturn while ment to the dation and idity needs ance is not periods. To ting is not re of your eputational erious due ltants share f intangible t company
e client will ping assets
of Oakcliff early 2009
unicate and you share
agement as nd how we
on our toes. nd are paid
©
asthofF
re
su
© 2008-2011 by Beyond
“True infadvantages asmall compahey are usuaof long-term Flipping a $1
$1 worth ofeal estate on
a repeatabustained outp
Proxy LLC. All rights res
formational are rare, evenies. Moreo
ally poor souinvestor retu
10 company f undiscover
n the books isble recipe fotperformance
erved.
en in ver,
urces urn. with
red s not
or e…”
SUBSCRIBE TODA
to provide outactical decisagainst a rperformance expect us toexpectations share of that,
MOI: What stocks? What
Bares: I wousuccess. Evemanagers whsuccessful fiAttracting loenough to beour first instiprospects andtime pressureand on the m
Identifyithink. It is nothers may hcompanies. Mreturn. Flippibooks is not would argue and behaviormisunderstanteam, or the csold for struc
MOI: If youwould be the
Bares: I wouprocess, the understand hshould, over net-of-fees bahonest, hard-to get comfor“How do youof the investmwhat you say
MOI: “Edgeimpressed bymarket ineffiway to differlegitimate sousome type of
AY! www.manualo
ur very best idsions in our clirelative smallin 2008, but
o deliver posishould be parespecially afte
advice would t are some way
uld advise aspn the best invho lived throuirm takes a
ong-term clienegin with an exitutional accoud existing cliene of commitmearketing and op
ing pockets of not limited to have missed. TMoreover, theing a $10 compa repeatable rthat an invest
ral inefficiencnding of the excompetitive str
ctural reasons a
u were an instkey questions
uld want to gpeople, and
how the investtime, compou
asis. I would al-working peoprtable with theu get your invement team?”;
y you will do?”
” is a rather eluy investors whciency, even if
rentiate betweeurce of compe
f information ad
Value-oriented Eq
ofideas.com
deas, we are abients’ portfoliol-company begiven our lonitive results. rt of every maer periods of st
you give to anys of identifyin
iring managervestment proceugh the late sustained com
nts is not easyxisting roster
unt took almosnts is a necessents on the invperations side
f inefficiency isfinding under
True informatioey are usuallypany with $1 wrecipe for sustator’s time is becies. These effxceptional capirength of a comare another exa
titution evaluayou would wa
get comfortablethe operation
tment process und my capitallso want assura
ple with reasone operations of estment edge?”and “How can
” would shed so
usive concept, ho convey anf the inefficienen a temporaryetitive advantagdvantage?
quity Investment Id
bsolved from mos. The measuenchmark. W
ng-only orientaI would agre
anager’s job, atrong performa
n aspiring acting pockets of p
rs to temper thess can underp1990s can at
mmitment to y either. Manyof multimillionst three years. sary part of thevestment reseais very difficu
s a broader enrvalued assets onal advantagey poor sourceworth of undiscained outperfoetter spent tryi
fficiencies migital allocation mpany. Spinofample.
ating a small-cant answered?
e with the invns of the bus
would producl in excess of ance that the st
nable incentivef the manager. ”; “What is then I be assured ome light on th
and it often sen ability to exncy could provey and permanenge, or does “ed
eas for Sophisticate
February 28, 2011 –
many of the hurement of ourWe had pooration, our clienee that temperand we definitance.
ive manager inpotential ineffic
heir own expecperform for yettest to that. Ban investmeny of us were n dollar clientEngaging in o
e business. Balarch side of thlt in the early y
ndeavor than mon a balance
es are rare, evees of long-termcovered real es
ormance in mying to identify
ght include theability of a m
ffs being indisc
cap value man
vestment philoiness. I woulce repeatable r
benchmark retewards of my es. Finally, I wSimple questioe background athat you can
hese issues.
eems institutionxploit a specife to be fleetingnt “edge”? Is jdge” need to b
ed Investors
Page 10 of 170
higher-level r success is r absolute nts did not ring client tely do our
n small-cap ciency?
ctations for ears. Value Building a
nt strategy. not lucky
ts. Landing outreach to lancing the he business years.
most people sheet that
en in small m investor state on the
y opinion. I y analytical e market’s
management criminately
nager, what
osophy and d want to results that eturns on a
capital are would need ons such as and history execute on
ns are most fic type of g. Is there a judgment a
be based on
©
dos
amfo
gr
© 2008-2011 by Beyond
“The markeominant bussmall for ext
But companmple opportu
for extended prow through
not ignore
Proxy LLC. All rights res
et may ignorinesses that tended perionies that havunity to reinperiods, or tacquisition,
ed for long.”
erved.
re stay ds.
ve nvest that , are
”
SUBSCRIBE TODA
Bares: I am concrete exahave performwould argue factors or mowith the analthose who arposition. I dinformational
MOI: In youspecific to smdetrimental to
Bares: The iimpact, andimplicit costsneed to be clonger-term i
MOI: Therebecause smalthe limelightrequire a cata
Bares: Theremultiples forpast. Our prpreference fomay ignore companies thgrow throughto make our can about wh
MOI: It seemof a small coinvestors. Ho
Bares: Assesbusiness by Likeability cThe approachmet with hunvisiting compmanager loooperations, anWhen insidertheir future historical acthave developwith other coinvesting in t
AY! www.manualo
in agreement tmples. A quan
med extensive that an “edge”
odels nullifies lyst who underre better able tdo not think l advantage.
ur book, you dmall cap investio an investor’s
illiquidity of smlonger imple
s could nullify careful when tinvestment hor
is a perceptill companies ct of the investalyst in order to
e is some truth r extended perirocess has evoor smaller comp
dominant bushat have ampleh acquisition, ainitial investm
hy an opportuni
ms that manageompany, yet mow do you go a
ssing managempossessing s
an become anh we have takendreds of manpanies can an
oks like. We and give the rigrs own a mater
capital allocations can give ped a preferenompanies. Whetheir encore per
Value-oriented Eq
ofideas.com
that “edge” is ntitative analybacktesting to” in this sensetheir value. A
rstands a specito assess a comthat an “edge
discuss variousting. Which of s long-term per
mall-cap stockementation ofall of the adva
they buy and rizon.
ion that small-can “stay cheatment industryo consider an in
to the notion tiods. We haveolved slightly
mpanies that cansinesses that se opportunity tare not ignored
ments, but we city exists for u
ement quality mmost small-capabout assessing
ment is difficulsoft skills than insidious biasen is develop e
nagement teaminvestor develare looking foght answers to rial amount of ation decisionus insight into
nce for people en we find therformances.
quity Investment Id
an elusive conyst who relies o support the ee is temporary.A more permanific industry bmpany’s manae” needs to d
s performance those drags do
rformance?
ks causes widef investment antages of beinsell in small
-cap value is ap forever,” asy. Is this percenvestment in a
that some smale been holders
over the yearn become matestay small foro reinvest for d for long. Wecertainly want
us before we ma
may be even mp CEOs are relg management?
lt, as many havat could cloaks when assessiexpertise throu
ms. Only by dolop a baseline
for people wh our questionscompany stoc
ns increases. o how they mwho have bee
ese people, we
eas for Sophisticate
February 28, 2011 –
ncept; howeveron specific fa
existence of an Widespread anent advantageetter than otheagement and cderive directly
drags that are o you consider
er spreads, highideas. These
ng in the spacecaps and shou
a tough huntis they are remeption justifieda small compan
ll companies trof a few of th
rs, and we noerially larger. Tr extended peextended perio do not requireto know as m
ake an investm
more important latively unkno?
ve risen to thek potential wing a managemugh experienceoing the difficu
for what an eo excel in str
s about capital k, our comfortA manageme
may act in the en successful e have been su
ed Investors
Page 11 of 170
r, there are actors may nomalies. I adoption of e might lie ers, or with competitive y from an
somewhat to be most
her market enormous
e. Investors uld have a
ing ground moved from
d? Do you ny?
rade at low hese in the ow have a The market eriods. But ods, or that e a catalyst
much as we ment.
in the case own among
eir perch in weaknesses. ment team. e. We have ult work of exceptional rategy and allocation.
t level with ent team’s future. We in the past
uccessful in
©
h
r
mt
© 2008-2011 by Beyond
“Experienceighest returninvestments risk of perma
time the inmade. That iteach in bus
Proxy LLC. All rights res
e shows that ns come fromwith the low
anent loss atnvestment wais not what tiness school
erved.
the m the west t the as they l…”
SUBSCRIBE TODA
ExclusiveWe had the precent VALUthe event andAfter eleven Oakcliff Cappartners and partnered wiOakcliff full-be confining.
The Manualdid you havethen?
Bryan Lawrfamily and oucomes from from the begsometimes outhings that wwhile taking come to concafter-tax basi
One of tand so we hanight. My fambe permanentsame goals thWhen new peabout taking smart test of people who lthey are likelideas. We onwith one of enormous am
Another that might csomething wpartnership lExperience slowest risk owhat they teenergy and no
AY! www.manualo
e Interviewpleasure of speUEx in Zurich/Kd are pleased years as a ba
ital, in 2004 inCEOs of the p
ith Glenn Gre-time because Bryan is a gra
l of Ideas: Telle at the outset,
rence: Oakcliffur business paa private equi
ginning has beur knowledge o
we see in the pas little risk as
centrated valueis.
the best advanave done everymily owns rout. Our partnershat we do. Theeople enquire athem on. We
f someone’s colike to talk wily to think lonnly need a cou
them, or whmount of value
principle is thcause financialwhen we don’evel, and makhows that the
of permanent loeach in busineon-energy.
Value-oriented Eq
ofideas.com
w with Bryending time anKlosters, Switzto bring you
anker at Lazarn order to invesprivate equity fenberg to starhe found inve
aduate of Yale
l us a little aboand what oper
ff was started inartners. My famity firm that ineen to diversifyof the energy ipublic market)s possible. If ye investing as t
ntages you canything that we
ughly 65% of Os have all beenere has not beeabout becomin have found th
ommitment to ith us about bung term, and auple of ideas aho helps us th
to the partners
hat this really isl distress, whi’t want to do
kes us suspiciohighest return
oss at the timess school, but
quity Investment Id
yan Lawred learning fromzerland. We casome of his inrd, Bryan startst his family’s firm his father rt Brave Warresting only in lUniversity.
out the genesis rating principle
n 2004 in ordemily’s and mosnvests in energy into non-eneindustry has m). Another goayou look at howthe most sensib
n have as an incan to be able
Oakcliff, and wn known to us fen and never wng Oakcliff parhat asking forour strategy. W
usinesses are ulso can be gre
a year, and so hink through sship.
s our money. Sich we defineo it. This rulous of companns come from e the investment that is what
eas for Sophisticate
February 28, 2011 –
ence m Bryan Lawraught up with Bnsights in this ted his own pcapital and thefounded. In 20
rior, but has rlarger U.S. com
of your firm. Wes have guided
er to invest capst of my partnegy companies.ergy investmen
made it hard to al is to maximw to do this, yble way, espec
nvestor is patiee to stand at th
we consider oufor decades, an
will be a markertners, we thinr a two-year loWe also have usually great peat sources of a partner who
something, is
So we do not de as being forles out levera
nies with too mthe investmennt was made. Twe have foun
ed Investors
Page 12 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
ur capital to nd have the eting effort. nk carefully ock-up is a found that
partners, as investment
o comes up adding an
do anything rced to do age at the much debt. ts with the That is not nd, in both
©
uis
o
© 2008-2011 by Beyond
“At the investment pbasic quest
understand ts it a good burun by peop
owners; (iv) (v) why i
Proxy LLC. All rights res
core of our process are ftions: (i) do wthe business;usiness; (iii)
ple who act lis it cheap;
is it cheap.”
erved.
five we ; (ii) ) is it like and
SUBSCRIBE TODA
Our goapercentages, expenses, retuof these retuachieved withweren’t smarof living throgood businesno way for th
MOI: Help ucouple of exWhat are the
Lawrence: Awill be familiit a good busand (v) whywilling to lototals $55 miof equity invinteresting ris
One exadrugs in devWestern drubecause Indiaresearchers, rapidly. The the most respof the compabusiness genof twelve patrate, comparecash, intrinsicper share. Anprice relativeof safety, anwould be teexpense befothe branded Prozac’s patereduced inveIndia had recto worry abomakers worriwhich were 5makers wouldquestions, anshare in mid-of 88%.
AY! www.manualo
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
us understand tamples of comkey criteria yo
At the core of iar to most valsiness; (iii) is iy is it cheap. Took at small anillion today, wvestments, as wsk/reward situa
ample was Dr. eloping countr
ug companies.an researchers and developincompany soun
pected businessany. In mid-20erated predictatent challengesed to a historic value was $2n unlevered b
e to the value od there was almporary. Pate
ore success or fdrug business
ent, which waestor confidenccently agreed toout entry into ied about glob5-10x Indian pd gain much sh
nd the investm-2005, and exit
Value-oriented Eq
ofideas.com
partnership done overall
d partners haveen unrealized es that ranged old onto our cah makes us evear sense of ho
e the keys away
the kind of invempanies you hou employ whe
our investmenlue investors: (it run by peoplTo get these qnd big compa
which means thwell as optionations.
Reddy’s Labories, and deve The companare very high
ng country demnds like it has asmen in India, 005, the compable cash flows was worth $ical success ra25-28 per sharalance sheet, of branded buslso a decent cent challengesfailure in courts. The compaas the largest pce about the o begin respecIndia by We
al pricing consprices, so it sehare. We had a
ment played outed after 14 mo
quity Investment Id
to beat the against the S&
e been 10% annor long-term
from zero to 7ash until the boven more certaow much cashy. It’s just too p
estor you are, phave invested ien making an in
nt process are (i) do we underle who act likequestions answ
anies, as well hat we are ablens and debt ins
oratories, an Inlops challengeny has an attquality but cosmand for phaa silly name, band his family
pany looked cws worth $18 p
5-8 per share ate of 70%. Ine, compared tostrong free casiness looked lcase to be mad require threet. This was obs
any had recentpotential pay-remaining twe
cting Western pestern drug masistency had toeemed very una positive answut happily. Oaonths at $31 pe
eas for Sophisticate
February 28, 2011 –
market by d&P. Net of alnualized. More
m gains, and 70% of the porottom, but the ain that we wah they generatepainful to live
perhaps by higin or decided tnvestment dec
five basic querstand the busine owners; (iv) iwered positiveas overseas. O
e to look at a bstruments that
ndian companyes to the patentractive businst 80% less tha
armaceuticals ibut Dr. Reddy wy was a significcheap. The braper share, and assuming a 30
ncluding $2 peo the market prash flows, and like a pretty gode that the lowe to four yearscuring the castly lost its choff in its portelve challengepatents, causinakers. But Weo price at Westnlikely that Wewer to all five oakcliff bought er share, a long
ed Investors
Page 13 of 170
ouble-digit ll fees and e than 90% they were rtfolio. We experience ant to own e, and have otherwise.
ghlighting a to pass up. ision?
estions that ness; (ii) is is it cheap;
ely, we are Our capital broad range
can create
y that sells nts of large ness model an Western is growing was one of cant owner anded drug a portfolio
0% success er share of rice of $17 low share
ood margin w valuation rs of legal sh flows of hallenge of tfolio. This es. Finally, g investors
estern drug tern levels, estern drug of our basic at $17 per
g-term gain
©
s
p
© 2008-2011 by Beyond
“The optionappear to u
bipolar tsituation wawas offerin
options to pstock at 1
premium equva
Proxy LLC. All rights res
n market didunderstand hthe [Fairfax]as [in 2006],ng two-year cpurchase Fai.0x book forual to 0.02x alue.”
erved.
d not how ] and call irfax r a book
SUBSCRIBE TODA
Another the world’s comparison because it alldo hunters agmanagement but had overpindustry, a laa very clear-very cheap inof free cash fcash. Privateper share, basper share. Thbusiness withdisappointed research comcapital raise per share. Anyear. It was portfolios byquestions, antwelve monthlong term.
A final company witis highly depdiscretion toPrem Watsa compounded through 2000community.Prem Watsa 2006 hurricanHurricane Kamore typicaloutcome. If worthless. If The stock mmake the invour capital atthe situation stock at 1.0xcall options hurricane sea1.3x book. Tappreciated 1
AY! www.manualo
example was Glargest onlin
shopping site lows highly spged 30-45 in Mhad raised cap
paid and undelarge option pacminded approan December 20flow, worth $4
e market valuased on four rec
his price offeredh no debt. W
by the granmmunity was d
with a buy at nd Fortune mag
December, ay yearend. Agand Oakcliff bohs later for $1
example is Fah an outstandin
pendent on the determine rewas highly rebook value p
0. In mid-200Poor results fwas lying abone season wouatrina. Fairfax of a well-runthe reserves
f adequate, the market appeared
vestment attract risk. The optiwas, and was
x book for a pin spring 200
ason and stronThe position w18x, a very hap
Value-oriented Eq
ofideas.com
Greenfield Onne market res
in Europe. Secific polling tMaine think o
apital at $16 pelivered. The n
ckage that wouach to talking 005. The comp4 per share at aation for the cocent transactiond a good margi
Why was it chend promises odisappointed —$16 per share gazine called tand many monain, we had a ought at Dece13 per share, a
airfax Financing long term recharacter of m
eserves, and thegarded for hiper share at 306, Fairfax wfrom 2000-200out reserve adeuld be as bad a
was trading atn P&C insurewere inadequcompany’s eq
d to be assignctive, we bougion market dids offering two
premium equal 06, and sold thng operating rewas equal to 1ppy result for o
quity Investment Id
nline, which opsearch panel, Scale is importo be statistica
of Toyota’s neer share in ordew CEO had a
uld be worth a labout the bus
pany was genea 10x multiple,omparison shons. But the comin of safety —eap? Investorsof the precedi— the investm
now rated thethe stock the 2n
ney managersa good answer ember 2005 ata 145% gain,
ial, a propertyecord of value
management, ahus manipulatis honesty and37% annually
was under assa05 had convinequacy. Investoas the 2005 seat 0.7x book va
er. This was auate, the compquity might be
ning 50/50 oddght long-term d not appear too-year call opti to 0.02x bookhem in the fa
esults drove Fa1.5% of Oakclour partnership
eas for Sophisticate
February 28, 2011 –
perated two busand the seco
rtant to markelly significant
ew pick-up truder to make aca strong reputalot if he fixed tsiness. Greenfierating 40 cent, and had $2 popping businesmpany was trad
— 7.5x free cashs appeared to ing CEO. Cer
ment bank spone company as a
nd-worst perfors wanted it ou
to all five oft $5 per sharealmost all of
y and casualty creation. P&C
as managementte current incod stock-pickingfrom inceptio
ault by the shnced some invors were worriason, which haalue, well beloa situation withpany’s equity e worth 1.5x bds to these outcall options, m
o understand hions to purchak value. Oakc
all of 2006 aftairfax’s stock pliff’s capital at.
ed Investors
Page 14 of 170
sinesses — ond-largest
et research, (e.g., what
uck?). Prior cquisitions, ation in the things, and ield looked s per share
per share of ss was $12 ding for $5 h flow for a have been rtainly the nsoring the a sell at $5 rmer of the ut of their f our basic e. We sold which was
y insurance C insurance t has broad ome. CEO g, and had on in 1985 hort-selling vestors that ied that the ad included ow the 1.5x h a binary would be
book value. tcomes. To minimizing
how bipolar ase Fairfax liff bought
fter a quiet price up to t cost, and
©
pwtf
© 2008-2011 by Beyond
“Often theworks alontime, whic
given the difpeople will hwhich are thto own. But ifind a small investors wh
and with wshar
Proxy LLC. All rights res
e great invesne much of tch makes senifficulty that have agreeinhe best ten stit is very smanumber of o
hom you respwhom you cae ideas.”
erved.
tor the nse two
ng on tocks art to other pect, an
SUBSCRIBE TODA
We havinvestments:banks (whichabout dilutioand for golbusinesses ha30%. It seemmarkets, as thare especiallyis to own gooof not discusthat we have
MOI: It’s bgrowth being
Lawrence: GWithout growmanagement easier.
MOI: How d
Lawrence: Vof disturbaninteresting togenerated idemakes sense the best ten sinvestors whhave to agreeown thinkingpeople. I enjobut also the fr
MOI: At thinvestor redemanagers’ fatough times. with your inv
Lawrence: Ifpractitioner hwere in 192includes Bufbut still saw been surprisanything diff
To makeof underperfoin 2005 that Seven of thefamous talk managers ten
AY! www.manualo
ve used smaagainst the bo
h worked slighn (which workd (which didave been about
ms quite attractihey sometimesy suited to a smod businesses, ssing current inowned for yea
been said that g a component
Growth is very wth, you are dteam that allo
do you generate
Voracious readce in the mao study the reas. Often the given the diffistocks to own.om you respece on everything. Oakcliff shoy having a cofreedom to mak
he recent VALemptions in lateailure to propeWhat best prac
vestors?
f you look at thhas experience9-33 or 1973-
ffett himself, wBerkshire Hated by the 20
ferently to prep
e matters worseormance. Tweelooked at nin
ese managers wat Columbia B
nded to underp
Value-oriented Eq
ofideas.com
all options pond insurers (whtly); for Ameked); for Fann
d not work).t 70% of our pive to continues can be less p
mall base of capand have them
nvestments broars with strong
all successfulof value. How
important, espdependent on ocates capital
e investment id
ding, talking toarkets that mrecords of thegreat investorculty that two But it is veryct, and with w
ng, and their dhares space wiollegial environke my own dec
LUEx in Zurie 2008 and earerly communictices can you
he history of ved big downtu-74, you got
who had been thaway stock g008-2009 exppare our investo
e, you don’t evedy Browne d
ne value-orientwere the SuperBusiness Schoperform the m
quity Investment Id
ositions to cwhich worked)
erican Express nie and Freddi
Overall, retuprofits, and froe looking for mpicked-over thapital like Oakcm compound ooadly, but therresults.
l investing is w important is th
pecially when ia cheap entryincredibly we
deas?
o other investomay create opp
e great investr works alone mpeople will ha
y smart to find whom you can different perspeith two other nment in whichcisions.
ch/Klosters, yrly 2009 refleccate and condshare when it
value investingurns. It did nomarked-down smart enough
get cut in half. erience? And ors?
ven need a cridid an interestinted managers wrinvestors men
ool. With the emarket for 30-
eas for Sophisticate
February 28, 2011 –
create other ), against the at the height
ie (which did urns from ownom owning optmispricings in tan the stock mcliff’s. But our over time. I havre are several
“value” inveshat component
it is not capitaly price, or a vell. Growth ma
ors, and lookinportunities. It tors, and see much of the ti
ave agreeing ona small numbshare ideas. Y
ectives can enhfirms run by
h to kick aroun
you made the cted at least indition their invcomes to comm
g, you will findot matter how
by 50% or mto close his p
So why shoulshould we h
sis to see painng study for thwith great tracntioned by Buexception of B40% of the ti
ed Investors
Page 15 of 170
interesting investment of concern not work); ning good tions about the options
markets, and preference
ve a policy companies
sting, with t for you?
l-intensive. very smart akes things
ng for areas has been how they
ime, which n which are ber of other You do not hance your
y first-class nd an idea,
point that n part value vestors for municating
d that every smart you
more. This partnership, ld we have have done
nful periods heir clients ck records.
uffett in his Buffett, the ime. These
©
c
© 2008-2011 by Beyond
“Your inveslike sticks. then the ma
bend themchosen the wbreak, and y
l
Proxy LLC. All rights res
stment thesesEvery now aarket will trym. If you hav
wrong stick, iyou will sell loss.”
erved.
s are and y to ve it will at a
SUBSCRIBE TODA
periods of untime to under
In the spmarketing efmoney is to funds have unthe clients whfunds. The cland the wirehthe clients.
My frienespecially gokeep his invethe brokers, long-term cothemselves, winteresting re
At Oakclsome things results every upfront aboureported solidistress. Thisthe most attrThird, we trypartners. Foryears of livincommit so mway that they
MOI: 2008-also threw uvolatility affein any way as
Lawrence: Ttold me wheEvery now awrong stick,
For me, what we ownat a 20%+ trpartners, wasto tempt me i
MOI: Thosepoint out thaportfolio manportfolio, do
AY! www.manualo
nderperformanrperform!
pirit of “inverfforts of one o
keep his mornderperformedho hold those lients pay a nehouse get their
nd Chris Davood on an afteestors enjoyinghe spends a l
ompounding. Hwhich is goodeading.
liff, we have nthat we do tosix months, w
ut the likelihoid results, wes won us credibactive it had e
y to make finanr myself, thougng expenses s
much of their ny live.
09 presented mup some of thect your invests a result of the
The key lesson en I was startinand then the mit will break, a
the depths of ned were good ailing free cas
s a calming expinto owning so
e who have “gat good ideas nagement is inyou use levera
Value-oriented Eq
ofideas.com
nce lasted for o
rt, always inveof the big wirre than 10,000d over the priorfunds, and get
ew front-end lor cut. It’s easy
vis runs a larer-tax basis beg these after-talot of time coHis website hbusiness for h
not solved the po try to be th
which strips outood of a majoe repeatedly wbility at the endever been, thouncial stress nogh most of mysitting in cashnet worth that
many challenghe best opporttment process,e downturn?
of 2008-09 fong Oakcliff. Y
market will try and you will se
the crisis werebusinesses wi
sh yield. Beingperience. Afteromething other
graduated” froare only one ndispensable.
age, and what i
quity Investment Id
one to four ye
ert,” I know are houses. One0 brokers updar six or twelve t them to switcoad to make thmoney, thoug
rge mutual fucause he keepax returns, and
ommunicating has a section him, and good
problems of huoughtful. Firstt much of the vor decline. In warned of the d of 2008, wheugh it had beet impair decisiy net worth is
h. For my parthaving it cut i
ges for value-otunities in a l, and have you
or me is somethYour investme
to bend themll at a loss.
e manageable ith minimal debg able to say thr going throughthan a good bu
om analyst to piece of the sHow concentr
is your view of
eas for Sophisticate
February 28, 2011 –
ars. Four year
a man who me of the waysated as to whimonths. The b
ch into better-phe change, and gh obviously no
und. Returns ps turnover verd from being cabout the advfor investors
d for his clients
uman nature, but, we only comvolatility. Seco
2005 and 20possibility o
en we called then marked dowion-making bys in Oakcliff, Itners, I ask thin half would
oriented investlong time. Hou tweaked you
hing that a smant theses are l. If you have
because it wasbt, and they what to myself, h that, it will beusiness.
portfolio mansuccess equatiorated is your f short selling?
ed Investors
Page 16 of 170
rs is a long
manages the he makes ich mutual
brokers call performing the broker
ot great for
have been ry low. To churned by vantages of to educate s. It makes
ut there are mmunicate
ond, we are 006, as we f financial
he portfolio wn by half. y me or my I keep five hem to not change the
tors, but it ow did the ur approach
art investor like sticks. chosen the
s clear that were trading
and to my e very hard
nager often on. Skilled investment
©
“
odd
© 2008-2011 by Beyond
“Leverage mit makes thi
on the way updown. Why wdo anything f
our partnerricher at a
Proxy LLC. All rights res
makes no senings move fap and on the
would we wafor ourselvesrs other than
decent pace
erved.
nse — aster e way ant to s and
n get e?”
SUBSCRIBE TODA
Lawrence: Wcash on handat acceptable the way up ourselves andhave only shwon’t see us
MOI: What their goals?
Lawrence: Nto manage thfound the craBuffett talks also think abhave to push
MOI: What badditions to y
Lawrence: Tobvious valufollowing: Emand the Englspoken by maread for valuthat, like inveis thoughtful
AY! www.manualo
We tend to ownd. Our cash on
prices. Leveraand on the wd our partnershorted somethdo that again.
is the single
Not having the hrough the humacks in a lot of about the fina
bout the psychtoo hard to get
books have yoyour investmen
There is a lonue investing pmotional Intelllish Languageany manageme
ue investors; Noesting, interestabout living a
Value-oriented Eq
ofideas.com
n ten to twelvehand reflects o
age makes no sway down. Whs other than gehing once, and
biggest mistak
right temperammbling experierelationships a
ancial consequehological const the clients to
ou read in recennt library?
ng list of invespantheon. Otheligence, as a wae, which helps ent teams; Poo
No Excuses, an ts me greatly; abalanced life,
quity Investment Id
e businesses, anour inability tosense — it makhy would we wet richer at a dd it was a dis
ke that keeps
ment or sufficience of the mand the demonences of a recesequences. Cerchange manag
nt years that ha
stment books ers that I havay to think abocut through t
or Charlie's Almintroduction toand Consolatioand an easy re
eas for Sophisticate
February 28, 2011 –
nd keep large ao find more thinkes things movwant to do andecent pace? Fastrous experi
investors from
ient balance in markets. The G
s in a lot of peeding tide, but rtainly the brogers after a bad
ave stood out a
that includes ve found usefout temperamethe nonsense wmanack, whicho an area of phons of Philosopead in stressful
ed Investors
Page 17 of 170
amounts of ngs to own ve faster on nything for Finally, we ience. You
m reaching
their lives, Great Crisis ersonalities.
we should okers don’t d streak.
as valuable
lots of the ful are the nt; Politics
written and h is a must-hilanthropy phy, which times.
©
5R
“
h
in
lo
to
f
S
3
t
s
r
m
p
in
n
in
m
q
c
q
c
p
c
a
s
r
c
e
s
s
s
© 2008-2011 by Beyond
50+ PortfRevealing the T
“Signal value”
holdings of som
nvestors who h
ong periods of
o avoid the noi
The follow
filed with the S
September 30th
3 or 4 filed sub
MOI Signa
this investor’s
simply presenti
recently filed q
methodology ra
portfolio based
n each holding
Our propr
number of var
nvestor’s portf
market value of
quarterly chang
change in the st
quarterly filing
For examp
conviction in a
position in suc
case if an inves
a holding that i
size alone. On t
represent 19.9%
company, sugg
estimate of the
subject compan
suggesting that
subject compan
Proxy LLC. All rights res
olios WithTop Ideas of To
” as opposed to
me of the world
have amassed i
f time. We choo
ise inherent in
wing analysis is
SEC by Novem
, as well as Sch
sequent to the
al Rank answe
top ten ideas
ing each invest
quarter end, the
anks the compa
on the investo
g, as judged by
rietary metho
riables, includi
folio, the size o
f the correspon
ge in the numb
tock price of a
date.
ple, an investo
a position that
ch investor’s p
stor invests in a
s simply too sm
the other hand,
% of the shares
gesting a high le
conviction lev
ny has a 20% p
the investor h
ny as is practica
erved.
h Signal Vop Investors
o “noise.” We
d’s top investor
impressive trac
ose these inves
most 13F-HR
s based on Sche
mber 15th for the
hedules 13G or
end of the thir
ers the questio
right now?” R
tor’s largest ho
e MOI’s proprie
anies in each in
or’s current lev
the MOI.
dology takes i
ing the size of
of a position re
nding company
er of shares ow
position since
or might have
t is only the ten
portfolio. This
a small compan
mall to rank hig
, such a holdin
s outstanding o
evel of convict
vel would rise f
poison-pill thre
as bought as m
ally feasible.
SUBSCRIBE TODA
Value™
present the
rs. We look for
ck records over
stors carefully
filings.
edules 13F-HR
e quarter ended
r 13D and Form
rd quarter.
on, “What are
Rather than
oldings as of th
etary
nvestor’s
el of convictio
into account a
a position in an
lative to the
y, the most rece
wned, and the
the most recen
the most
nth-largest
might be the
ny, resulting in
ghly based on
g might
f the subject
tion. Our
further if the
shold, thereby
much of the
AY! www.manualo
r
r
R
d
ms
e
e
on
a
n
ent
nt
n
Top inv
Value-oriented Eq
ofideas.com
vestors include
Bill Ackman, Chuck Akre, AZeke Ashton, NEW JonathanBrian Bares, BBruce BerkowRichard BreedTom Brown, SWarren BuffetFrancis Chou,Chase ColemaJames CrichtoIan Cumming Boykin CurryDavid EinhornPhil Falcone, HAlan FournierGlenn FuhrmaJeffrey Gates, Tom Gayner, Kian Ghazi, HEd Gilhuly anGlenn GreenbJohn Griffin, BAndreas HalvMason HawkiLance Helfert Chris Hohn, CCarl Icahn, IcaNEW Robert JaRehan Jaffer, Seth KlarmanEddie LamperQuincy Lee, TDan Loeb, ThSteve MandelSandy Nairn, Mohnish PabrJohn Paulson, Boone PickenMark RacheskLisa RapuanoLarry RobbinsNEW AlexandeWilbur Ross, WKen Shubin SDavid TepperNEW TananbauPrem Watsa, FWally Weitz, David Winters
quity Investment Id
ed in this secti
Pershing SquarAkre Capital Centaur Capita
n Auerbach, HouBares Capital witz, Fairholme den, Breeden CaSecond Curve tt, Berkshire Ha, Chou Associatan, Tiger Globaon, Scout
and Joe Steinb, Eagle n, Greenlight Harbinger r, Pennant an and John Phe Gates Capital Markel Gayner
Hawkshaw nd Scott Stuart, berg, Brave WarBlue Ridge orsen, Viking Gins, Southeasterand Paul Orfal
Children’s Invesahn affe, Force CapH Partners , Baupost rt, ESL InvestmTeton Capital hird Point , Lone Pine Edinburgh Partrai, Pabrai Fund Paulson & Co.
ns, BP Capital ky, MHR , Lane Five s, Glenview er Roepers, AtlWL Ross tein, Spencer , Appaloosa
aum, GoldenTreFairfax Weitz Funds s, Wintergreen
eas for Sophisticate
February 28, 2011 –
ion:
re
al und Partners
apital
athaway tes al
berg, Leucadia
elan, MSD Cap
r
Sageview rrior
Global rn lea, West Coaststment Fund
pital
ments
tners ds .
lantic Investmen
ee
ed Investors
Page 18 of 170
pital
t
nt
©
ACf M
T
N
K
L
P
T
P
* p
© 2008-2011 by Beyond
Akre CapitaChuck Akre hafollows a value
MOI Signal R
Compan
1 Enstar G
2 American
3 Lamar Ad
4 Ross Sto
5 Markel /
6 MasterCa
7 O'Reilly A
8 Dollar Tre
9 CarMax /
10 Hartford
Top Holdings
Company
1 American
2 Lamar Adv
3 Markel / M
4 Ross Stor
5 Enstar Gro
6 MasterCar
7 Dollar Tre
8 O'Reilly A
9 Hartford F
10 CarMax /
New Position
Kimberly-Clark / K
LPL Investment /
Primo Water / PR
Techne Corp. / T
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
al (Chuck Akas been in the ine strategy that f
Rank™ – Top
ny / Ticker
roup / ESGR
n Tower / AMT
dvertising / LAMR
ores / ROST
MKL
ard / MA
Automotive / OR
ee / DLTR
/ KMX
Financial / HIG
s of Akre Cap
y / Ticker
Tower / AMT
vertising / LAMR
MKL
es / ROST
oup / ESGR
rd / MA
e / DLTR
utomotive / ORL
Financial / HIG
KMX
ns
KMB
LPLA
RMW
ECH
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
kre) nvestment busifocuses on retu
p Current Idea
Market Value
($mn)
1,087
21,654
R 3,830
8,553
4,108
32,817
LY 7,715
6,602
8,307
13,692
pital – By Do
Market Value
($mn)
21,654
R 3,830
4,108
8,553
1,087
32,817
6,602
Y 7,715
13,692
8,307
$504 million
76%
$4.3 billion
$23 billion
17x
14x
1.8x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
iness since 196urns on equity,
as of Akre C
Price
Recent ($) D
83.18
54.26
41.54
71.82
422.83
250.74
55.25
52.72
36.83
30.80
ollar Value
Price
Recent ($) De
54.26
41.54
422.83
71.82
83.18
250.74
52.72
55.25
30.80
36.83
th the SEC. Excludnon-equity securitie
AY! www.manualo
68. While somemanagement q
Capital
Shar
from RecenDec. 31 ('000
-2% 46
5% 1,28
4% 1,23
14% 56
12% 11
12% 14
-9% 47
-6% 61
16% 49
16% 75
Share
from Recentec. 31 ('000)
5% 1,286
4% 1,239
12% 116
14% 564
-2% 463
12% 140
-6% 613
-9% 473
16% 756
16% 491
Sold O
Carter's /
Entertain
Exxon Mo
Franklin S
Sector
des es.
Value-oriented Eq
ofideas.com
etimes viewed quality and cas
res Owned
nt from 0) Sep. 30
63 17%
86 20%
39 0%
64 15%
6 0%
40 >100%
73 0%
3 0%
91 0%
56 0%
es Owned
t from ) Sep. 30 C
6 20% <
9 0%
6 0%
4 15% <
3 17%
0 >100% <
3 0% <
3 0% <
6 0% <
0% <
Out Positions
/ CRI
ment Prop. / EP
obil / XOM
Street / FSP
r Weightings
quity Investment Id
as a small capsh flow-oriente
Holdings as % of
Co. Fund*
4% 8%
<1% 14%
1% 10%
<1% 8%
1% 10%
<1% 7%
<1% 5%
<1% 6%
<1% 4%
<1% 5%
Holdings as % of T
Co. Fund*
<1% 14%
1% 10%
1% 10%
<1% 8%
4% 8%
<1% 7%
<1% 6%
<1% 5%
<1% 5%
<1% 4%
s
R
Gree
Real
W.R.
*
eas for Sophisticate
February 28, 2011 –
p growth managed valuation an
P/E (Est.)
This Next FY FY
9x 8x
58x 49x
n/m n/m
16x 14x
24x 23x
15x 13x
16x 14x
16x 14x
22x 20x
8x 8x
P/E (Est.) P
This Next TFY FY
58x 49x
n/m n/m
24x 23x
16x 14x
9x 8x
15x 13x
16x 14x
16x 14x
8x 8x
22x 20x
enlight Re / GLRE
Page / RP
. Berkley / WRB
ed Investors
Page 19 of 170
ger, Akre alysis.
Price/ Tang. Book
1.3x
n/m
n/m
6.7x
1.6x
8.2x
3.1x
5.2x
3.8x
.7x
Price/ Tang. Book
n/m
n/m
1.6x
6.7x
1.3x
8.2x
5.2x
3.1x
.7x
3.8x
E
©
ATtr M
T
N
DFGJKM
P
* p
© 2008-2011 by Beyond
Appaloosa (Tepper heads Arader on Goldm
MOI Signal R
Compan
1 Citigroup
2 Hewlett-P
3 Wells Fa
4 Bank of A
5 Dean Foo
6 Pfizer / P
7 Micron T
8 Microsoft
9 Internatio
10 Goodyea
Top Holdings
Company
1 Citigroup /
2 Bank of A
3 Pfizer / PF
4 Hewlett-Pa
5 Wells Farg
6 Micron Te
7 Royal Ban
8 Microsoft /
9 Internation
10 Goodyear
New Position
Dean Foods / DFFlagstar BancorpGeneral Motors / JPMorgan ChaseKroger / KR Manitowoc / MTW
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(David TeppAppaloosa Manman’s high-yie
Rank™ – Top
ny / Ticker
p / C
Packard / HPQ
rgo / WFC
America / BAC
ods / DF
PFE
echnology / MU
t / MSFT
onal Paper / IP
ar Tire / GT
s of Appaloo
y / Ticker
/ C
merica / BAC
FE
ackard / HPQ
go / WFC
chnology / MU
nk Scotland / RBS
/ MSFT
nal Paper / IP
Tire / GT
ns
F p / FBC
GM e / JPM
W
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
per) nagement, whiceld desk. Teppe
p Current Idea
Market Value
($mn)
142,677
105,835
171,319
148,756
1,890
153,711
11,670
227,369
12,390
3,618
osa – By Doll
Market Value
($mn)
142,677
148,756
153,711
105,835
171,319
11,670
S 45,917
227,369
12,390
3,618
Micron TechnMorgans HoteMueller WateSafeway / SWSupervalu / S
$4.8 billion
56%
$8.4 billion
$31 billion
12x
11x
2.2x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ch he founded er’s specialty is
as of Appalo
Price
Recent ($) D
4.91
48.67
32.64
14.75
10.35
19.19
11.70
27.06
29.02
14.89
ar Value
Price
Recent ($) De
4.91
14.75
19.19
48.67
32.64
11.70
15.69
27.06
29.02
14.89
nology / MU el / MHGC
er / MWA WY SVU
th the SEC. Excludnon-equity securitie
AY! www.manualo
in 1993 after ls in distressed
oosa
Shar
from ReceDec. 31 ('00
4% 117,50
16% 5,84
5% 7,46
11% 25,06
17% 10,76
10% 16,56
46% 17,76
-3% 6,04
7% 5,40
26% 10,07
Share
from Recenec. 31 ('000
4% 117,501
11% 25,068
10% 16,562
16% 5,843
5% 7,460
46% 17,765
27% 12,522
-3% 6,041
7% 5,400
26% 10,078
Sold O
AIG / AIGBecton DCIGNA / CNO FinaCovidien Dana Ho
Sector
des es.
Value-oriented Eq
ofideas.com
eaving Goldminvestments an
res Owned
nt from 00) Sep. 30
01 >100%
43 57%
60 16%
68 12%
66 new
62 0%
65 new
41 >100%
00 >100%
78 >100%
es Owned
nt from 0) Sep. 30
1 >100% <
8 12% <
2 0% <
3 57% <
0 16% <
5 new
2 0% <
1 >100% <
0 >100%
8 >100%
Out Positions
G Dickinson / BDX
CI ancial / CNO / COV lding / DAN
r Weightings
quity Investment Id
man Sachs, whernd special situa
Holdings as % of
Co. Fund*
<1% 12%
<1% 6%
<1% 5%
<1% 8%
6% 2%
<1% 7%
2% 4%
<1% 3%
1% 3%
4% 3%
Holdings as % of
Co. Fund*
<1% 12%
<1% 8%
<1% 7%
<1% 6%
<1% 5%
2% 4%
<1% 4%
<1% 3%
1% 3%
4% 3%
s
MedtWellP
*
eas for Sophisticate
February 28, 2011 –
re he had beenations.
P/E (Est.)
This Next FY FY
11x 9x
9x 9x
12x 9x
11x 8x
17x 13x
9x 8x
23x 10x
11x 10x
11x 9x
21x 8x
P/E (Est.) P
This Next TFY FY
11x 9x
11x 8x
9x 8x
9x 9x
12x 9x
23x 10x
n/a n/a
11x 10x
11x 9x
21x 8x
tronic / MDT Point / WLP
ed Investors
Page 20 of 170
n the head
Price/ Tang. Book
1.1x
n/m
2.2x
1.3x
n/m
n/m
1.5x
6.5x
3.0x
n/m
Price/ Tang. Book
1.1x
1.3x
n/m
n/m
2.2x
1.5x
.5x
6.5x
3.0x
n/m
©
AA“ M
T
N
A
C
L
L
P
* p
© 2008-2011 by Beyond
Atlantic InvAlexander Roep“family-oriente
MOI Signal R
Compan
1 Raytheon
2 ITT Corp
3 Owens Il
4 Oshkosh
5 TRW Aut
6 Crown H
7 Lubrizol /
8 LyondellB
9 Stanley B
10 PolyOne
Top Holdings
Company
1 Owens Illi
2 ITT Corp.
3 Energizer
4 Raytheon
5 FMC Corp
6 Xerox / XR
7 Oshkosh /
8 TRW Auto
9 Solutia / S
10 Crown Ho
New Position
A. Schulman / SH
Crown Holdings /
Lubrizol / LZ
LyondellBasell / L
Portfolio Met
Portfolio size
Top 10 as % of
Median mar et
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
vestment (Alpers founded A
ed, persistent, d
Rank™ – Top
ny / Ticker
n / RTN
p. / ITT
linois / OI
/ OSK
tomotive / TRW
oldings / CCK
/ LZ
Basell / LYB
Black Decker / SW
/ POL
s of Atlantic
y / Ticker
nois / OI
/ ITT
Holdings / ENR
/ RTN
p. / FMC
RX
/ OSK
omotive / TRW
SOA
ldings / CCK
ns
HLM
/ CCK
LYB
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Alexander RoAtlantic in 198disciplined, opt
p Current Idea
Market Value
($mn)
19,015
10,987
5,182
3,407
7,295
6,120
7,475
21,467
WK 12,632
1,368
Investment M
Market Value
($mn)
5,182
10,987
4,928
19,015
5,830
15,703
3,407
7,295
3,032
6,120
Oshkosh / OS
PolyOne / PO
Stanley Black
TRW Automo
$1.0 billion
94%
$5.2 billion
$8.2 billion
13x
12x
4.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
Roepers) 8. In an intervitimistic and try
as of Atlantic
Price
Recent ($) D
52.16
59.84
31.65
37.55
59.53
38.41
113.89
37.95
76.09
14.62
Management
Price
Recent ($) De
31.65
59.84
69.76
52.16
81.15
11.32
37.55
59.53
24.90
38.41
SK
OL
k Decker / SWK
otive / TRW
th the SEC. Excludnon-equity securitie
AY! www.manualo
iew with hedgeying hard to no
c Investmen
Shar
from RecenDec. 31 ('000
13% 2,30
15% 2,90
3% 6,05
7% 2,00
13% 35
15% 45
7% 12
10% 35
14% 20
17% 79
t – By Dollar
Share
from Recentec. 31 ('000)
3% 6,050
15% 2,900
-4% 1,880
13% 2,300
2% 1,340
-2% 8,500
7% 2,000
13% 350
8% 750
15% 450
Sold O
Ashland /
China Se
Del Mont
FLIR Sys
Sector
des es.
Value-oriented Eq
ofideas.com
efundnews.comot take himself
t Manageme
res Owned
nt from 0) Sep. 30
00 >100%
00 26%
50 3%
00 new
50 new
50 new
25 new
50 new
00 new
90 new
r Value
es Owned
t from ) Sep. 30 C
0 3%
0 26%
0 -4%
0 >100% <
0 -16%
0 -35% <
0 new
0 new <
0 -35% <
0 new <
Out Positions
/ ASH
ecurity / CSR
te Foods / DLM
stems / FLIR
r Weightings
quity Investment Id
m Roepers desc(or life’s trava
ent
Holdings as % of
Co. Fund*
<1% 12%
2% 17%
4% 19%
2% 7%
<1% 2%
<1% 2%
<1% 1%
<1% 1%
<1% 2%
<1% 1%
Holdings as % of T
Co. Fund*
4% 19%
2% 17%
3% 13%
<1% 12%
2% 11%
<1% 10%
2% 7%
<1% 2%
<1% 2%
<1% 2%
s
Harm
Kenn
McKe
Therm
*
eas for Sophisticate
February 28, 2011 –
cribed himself ail) too seriousl
P/E (Est.)
This Next FY FY
10x 9x
13x 12x
11x 9x
10x 10x
10x 9x
14x 12x
10x 9x
n/a n/a
15x 13x
14x 12x
P/E (Est.) P
This Next TFY FY
11x 9x
13x 12x
13x 11x
10x 9x
14x 13x
10x 9x
10x 10x
10x 9x
11x 10x
14x 12x
man International
nametal / KMT
esson / MCK
mo Fisher / TMO
ed Investors
Page 21 of 170
as ly.”
Price/ Tang. Book
n/m
n/m
n/m
n/m
n/m
n/m
6.2x
2.3x
n/m
4.8x
Price/ Tang. Book
n/m
n/m
n/m
n/m
5.3x
n/m
n/m
n/m
n/m
n/m
l / HAR
O
©
BBcsda M
T
N
D
E
M
P
* p
© 2008-2011 by Beyond
Bares CapitBrian Bares stacompanies. Thestrategies. Baredisciplined busauthor of The S
MOI Signal R
Compan
1 Hallmark
2 Winmark
3 Internatio
4 Tandy Le
5 Interactiv
6 American
7 Stamps.c
8 Utah Med
9 Corporat
10 Dolan Me
Top Holdings
Company
1 Interactive
2 Internation
3 Winmark /
4 Stratasys
5 Hallmark F
6 Travelzoo
7 Stamps.co
8 American
9 American
10 Corporate
New Position
Derma Sciences
Emergent Group
Middleby / MIDD
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
tal (Brian Baarted his investme firm launchedes Capital Maniness strategy,
Small-Cap Adva
Rank™ – Top
ny / Ticker
k Financial / HAL
k / WINA
onal Assets / INT
eather / TLF
ve Intell. / ININ
n Dental / ADPI
com / STMP
dical / UTMD
e Executive / EX
edia / DM
s of Bares Ca
y / Ticker
e Intell. / ININ
nal Assets / INTL
/ WINA
/ SSYS
Financial / HALL
/ TZOO
om / STMP
Public Ed. / APE
Dental / ADPI
Executive / EXB
ns
/ DSCI
/ LZR
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Bares) ment firm, Bard a small-cap i
nagement is quilimiting the grantage: How T
p Current Idea
Market Value
($mn)
L 177
174
TL 447
53
658
199
191
101
XBD 1,417
419
apital Manag
Market Value
($mn)
658
L 447
174
950
177
720
191
EI 781
199
BD 1,417
Psychemedic
Zimmer Hold
$395 million
73%
$1.3 billion
$19 billion
19x
17x
3.2x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
res Capital Maninstitutional strite unique in throwth of assetsTop Endowmen
as of Bares C
Price
Recent ($) D
8.80
34.77
24.77
5.17
36.92
12.93
13.32
28.00
41.31
13.72
gement – By
Price
Recent ($) De
36.92
24.77
34.77
46.00
8.80
43.76
13.32
43.49
12.93
41.31
cs / PMD
ings / ZMH
th the SEC. Excludnon-equity securitie
AY! www.manualo
nagement, in 2rategy in 2001 he institutional s under managents and Founda
Capital Mana
Shar
from RecenDec. 31 ('000
-3% 2,39
3% 84
5% 2,27
10% 1,64
41% 2,48
-4% 90
1% 1,02
4% 33
10% 22
-1% 62
Dollar Value
Share
from Recentec. 31 ('000)
41% 2,489
5% 2,277
3% 847
41% 611
-3% 2,392
6% 328
1% 1,021
17% 292
-4% 907
10% 229
Sold O
Pizza Inn
Sector
des es.
Value-oriented Eq
ofideas.com
2000, focusing and now manaasset managem
ement to benefations Turn Sm
agement
res Owned
nt from 0) Sep. 30
92 2%
47 1%
77 1%
47 1%
89 0%
07 1%
21 0%
30 1%
29 2%
29 73%
e
es Owned
t from ) Sep. 30 C
9 0% 1
7 1% 1
7 1% 1
-28%
2 2% 1
8 -2%
0%
2 8%
7 1%
9 2% <
Out Positions
n / PZZI
Weightings
quity Investment Id
initially on miages assets in twment world, as fit investment p
mall Stocks into
Holdings as % of
Co. Fund*
12% 5%
17% 7%
13% 14%
16% 2%
14% 23%
6% 3%
7% 3%
9% 2%
<1% 2%
2% 2%
Holdings as % of T
Co. Fund*
4% 23%
3% 14%
7% 7%
3% 7%
2% 5%
2% 4%
7% 3%
2% 3%
6% 3%
<1% 2%
s
*
eas for Sophisticate
February 28, 2011 –
icro-cap publicwo value-orienit has adhered
performance. Bo Big Returns.
P/E (Est.)
This Next FY FY
25x 12x
n/a n/a
n/a n/a
n/a n/a
29x 28x
12x 12x
14x 13x
n/a n/a
25x 22x
12x 11x
P/E (Est.) P
This Next TFY FY
29x 28x
n/a n/a
n/a n/a
53x 41x
25x 12x
40x 30x
14x 13x
23x 20x
12x 12x
25x 22x
ed Investors
Page 22 of 170
c nted d to a Bares is
Price/ Tang. Book
1.1x
8.9x
2.3x
1.9x
8.6x
n/m
4.4x
3.1x
>9.9x
n/m
Price/ Tang. Book
8.6x
2.3x
8.9x
6.5x
1.1x
>9.9x
4.4x
8.0x
n/m
>9.9x
©
BSra M
T
N
A
P
T
P
* p
**
e
© 2008-2011 by Beyond
Baupost (SeSeth Klarman, respected valueannual return o
MOI Signal R
Compan
1 Theravan
2 Alere / A
3 AVEO Ph
4 ViaSat / V
5 News Co
6 PDL BioP
7 Ituran Lo
8 Multimed
9 Regenero
10 Syneron
Top Holdings
Company
1 ViaSat / V
2 News Cor
3 Theravanc
4 CapitalSo
5 Alere / AL
6 Enzon Pha
7 BreitBurn
8 Regenero
9 Alliance O
10 Ituran Loc
New Position
AVEO Pharma / A
PDL BioPharma /
Theravance / THR
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A large portion of equity and are there
Proxy LLC. All rights res
eth Klarmanfounder and pr
e-oriented invef approximatel
Rank™ – Top
ny / Ticker
nce / THRX
LR
harma / AVEO
VSAT
orp. / NWSA
Pharma / PDLI
ocation / ITRN
dia Games / MGA
on Pharma / REG
Medical / ELOS
s of Baupost
y / Ticker
VSAT
p. / NWSA
ce / THRX
urce / CSE
R
arma / ENZN
Energy / BBEP
n Pharma / REG
One / AOI
cation / ITRN
ns
AVEO
/ PDLI
RX
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
assets managed before not shown in
erved.
n) resident of Thestors. Since incly 20%.
p Current Idea
Market Value
($mn)
1,665
3,223
495
1,716
47,303
688
360
AM 150
GN 3,372
377
t – By Dollar
Market Value
($mn)
1,716
47,303
1,665
2,515
3,223
666
1,293
GN 3,372
316
360
$1.7 billion
94%
$1.7 billion
$6.6 billion
18x
17x
1.8x
n 13F-HR filings wiU.S. holdings, and n
by Seth Klarman mathe chart or tables.
SUBSCRIBE TODA
e Baupost Grouception in Febr
as of Baupos
Price
Recent ($) D
22.50
37.99
13.89
41.25
17.71
4.93
16.40
5.56
37.48
13.66
Value
Price
Recent ($) De
41.25
17.71
22.50
7.78
37.99
11.15
22.14
37.48
3.63
16.40
th the SEC. Excludnon-equity securitie
ay be invested in n.
AY! www.manualo
up, is the authoruary 1983, Th
st
Shar
from RecenDec. 31 ('000
-10% 13,00
4% 3,10
-5% 2,00
-7% 10,05
22% 19,05
-21% 5,60
-6% 1,72
0% 2,60
14% 1,00
34% 1,50
Share
from Recentec. 31 ('000)
-7% 10,051
22% 19,050
-10% 13,000
10% 16,000
4% 3,100
-8% 9,065
10% 4,350
14% 1,000
-14% 8,787
-6% 1,721
Sold O
Domtar /
Energy X
Liberty St
Solar Cap
Sector
des es.
on-
Value-oriented Eq
ofideas.com
or of Margin ofhe Baupost Gro
res Owned
nt from 0) Sep. 30
00 new
00 >100%
00 new
51 0%
50 0%
03 new
21 0%
00 0%
00 0%
00 0%
es Owned
t from ) Sep. 30 C
0% 2
0 0% <
0 new 1
0 -21%
0 >100%
5 -13% 1
0 -39%
0 0%
7 0% 1
0%
Out Positions
UFS
XXI / EXXI
tarz / LSTZA
pital / SLRC
r Weightings
quity Investment Id
f Safety and onoup has deliver
Holdings as % of
Co. Fund*
18% 17%
4% 7%
6% 2%
24% 25%
<1% 20%
4% 2%
8% 2%
10% <1%
1% 2%
5% 1%
Holdings as % of T
Co. Fund*
24% 25%
<1% 20%
8% 17%
5% 7%
4% 7%
5% 6%
7% 6%
1% 2%
0% 2%
8% 2%
s
*, **
eas for Sophisticate
February 28, 2011 –
ne of the most wred a compoun
P/E (Est.)
This Next FY FY
n/m n/m
14x 12x
n/m n/m
30x 34x
16x 14x
5x 4x
n/a n/a
51x 24x
n/m n/m
n/a n/a
P/E (Est.) P
This Next TFY FY
30x 34x
16x 14x
n/m n/m
n/m 20x
14x 12x
n/m n/m
16x 20x
n/m n/m
18x 18x
n/a n/a
ed Investors
Page 23 of 170
widely nded
Price/ Tang. Book
n/m
n/m
6.9x
2.7x
8.9x
n/m
3.6x
1.8x
6.4x
1.7x
Price/ Tang. Book
2.7x
8.9x
n/m
1.3x
n/m
2.0x
1.0x
6.4x
.8x
3.6x
©
BWinc M
T
N
N
P
* p
**
a
© 2008-2011 by Beyond
Berkshire HWarren Buffettnvestor of all t
companies with
MOI Signal R
Compan
1 Wells Fa
2 Comdisc
3 Kraft Foo
4 Coca-Co
5 Procter &
6 Washing
7 American
8 Wesco F
9 USG / US
10 Johnson
Top Holdings
Company
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
None
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A large portion of are not publicly trad
Proxy LLC. All rights res
Hathaway (Wt has built an untime. Buffett hah durable comp
Rank™ – Top
ny / Ticker
rgo / WFC
o / CDCO
ods / KFT
ola / KO
& Gamble / PG
ton Post / WPO
n Express / AXP
Financial / WSC
SG
& Johnson / JNJ
s of Berkshir
y / Ticker
a / KO
go / WFC
Express / AXP
Gamble / PG
ds / KFT
& Johnson / JNJ
nancial / WSC
hillips / COP
/ WMT
corp / USB
ns
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
Berkshire’s asset vded and are therefo
erved.
Warren Bufnparalleled invas embraced a petitive advanta
p Current Idea
Market Value
($mn)
171,319
35
53,993
149,887
179,988
3,811
54,807
2,785
1,927
J 167,824
re Hathaway
Market Value
($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
$69 billion
14x
13x
3.5x
n 13F-HR filings wiU.S. holdings, and n
value may be attribore not shown in the
SUBSCRIBE TODA
ffett) vestment track long term-orieage, high retur
as of Berksh
Price
Recent ($) D
32.64
8.65
30.91
64.55
64.30
451.17
45.53
391.18
18.73
61.11
– By Dollar
Price
Recent ($) De
64.55
32.64
45.53
64.30
30.91
61.11
391.18
76.62
55.38
28.56
th the SEC. Excludnon-equity securitie
uted to holdings the chart or tables.
AY! www.manualo
record over seented investmenrns on capital e
hire Hathawa
Shar
from ReceDec. 31 ('00
5% 342,62
-4% 1,53
-2% 105,21
-2% 200,00
0% 76,76
3% 1,72
6% 151,61
6% 5,70
11% 17,07
-1% 42,62
Value
Share
from Recenec. 31 ('000
-2% 200,000
5% 342,624
6% 151,611
0% 76,766
-2% 105,215
-1% 42,625
6% 5,703
13% 29,110
3% 39,037
6% 69,039
Sold O
Bank of A
Becton D
Comcast
Fiserv / F
Sector
des es.
at
Value-oriented Eq
ofideas.com
everal decades, nt approach wi
employed, and
ay
res Owned
nt from 00) Sep. 30
24 2%
38 0%
15 0%
00 0%
66 0%
28 0%
11 0%
03 0%
72 0%
25 0%
es Owned
nt from 0) Sep. 30
0 0%
4 2%
1 0% 1
6 0%
5 0%
5 0%
3 0% 8
0 0%
7 0%
9 0%
Out Positions
America / BAC
Dickinson / BDX
/ CMCSA
FISV
Weightings
quity Investment Id
becoming widith an emphasishareholder-fr
Holdings as % of
Co. Fund*
7% 21%
38% <1%
6% 6%
9% 24%
3% 9%
20% 1%
13% 13%
80% 4%
17% <1%
2% 5%
Holdings as % of
Co. Fund*
9% 24%
7% 21%
13% 13%
3% 9%
6% 6%
2% 5%
80% 4%
2% 4%
1% 4%
4% 4%
s
Lowe
Nalco
Nestl
Nike
*, **
eas for Sophisticate
February 28, 2011 –
dely regarded ais on investing riendly manage
P/E (Est.)
This Next FY FY
12x 9x
n/a n/a
14x 12x
17x 15x
16x 15x
19x 21x
12x 11x
n/a n/a
n/m n/m
13x 12x
P/E (Est.) P
This Next TFY FY
17x 15x
12x 9x
12x 11x
16x 15x
14x 12x
13x 12x
n/a n/a
11x 10x
14x 12x
13x 11x
e's / LOW
o Holding / NLC
le / NSRGY
/ NKE
ed Investors
Page 24 of 170
as the best in
ement.
Price/ Tang. Book
2.2x
.9x
n/m
>9.9x
n/m
4.6x
3.4x
1.2x
3.6x
6.8x
Price/ Tang. Book
>9.9x
2.2x
3.4x
n/m
n/m
6.8x
1.2x
1.7x
4.0x
3.6x
©
BJG M
T
N
C
G
H
Iv
N
P
* 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
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(John Griffias a merchant b
e president of T
Rank™ – Top
ny / Ticker
com / AMZN
Pharma / VRX
Scripts / ESRX
Union / WU
ergy / NRG
/ CVA
ion / CVC
ac Mortgage / PM
cation / XRS
s of Blue Rid
y / Ticker
n Chase / JPM
com / AMZN
APL
harma / VRX
Comms / DISCA
Scripts / ESRX
tems / CTXS
Union / WU
stle / CCI
ns
C
GM
/ HHC
/ IVAN
rp / NBN
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
fin) banking analys
Tiger in 1993 b
p Current Idea
Market Value
($mn)
84,112
11,989
29,991
14,206
5,164
2,614
11,288
MT 479
149,865
887
dge – By Doll
Market Value
($mn)
187,641
84,112
322,963
11,989
A 11,797
29,991
149,865
13,638
14,206
12,735
NovaGold / N
NRG Energy
Sohu.com / S
TAL Educatio
$6.7 billion
46%
$10 billion
$34 billion
17x
15x
2.4x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
st at Morgan Stut chose to sta
as of Blue R
Price
Recent ($) D
186.50
40.47
56.77
21.66
20.89
17.04
37.62
18.17
47.93
11.90
lar Value
Price
Recent ($) De
48.00
186.50
350.56
40.47
43.91
56.77
47.93
72.63
21.66
43.78
NG
/ NRG
SOHU
on / XRS
th the SEC. Excludnon-equity securitie
AY! www.manualo
tanley before jart long/short pa
idge
Shar
from RecenDec. 31 ('000
4% 2,12
43% 8,70
5% 5,06
17% 10,09
7% 3,51
-1% 8,66
11% 3,28
0% 1,58
9% 5,02
-26% 12
Share
from Recentec. 31 ('000)
13% 9,453
4% 2,123
9% 1,128
43% 8,705
5% 7,033
5% 5,069
9% 5,020
6% 3,065
17% 10,090
0% 4,784
Sold O
Genpact
Gold Min
InterOil /
J. Crew /
Kroger / K
Sector
des es.
Value-oriented Eq
ofideas.com
oining Robertsartnership Blu
res Owned
nt from 0) Sep. 30
23 0%
05 20%
69 31%
90 52%
10 new
62 0%
80 new
84 0%
20 0%
25 new
es Owned
t from ) Sep. 30
3 -21% <
3 0% <
8 -8% <
5 20%
3 -2%
9 31% <
0 0% <
5 -30%
0 52%
4 -25%
Out Positions
/ G
ers ETF / GDX
IOC
JCG
KR
r Weightings
quity Investment Id
son’s Tiger Mae Ridge in 199
Holdings as % of
Co. Fund*
<1% 6%
3% 5%
<1% 4%
2% 3%
1% 1%
6% 2%
1% 2%
6% <1%
<1% 4%
<1% <1%
Holdings as % of
Co. Fund*
<1% 7%
<1% 6%
<1% 6%
3% 5%
3% 5%
<1% 4%
<1% 4%
2% 3%
2% 3%
2% 3%
s
Lulul
Mast
Pfize
Visa
*
eas for Sophisticate
February 28, 2011 –
anagement in 196.
P/E (Est.)
This Next FY FY
58x 42x
n/a n/a
18x 15x
14x 13x
8x 18x
33x 30x
19x 15x
8x 7x
8x 7x
36x 35x
P/E (Est.)
This Next FY FY
10x 9x
58x 42x
15x 13x
n/a n/a
20x 16x
18x 15x
8x 7x
31x 27x
14x 13x
>99x 59x
emon Athletica /
terCard / MA
er / PFE
/ V
ed Investors
Page 25 of 170
1987.
Price/ Tang. Book
>9.9x
n/m
n/m
n/m
1.0x
7.6x
n/m
1.5x
2.1x
6.2x
Price/ Tang. Book
1.8x
>9.9x
6.0x
n/m
n/m
n/m
2.1x
9.3x
n/m
n/m
/ LULU
©
BP M
T
N
A
D
E
G
N
P
* p
**
o
© 2008-2011 by Beyond
BP Capital (Pickens, born in
MOI Signal R
Compan
1 Plains Ex
2 BP / BP
3 Chesape
4 Transatla
5 EOG Res
6 Weatherf
7 QEP Res
8 A123 Sys
9 Gastar E
10 Dynegy /
Top Holdings
Company
1 Transatlan
2 Chesapea
3 BP / BP
4 Plains Exp
5 Weatherfo
6 McMoRan
7 EOG Reso
8 QEP Reso
9 SandRidg
10 Suncor En
New Position
A123 Systems / A
Dynegy / DYN
EOG Resources
Gastar Exploratio
Nat.-Oilwell Varco
Portfolio MetPortfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A large portion of outside of BP Capita
Proxy LLC. All rights res
(Boone Pickn 1928, was a p
Rank™ – Top
ny / Ticker
xploration / PXP
eake Energy / CH
antic / TRH
sources / EOG
ford / WFT
sources / QEP
stems / AONE
xploration / GST
/ DYN
s of BP Capit
y / Ticker
ntic / TRH
ake Energy / CHK
ploration / PXP
ord / WFT
n Exploration / M
ources / EOG
ources / QEP
e Energy / SD
nergy / SU
ns
AONE
/ EOG
on / GST
o / NOV
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
assets managed bal and are therefore
erved.
kens) prominent corp
p Current Idea
Market Value
($mn)
5,467
149,865
HK 19,899
3,310
27,660
19,018
6,865
1,024
T 282
727
tal – By Dolla
Market Value
($mn)
3,310
K 19,899
149,865
5,467
19,018
MR 1,810
27,660
6,865
3,609
70,304
$411 million
71%
$14 billion
$32 billion
19x
14x
2.4x
n 13F-HR filings wiU.S. holdings, and n
by Boone Pickens me not shown in the
SUBSCRIBE TODA
porate raider du
as of BP Cap
Price
Recent ($) D
39.02
47.93
30.43
52.34
108.89
25.65
39.09
9.75
4.52
6.01
ar Value
Price
Recent ($) De
52.34
30.43
47.93
39.02
25.65
17.05
108.89
39.09
8.92
44.90
th the SEC. Excludnon-equity securitie
may be invested chart or tables.
AY! www.manualo
uring the 1980
pital
Shar
from RecenDec. 31 ('000
21% 60
9% 51
17% 88
1% 2,00
19% 18
13% 87
8% 47
2% 46
5% 1,17
7% 1,39
Share
from Recentec. 31 ('000)
1% 2,000
17% 883
9% 511
21% 604
13% 875
-1% 1,172
19% 180
8% 476
22% 1,936
17% 358
Sold O
Anadarko
Apache /
Baker Hu
Chevron
EnCana /
Fluor / FL
Sector
des es.
Value-oriented Eq
ofideas.com
0s. He founded
res Owned
nt from 0) Sep. 30
04 90%
11 6%
83 19%
00 0%
80 new
75 0%
76 >100%
65 new
72 new
95 new
es Owned
t from ) Sep. 30
0 0%
3 19% <
1 6% <
4 90% <
5 0% <
2 0%
0 new <
6 >100% <
6 0% <
8 -37% <
Out Positions
o Petroleum / AP
APA
ughes / BHI
/ CVX
/ ECA
LR
r Weightings
quity Investment Id
d energy fund B
Holdings as % of
Co. Fund*
<1% 6%
<1% 6%
<1% 7%
3% 25%
<1% 5%
<1% 5%
<1% 5%
<1% 1%
2% 1%
1% 2%
Holdings as % of
Co. Fund*
3% 25%
<1% 7%
<1% 6%
<1% 6%
<1% 5%
1% 5%
<1% 5%
<1% 5%
<1% 4%
<1% 4%
s
PC Hess
Mass
Quick
Schlu
South
*, **
eas for Sophisticate
February 28, 2011 –
BP Capital in 1
P/E (Est.)
This Next FY FY
33x 23x
8x 7x
10x 11x
9x 9x
31x 19x
n/a n/a
28x 26x
n/m n/m
n/a n/a
n/m n/m
P/E (Est.)
This Next FY FY
9x 9x
10x 11x
8x 7x
33x 23x
n/a n/a
n/m n/m
31x 19x
28x 26x
>99x >99x
n/a n/a
s / HES
sey Energy / ME
ksilver Resource
umberger / SLB
hwestern Energy
ed Investors
Page 26 of 170
997.
Price/ Tang. Book
1.9x
2.1x
1.6x
.8x
2.7x
3.8x
2.3x
2.4x
1.8x
.3x
Price/ Tang. Book
.8x
1.6x
2.1x
1.9x
3.8x
1.0x
2.7x
2.3x
3.0x
2.1x
E
e / KWK
y / SWN
©
BBTa M
T
N
H
P
* p
© 2008-2011 by Beyond
Brave WarrBrave Warrior,The firm runs aadvantage. Brav
MOI Signal R
Compan
1 Fiserv / F
2 Hewlett-P
3 Broadridg
4 Arch Cap
5 MasterCa
6 Ryanair /
7 Lab Corp
8 U.S. Ban
9 Comcast
10 Google /
Top Holdings
Company
1 Comcast /
2 Fiserv / FI
3 Lab Corp.
4 Ryanair / R
5 U.S. Banc
6 MasterCar
7 Google / G
8 Broadridge
9 Hewlett-Pa
10 Arch Capi
New Position
Hewlett-Packard
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
rior (Glenn G formerly calle
a concentrated ve Warrior’s lo
Rank™ – Top
ny / Ticker
FISV
Packard / HPQ
ge Financial / BR
pital / ACGL
ard / MA
/ RYAAY
p. of America / LH
ncorp / USB
t / CMCSA
GOOG
s of Brave W
y / Ticker
/ CMCSA
SV
of America / LH
RYAAY
corp / USB
rd / MA
GOOG
e Financial / BR
ackard / HPQ
tal / ACGL
ns
/ HPQ
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Greenberg)ed Chieftain Caportfolio focusong-term perfo
p Current Idea
Market Value
($mn)
9,447
105,835
R 2,912
4,406
32,817
7,372
H 9,052
54,787
70,563
202,585
Warrior – By D
Market Value
($mn)
70,563
9,447
9,052
7,372
54,787
32,817
202,585
2,912
105,835
4,406
$1.2 billion
95%
$8.4 billion
$32 billion
15x
13x
3.6x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
) apital Managemsed on companormance record
as of Brave W
Price
Recent ($) D
63.52
48.67
23.24
90.12
250.74
30.20
89.01
28.56
25.67
630.08
Dollar Value
Price
Recent ($) De
25.67
63.52
89.01
30.20
28.56
250.74
630.08
23.24
48.67
90.12
th the SEC. Excludnon-equity securitie
AY! www.manualo
ment, was founnies with high rd is believed to
Warrior
Shar
from RecenDec. 31 ('000
8% 2,59
16% 1,66
6% 3,63
2% 78
12% 41
-2% 3,79
1% 1,31
6% 3,87
17% 6,84
6% 15
Share
from Recentec. 31 ('000)
17% 6,847
8% 2,595
1% 1,311
-2% 3,791
6% 3,876
12% 419
6% 159
6% 3,635
16% 1,661
2% 783
Sold O
Approach
Bank of A
Crosstex
Dell / DE
Sector
des es.
Value-oriented Eq
ofideas.com
nded in 1984 breturns on capi
o feature mid te
res Owned
nt from 0) Sep. 30
95 24%
61 new
35 57%
83 16%
19 23%
91 -2%
11 -6%
76 -12%
47 -7%
59 -41%
es Owned
t from ) Sep. 30
7 -7% <
5 24%
1 -6%
1 -2%
6 -12% <
9 23% <
9 -41% <
5 57%
1 new <
3 16%
Out Positions
h Resources / AR
America / BAC
Energy, L.P. / X
LL
Weightings
quity Investment Id
by Glenn Greenital and sustaineens annualized
Holdings as % of
Co. Fund*
2% 14%
<1% 7%
3% 7%
2% 6%
<1% 9%
2% 10%
1% 10%
<1% 9%
<1% 15%
<1% 8%
Holdings as % of
Co. Fund*
<1% 15%
2% 14%
1% 10%
2% 10%
<1% 9%
<1% 9%
<1% 8%
3% 7%
<1% 7%
2% 6%
s
REX
XTEX
Nicho
Star
Tidew
*
eas for Sophisticate
February 28, 2011 –
nberg and Johnnable competitid investment re
P/E (Est.)
This Next FY FY
14x 13x
9x 9x
17x 14x
11x 11x
15x 13x
18x 12x
14x 13x
13x 11x
17x 15x
18x 16x
P/E (Est.) P
This Next TFY FY
17x 15x
14x 13x
14x 13x
18x 12x
13x 11x
15x 13x
18x 16x
17x 14x
9x 9x
11x 11x
olas Financial / N
Gas Partners / S
water / TDW
ed Investors
Page 27 of 170
n Shapiro. ive eturns.
Price/ Tang. Book
n/m
n/m
>9.9x
1.1x
8.2x
1.9x
n/m
3.6x
n/m
5.2x
Price/ Tang. Book
n/m
n/m
n/m
1.9x
3.6x
8.2x
5.2x
>9.9x
n/m
1.1x
NICK
SGU
©
BRB M
T
N
F
Ir
P
* p
© 2008-2011 by Beyond
Breeden CapRichard C. BreBreeden Capita
MOI Signal R
Compan
1 Steris / S
2 Flowserv
3 H&R Bloc
4 Stanley B
5 ValueClic
6 Iron Mou
7 EMCOR
8 Bally Tec
9 Zale / ZL
10 Hillenbra
Top Holdings
Company
1 H&R Bloc
2 Steris / ST
3 Helmerich
4 Aon / AON
5 Dun & Bra
6 EMCOR G
7 Hillenbran
8 Bally Tech
9 Flowserve
10 Stanley Bl
New Position
Flowserve / FLS
ron Mountain / IR
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
apital (Richaeden, born in 1
al Management
Rank™ – Top
ny / Ticker
STE
ve / FLS
ck / HRB
Black Decker / SW
ck / VCLK
ntain / IRM
Group / EME
chnologies / BYI
LC
and / HI
s of Breeden
y / Ticker
k / HRB
TE
h & Payne / HP
N
adstreet / DNB
Group / EME
nd / HI
hnologies / BYI
e / FLS
lack Decker / SW
ns
RM
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
ard Breeden1949, is a formt in 2006. The
p Current Idea
Market Value
($mn)
2,086
7,277
4,436
WK 12,632
1,256
5,430
2,149
2,143
140
1,394
n Capital – By
Market Value
($mn)
4,436
2,086
6,609
17,010
4,236
2,149
1,394
2,143
7,277
WK 12,632
$1.3 billion
92%
$4.2 billion
$5.6 billion
16x
14x
4.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
n) mer Chairman o
fund applies a
as of Breede
Price
Recent ($) D
35.16
130.33
14.54
76.09
15.55
27.13
32.34
40.01
4.37
22.25
y Dollar Valu
Price
Recent ($) De
14.54
35.16
62.15
52.93
85.03
32.34
22.25
40.01
130.33
76.09
th the SEC. Excludnon-equity securitie
AY! www.manualo
of the U.S. Secuconcentrated,
en Capital
Shar
from RecenDec. 31 ('000
-4% 5,06
9% 49
22% 13,29
14% 57
-3% 1,91
8% 1,19
12% 3,05
-5% 2,25
3% 7,99
7% 4,09
ue
Share
from Recentec. 31 ('000)
22% 13,292
-4% 5,067
28% 2,793
15% 2,338
4% 1,250
12% 3,053
7% 4,092
-5% 2,256
9% 496
14% 579
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
urities and Excactivist investm
res Owned
nt from 0) Sep. 30
67 0%
96 new
92 0%
79 >100%
4 >100%
93 new
53 0%
56 -11%
92 -12%
92 -6%
es Owned
t from ) Sep. 30 C
2 0%
7 0%
3 -13%
8 -23% <
0 -17%
3 0%
2 -6%
6 -11%
6 new <
9 >100% <
Out Positions
r Weightings
quity Investment Id
change Commiment approach
Holdings as % of
Co. Fund*
9% 14%
<1% 5%
4% 15%
<1% 3%
2% 2%
<1% 3%
5% 8%
4% 7%
25% 3%
7% 7%
Holdings as % of T
Co. Fund*
4% 15%
9% 14%
3% 14%
<1% 10%
3% 8%
5% 8%
7% 7%
4% 7%
<1% 5%
<1% 3%
s
*
eas for Sophisticate
February 28, 2011 –
ission. Breedenh.
P/E (Est.)
This Next FY FY
16x 15x
19x 16x
10x 9x
15x 13x
19x 17x
24x 22x
18x 15x
20x 16x
n/m n/m
12x 11x
P/E (Est.) P
This Next TFY FY
10x 9x
16x 15x
16x 14x
15x 14x
14x 12x
18x 15x
12x 11x
20x 16x
19x 16x
15x 13x
ed Investors
Page 28 of 170
n founded
Price/ Tang. Book
4.8x
8.5x
n/m
n/m
4.9x
n/m
4.3x
5.9x
1.2x
n/m
Price/ Tang. Book
n/m
4.8x
2.2x
n/m
n/m
4.3x
n/m
5.9x
8.5x
n/m
©
CZas M
1
T
1
N
AAABB
P
* p
© 2008-2011 by Beyond
Centaur ValZeke Ashton isadvisor to the Csub-advisor to t
MOI Signal R
Compan
1 Calamos
2 Cisco Sy
3 Terra No
4 Lab Corp
5 Aspen In
6 Vonage /
7 Blue Coa
8 Best Buy
9 Madison
10 Maxygen
Excludes holdings
Top Holdings
Company
1 Cisco Sys
2 EMC / EM
3 Lab Corp.
4 Calamos A
5 Terra Nov
6 Vonage / V
7 Aspen Ins
8 Vodafone
9 Himax Tec
10 Madison S
Excludes holdings
New Position
Alleghany / Y American DefensArtio Global InvesBest Buy / BBY Blue Coat System
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, certa
Proxy LLC. All rights res
lue (Zeke A founder and m
Centaur family the Tilson Div
Rank™ – Top
ny / Ticker
s Asset Mgmt / C
ystems / CSCO
ova Royalty / TTT
p. of America / LH
surance / AHL
/ VG
at Systems / BCS
y / BBY
Sq. Garden / MS
n / MAXY
s of Tilson Dividend
s of Centaur
y / Ticker
tems / CSCO
MC
of America / LH
Asset Mgmt / CL
va Royalty / TTT
VG
urance / AHL
/ VOD
ch / HIMX
Sq. Garden / MSG
s of Tilson Dividend
ns
se / EAG st. / ART
ms / BCSI
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inain non-U.S. holding
erved.
Ashton) managing partn
of private partidend Fund, a m
p Current Idea
Market Value
($mn)
LMS 340
104,481
T 321
H 9,052
2,286
944
SI 1,220
13,024
SG 2,125
123
d Fund, which is als
Value Fund
Market Value
($mn)
104,481
56,002
9,052
LMS 340
321
944
2,286
152,356
476
G 2,125
d Fund, which is als
Calamos AssMaxygen / MATelular / WRLVonage / VG
$85 million
55%
$2.4 billion
$25 billion
16x
14x
2.2x
n 13F-HR filings wigs, and non-equity
SUBSCRIBE TODA
ner of Centaur Ctnerships usingmutual fund ut
as of Centau
Price
Recent ($) D
17.09
18.85
8.49
89.01
29.81
4.26
28.24
33.04
28.02
4.09
so managed by Zek
– By Dollar V
Price
Recent ($) De
18.85
27.18
89.01
17.09
8.49
4.26
29.81
29.67
2.66
28.02
so managed by Zek
set Mgmt / CLMSAXY LS
th the SEC. Excludsecurities.
AY! www.manualo
Capital, a Dallg a value-orienttilizing an inco
ur Value Fund
Shar
from RecenDec. 31 ('000
22% 30
-7% 39
9% 47
1% 6
4% 12
90% 90
-5% 7
-4% 8
9% 11
4% 31
ke Ashton. 2 Inclu
Value 1, 2
Share
from Recentec. 31 ('000)
-7% 395
19% 270
1% 64
22% 301
9% 470
90% 900
4% 125
12% 110
13% 1,200
9% 112
ke Ashton. 2 Inclu
Sold O
S BroadridgDiamondDreamWoEnergrou
Sector
des
Value-oriented Eq
ofideas.com
las-based invested long/short
ome-oriented v
d 1, 2
res Owned
nt from 0) Sep. 30
01 new
95 >100%
70 63%
64 0%
25 67%
00 new
70 new
88 new
12 12%
13 new
udes shares under
es Owned
t from ) Sep. 30
5 >100% <
0 -16% <
4 0% <
1 new
0 63%
0 new <
5 67% <
0 -35% <
0 3% <
2 12% <
udes shares under
Out Positions
ge Financial / BR Hill Invest. / DHorks / DWA
up / ENHD
r Weightings
quity Investment Id
stment firm. Ceequity strategy
value investing
Holdings as % of
Co. Fund*
2% 6%
<1% 9%
1% 5%
<1% 7%
<1% 4%
<1% 5%
<1% 2%
<1% 3%
<1% 4%
1% 2%
rlying LEAPs and o
Holdings as % of
Co. Fund*
<1% 9%
<1% 9%
<1% 7%
2% 6%
1% 5%
<1% 5%
<1% 4%
<1% 4%
<1% 4%
<1% 4%
rlying LEAPs and o
s
R HIL
EpocFairfaStapl
*
eas for Sophisticate
February 28, 2011 –
entaur Capital y. Centaur is alstrategy.
P/E (Est.)
This Next FY FY
16x 14x
12x 11x
n/a n/a
14x 13x
9x 9x
15x 17x
18x 17x
10x 9x
26x 24x
n/a n/a
other option position
P/E (Est.) P
This Next TFY FY
12x 11x
18x 16x
14x 13x
16x 14x
n/a n/a
15x 17x
9x 9x
11x 10x
13x 10x
26x 24x
other option position
ch Holding / EPHax Financial / FRles / SPLS
ed Investors
Page 29 of 170
serves as lso the
Price/ Tang. Book
1.9x
4.0x
1.0x
n/m
.7x
n/m
6.7x
4.1x
>9.9x
.8x
ns.
Price/ Tang. Book
4.0x
>9.9x
n/m
1.9x
1.0x
n/m
.7x
5.7x
1.3x
>9.9x
ns.
HC RFHF
©
CCthao M
T
N
C
R
P
* p
© 2008-2011 by Beyond
Children’s IChris Hohn is that has historic
activist, most nof the London S
MOI Signal R
Compan
1 Coca-Co
2 Molson C
3 CBS / CB
4 Royal Ba
5 CME Gro
6 Viacom /
7 Walt Disn
8 Visa / V
9 Union Pa
10 WellPoin
Top Holdings
Company
1 Viacom / V
2 Walt Disne
3 Visa / V
4 Coca-Cola
5 Molson Co
6 Union Pac
7 WellPoint
8 CME Grou
9 CBS / CBS
10 Royal Ban
New Position
CBS / CBS
Royal Bank Scotl
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
Investment the founder of Lcally been heav
notably forcing Stock Exchang
Rank™ – Top
ny / Ticker
ola / KO
Coors / TAP
BS
ank Scotland / RB
oup / CME
VIA.B
ney / DIS
acific / UNP
t / WLP
s of Children
y / Ticker
VIA.B
ey / DIS
a / KO
oors / TAP
cific / UNP
/ WLP
up / CME
S
nk Scotland / RBS
ns
and / RBS
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
(Chris HohnLondon-based vily weighted ithe resignation
ge. Hohn also a
p Current Idea
Market Value
($mn)
149,887
8,470
15,605
BS 45,917
20,294
27,699
82,724
54,043
47,696
25,310
n’s Investmen
Market Value
($mn)
27,699
82,724
54,043
149,887
8,470
47,696
25,310
20,294
15,605
S 45,917
$2.6 billion
100%
$42 billion
$52 billion
15x
13x
5.1x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
hn) The Children’
in industrials. Hn of the CEO oagitated for a sa
as of Childre
Price
Recent ($) D
64.55
45.60
22.91
15.69
302.84
45.50
43.56
75.83
97.14
67.40
nt Fund – By
Price
Recent ($) De
45.50
43.56
75.83
64.55
45.60
97.14
67.40
302.84
22.91
15.69
th the SEC. Excludnon-equity securitie
AY! www.manualo
’s Investment FHohn has acquof Deutsche Boale of ABN Am
en’s Investm
Shar
from RecenDec. 31 ('000
-2% 4,97
-9% 6,11
20% 2,01
27% 1,17
-6% 28
15% 12,34
16% 12,20
8% 4,66
5% 2,02
19% 2,35
y Dollar Valu
Share
from Recentec. 31 ('000)
15% 12,345
16% 12,200
8% 4,665
-2% 4,973
-9% 6,114
5% 2,029
19% 2,355
-6% 286
20% 2,019
27% 1,172
Sold O
Compass
Lockheed
Sector
des es.
Value-oriented Eq
ofideas.com
Fund Managemuired a reputatiooerse after he rmro, ultimately
ment Fund
res Owned
nt from 0) Sep. 30
73 >100%
14 0%
19 new
72 new
86 10%
45 -3%
00 -3%
65 -35%
29 -79%
55 -56%
e
es Owned
t from ) Sep. 30
5 -3%
0 -3% <
5 -35% <
3 >100% <
4 0%
9 -79% <
5 -56% <
6 10% <
9 new <
2 new <
Out Positions
s Minerals / CMP
d Martin / LMT
r Weightings
quity Investment Id
ment. TCI runs on as an aggrerefused to abany pushing it int
Holdings as % of
Co. Fund*
<1% 13%
3% 11%
<1% 2%
<1% <1%
<1% 3%
2% 22%
<1% 21%
<1% 14%
<1% 8%
<1% 6%
Holdings as % of
Co. Fund*
2% 22%
<1% 21%
<1% 14%
<1% 13%
3% 11%
<1% 8%
<1% 6%
<1% 3%
<1% 2%
<1% <1%
s
P Mast
Philip
*
eas for Sophisticate
February 28, 2011 –
a concentratedssive sharehold
ndon a proposeto the hands of
P/E (Est.)
This Next FY FY
17x 15x
12x 11x
16x 12x
n/a n/a
18x 16x
13x 12x
17x 15x
16x 13x
15x 13x
10x 9x
P/E (Est.) P
This Next TFY FY
13x 12x
17x 15x
16x 13x
17x 15x
12x 11x
15x 13x
10x 9x
18x 16x
16x 12x
n/a n/a
terCard / MA
p Morris / PM
ed Investors
Page 30 of 170
d portfolio der d takeover
f RBS.
Price/ Tang. Book
>9.9x
5.1x
n/m
.5x
n/m
n/m
>9.9x
>9.9x
2.7x
9.9x
Price/ Tang. Book
n/m
>9.9x
>9.9x
>9.9x
5.1x
2.7x
9.9x
n/m
n/m
.5x
©
CFFb M
T
N
A
W
P
* p
**
C
© 2008-2011 by Beyond
Chou AssociFrancis Chou aFairfax Financibeen repeatedly
MOI Signal R
Compan
1 Wells Fa
2 Watson P
3 Bank of A
4 MannKin
5 Overstoc
6 Berkshire
7 Sprint Ne
8 Sears Ho
9 Nokia / N
10 SK Telec
Top Holdings
Company
1 King Phar
2 Bank of A
3 Watson P
4 Valeant P
5 Wells Farg
6 Overstock
7 Sears Hol
8 Sprint Nex
9 Berkshire
10 Internation
New Position
AbitibiBowater / A
Wells Fargo / WF
Portfolio MetPortfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A large portion of Canadian and other
Proxy LLC. All rights res
iates (Francarrived in Canaial. The roots oy ranked one o
Rank™ – Top
ny / Ticker
rgo / WFC
Pharma / WPI
America / BAC
d / MNKD
ck.com / OSTK
e Hathaway / BR
extel / S
oldings / SHLD
NOK
com / SKM
s of Chou As
y / Ticker
ma / KG
merica / BAC
harma / WPI
harma / VRX
go / WFC
k.com / OSTK
dings / SHLD
xtel / S
Hathaway / BRK
nal Coal / ICO
ns
ABH
FC
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
assets managed br securities, which a
erved.
cis Chou) ada from India of Chou Associf the top invest
p Current Idea
Market Value
($mn)
171,319
7,388
148,756
482
330
RK.A 210,308
13,442
10,234
34,127
11,387
ssociates – B
Market Value
($mn)
3,557
148,756
7,388
11,989
171,319
330
10,234
13,442
K.A 210,308
1,939
$459 million
84%
$7.4 billion
$37 billion
13x
11x
2.1x
n 13F-HR filings wiU.S. holdings, and n
by Francis Chou maare not shown in th
SUBSCRIBE TODA
in 1976. Over iates date backtment manager
as of Chou A
Price
Recent ($) D
32.64
55.75
14.75
3.86
14.33
127,640
4.50
93.03
9.19
17.36
By Dollar Val
Price
Recent ($) De
14.23
14.75
55.75
40.47
32.64
14.33
93.03
4.50
127,640
9.51
th the SEC. Excludnon-equity securitie
ay be invested in he chart or tables.
AY! www.manualo
the years, he wk to 1986. Todars in Canada. H
Associates
Shar
from RecenDec. 31 ('000
5% 99
8% 63
11% 4,20
-52% 2,43
-13% 2,22
6%
6% 6,12
26% 33
-11% 3
-7% 17
ue
Share
from Recentec. 31 ('000)
1% 6,025
11% 4,200
8% 635
43% 840
5% 998
-13% 2,220
26% 334
6% 6,123
6% 0
23% 2,400
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
worked for Bellay, Chou manaHe follows a de
res Owned
nt from 0) Sep. 30
98 new
35 0%
00 0%
39 19%
20 0%
0 0%
23 0%
34 0%
30 0%
70 0%
es Owned
t from ) Sep. 30
5 -10%
0 0% <
5 0% <
0 -42% <
8 new <
0 0% 1
4 0% <
3 0% <
0 0% <
0 -20%
Out Positions
r Weightings
quity Investment Id
l Canada, Gardages several inveep value-orien
Holdings as % of
Co. Fund*
<1% 7%
<1% 8%
<1% 13%
2% 2%
10% 7%
<1% 5%
<1% 6%
<1% 7%
<1% <1%
<1% <1%
Holdings as % of
Co. Fund*
2% 19%
<1% 13%
<1% 8%
<1% 7%
<1% 7%
10% 7%
<1% 7%
<1% 6%
<1% 5%
1% 5%
s
*, **
eas for Sophisticate
February 28, 2011 –
diner Watson, avestment fundsnted investmen
P/E (Est.)
This Next FY FY
12x 9x
14x 11x
11x 8x
n/m n/m
36x 30x
19x 19x
n/m n/m
72x 82x
13x 11x
10x 9x
P/E (Est.) P
This Next TFY FY
21x 21x
11x 8x
14x 11x
n/a n/a
12x 9x
36x 30x
72x 82x
n/m n/m
19x 19x
15x 8x
ed Investors
Page 31 of 170
and s and has nt style.
Price/ Tang. Book
2.2x
>9.9x
1.3x
n/m
>9.9x
2.1x
n/m
2.7x
3.8x
3.5x
Price/ Tang. Book
2.8x
1.3x
>9.9x
n/m
2.2x
>9.9x
2.7x
n/m
2.1x
2.6x
©
ERpa M
T
N
A
C
M
R
P
* p
© 2008-2011 by Beyond
Eagle (BoykRavenel Boykinpartnership andapproach and lo
MOI Signal R
Compan
1 Coca-Co
2 Praxair /
3 Aon / AO
4 Comcast
5 Microsoft
6 Wal-Mart
7 W.R. Ber
8 3M / MM
9 News Co
10 PepsiCo
Top Holdings
Company
1 Comcast /
2 Liberty Glo
3 Aon / AON
4 Coca-Cola
5 Praxair / P
6 Wal-Mart /
7 Microsoft /
8 Altera / AL
9 News Cor
10 3M / MMM
New Position
American Public
CVS Caremark /
Molex / MOLX
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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
kin Curry) n Curry IV ma
d has grown to ooks for out-of
Rank™ – Top
ny / Ticker
ola / KO
PX
ON
t / CMCSA
t / MSFT
t / WMT
rkley / WRB
M
orp. / NWSA
/ PEP
s of Eagle Ca
y / Ticker
/ CMCSA
obal / LBTYA
N
a / KO
PX
/ WMT
/ MSFT
LTR
p. / NWSA
M
ns
Ed. / APEI
CVS
s / RSG
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
anages New Yomore than $5 b
f-favor compan
p Current Idea
Market Value
($mn)
149,887
30,359
17,010
70,563
227,369
197,263
4,405
66,170
47,303
100,495
apital Manag
Market Value
($mn)
70,563
10,033
17,010
149,887
30,359
197,263
227,369
13,346
47,303
66,170
$7.4 billion
51%
$23 billion
$52 billion
16x
14x
3.0x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ork-based Eaglbillion in assetnies that trade a
as of Eagle C
Price
Recent ($) D
64.55
99.09
52.93
25.67
27.06
55.38
30.37
92.96
17.71
63.41
gement – By
Price
Recent ($) De
25.67
42.19
52.93
64.55
99.09
55.38
27.06
41.71
17.71
92.96
th the SEC. Excludnon-equity securitie
AY! www.manualo
le Capital Mants invested in eat a significant
Capital Mana
Shar
from RecenDec. 31 ('000
-2% 6,01
4% 3,65
15% 8,57
17% 20,07
-3% 11,88
3% 6,32
11% 7,50
8% 3,12
22% 16,50
-3%
Dollar Value
Share
from Recentec. 31 ('000)
17% 20,079
19% 11,778
15% 8,579
-2% 6,016
4% 3,657
3% 6,322
-3% 11,885
17% 7,392
22% 16,509
8% 3,127
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
nagement, whicquities. Curry t discount to in
agement
res Owned
nt from 0) Sep. 30
16 3%
57 4%
79 5%
79 3%
85 3%
22 8%
02 20%
27 7%
09 4%
7 54%
e
es Owned
t from ) Sep. 30
9 3% <
8 -1%
9 5%
6 3% <
7 4%
2 8% <
5 3% <
2 -26%
9 4% <
7 7% <
Out Positions
r Weightings
quity Investment Id
ch started as a fhas a long term
ntrinsic value.
Holdings as % of
Co. Fund*
<1% 5%
1% 5%
3% 6%
<1% 7%
<1% 4%
<1% 5%
5% 3%
<1% 4%
<1% 4%
<1% <1%
Holdings as % of
Co. Fund*
<1% 7%
5% 7%
3% 6%
<1% 5%
1% 5%
<1% 5%
<1% 4%
2% 4%
<1% 4%
<1% 4%
s
*
eas for Sophisticate
February 28, 2011 –
family investmm-oriented inve
P/E (Est.)
This Next FY FY
17x 15x
18x 16x
15x 14x
17x 15x
11x 10x
14x 12x
12x 12x
15x 13x
16x 14x
14x 13x
P/E (Est.) P
This Next TFY FY
17x 15x
35x 39x
15x 14x
17x 15x
18x 16x
14x 12x
11x 10x
17x 16x
16x 14x
15x 13x
ed Investors
Page 32 of 170
ment estment
Price/ Tang. Book
>9.9x
8.4x
n/m
n/m
6.5x
4.0x
1.2x
9.4x
8.9x
n/m
Price/ Tang. Book
n/m
n/m
n/m
>9.9x
8.4x
4.0x
6.5x
5.7x
8.9x
9.4x
©
ESf M
T
N
A
F
H
P
* p
© 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
7 Superval
8 Eastman
9 Office De
10 Fidelity N
Top Holdings
Company
1 Applied M
2 Petroleo B
3 Time Warn
4 Cisco Sys
5 Zimmer H
6 D.R. Horto
7 ConocoPh
8 Bank of A
9 Intel / INTC
10 General E
New Position
Assurant / AIZ
Fidelity National /
Hovnanian Enterp
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
Partners (Saollows a value-o
Sir John Temp
Rank™ – Top
ny / Ticker
Holdings / ZMH
ystems / CSCO
Brasileiro / PBR
Materials / AMAT
rton / DHI
America / BAC
u / SVU
Kodak / EK
epot / ODP
National / FNF
s of Edinburg
y / Ticker
aterials / AMAT
Brasileiro / PBR
ner Cable / TWC
tems / CSCO
oldings / ZMH
on / DHI
hillips / COP
merica / BAC
C
Electric / GE
ns
/ FNF
prises / HOV
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Sandy Nairnoriented investpleton.
p Current Idea
Market Value
($mn)
12,583
104,481
231,599
T 21,757
4,087
148,756
1,863
998
1,516
3,237
gh Partners
Market Value
($mn)
21,757
231,599
C 25,574
104,481
12,583
4,087
112,572
148,756
123,497
228,437
Marshall & Ils
Office Depot
Zimmer Hold
$3.5 billion
81%
$13 billion
$47 billion
13x
12x
2.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
n) tment style. He
as of Edinbu
Price
Recent ($) D
63.73
18.85
38.00
16.47
12.80
14.75
8.78
3.71
5.47
14.26
– By Dollar V
Price
Recent ($) De
16.47
38.00
71.89
18.85
63.73
12.80
76.62
14.75
22.14
21.44
sley / MI
/ ODP
ings / ZMH
th the SEC. Excludnon-equity securitie
AY! www.manualo
e developed his
urgh Partners
Shar
from RecenDec. 31 ('000
19% 4,79
-7% 16,40
0% 9,09
17% 22,22
7% 19,90
11% 16,35
-9% 1
-31% 2
1% 2
4%
Value
Share
from Recentec. 31 ('000)
17% 22,220
0% 9,096
9% 4,437
-7% 16,403
19% 4,792
7% 19,900
13% 3,182
11% 16,359
5% 10,708
17% 10,972
Sold O
Cemex /
Ford Mot
Huntsma
Sector
des es.
Value-oriented Eq
ofideas.com
s approach dur
s
res Owned
nt from 0) Sep. 30
92 new
03 14%
96 7%
20 2%
00 0%
59 6%
12 35%
25 0%
22 new
8 new
es Owned
t from ) Sep. 30
0 2%
6 7% <
7 -1%
3 14% <
2 new
0 0%
2 -15% <
9 6% <
8 -11% <
2 -1% <
Out Positions
CX
tor / F
an / HUN
r Weightings
quity Investment Id
ring a ten-year
Holdings as % of
Co. Fund*
2% 9%
<1% 9%
<1% 10%
2% 10%
6% 7%
<1% 7%
<1% <1%
<1% <1%
<1% <1%
<1% <1%
Holdings as % of
Co. Fund*
2% 10%
<1% 10%
1% 9%
<1% 9%
2% 9%
6% 7%
<1% 7%
<1% 7%
<1% 7%
<1% 7%
s
*
eas for Sophisticate
February 28, 2011 –
“apprenticeshi
P/E (Est.)
This Next FY FY
14x 12x
12x 11x
n/a n/a
13x 12x
85x 15x
11x 8x
7x 7x
n/m n/m
n/m 91x
13x 12x
P/E (Est.) P
This Next TFY FY
13x 12x
n/a n/a
16x 13x
12x 11x
14x 12x
85x 15x
11x 10x
11x 8x
11x 10x
16x 13x
ed Investors
Page 33 of 170
ip” under
Price/ Tang. Book
5.3x
4.0x
1.8x
3.7x
1.6x
1.3x
n/m
n/m
2.0x
2.3x
Price/ Tang. Book
3.7x
1.8x
n/m
4.0x
5.3x
1.6x
1.7x
1.3x
2.7x
5.1x
©
EERinlaeS M
T
N
C
G
P
* p
© 2008-2011 by Beyond
ESL InvestmEddie Lampert,Rubin at the arbnvestor Richarargest investm
engineered the Sears Holdings
MOI Signal R
Compan
1 Seagate
2 Cisco Sy
3 CIT Grou
4 Gap / GP
5 Capital O
6 H&R Bloc
7 AutoNatio
8 Sears Ho
9 Genworth
10 AutoZone
Top Holdings
Company
1 Sears Hol
2 AutoZone
3 AutoNatio
4 Capital On
5 CIT Group
6 Genworth
7 Cisco Sys
8 Gap / GPS
9 Seagate T
10 H&R Bloc
New Position
Cisco Systems / C
Gap / GPS
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
ments (Eddie, founder and mbitrage desk ofrd Rainwater. L
ment was the mumerger of Km
s (SHLD). He a
Rank™ – Top
ny / Ticker
Technology / ST
ystems / CSCO
up / CIT
PS
One / COF
ck / HRB
on / AN
oldings / SHLD
h Financial / GNW
e / AZO
s of ESL Inve
y / Ticker
dings / SHLD
/ AZO
n / AN
ne / COF
p / CIT
Financial / GNW
tems / CSCO
S
Technology / STX
k / HRB
ns
CSCO
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
e Lampert) managing memf Goldman SacLampert compouch-publicized
mart and Sears inalso still manag
p Current Idea
Market Value
($mn)
TX 6,215
104,481
8,667
14,161
24,076
4,436
5,127
10,234
W 6,849
11,195
estments – B
Market Value
($mn)
10,234
11,195
5,127
24,076
8,667
W 6,849
104,481
14,161
X 6,215
4,436
H&R Block / H
Seagate Tech
$10 billion
100%
$10 billion
$44 billion
12x
10x
2.0x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
mber of ESL Invchs. When he leounded ESL’s
d taking controln 2004. He is cges his investm
as of ESL Inv
Price
Recent ($) D
13.72
18.85
43.28
23.05
52.69
14.54
34.39
93.03
13.99
255.64
By Dollar Val
Price
Recent ($) De
93.03
255.64
34.39
52.69
43.28
13.99
18.85
23.05
13.72
14.54
HRB
hnology / STX
th the SEC. Excludnon-equity securitie
AY! www.manualo
vestments, is aeft Goldman tocapital at ratesl of Kmart duricurrently chairm
ment partnershi
vestments
Shar
from RecenDec. 31 ('000
-9% 3,84
-7% 6,44
-8% 3,56
4% 2,83
24% 7,36
22% 40
22% 62,22
26% 48,18
6% 10,86
-6% 11,23
ue
Share
from Recentec. 31 ('000)
26% 48,180
-6% 11,230
22% 62,227
24% 7,366
-8% 3,563
6% 10,863
-7% 6,440
4% 2,838
-9% 3,848
22% 400
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
a value investoro start ESL in 1s of more than ing Kmart’s ba
rman and chief ip, which holds
res Owned
nt from 0) Sep. 30
48 new
40 new
63 0%
38 new
66 4%
00 new
27 0%
80 0%
63 0%
30 -10%
es Owned
t from ) Sep. 30
0 0% 4
0 -10% 2
7 0% 4
6 4%
3 0%
3 0%
0 new <
8 new <
8 new <
0 new <
Out Positions
r Weightings
quity Investment Id
r who started o1988, he receiv25% per annum
ankruptcy procf capital allocats a concentrate
Holdings as % of
Co. Fund*
<1% <1%
<1% 1%
2% 1%
<1% <1%
2% 4%
<1% <1%
42% 21%
44% 43%
2% 1%
26% 28%
Holdings as % of
Co. Fund*
44% 43%
26% 28%
42% 21%
2% 4%
2% 1%
2% 1%
<1% 1%
<1% <1%
<1% <1%
<1% <1%
s
*
eas for Sophisticate
February 28, 2011 –
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
Page 34 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
.6x
4.0x
3.4x
2.2x
n/m
©
FPra M
T
N
AE
P
* p
**
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
Based on equity hoportfolio cash, lever
* A large portion of not publicly traded a
Proxy LLC. All rights res
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 *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
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
$35 billion
14x
13x
2.0x
n 13F-HR filings wiU.S. holdings, and n
ue may be attributenot shown in the ch
SUBSCRIBE TODA
EO of Fairfax s investment poed him “Warren
as of Fairfax
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
ed to holdings that art or tables.
AY! www.manualo
(Toronto: FFHortfolio over thn Buffett of Ca
x
Shar
from ReceDec. 31 ('00
-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
from Recenec. 31 ('000
-1% 6,884
14% 22,702
23% 22,578
49% 139,276
22% 21,308
-3% 18,620
-2% 5,366
5% 4,512
20% 2,065
11% 6,794
Sold O
None
Sector
des es.
are
Value-oriented Eq
ofideas.com
H), a Canadianhe past couple oanada.”
res Owned
nt from 00) Sep. 30
89 0%
84 0%
76 0%
20 0%
66 0%
70 0%
94 0%
30 50%
65 0%
20 33%
es Owned
nt from 0) Sep. 30
4 0% <
2 -1%
8 -50% 1
6 0%
8 -52%
0 0%
6 0% <
2 -1% <
5 0% <
4 0%
Out Positions
r Weightings
quity Investment Id
property/casuaof decades, Wa
Holdings as % of
Co. Fund*
15% 2%
<1% 17%
8% 8%
2% 7%
<1% 7%
7% <1%
7% 5%
<1% <1%
<1% 6%
<1% <1%
Holdings as % of
Co. Fund*
<1% 17%
1% 14%
11% 9%
8% 8%
5% 8%
2% 7%
<1% 7%
<1% 6%
<1% 6%
7% 5%
s
*, **
eas for Sophisticate
February 28, 2011 –
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
Page 35 of 170
and a reputation
Price/ Tang. Book
>9.9x
6.8x
n/m
n/m
n/m
.9x
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
N
A
B
G
P
* p
© 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(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)
gible book
oldings disclosed inrage, certain non-U
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
$61 billion
12x
13x
2.0x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
me Fund, has be999 through Deeturn of -9%, b% for The Fairh
as of Fairhol
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
een one of the mecember 31, 20
before expenseholme Fund an
lme
Shar
from ReceDec. 31 ('00
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
from Recenec. 31 ('000
-14% 44,286
2% 113,600
26% 14,918
11% 92,140
14% 38,582
4% 237,137
6% 9
0% 5,889
11% 124,457
-8% 19,997
Sold O
Humana
Sector
des es.
Value-oriented Eq
ofideas.com
most successfu009, The Fairhs, for the S&P
nd the S&P 500
res Owned
nt from 00) Sep. 30
00 new
86 35%
53 20%
40 30%
82 6%
18 2%
85 0%
57 74%
97 29%
9 20%
es Owned
nt from 0) Sep. 30
6 35%
0 new
8 2% 1
0 30% <
2 6%
7 -2% <
9 20% <
9 -2%
7 74% 1
7 29% 1
Out Positions
/ HUM
Weightings
quity Investment Id
ul value-orienteholme Fund del
500 Index. Th0 Index, respec
Holdings as % of
Co. Fund*
9% 11%
2% 11%
19% 3%
<1% 8%
3% 7%
14% 9%
29% 5%
10% 6%
10% 5%
<1% 7%
Holdings as % of
Co. Fund*
2% 11%
9% 11%
14% 9%
<1% 8%
3% 7%
<1% 7%
<1% 7%
1% 6%
10% 6%
10% 5%
s
*
eas for Sophisticate
February 28, 2011 –
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
Page 36 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
oldings disclosed inrage, certain non-U
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
$16 billion
19x
16x
2.4x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ement in 2002 a
as of Force C
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
after eight year
Capital Mana
Shar
from RecenDec. 31 ('000
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
from Recentec. 31 ('000)
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
nt from 0) Sep. 30
00 new
50 new
80 >100%
04 51%
67 >100%
16 new
45 new
80 3%
46 >100%
50 >100%
e
es Owned
t from ) Sep. 30
0 3% <
0 new <
0 >100% <
0 new <
4 51% <
7 >100%
0 >100% <
6 >100% <
5 new <
6 new <
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%
Holdings as % of
Co. Fund*
<1% 24%
<1% 8%
<1% 8%
<1% 6%
<1% 6%
2% 6%
<1% 5%
<1% 4%
<1% 4%
<1% 3%
s
Winth
*
eas for Sophisticate
February 28, 2011 –
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
Page 37 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
oldings disclosed inrage, certain non-U
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
$4.4 billion
16x
14x
3.0x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
tifying undervaarch and sales,
as of Gates C
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
alued securitieincluding as a
Capital
Shar
from RecenDec. 31 ('000
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
from Recentec. 31 ('000)
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
t from ) Sep. 30 C
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
*
eas for Sophisticate
February 28, 2011 –
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
Page 38 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
oldings disclosed inrage, certain non-U
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
w Capital – B
Market Value
($mn)
10,160
20,504
29,991
9,620
6,399
22,423
22,927
44,922
17,010
15,703
Microsoft / MSSeagate TechTalecris Bio /
$6.4 billion
51%
$11 billion
$32 billion
14x
13x
3.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
king for buyoument strategies i
as of Glenvie
Price
Recent ($) D
54.41
8.42
80.64
47.33
33.06
41.51
27.06
89.01
53.03
5.64
By Dollar Val
Price
Recent ($) De
54.41
80.64
56.77
32.14
8.42
47.33
57.68
33.06
52.93
11.32
SFT hnology / STX / TLCR
th the SEC. Excludnon-equity securitie
AY! www.manualo
ut specialist Leoin order to gen
ew Capital
Shar
from RecenDec. 31 ('000
-2% 9,41
7% 33,09
15% 6,34
14% 5,44
-5% 7,39
-14% 1,17
-3% 2,83
1% 1,02
5% 1,66
10% 6,79
ue
Share
from Recentec. 31 ('000)
-2% 9,418
15% 6,349
5% 7,515
17% 9,067
7% 33,095
14% 5,441
4% 4,289
-5% 7,393
15% 4,598
-2% 20,784
Sold O
Air ProduApplied MBank of ABroadridgComcast Flowserv
Sector
des es.
Value-oriented Eq
ofideas.com
on Coopermannerate absolute
res Owned
nt from 0) Sep. 30
18 17%
95 31%
49 7%
41 >100%
93 35%
75 >100%
32 new
25 >100%
65 new
98 >100%
es Owned
t from ) Sep. 30 C
8 17%
9 7%
5 -14%
7 -13%
5 31%
>100%
9 -14%
3 35% <
8 -11%
4 -9%
Out Positions
ucts & Chem / APMaterials / AMATAmerica / BAC ge Financial / BR/ CMCSA
ve / FLS
r Weightings
quity Investment Id
n’s Omega Advreturns.
Holdings as % of
Co. Fund*
5% 8%
4% 4%
2% 8%
1% 4%
<1% 4%
<1% <1%
<1% 1%
1% 1%
<1% 1%
3% <1%
Holdings as % of T
Co. Fund*
5% 8%
2% 8%
1% 7%
3% 5%
4% 4%
1% 4%
1% 4%
<1% 4%
1% 4%
1% 4%
s
PD T
R
JPMoMascOmnPHH QuesTerre
*
eas for Sophisticate
February 28, 2011 –
visors. Robbins
P/E (Est.)
This Next FY FY
14x 13x
n/a n/a
16x 14x
n/a n/a
12x 10x
n/m 40x
11x 10x
14x 13x
13x 12x
n/m n/m
P/E (Est.) P
This Next TFY FY
14x 13x
16x 14x
18x 15x
14x 12x
n/a n/a
n/a n/a
14x 13x
12x 10x
15x 14x
10x 9x
organ Chase / JPco / MAS icare / OCR / PHH
st Diagnostics / DeStar / TSTR
ed Investors
Page 39 of 170
s’ hedge
Price/ Tang. Book
2.3x
3.3x
>9.9x
>9.9x
>9.9x
>9.9x
6.5x
n/m
7.8x
n/m
Price/ Tang. Book
2.3x
>9.9x
n/m
n/m
3.3x
>9.9x
>9.9x
>9.9x
n/m
n/m
PM
DGX
©
GSthS M
T
N
A
C
C
C
C
J
P
* p
© 2008-2011 by Beyond
GoldenTree Steve Tananbauhan ten years a
Shields, Tananb
MOI Signal R
Company
1 Popular / B
2 KKR & Co
3 Charter Co
4 Sprint Nex
5 Chemtura
6 Viacom / V
7 SRA Intern
8 Alpha Nat
9 LifePoint H
10 Jo-Ann St
Top Holdings
Company
1 Viacom / V
2 Popular / B
3 Charter Co
4 Dillard's /
5 KKR & Co
6 Sprint Nex
7 Tenneco /
8 Packaging
9 Chemtura
10 SRA Intern
New Position
Alpha Natural / A
CACI Internationa
CapitalSource / C
Cedar Fair / FUN
Chemtura / CHMT
Jo-Ann Stores / J
Portfolio Met
Portfolio size
Top 10 as % of
Median mar et
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
e (Steve Tanaum founded anat MacKay Shibaum worked o
Rank™ – Top
y / Ticker
BPOP
o. / KKR
ommunications /
xtel / S
/ CHMT
VIA.B
national / SRX
ural / ANR
Hospitals / LPNT
ores / JAS
s of GoldenT
y / Ticker
VIA.B
BPOP
ommunications /
DDS
o. / KKR
xtel / S
/ TEN
g Corp. / PKG
/ CHMT
national / SRX
ns
ANR
al / CAI
CSE
T
JAS
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
nanbaum) nd GoldenTree ields, includingon high yield a
p Current Idea
Marke Valu
($mn
3,44
11,19
/ CHTR 5,324
13,44
4,17
27,69
1,58
6,63
T 1,93
1,59
Tree Asset M
Marke Valu
($mn
27,69
3,44
/ CHTR 5,324
2,60
11,19
13,44
2,62
3,07
4,17
1,58
KKR & Co. / K
LifePoint Hos
Popular / BPO
Sprint Nextel
SRA Internat
$131 million
74%
$2.9 billion
$11 billion
15x
12x
2.6x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
Asset Manageg as lead portfoand M&A trans
as of Golden
et Price
e Recent n) ($) D
1 3.37
5 16.29
4 46.44
2 4.50
0 17.16
9 45.50
3 27.62
8 55.13
3 36.68
8 60.67
anagement –
et Price
e Recent n) ($) D
9 45.50
1 3.37
4 46.44
8 41.97
5 16.29
2 4.50
3 43.72
2 29.95
0 17.16
3 27.62
KKR
spitals / LPNT
OP
/ S
ional / SRX
th the SEC. Excludnon-equity securitie
AY! www.manualo
ement in 2000. olio manager ofsactions in the
nTree Asset
Share
from RecenDec. 31 ('000
7% 4,173
15% 589
19% 269
6% 1,748
7% 414
15% 339
35% 199
-8% 55
0% 84
1% 77
– By Dollar V
Share
from RecenDec. 31 ('000
15% 339
7% 4,173
19% 269
11% 230
15% 589
6% 1,748
6% 178
16% 239
7% 414
35% 199
Sold O
A. H. Belo
Bank of A
Brunswic
Dana Ho
Fidelity N
Silgan / S
Sector
des es.
Value-oriented Eq
ofideas.com
Prior to startinf the firm’s hedcorporate fina
Managemen
res Owned
nt from 0) Sep. 30
3 new <
9 new <
9 >100% <
8 new <
4 new <
9 0% <
9 new <
5 new <
4 new <
7 new <
Value
res Owned
nt from 0) Sep. 30
9 0% <
3 new <
9 >100% <
0 -73% <
9 new <
8 new <
8 -15% <
9 -33% <
4 new <
9 new <
Out Positions
o / AHC
America / BAC
ck / BC
lding / DAN
National / FIS
SLGN
r Weightings
quity Investment Id
ng GoldenTreedge fund area.
ance departmen
nt
Holdings as % of
Co. Fund*
<1% 11%
<1% 7%
<1% 10%
<1% 6%
<1% 5%
<1% 12%
<1% 4%
<1% 2%
<1% 2%
<1% 4%
Holdings as % of
Co. Fund*
<1% 12%
<1% 11%
<1% 10%
<1% 7%
<1% 7%
<1% 6%
<1% 6%
<1% 5%
<1% 5%
<1% 4%
s
Time
*
eas for Sophisticate
February 28, 2011 –
e, Tananbaum sPrior to MacK
nt of Kidder, Pe
P/E (Est.) P
This Next TFY FY
15x 9x
6x 8x
n/m 53x
n/m n/m
n/m 21x
13x 12x
19x 18x
12x 9x
13x 12x
18x 16x
P/E (Est.) P
This Next TFY FY
13x 12x
15x 9x
n/m 53x
17x 16x
6x 8x
n/m n/m
17x 12x
14x 11x
n/m 21x
19x 18x
e Warner Cable /
ed Investors
Page 40 of 170
spent more Kay eabody.
Price/ Tang. Book
1.0x
>9.9x
n/m
n/m
n/m
n/m
6.5x
>9.9x
6.7x
2.9x
Price/ Tang. Book
n/m
1.0x
n/m
1.2x
>9.9x
n/m
n/m
3.4x
n/m
6.5x
TWC
©
GDloe M
T
N
B
C
L
P
P
* p
© 2008-2011 by Beyond
Greenlight (David Einhorn ong-term track
expenses, of ap
MOI Signal R
Compan
1 Cardinal
2 Sprint Ne
3 Ensco / E
4 MI Devel
5 CareFus
6 Pfizer / P
7 Einstein
8 BioFuel E
9 Gold Min
10 Republic
Top Holdings
Company
1 Ensco / ES
2 Cardinal H
3 Pfizer / PF
4 CareFusio
5 CIT Group
6 Apple / AA
7 Sprint Nex
8 NCR / NC
9 Gold Mine
10 Microsoft /
New Position
BP / BP
Capitol Federal /
LyondellBasell / L
Potash / POT
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(David Einhis the founder
k record. Since pproximately 2
Rank™ – Top
ny / Ticker
Health / CAH
extel / S
ESV
opments / MIM
ion / CFN
PFE
Noah / BAGL
Energy / BIOF
ners ETF / GDX
Airways / RJET
s of Greenlig
y / Ticker
SV
Health / CAH
FE
on / CFN
p / CIT
APL
xtel / S
R
ers ETF / GDX
/ MSFT
ns
CFFN
LYB
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
horn) of Greenlight inception in M
0%. David is a
p Current Idea
Market Value
($mn)
14,739
13,442
7,618
1,303
6,255
153,711
274
85
6,765
319
ght – By Dolla
Market Value
($mn)
7,618
14,739
153,711
6,255
8,667
322,963
13,442
3,132
6,765
227,369
SemGroup / S
Sprint Nextel
$5.0 billion
64%
$3.5 billion
$22 billion
14x
13x
1.9x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
Capital, a valuMay 1996, Greeauthor of Fooli
as of Greenl
Price
Recent ($) D
42.14
4.50
53.29
27.80
28.04
19.19
16.51
0.95
58.98
6.62
ar Value
Price
Recent ($) De
53.29
42.14
19.19
28.04
43.28
350.56
4.50
19.66
58.98
27.06
SEMG
/ S
th the SEC. Excludnon-equity securitie
AY! www.manualo
ue-oriented, resenlight has reping Some of the
ight
Shar
from RecenDec. 31 ('000
10% 10,61
6% 55,90
0% 9,01
3% 5,65
9% 13,37
10% 23,15
18% 10,73
-45% 7,54
-4% 3,54
-10% 3,41
Share
from Recentec. 31 ('000)
0% 9,012
10% 10,611
10% 23,154
9% 13,375
-8% 7,338
9% 838
6% 55,900
28% 11,469
-4% 3,547
-3% 7,684
Sold O
Foster W
Oritani Fi
Ralcorp /
Xerox / X
Sector
des es.
Value-oriented Eq
ofideas.com
search-driven iported a compoe People All of
res Owned
nt from 0) Sep. 30
11 62%
00 new
12 0%
55 0%
75 0%
54 0%
33 0%
42 0%
47 37%
13 0%
es Owned
t from ) Sep. 30
2 0%
1 62%
4 0% <
5 0%
8 -31%
8 0% <
0 new
9 0%
7 37%
4 0% <
Out Positions
Wheeler / FWLT
inancial / ORIT
/ RAH
XRX
Weightings
quity Investment Id
investment firmounded annual rf the Time.
Holdings as % of
Co. Fund*
3% 9%
2% 5%
6% 10%
12% 3%
6% 7%
<1% 9%
65% 4%
8% <1%
3% 4%
7% <1%
Holdings as % of
Co. Fund*
6% 10%
3% 9%
<1% 9%
6% 7%
4% 6%
<1% 6%
2% 5%
7% 4%
3% 4%
<1% 4%
s
*
eas for Sophisticate
February 28, 2011 –
m with a markereturn, net of f
P/E (Est.)
This Next FY FY
16x 14x
n/m n/m
15x 14x
n/a n/a
17x 15x
9x 8x
23x 19x
n/a n/a
n/a n/a
n/m 8x
P/E (Est.) P
This Next TFY FY
15x 14x
16x 14x
9x 8x
17x 15x
22x 17x
15x 13x
n/m n/m
11x 10x
n/a n/a
11x 10x
ed Investors
Page 41 of 170
et-beating fees and
Price/ Tang. Book
>9.9x
n/m
1.4x
.8x
6.4x
n/m
>9.9x
1.6x
.9x
.9x
Price/ Tang. Book
1.4x
>9.9x
n/m
6.4x
1.0x
6.0x
n/m
4.1x
.9x
6.5x
©
HR2Jr M
T
N
L
M
P
* p
© 2008-2011 by Beyond
H Partners (Rehan Jaffer ho2004 and starteJaffer: “He is sureally strong fin
MOI Signal R
Compan
1 M.D.C. H
2 Foster W
3 LyondellB
4 Boyd Ga
5 W.R. Gra
6 Leap Wir
7 Six Flags
8 CF Indus
9 Coinstar
10 Pulte Ho
Top Holdings
Company
1 Six Flags /
2 Leap Wire
3 Foster Wh
4 Boyd Gam
5 W.R. Grac
6 CF Industr
7 Rowan Co
8 LyondellB
9 Pulte Hom
10 M.D.C. Ho
New Position
LyondellBasell / L
M.D.C. Holdings
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(Rehan Jaffoned his invested H Partners super-hungry. Hnancial analyti
Rank™ – Top
ny / Ticker
Holdings / MDC
Wheeler / FWLT
Basell / LYB
ming / BYD
ace / GRA
reless / LEAP
s / SIX
stries / CF
/ CSTR
mes / PHM
s of H Partne
y / Ticker
/ SIX
eless / LEAP
heeler / FWLT
ming / BYD
ce / GRA
ries / CF
ompanies / RDC
asell / LYB
mes / PHM
oldings / MDC
ns
LYB
/ MDC
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
ffer) tment approachhortly thereafte
He’s got a goodcs, a great nose
p Current Idea
Market Value
($mn)
1,321
4,911
21,467
985
2,879
1,090
1,741
9,807
1,447
2,972
ers – By Doll
Market Value
($mn)
1,741
1,090
4,911
985
2,879
9,807
5,011
21,467
2,972
1,321
$632 million
100%
$2.9 billion
$5.3 billion
14x
14x
1.8x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
h at Dan Loeb’er. Loeb was qd nose. He’s vee for value, and
as of H Partn
Price
Recent ($) D
28.01
39.48
37.95
11.42
39.40
13.92
62.50
137.87
45.47
7.78
ar Value
Price
Recent ($) De
62.50
13.92
39.48
11.42
39.40
137.87
39.70
37.95
7.78
28.01
th the SEC. Excludnon-equity securitie
AY! www.manualo
s activist hedgquoted in the boery intelligent. d great trader s
ners
Shar
from RecenDec. 31 ('000
-3% 20
14% 95
10% 20
8% 3,10
12% 80
14% 3,75
15% 6,65
2% 20
-19%
3% 85
Share
from Recentec. 31 ('000)
15% 6,655
14% 3,750
14% 950
8% 3,100
12% 800
2% 200
14% 300
10% 200
3% 850
-3% 200
Sold O
Coinstar
FBR Cap
Sector
des es.
Value-oriented Eq
ofideas.com
ge fund Third Pook Hedge HuSo he’s got a g
sense.”
res Owned
nt from 0) Sep. 30
00 new
50 27%
00 new
00 0%
00 0%
50 0%
55 0%
00 -33%
0 -100%
50 -77%
es Owned
t from ) Sep. 30 C
5 0% 2
0 0%
0 27% <
0 0%
0 0%
0 -33% <
0 -66% <
0 new <
0 -77% <
0 new <
Out Positions
/ CSTR
pital Markets / FB
r Weightings
quity Investment Id
Point. He joinedunters as sayinggreat combinat
Holdings as % of
Co. Fund*
<1% <1%
<1% 6%
<1% 1%
4% 6%
1% 5%
5% 8%
24% 66%
<1% 4%
0% <1%
<1% 1%
Holdings as % of
Co. Fund*
24% 66%
5% 8%
<1% 6%
4% 6%
1% 5%
<1% 4%
<1% 2%
<1% 1%
<1% 1%
<1% <1%
s
BCM
*
eas for Sophisticate
February 28, 2011 –
d River Run Pag the followingtion of having
P/E (Est.)
This Next FY FY
n/m 44x
n/a n/a
n/a n/a
>99x >99x
13x 13x
n/m n/m
3x 96x
11x 13x
16x 13x
n/m 27x
P/E (Est.)
This Next FY FY
3x 96x
n/m n/m
n/a n/a
>99x >99x
13x 13x
11x 13x
16x 19x
n/a n/a
n/m 27x
n/m 44x
ed Investors
Page 42 of 170
artners in g about a high IQ,
Price/ Tang. Book
1.3x
6.5x
2.3x
1.8x
n/m
n/m
n/m
5.0x
8.7x
1.7x
Price/ Tang. Book
n/m
n/m
6.5x
1.8x
n/m
5.0x
1.4x
2.3x
1.7x
1.3x
©
HPf M
T
N
R
P
* p
**
p
© 2008-2011 by Beyond
Harbinger (Phil Falcone fofirm has since e
MOI Signal R
Compan
1 Radian G
2 Spectrum
3 EXCO Re
4 Crosstex
5 Cliffs Nat
6 Harbinge
7 Constella
8 Corn Pro
9 Media Ge
10 New Yor
Top Holdings
Company
1 Spectrum
2 EXCO Re
3 Corn Prod
4 Crosstex E
5 Cliffs Natu
6 New York
7 Harbinger
8 Barclays /
9 Radian Gr
10 Constellat
New Position
Radian Group / R
Portfolio MetPortfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A material portionprivate, non-equity o
Proxy LLC. All rights res
(Phil Falconounded Harbingexpanded into
Rank™ – Top
ny / Ticker
Group / RDN
m Brands / SPB
esources / XCO
x Energy / XTXI
tural / CLF
er Group / HRG
ation Energy / CE
oducts / CPO
eneral / MEG
k Times / NYT
s of Harbinge
y / Ticker
Brands / SPB
sources / XCO
ducts / CPO
Energy / XTXI
ural / CLF
Times / NYT
Group / HRG
BCS
roup / RDN
tion Energy / CEG
ns
RDN
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
of assets manageor non-U.S. securit
erved.
ne) ger Capital Parspecial situatio
p Current Idea
Market Value
($mn)
981
1,471
4,329
457
13,078
813
EG 6,254
3,758
175
1,550
er Capital – B
Market Value
($mn)
1,471
4,329
3,758
457
13,078
1,550
813
64,924
981
G 6,254
$1.4 billion
100%
$3.8 billion
$14 billion
13x
11x
2.0x
n 13F-HR filings wiU.S. holdings, and n
d by Phil Falcone mties, which are not s
SUBSCRIBE TODA
rtners in 2001 ion investments
as of Harbin
Price
Recent ($) D
7.38
28.88
20.39
9.75
96.54
5.84
31.30
49.70
7.58
10.68
By Dollar Va
Price
Recent ($) De
28.88
20.39
49.70
9.75
96.54
10.68
5.84
21.40
7.38
31.30
th the SEC. Excludnon-equity securitie
may be invested in shown here.
AY! www.manualo
in order to capi and other valu
ger Capital
Shar
from RecenDec. 31 ('000
-9% 2,42
-7% 32,14
5% 6,96
10% 4,50
24% 45
-6% 6,63
2% 11
8% 2,79
31% 16
9% 3,74
lue
Share
from Recentec. 31 ('000)
-7% 32,146
5% 6,963
8% 2,796
10% 4,500
24% 450
9% 3,748
-6% 6,633
30% 875
-9% 2,422
2% 113
Sold O
Owens C
TerreStar
Sector
des es.
Value-oriented Eq
ofideas.com
italize on distrue-oriented inv
res Owned
nt from 0) Sep. 30
22 new
46 1%
63 5%
00 0%
50 0%
33 0%
3 0%
96 -25%
62 0%
48 -69%
es Owned
t from ) Sep. 30 C
6 1% 6
3 5%
6 -25%
0 0% 1
0 0% <
8 -69%
3 0%
5 -75% <
2 new
3 0% <
Out Positions
Corning / OC
r / TSTR
r Weightings
quity Investment Id
essed investmevestment strate
Holdings as % of
Co. Fund*
2% 1%
63% 65%
3% 10%
10% 3%
<1% 3%
5% 3%
<1% <1%
4% 10%
<1% <1%
3% 3%
Holdings as % of T
Co. Fund*
63% 65%
3% 10%
4% 10%
0% 3%
<1% 3%
3% 3%
5% 3%
<1% 1%
2% 1%
<1% <1%
s
*, **
eas for Sophisticate
February 28, 2011 –
ent opportunitigies.
P/E (Est.)
This Next FY FY
n/m 9x
16x 13x
28x 30x
n/m >99x
9x 8x
n/a n/a
10x 13x
13x 12x
n/m n/a
18x 14x
P/E (Est.) P
This Next TFY FY
16x 13x
28x 30x
13x 12x
n/m >99x
9x 8x
18x 14x
n/a n/a
13x 9x
n/m 9x
10x 13x
ed Investors
Page 43 of 170
ies. The
Price/ Tang. Book
1.1x
n/m
3.1x
n/m
3.8x
6.1x
.8x
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
.8x
©
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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(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
ood Express / FF
ActiveCorp / IACI
ns
ware / FALC
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
zi) short investme
m market expecdividual compa
p Current Idea
Market Value
($mn)
6,446
XBD 1,417
T 893
361
6,765
1,392
54,611
NF 5,173
I 441
FEX 83
aw Capital –
Market Value
($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
$6.1 billion
19x
15x
2.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ent partnership ctations and lonanies.
as of Hawks
Price
Recent ($) D
19.28
41.31
30.74
10.51
58.98
24.01
135.41
59.05
18.11
4.71
By Dollar Va
Price
Recent ($) De
18.58
19.28
15.43
6.26
41.31
59.05
30.74
10.51
4.71
31.93
th the SEC. Excludnon-equity securitie
AY! www.manualo
Hawkshaw in nger-term intrin
haw Capital
Shar
from RecenDec. 31 ('000
18% 89
10% 31
-1% 31
6% 88
-4% 11
-12% 26
-2% 5
2% 20
-18% 29
7% 1,84
alue
Share
from Recentec. 31 ('000)
11% 948
18% 893
14% 1,029
23% 2,139
10% 319
2% 201
-1% 317
6% 889
7% 1,842
11% 247
Sold O
Scholasti
Sector
des es.
Value-oriented Eq
ofideas.com
2002. Ghazi lonsic value. He
res Owned
nt from 0) Sep. 30
93 7%
9 0%
7 >100%
89 19%
7 -2%
64 -19%
51 -2%
01 -1%
94 -49%
42 -9%
es Owned
t from ) Sep. 30 C
8 -1% <
3 7% <
9 -1% <
9 -1%
9 0% <
-1% <
7 >100%
9 19%
2 -9% 1
7 -10% <
Out Positions
ic / SCHL
r Weightings
quity Investment Id
ooks for investrelies on in-de
Holdings as % of
Co. Fund*
<1% 11%
<1% 9%
1% 6%
3% 6%
<1% 4%
<1% 4%
<1% 4%
<1% 8%
1% 3%
11% 6%
Holdings as % of T
Co. Fund*
<1% 11%
<1% 11%
<1% 10%
4% 9%
<1% 9%
<1% 8%
1% 6%
3% 6%
1% 6%
<1% 5%
s
*
eas for Sophisticate
February 28, 2011 –
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
48x 34x
70x 46x
n/a n/a
20x 16x
ed Investors
Page 44 of 170
h there is a esearch to
Price/ Tang. Book
5.9x
>9.9x
7.4x
2.2x
.9x
2.9x
1.4x
2.8x
4.4x
1.0x
Price/ Tang. Book
n/m
5.9x
>9.9x
1.7x
>9.9x
2.8x
7.4x
2.2x
1.0x
2.7x
©
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
Top Holdings
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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
eractive / LINTA
SV
arz / LSTZA
Minerals / CMP
harma / VRX
/ SATS
CRI
p / SEMG
ns
e / KRO
MG
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
than Auerbaer seed,” having
p Current Idea
Market Value
($mn)
A 20,220
2,879
1,280
20,220
11,989
1,640
1,219
O 3,013
2,845
2,614
Partners – By
Market Value
($mn)
2,879
4,046
20,220
7,618
20,220
3,118
11,989
2,845
1,640
1,280
Valeant Phar
$425 million
80%
$3.0 billion
$26 billion
17x
15x
5.2x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
bach) g received an e
as of Hound
Price
Recent ($) D
17.41
39.40
30.79
71.90
40.47
28.53
10.41
51.99
33.40
17.04
y Dollar Valu
Price
Recent ($) De
39.40
81.50
17.41
53.29
71.90
95.07
40.47
33.40
28.53
30.79
rma / VRX
th the SEC. Excludnon-equity securitie
AY! www.manualo
early-stage inve
Partners
Shar
from RecenDec. 31 ('000
10% 2,31
12% 1,54
13% 59
8% 44
43% 68
-3% 75
21% 1,26
22% 25
34% 69
-1% 73
e
Share
from Recentec. 31 ('000)
12% 1,543
13% 551
10% 2,312
0% 733
8% 447
6% 326
43% 683
34% 699
-3% 752
13% 598
Sold O
Clearwire
DIRECTV
Google /
Sector
des es.
Value-oriented Eq
ofideas.com
estment from J
res Owned
nt from 0) Sep. 30
2 28%
43 2%
98 new
47 0%
83 new
52 >100%
68 new
52 new
99 0%
34 0%
es Owned
t from ) Sep. 30 C
3 2%
-8%
2 28% <
3 -7% <
7 0% <
6 -8% <
3 new <
9 0% <
2 >100%
8 new
Out Positions
e / CLWR
V / DTV
GOOG
r Weightings
quity Investment Id
Julian Robertso
Holdings as % of
Co. Fund*
<1% 9%
2% 14%
1% 4%
<1% 8%
<1% 6%
1% 5%
1% 3%
<1% 3%
<1% 5%
<1% 3%
Holdings as % of T
Co. Fund*
2% 14%
1% 11%
<1% 9%
<1% 9%
<1% 8%
<1% 7%
<1% 6%
<1% 5%
1% 5%
1% 4%
s
Powe
Rubic
*
eas for Sophisticate
February 28, 2011 –
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
17x 23x
15x 14x
17x 16x
17x 14x
n/a n/a
67x 56x
12x 13x
n/a n/a
er-One / PWER
con Technology
ed Investors
Page 45 of 170
Price/ Tang. Book
n/m
n/m
1.8x
9.9x
n/m
8.0x
6.5x
7.4x
1.1x
7.6x
Price/ Tang. Book
n/m
n/m
n/m
1.4x
9.9x
>9.9x
n/m
1.1x
8.0x
1.8x
/ RBCN
©
ICp
B M
T
N
N
P
* p
**
o
© 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
Based on equity hoportfolio cash, lever
* A large portion of other than Icahn Ca
Proxy LLC. All rights res
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
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
assets controlled bapital LP and are th
erved.
ahn) stor with a longg blog entitled
holdings disclo
p Current Idea
Market Value
($mn)
HK 19,899
2,344
837
1,328
16,295
19,523
1,592
1,392
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
1,703
GN 3,372
$4.0 billion
88%
$2.7 billion
$6.7 billion
22x
17x
2.7x
n 13F-HR filings wiU.S. holdings, and n
by Carl Icahn may bherefore not shown
SUBSCRIBE TODA
g track record oThe Icahn Rep
osed by Icahn
as of Icahn C
Price
Recent ($) D
30.43
16.28
6.12
30.88
67.64
75.38
14.52
16.28
11.15
10.41
ollar Value
Price
Recent ($) De
67.64
75.38
30.43
16.28
6.12
14.52
30.88
16.28
10.41
37.48
th the SEC. Excludnon-equity securitie
be attributed to entin the chart or tabl
AY! www.manualo
of success agitaport at www.ic
Capital LP. Ce
Capital
Shar
from RecenDec. 31 ('000
17% 20,88
11% 14,38
-6% 35,71
14% 5,35
1% 12,86
6% 10,48
21% 12,89
33% 9,84
-8% 4,72
13% 13,58
Share
from Recentec. 31 ('000)
1% 12,860
6% 10,480
17% 20,881
11% 14,382
-6% 35,714
21% 12,896
14% 5,351
33% 9,845
13% 13,582
14% 2,444
Sold O
None
Sector
des es.
ities es.
Value-oriented Eq
ofideas.com
ating for changahnreport.com
ertain other en
res Owned
nt from 0) Sep. 30
81 25%
82 11%
4 0%
51 6%
60 0%
80 0%
96 0%
45 0%
24 68%
82 3%
es Owned
t from ) Sep. 30 C
0 0%
0 0%
25%
2 11% 1
4 0% 2
6 0% 1
6% 1
5 0% 1
2 3%
4 0%
Out Positions
r Weightings
quity Investment Id
ge at underperfm.
ntities controlle
Holdings as % of
Co. Fund*
3% 16%
10% 6%
26% 5%
12% 4%
5% 22%
4% 20%
12% 5%
12% 4%
8% 1%
8% 4%
Holdings as % of T
Co. Fund*
5% 22%
4% 20%
3% 16%
0% 6%
26% 5%
2% 5%
2% 4%
2% 4%
8% 4%
3% 2%
s
*, **
eas for Sophisticate
February 28, 2011 –
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
18x 15x
10x 11x
n/m n/m
n/a n/a
22x 17x
24x 21x
19x 16x
21x 17x
n/m n/m
ed Investors
Page 46 of 170
anies. Carl
excluded.
Price/ Tang. Book
1.6x
6.8x
n/m
>9.9x
6.6x
4.4x
8.7x
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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
no) spent ten yearsfounding Lane
p Current Idea
Market Value
($mn)
125
O 80
3,821
2,020
PEI 781
280
2,319
227,369
CO 447
1,014
ve Capital – B
Market Value
($mn)
32,817
O 80
4,972
125
3,391
280
2,243
EI 781
3,821
11,524
$111 million
55%
$3.7 billion
$19 billion
16x
14x
3.1x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
s at Legg Masoe Five in 2006.
as of Lane F
Price
Recent ($) D
9.24
10.95
55.18
12.18
43.49
13.77
72.67
27.06
5.28
19.42
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
th the SEC. Excludnon-equity securitie
AY! www.manualo
on Capital Man
Five Capital
Shar
from RecenDec. 31 ('000
-3% 74
3% 66
15% 8
3% 12
17% 12
-1% 40
14% 2
-3% 3
1% 79
2% 2
lue
Share
from Recentec. 31 ('000)
12% 30
3% 667
21% 182
-3% 744
7% 338
-1% 409
16% 234
17% 121
15% 86
0% 151
Sold O
Bank of A
Blue Nile
Centersta
Equinix /
Sector
des es.
Value-oriented Eq
ofideas.com
nagement and t
res Owned
nt from 0) Sep. 30
44 0%
67 0%
86 >100%
29 new
21 17%
09 0%
23 >100%
35 new
99 3%
26 new
es Owned
t from ) Sep. 30 C
0 -36% <
7 0%
2 -32% <
4 0%
8 -32% <
9 0%
4 -24% <
17% <
6 >100% <
-32% <
Out Positions
America / BAC
e / NILE
ate Banks / CSF
EQIX
r Weightings
quity Investment Id
two years as co
Holdings as % of
Co. Fund*
6% 6%
9% 7%
<1% 4%
<1% 1%
<1% 5%
2% 5%
<1% 1%
<1% <1%
<1% 4%
<1% <1%
Holdings as % of T
Co. Fund*
<1% 7%
9% 7%
<1% 6%
6% 6%
<1% 5%
2% 5%
<1% 5%
<1% 5%
<1% 4%
<1% 4%
s
L
*
eas for Sophisticate
February 28, 2011 –
o-CIO at Mata
P/E (Est.)
This Next FY FY
23x 16x
13x 8x
12x 11x
30x 28x
23x 20x
81x >99x
8x 9x
11x 10x
6x 11x
9x 8x
P/E (Est.) P
This Next TFY FY
15x 13x
13x 8x
16x 14x
23x 16x
14x 12x
81x >99x
13x 11x
23x 20x
12x 11x
16x 14x
ed Investors
Page 47 of 170
dor
Price/ Tang. Book
3.4x
5.1x
6.8x
2.1x
8.0x
.9x
>9.9x
6.5x
2.8x
5.0x
Price/ Tang. Book
8.2x
5.1x
2.1x
3.4x
1.2x
.9x
n/m
8.0x
6.8x
n/m
©
LCcthanW M
T
N
N
P
* p
**
a
© 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
New Position
None
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A large portion of are not publicly trad
Proxy LLC. All rights res
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
/ Ticker
JEF
al Assets / INTL
wer Equip. / GLPW
uthwest / CSWC
Stores / WINN
ers / TA
ns
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
Leucadia’s asset vded and are therefo
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
($mn)
4,451
WC 375
N 389
LPW 363
TL 447
161
a – By Dollar
Market Value
($mn)
4,451
447
W 363
375
389
161
$1.3 billion
100%
$369 million
$779 million
12x
13x
.8x
n 13F-HR filings wiU.S. holdings, and n
value may be attribuore not shown in the
SUBSCRIBE TODA
Steinberg) g describe theiand as a result ese operations ect in executingyour company
unting practice
as of Leucad
Price
Recent ($) D
25.04
100.00
6.97
23.49
24.77
9.32
r Value
Price
Recent fr($) Dec
25.04
24.77
23.49
100.00
6.97
9.32 14
th the SEC. Excludnon-equity securitie
uted to holdings thae chart or tables.
AY! www.manualo
ir approach in aare selling subwhen prices avg this strategy,y with an unduees and policies
dia
Shar
from RecenDec. 31 ('000
-6% 49,35
-4% 2
-3% 1
1% 13
5% 1,38
147%
Shares
rom Recentc. 31 ('000)
-6% 49,351
5% 1,385
1% 137
-4% 20
-3% 16
47% 0
Sold O
TravelCe
Sector
des es.
at
Value-oriented Eq
ofideas.com
a 2008 letter: “bstantially belovailable in the we are proud e emphasis on and that our b
res Owned
nt from 0) Sep. 30
51 2%
20 0%
6 0%
37 0%
85 0%
0 -100%
s Owned
from Sep. 30 C
2% 28
0% 8
0% <1
0% <1
0% <1
-100% 0
Out Positions
enters / TA
Weightings
quity Investment Id
“We tend to beow the values, wmarket reach wof our long-tereither quarterlalance sheet is
Holdings as % of
Co. Fund*
28% 97%
<1% <1%
<1% <1%
<1% <1%
8% 3%
0% <1%
Holdings as % of T
Co. Fund*
8% 97% 1
8% 3%
% <1%
% <1%
% <1% n
0% <1% n
s
*, **
eas for Sophisticate
February 28, 2011 –
e buyers of assewhich we beliewhat we believrm track recordly or annual eas conservatively
P/E (Est.)
This Next FY FY
16x 14x
n/a n/a
n/m n/m
9x 12x
n/a n/a
n/m n/m
P/E (Est.) Pr
This Next TaFY FY B
16x 14x
n/a n/a
9x 12x
n/a n/a
n/m n/m
n/m n/m
ed Investors
Page 48 of 170
ets and eve, are ve to be d. We are arnings. y stated.”
Price/ Tang. Book
2.1x
.7x
.6x
2.1x
2.3x
.7x
rice/ ang.
Book
2.1x
2.3x
2.1x
.7x
.6x
.7x
©
LM M
T
N
CCCFiSLMSS
P
* p
© 2008-2011 by Beyond
Lone Pine (SMandel founde
MOI Signal R
Compan
1 Citigroup
2 Schlumb
3 Teck Res
4 Express
5 Dollar Ge
6 VanceInf
7 Home Inn
8 Goodrich
9 Ctrip.com
10 Equinix /
Top Holdings
Company
1 Citigroup /
2 Schlumbe
3 Yum! Bran
4 Apple / AA
5 Cognizant
6 Polo Ralp
7 Express S
8 Goodrich C
9 Teck Reso
10 Dollar Gen
New Position
Cablevision / CVCCitigroup / C Ctrip.com / CTRPFlavors & FragranSoftStone / ISS Liberty Starz / LSMasterCard / MASchlumberger / SScripps Networks
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(Steve Manded long/short fi
Rank™ – Top
ny / Ticker
p / C
erger / SLB
sources / TCK
Scripts / ESRX
eneral / DG
fo / VIT
ns & Hotels / HM
h Corp. / GR
m / CTRP
EQIX
s of Lone Pin
y / Ticker
/ C
rger / SLB
nds / YUM
APL
t Tech / CTSH
h Lauren / RL
Scripts / ESRX
Corp. / GR
ources / TCK
neral / DG
ns
C
P nces / IFF
STZA A SLB s / SNI
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
del) rm Lone Pine i
p Current Idea
Market Value
($mn)
142,677
129,349
32,547
29,991
9,977
1,436
MIN 1,374
11,469
5,839
4,185
ne – By Dolla
Market Value
($mn)
142,677
129,349
23,919
322,963
23,590
12,310
29,991
11,469
32,547
9,977
Teck ResourcUnion PacificUrban OutfitteWABCO Hold
$12 billion
44%
$10 billion
$32 billion
18x
16x
4.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
in 1997. He pr
as of Lone P
Price
Recent ($) D
4.91
95.04
55.08
56.77
29.25
32.46
34.19
91.31
39.49
90.99
ar Value
Price
Recent ($) De
4.91
95.04
51.17
350.56
77.73
127.98
56.77
91.31
55.08
29.25
ces / TCK c / UNP ers / URBN dings / WBC
th the SEC. Excludnon-equity securitie
AY! www.manualo
reviously work
Pine
Shar
from ReceDec. 31 ('00
4% 145,14
14% 7,00
-11% 7,35
5% 7,75
-5% 13,59
-6% 4,19
-17% 52
4% 4,50
-2% 4,31
12% 4,03
Share
from Recenec. 31 ('000
4% 145,143
14% 7,004
4% 12,347
9% 1,715
6% 6,507
15% 3,471
5% 7,756
4% 4,504
-11% 7,359
-5% 13,593
Sold O
ActivisionAmazon.cCareer ECitrix SysColgate PDeVry / DGoogle / Green MtInvesco /
Sector
des es.
Value-oriented Eq
ofideas.com
ked for Tiger M
res Owned
nt from 00) Sep. 30
43 new
04 new
59 new
56 83%
93 59%
93 48%
25 >100%
04 11%
13 new
37 21%
es Owned
nt from 0) Sep. 30
3 new <
4 new <
7 -18%
5 -37% <
7 -29%
1 12%
6 83%
4 11%
9 new
3 59%
Out Positions
n Blizzard / ATVIcom / AMZN ducation / CECO
stems / CTXS Palmolive / CL DV GOOG tn Coffee / GMC/ IVZ
r Weightings
quity Investment Id
Management, G
Holdings as % of
Co. Fund*
<1% 6%
<1% 6%
1% 3%
1% 4%
4% 3%
9% 1%
1% <1%
4% 3%
3% 1%
9% 3%
Holdings as % of
Co. Fund*
<1% 6%
<1% 6%
3% 5%
<1% 5%
2% 4%
4% 4%
1% 4%
4% 3%
1% 3%
4% 3%
s
O
CR
Live McDoPopupricesalesSPDStrayUmpVisa
*
eas for Sophisticate
February 28, 2011 –
Goldman Sachs
P/E (Est.)
This Next FY FY
11x 9x
25x 19x
n/a n/a
18x 15x
16x 14x
41x 33x
22x 23x
17x 15x
32x 25x
45x 26x
P/E (Est.) P
This Next TFY FY
11x 9x
25x 19x
18x 16x
15x 13x
29x 24x
22x 20x
18x 15x
17x 15x
n/a n/a
16x 14x
Nation / LYV onald's / MCD
ular / BPOP eline.com / PCLNsforce.com / CRMR Gold Trust / Gyer Education / Squa Holdings / U/ V
ed Investors
Page 49 of 170
and Mars.
Price/ Tang. Book
1.1x
>9.9x
2.3x
n/m
n/m
9.2x
4.0x
>9.9x
7.8x
4.4x
Price/ Tang. Book
1.1x
>9.9x
>9.9x
6.0x
7.2x
6.1x
n/m
>9.9x
2.3x
n/m
N M
GLD STRA UMPQ
©
MTVs M
1
T
N
A
C
K
P
* p
**
th
© 2008-2011 by Beyond
Markel GayTom Gayner haVirginia-based steward of capi
MOI Signal R
Compan
1 Union Ba
2 Berkshire
3 Fairfax F
4 Investors
5 Anheuse
6 Wal-Mart
7 Exxon M
8 EOG Res
9 Teva Pha
10 Enterpris
Markel acquired U
Top Holdings
Company
1 Berkshire
2 CarMax /
3 Fairfax Fin
4 Brookfield
5 Diageo / D
6 Walt Disne
7 Exxon Mo
8 Marriott / M
9 Wal-Mart /
10 UPS / UPS
New Position
AbitibiBowater / A
Clorox / CLX
Kimberly-Clark / K
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
* A large portion of hat are not publicly
Proxy LLC. All rights res
yner (Tom Gas been Presideinternational p
ital on behalf o
Rank™ – Top
ny / Ticker
ankshares / UBS
e Hathaway / BR
inancial / FRFHF
s Title / ITIC
er-Busch / BUD
t / WMT
obil / XOM
sources / EOG
arma / TEVA
se GP / EPE
UBSH shares in con
s of Markel G
y / Ticker
Hathaway / BRK
KMX
nancial / FRFHF
Asset / BAM
DEO
ey / DIS
bil / XOM
MAR
/ WMT
S
ns
ABH
KMB
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
Markel Corp.’s assy traded and are the
erved.
Gayner) ent of Markel Gproperty and caof Markel share
p Current Idea
Market Value
($mn)
H 1 299
RK.A 210,308
F 8,178
74
87,416
197,263
426,096
27,660
49,107
8,907
nnection with a mer
Gayner – By
Market Value
($mn)
K.A 210,308
8,307
8,178
38,211
48,590
82,724
426,096
14,905
197,263
75,624
Visa / V
Western Unio
$1.9 billion
55%
$24 billion
$51 billion
17x
15x
3.5x
n 13F-HR filings wiU.S. holdings, and n
set value may be aterefore not shown i
SUBSCRIBE TODA
Gayner Asset Masualty insuraneholders, and h
as of Markel
Price
Recent ($) D
11.52
127,640
385.49
32.21
54.90
55.38
84.50
108.89
51.89
63.99
rger of a Markel su
Dollar Value
Price
Recent ($) De
127,640
36.83
385.49
32.53
78.06
43.56
84.50
40.92
55.38
76.47
on / WU
th the SEC. Excludnon-equity securitie
ttributed to holdingsin the chart or table
AY! www.manualo
Management since holding comhis long-term in
Gayner
Shar
from RecenDec. 31 ('000
-22% 3,50
6%
-6% 27
6% 22
-4% 26
3% 98
16% 69
19% 7
0% 12
9% 25
bsidiary with First M
Share
from Recentec. 31 ('000)
6% 2
16% 5,219
-6% 279
-2% 3,094
5% 1,253
16% 1,487
16% 696
-1% 1,417
3% 987
5% 705
Sold O
Comcast
Microsoft
Sector
des es.
s es.
Value-oriented Eq
ofideas.com
ince 1990 and mpany, since 2nvestment reco
res Owned
nt from 0) Sep. 30
05 0%
2 3%
79 0%
29 0%
66 99%
87 6%
96 9%
79 >100%
22 36%
50 49%
Market Bank, a priv
es Owned
t from ) Sep. 30
2 3% <
9 -1%
9 0%
4 0% <
3 0% <
7 0% <
6 9% <
7 0% <
7 6% <
5 0% <
Out Positions
/ CMCSA
t / MSFT
Weightings
quity Investment Id
EVP and CIO 2004. Tom has ord is one of th
Holdings as % of
Co. Fund*
14% 2%
<1% 14%
1% 6%
10% <1%
<1% <1%
<1% 3%
<1% 3%
<1% <1%
<1% <1%
<1% <1%
vate company in w
Holdings as % of
Co. Fund*
<1% 14%
2% 10%
1% 6%
<1% 5%
<1% 5%
<1% 3%
<1% 3%
<1% 3%
<1% 3%
<1% 3%
s
Nestl
Pre-P
*, **
eas for Sophisticate
February 28, 2011 –
of Markel, a Rbeen a discipli
he best in the bu
P/E (Est.)
This Next FY FY
15x 12x
19x 19x
n/a n/a
24x n/a
17x 14x
14x 12x
12x 10x
31x 19x
10x 9x
n/a n/a
hich Markel was a
P/E (Est.) P
This Next TFY FY
19x 19x
22x 20x
n/a n/a
n/a n/a
15x 14x
17x 15x
12x 10x
29x 23x
14x 12x
18x 16x
le / NSRGY
Paid Legal / PPD
ed Investors
Page 50 of 170
Richmond, ined usiness.
Price/ Tang. Book
1.0x
2.1x
1.2x
.7x
n/m
4.0x
2.9x
2.7x
>9.9x
n/m
shareholder.
Price/ Tang. Book
2.1x
3.8x
1.2x
4.4x
n/m
>9.9x
2.9x
n/m
4.0x
>9.9x
D
©
MMo M
T
N
N
P
* p
© 2008-2011 by Beyond
MHR (MarkMark Racheskyon inefficient m
MOI Signal R
Compan
1 Lions Ga
2 Loral Spa
3 Key Ener
4 Leap Wir
5 Pride Inte
6 Seahawk
7 Omega N
8 L-1 Ident
9 MetroPC
10 Rand Log
Top Holdings
Company
1 Loral Spac
2 Pride Inter
3 Lions Gate
4 Key Energ
5 Leap Wire
6 MetroPCS
7 L-1 Identit
8 M & F Wo
9 Seahawk
10 Rand Logi
New Position
None
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
k Rachesky) y worked for Cmarket sectors,
Rank™ – Top
ny / Ticker
ate / LGF
ace / LORL
rgy Services / KE
reless / LEAP
ernational / PDE
k Drilling / HAWK
Navigation / ONA
tity / ID
CS / PCS
gistics / RLOG
s of MHR Fun
y / Ticker
ce / LORL
rnational / PDE
e / LGF
gy Services / KEG
eless / LEAP
S / PCS
ty / ID
rldwide / MFW
Drilling / HAWK
istics / RLOG
ns
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
) Carl Icahn from
including spec
p Current Idea
Market Value
($mn)
837
1,636
EG 1,991
1,090
7,073
K 53
AV 19
1,115
4,753
90
nd Managem
Market Value
($mn)
1,636
7,073
837
G 1,991
1,090
4,753
1,115
494
53
90
$2.1 billion
100%
$963 million
$2.1 billion
25x
17x
3.2x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
m 1990 to 1996.cial situation eq
as of MHR F
Price
Recent ($) D
6.12
78.91
14.08
13.92
40.25
4.40
1.19
11.92
13.41
6.70
ment – By Do
Price
Recent ($) De
78.91
40.25
6.12
14.08
13.92
13.41
11.92
25.54
4.40
6.70
th the SEC. Excludnon-equity securitie
AY! www.manualo
. He subsequenquities and dist
und Manage
Shar
from RecenDec. 31 ('000
-6% 39,40
3% 8,13
8% 16,66
14% 15,53
22% 12,83
-51% 1,17
-7% 1,35
0% 6,93
6% 12,82
38% 46
ollar Value
Share
from Recentec. 31 ('000)
3% 8,130
22% 12,832
-6% 39,402
8% 16,666
14% 15,538
6% 12,820
0% 6,936
11% 747
-51% 1,174
38% 462
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
ntly founded Mtressed investm
ement
res Owned
nt from 0) Sep. 30
02 0%
30 0%
66 0%
38 0%
32 0%
74 0%
58 0%
36 0%
20 0%
62 0%
es Owned
t from ) Sep. 30 C
0 0% 3
2 0%
2 0% 2
6 0% 1
8 0% 2
0 0%
6 0%
7 -10%
4 0% 1
2 0%
Out Positions
r Weightings
quity Investment Id
MHR Fund Manments. He runs
Holdings as % of
Co. Fund*
29% 11%
39% 30%
12% 11%
20% 10%
7% 24%
10% <1%
8% <1%
7% 4%
4% 8%
3% <1%
Holdings as % of T
Co. Fund*
39% 30%
7% 24%
29% 11%
2% 11%
20% 10%
4% 8%
7% 4%
4% <1%
0% <1%
3% <1%
s
*
eas for Sophisticate
February 28, 2011 –
nagement, whi a concentrated
P/E (Est.)
This Next FY FY
n/a n/a
n/a n/a
n/m 25x
n/m n/m
15x 12x
n/a n/a
n/a n/a
n/m >99x
20x 14x
35x 17x
P/E (Est.) P
This Next TFY FY
n/a n/a
15x 12x
n/a n/a
n/m 25x
n/m n/m
20x 14x
n/m >99x
n/a n/a
n/a n/a
35x 17x
ed Investors
Page 51 of 170
ich focuses d portfolio.
Price/ Tang. Book
n/m
3.3x
3.7x
n/m
1.6x
.1x
.1x
n/m
>9.9x
3.2x
Price/ Tang. Book
3.3x
1.6x
n/m
3.7x
n/m
>9.9x
n/m
n/m
.1x
3.2x
©
MGmth M
T
N
J
P
* p
© 2008-2011 by Beyond
MSD CapitaGlenn Fuhrmanmanage his perhe Special Inv
MOI Signal R
Compan
1 Energy X
2 Asbury A
3 Macquar
4 Journal C
5 Wright Ex
6 School S
7 DineEqu
8 EchoStar
9 Domino's
10 Sunstone
Top Holdings
Company
1 Energy XX
2 DineEquity
3 EchoStar /
4 Wright Exp
5 Macquarie
6 Domino's
7 Asbury Au
8 Tyler Tech
9 Nalco Hold
10 Sunstone
New Position
Journal Commun
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
al (Glenn Fun and John Phersonal capital inestments Grou
Rank™ – Top
ny / Ticker
XXI / EXXI
Automotive / ABG
rie Infrastr. / MIC
Comms / JRN
xpress / WXS
Specialty / SCHS
ity / DIN
r / SATS
s Pizza / DPZ
e Hotel / SHO
s of MSD Cap
y / Ticker
XI / EXXI
y / DIN
/ SATS
press / WXS
e Infrastr. / MIC
Pizza / DPZ
utomotive / ABG
h / TYL
ding / NLC
Hotel / SHO
ns
ications / JRN
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
uhrman andelan are co-mann the late 1990
up. Phelan prev
p Current Idea
Market Value
($mn)
4,619
G 599
1,134
336
2,046
306
1,060
2,845
1,029
1,281
pital – By Do
Market Value
($mn)
4,619
1,060
2,845
2,046
1,134
1,029
599
685
3,741
1,281
$1.0 billion
90%
$1.1 billion
$1.6 billion
16x
15x
3.1x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
d John Phelanaging partnerss. Fuhrman pre
viously spent fi
as of MSD C
Price
Recent ($) D
32.24
18.30
24.80
5.97
53.45
16.20
58.81
33.40
17.14
10.90
ollar Value
Price
Recent ($) De
32.24
58.81
33.40
53.45
24.80
17.14
18.30
21.25
27.04
10.90
th the SEC. Excludnon-equity securitie
AY! www.manualo
lan) s and co-foundeviously spent ve years at Edd
Capital
Shar
from RecenDec. 31 ('000
17% 4,97
-1% 3,68
17% 3,53
18% 3,77
16% 1,73
16% 2,78
19% 2,51
34% 3,67
7% 4,74
6% 4,15
Share
from Recentec. 31 ('000)
17% 4,973
19% 2,512
34% 3,671
16% 1,737
17% 3,532
7% 4,744
-1% 3,686
2% 2,527
-15% 1,915
6% 4,159
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
ders of MSD, hten years at G
die Lampert’s
res Owned
nt from 0) Sep. 30
73 98%
86 0%
32 4%
72 new
37 0%
85 0%
2 0%
71 0%
44 26%
59 0%
es Owned
t from ) Sep. 30 C
3 98%
2 0% 1
0%
7 0%
2 4%
4 26%
6 0% 1
7 -17%
5 -7%
9 0%
Out Positions
r Weightings
quity Investment Id
having teamed Goldman Sachs,
ESL Investme
Holdings as % of
Co. Fund*
3% 16%
11% 7%
8% 9%
7% 2%
5% 9%
15% 4%
14% 15%
4% 12%
8% 8%
4% 4%
Holdings as % of T
Co. Fund*
3% 16%
4% 15%
4% 12%
5% 9%
8% 9%
8% 8%
1% 7%
8% 5%
1% 5%
4% 4%
s
*
eas for Sophisticate
February 28, 2011 –
up with Micha, where he was
ents.
P/E (Est.)
This Next FY FY
50x 19x
13x 10x
8x 9x
15x 11x
16x 14x
n/m n/m
16x 16x
67x 56x
13x 12x
n/m 61x
P/E (Est.) P
This Next TFY FY
50x 19x
16x 16x
67x 56x
16x 14x
8x 9x
13x 12x
13x 10x
31x 27x
16x 13x
n/m 61x
ed Investors
Page 52 of 170
ael Dell to s head of
Price/ Tang. Book
5.0x
2.1x
n/m
3.6x
n/m
n/m
n/m
1.1x
n/m
1.4x
Price/ Tang. Book
5.0x
n/m
1.1x
n/m
n/m
n/m
2.1x
n/m
n/m
1.4x
©
PMp2S M
T
N
B
P
* p
© 2008-2011 by Beyond
Pabrai FundMohnish Pabrapartnerships wi25% performanS&P 500 Index
MOI Signal R
Compan
1 Brookfiel
2 Potash /
3 POSCO
4 Goldman
5 CapitalSo
6 Pinnacle
7 Teck Res
8 Brookfiel
9 Cresud /
10 Berkshire
Top Holdings
Company
1 Potash / P
2 Brookfield
3 Brookfield
4 Cresud / C
5 Internation
6 POSCO /
7 CapitalSo
8 Horsehead
9 Terex / TE
10 Goldman S
New Position
Brookfield Infrast
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
ds (Mohnishai is founder anith a fee structunce fee above 6x. Pabrai follow
Rank™ – Top
ny / Ticker
d Infrastructure /
POT
/ PKX
n Sachs / GS
ource / CSE
Airlines / PNCL
sources / TCK
d Prop. / BPO
CRESY
e Hathaway / BR
s of Pabrai F
y / Ticker
POT
Infrastructure / B
Prop. / BPO
CRESY
nal Coal / ICO
PKX
urce / CSE
d / ZINC
EX
Sachs / GS
ns
ructure / BIP
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
h Pabrai) nd managing paure similar to th6% annual hurdws an investme
p Current Idea
Market Value
($mn)
/ BIP 2,660
51,207
38,257
85,909
2,515
125
32,547
8,795
924
RK.A 210,308
Funds – By D
Market Value
($mn)
51,207
BIP 2,660
8,795
924
1,939
38,257
2,515
662
4,157
85,909
$352 million
84%
$4.2 billion
$33 billion
17x
10x
1.9x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
artner of Pabrahat of the Buffdle rate. Pabraient strategy bui
as of Pabrai
Price
Recent ($) D
23.55
180.00
108.42
168.04
7.78
6.73
55.08
17.49
17.75
127,640
Dollar Value
Price
Recent ($) De
180.00
23.55
17.49
17.75
9.51
108.42
7.78
15.27
38.17
168.04
th the SEC. Excludnon-equity securitie
AY! www.manualo
ai Investment Ffett Partnershipi Funds have a ilt upon the prin
Funds
Shar
from RecenDec. 31 ('000
12% 1,77
16% 33
1% 21
0% 11
10% 2,81
-15% 1,98
-11%
0% 2,35
-6% 1,37
6%
Share
from Recentec. 31 ('000)
16% 335
12% 1,770
0% 2,359
-6% 1,371
23% 2,484
1% 213
10% 2,813
17% 1,357
23% 531
0% 111
Sold O
Leucadia
Sector
des es.
Value-oriented Eq
ofideas.com
Funds, a familyps of the 1950s
long-term tracnciples of Grah
res Owned
nt from 0) Sep. 30
70 new
35 1%
13 >100%
11 0%
13 0%
86 -1%
6 0%
59 0%
71 -20%
0 0%
es Owned
t from ) Sep. 30 C
5 1% <
0 new
9 0% <
-20%
4 -2%
3 >100% <
3 0% <
7 0%
-5% <
0% <
Out Positions
a National / LUK
r Weightings
quity Investment Id
y of value-oriens and ‘60s, i.e. nck record vastlyham, Buffett an
Holdings as % of
Co. Fund*
2% 12%
<1% 17%
<1% 7%
<1% 5%
<1% 6%
11% 4%
<1% <1%
<1% 12%
3% 7%
<1% <1%
Holdings as % of T
Co. Fund*
<1% 17%
2% 12%
<1% 12%
3% 7%
1% 7%
<1% 7%
<1% 6%
3% 6%
<1% 6%
<1% 5%
s
*
eas for Sophisticate
February 28, 2011 –
nted investmenno managemeny superior to thnd Greenblatt.
P/E (Est.)
This Next FY FY
n/a n/a
n/a n/a
9x 9x
10x 9x
n/m 20x
5x 4x
n/a n/a
n/a n/a
27x 30x
19x 19x
P/E (Est.) P
This Next TFY FY
n/a n/a
n/a n/a
n/a n/a
27x 30x
15x 8x
9x 9x
n/m 20x
51x 15x
50x 17x
10x 9x
ed Investors
Page 53 of 170
nt nt fee and hat of the
Price/ Tang. Book
n/m
6.6x
2.2x
1.4x
1.3x
1.7x
2.3x
1.1x
n/m
2.1x
Price/ Tang. Book
6.6x
n/m
1.1x
n/m
2.6x
2.2x
1.3x
1.9x
2.7x
1.4x
©
PJ M
T
N
ABBBBCCDEHInJKM P
* p
© 2008-2011 by Beyond
Paulson & CJohn Paulson fo
MOI Signal R
Compan1 Anadarko2 CommSc3 Martek B4 Del Mont5 J. Crew /6 King Pha7 Howard H8 McAfee /9 Wilmingto
10 SuperMe
Top Holdings
Company1 SPDR Go2 Bank of A3 Citigroup /4 AngloGold5 Anadarko 6 Hartford F7 Capital On8 JPMorgan9 SunTrust
10 Comcast /
New Position
AbitibiBowater / ABaxter InternationBlackRock / BLK Boise / BZ Bucyrus / BUCY Chemtura / CHMTCommScope / CTDel Monte FoodsEmergency MediHoward Hughes /nternational Pap
J. Crew / JCG King Pharma / KGMartek Bioscienc
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
Co. (John Paounded his firm
Rank™ – Top
ny / Ticker o Petroleum / APcope / CTV
Biosciences / MATte Foods / DLM / JCG arma / KG Hughes / HHC / MFE on Trust / WL
edia / SPMD
s of Paulson
y / Ticker ld Trust / GLD merica / BAC / C d Ashanti / AU Petroleum / APC
Financial / HIG ne / COF n Chase / JPM Banks / STI / CMCSA
ns
ABH nal / BAX
T TV s / DLM cal / EMS / HHC er / IP
G ces / MATK
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
aulson) m with $2 milli
p Current Idea
Market Value
($mn) PC 40,123
2,991 TK 1,054
3,698 2,790 3,557 2,106 7,385
422 128
& Co. – By D
Market Value
($mn) 54,611
148,756 142,677
26,350 C 40,123
13,692 24,076
187,641 15,869 70,563
McAfee / MFEMedtronic / MRalcorp / RAHRoyal Bank SSeagate TechSt. Jude MedTeva PharmaTransocean /Veeco InstrumWalter EnergWhirlpool / WWilmington TXL Group / X
$31 billion
58%
$7.4 billion
$25 billion
16x
13x
2.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ion in 1994. He
as of Paulso
PriceRecent
($) D 80.96 31.48 31.45 18.94 43.63 14.23 55.83 47.91 4.62 8.28
Dollar Value
Price Recent
($) De135.41
14.75 4.91
47.55 80.96 30.80 52.69 48.00 31.74 25.67
E MDT H
Scotland / RBS hnology / STX
dical / STJ a / TEVA / RIG ments / VECO y / WLT
WHR Trust / WL L
th the SEC. Excludnon-equity securitie
AY! www.manualo
e gained notori
on & Co.
Shar from Recen
Dec. 31 ('0006% 21,270% 9,000% 3,001% 19,151% 6,001% 20,003% 2,193% 8,006% 5,13
-5% 2,60
Sharefrom Recen
ec. 31 ('000-2% 31,50011% 163,861
4% 413,526-3% 40,9496% 21,278
16% 43,95124% 21,99313% 23,728
8% 34,35817% 40,000
Sold O
Boyd GamFamily DoFirst HoriGeneral GMead JohPotash / StarwoodStarwood
Sector
des es.
Value-oriented Eq
ofideas.com
iety by profitin
res Owned nt from 0) Sep. 30 78 59% 00 new 00 new 50 new 00 new 00 new 94 new 00 new 35 new 08 0%
es Owned nt from 0) Sep. 30 0 0% 1 -8% 6 -2% 9 0% 8 59% 1 0% 13 16% 8 0% <8 17% 0 0%
Out Positions
ming / BYD ollar Stores / FDizon / FHN Growth / GGP hnson / MJN POT
d Hotels / HOT d Property / STW
r Weightings
quity Investment Id
ng hugely from
Holdings as % of
Co. Fund* 4% 5% 9% <1% 9% <1%
10% 1% 9% <1% 8% <1% 6% <1% 5% 1% 6% <1%
17% <1%
Holdings as % of
Co. Fund* 8% 14% 2% 8% 1% 6% 7% 6% 4% 5%
10% 4% 5% 4%
<1% 4% 7% 3% 1% 3%
s
DO
WD
*
eas for Sophisticate
February 28, 2011 –
m the crisis of 2
P/E (Est.) This Next
FY FY 35x 24x 18x 13x 19x 18x 13x 13x 21x 19x 21x 21x n/m n/m 17x 16x n/m 13x n/a n/a
P/E (Est.) PThis Next T
FY FY n/a n/a 11x 8x 11x 9x 22x 11x 35x 24x
8x 8x 10x 10x 10x 9x 31x 14x 17x 15x
ed Investors
Page 54 of 170
2008.
Price/ Tang. Book
2.6x >9.9x
3.1x n/m 5.5x 2.8x 1.4x
>9.9x .6x
n/m
Price/ Tang. Book
1.4x 1.3x 1.1x 6.9x 2.6x
.7x 1.9x 1.8x 1.5x n/m
©
PAf M
T
N
A
G
K
P
S
P
* p
© 2008-2011 by Beyond
Pennant (AlAlan Fournier sfirm and David
MOI Signal R
Compan
1 DaVita /
2 Sensata
3 Fidelity N
4 WellPoin
5 Qualcom
6 General
7 Citigroup
8 Wells Fa
9 Seahawk
10 Western
Top Holdings
Company
1 TransDigm
2 Qualcomm
3 Fidelity Na
4 DaVita / D
5 WellPoint
6 Abercromb
7 Adobe Sys
8 Western U
9 UnitedHea
10 Sensata T
New Position
Aeroflex / ARX
General Motors /
Kronos Worldwid
Petroleo Brasileir
Sensata Tech / S
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
Alan Fourniestarted his care
d Tepper’s App
Rank™ – Top
ny / Ticker
DVA
Tech / ST
National / FIS
t / WLP
mm / QCOM
Motors / GM
p / C
rgo / WFC
k Drilling / HAWK
Union / WU
s of Pennant
y / Ticker
m / TDG
m / QCOM
ational / FIS
DVA
/ WLP
bie & Fitch / ANF
stems / ADBE
Union / WU
alth / UNH
Tech / ST
ns
GM
e / KRO
ro / PBR
ST
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
er) eer at Sanford Bpaloosa, where
p Current Idea
Market Value
($mn)
7,744
5,793
9,620
25,310
97,293
54,760
142,677
171,319
K 53
14,206
t Capital – By
Market Value
($mn)
4,046
97,293
9,620
7,744
25,310
F 5,173
17,862
14,206
46,854
5,793
Universal Am
Wells Fargo /
$4.1 billion
50%
$6.7 billion
$36 billion
14x
12x
3.4x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
Bernstein in 19he was respon
as of Pennan
Price
Recent ($) D
79.67
33.29
32.14
67.40
59.19
36.51
4.91
32.64
4.40
21.66
y Dollar Valu
Price
Recent ($) De
81.50
59.19
32.14
79.67
67.40
59.05
35.39
21.66
42.84
33.29
merican / UAM
/ WFC
th the SEC. Excludnon-equity securitie
AY! www.manualo
988 and becamnsible for globa
nt Capital
Shar
from RecenDec. 31 ('000
15% 2,75
11% 4,43
17% 7,54
19% 3,18
20% 4,25
-1% 2,61
4% 20,55
5% 3,44
-51% 48
17% 7,92
ue
Share
from Recentec. 31 ('000)
13% 3,353
20% 4,250
17% 7,540
15% 2,759
19% 3,183
2% 3,353
15% 5,282
17% 7,926
19% 3,581
11% 4,437
Sold O
Alpha Na
Bank of A
CONSOL
Covidien
Exxon Mo
Sector
des es.
Value-oriented Eq
ofideas.com
me a partner in 1al equities. Fou
res Owned
nt from 0) Sep. 30
59 24%
37 new
40 7%
83 1%
50 0%
18 new
55 >100%
40 new
84 0%
26 9%
es Owned
t from ) Sep. 30 C
3 -8%
0 0% <
0 7%
9 24%
3 1% <
3 -15%
2 1%
6 9%
13% <
7 new
Out Positions
atural / ANR
America / BAC
L Energy / CNX
/ COV
obil / XOM
r Weightings
quity Investment Id
1990. He also wurnier founded
Holdings as % of
Co. Fund*
3% 5%
3% 4%
3% 6%
<1% 5%
<1% 6%
<1% 2%
<1% 2%
<1% 3%
4% <1%
1% 4%
Holdings as % of T
Co. Fund*
7% 7%
<1% 6%
3% 6%
3% 5%
<1% 5%
4% 5%
1% 5%
1% 4%
<1% 4%
3% 4%
s
Fluor
Griffo
Rena
Savie
Trans
*
eas for Sophisticate
February 28, 2011 –
worked for RicPennant in 200
P/E (Est.)
This Next FY FY
18x 15x
n/a n/a
14x 12x
10x 9x
19x 18x
13x 9x
11x 9x
12x 9x
n/a n/a
14x 13x
P/E (Est.) P
This Next TFY FY
20x 17x
19x 18x
14x 12x
18x 15x
10x 9x
21x 15x
15x 14x
14x 13x
11x 10x
n/a n/a
r / FLR
on / GFF
aissanceRe / RN
ent Pharma / SV
satlantic / TRH
ed Investors
Page 55 of 170
ch Pzena’s 01.
Price/ Tang. Book
n/m
n/m
n/m
9.9x
5.3x
n/m
1.1x
2.2x
.1x
n/m
Price/ Tang. Book
n/m
5.3x
n/m
n/m
9.9x
2.8x
>9.9x
n/m
>9.9x
n/m
R
VNT
©
PBpdoa M
T
N
G
H
P
* p
© 2008-2011 by Beyond
Pershing SqBill Ackman, mportfolio with tdeveloped into overvalued andapproached larg
MOI Signal R
Compan
1 Fortune B
2 J.C. Pen
3 General
4 Howard H
5 Citigroup
6 General
7 Greenligh
8 Target / T
9 Kraft Foo
10 Correctio
Top Holdings
Company
1 J.C. Penn
2 General G
3 Fortune B
4 Citigroup /
5 Kraft Food
6 Target / TG
7 General M
8 Howard H
9 Correction
10 Automatic
New Position
General Motors /
Howard Hughes /
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
quare (Bill Amanaging memthe largest ten ea full-blown e
d fundamentallyge companies,
Rank™ – Top
ny / Ticker
Brands / FO
ney / JCP
Motors / GM
Hughes / HHC
p / C
Growth / GGP
ht Re / GLRE
TGT
ods / KFT
ons Corp. / CXW
s of Pershing
y / Ticker
ey / JCP
Growth / GGP
rands / FO
/ C
ds / KFT
GT
Motors / GM
ughes / HHC
ns Corp. / CXW
c Data / ADP
ns
GM
/ HHC
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Ackman) mber of Pershing
equity investmconomic crisisy more distressincluding McD
p Current Idea
Market Value
($mn)
9,562
8,759
54,760
2,106
142,677
19,896
1,066
36,749
53,993
2,751
g Square – B
Market Value
($mn)
8,759
19,896
9,562
142,677
53,993
36,749
54,760
2,106
2,751
24,791
$6.0 billion
100%
$20 billion
$30 billion
18x
16x
1.7x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
g Square Capitments accountins, Ackman madsed than the maDonald’s (MCD
as of Pershin
Price
Recent ($) D
62.67
37.02
36.51
55.83
4.91
15.76
29.25
51.90
30.91
24.95
By Dollar Valu
Price
Recent ($) De
37.02
15.76
62.67
4.91
30.91
51.90
36.51
55.83
24.95
49.94
th the SEC. Excludnon-equity securitie
AY! www.manualo
tal, is a value-ong for the vast mde a strong casearket had judgeD) and Target
ng Square
Shar
from ReceDec. 31 ('00
4% 16,66
15% 39,07
-1% 7,18
3% 3,56
4% 146,51
2% 69,96
9% 25
-14% 7,40
-2% 19,47
0% 7,82
ue
Share
from Recenec. 31 ('000
15% 39,076
2% 69,966
4% 16,669
4% 146,514
-2% 19,470
-14% 7,400
-1% 7,188
3% 3,568
0% 7,827
8% 1,405
Sold O
None
Sector
des es.
Value-oriented Eq
ofideas.com
oriented activismajority of hise for why MBIed at the time. (TGT), with pr
res Owned
nt from 00) Sep. 30
69 >100%
76 >100%
88 new
68 new
14 0%
66 0%
50 0%
00 -48%
70 -30%
27 -28%
es Owned
nt from 0) Sep. 30
6 >100% 1
6 0%
9 >100% 1
4 0% <
0 -30%
0 -48%
8 new <
8 new
7 -28%
5 -84% <
Out Positions
Weightings
quity Investment Id
st investor. He s long book. BeIA (MBI) and On the long siroposals for un
Holdings as % of
Co. Fund*
11% 17%
17% 24%
<1% 4%
9% 3%
<1% 12%
6% 18%
<1% <1%
1% 6%
1% 10%
7% 3%
Holdings as % of
Co. Fund*
17% 24%
6% 18%
11% 17%
<1% 12%
1% 10%
1% 6%
<1% 4%
9% 3%
7% 3%
<1% 1%
s
*
eas for Sophisticate
February 28, 2011 –
runs a concenefore the creditAMBAC (ABKide, Ackman hnlocking value
P/E (Est.)
This Next FY FY
19x 16x
24x 21x
13x 9x
n/m n/m
11x 9x
n/m 53x
11x 8x
13x 12x
14x 12x
18x 16x
P/E (Est.) P
This Next TFY FY
24x 21x
n/m 53x
19x 16x
11x 9x
14x 12x
13x 12x
13x 9x
n/m n/m
18x 16x
20x 19x
ed Investors
Page 56 of 170
trated t crunch K) were as .
Price/ Tang. Book
n/m
1.8x
n/m
1.4x
1.1x
>9.9x
1.4x
2.5x
n/m
1.9x
Price/ Tang. Book
1.8x
>9.9x
n/m
1.1x
n/m
2.5x
n/m
1.4x
1.9x
>9.9x
©
SEKeT M
T
N
N
P
* p
© 2008-2011 by Beyond
Sageview (EEd Gilhuly andKravis Roberts end of 1994. ThThe firm follow
MOI Signal R
Compan
1 Arris Gro
2 Covidien
3 Life Tech
4 Charles S
5 Baxter In
8 SandRidg
Top Holdings
Company /
1 Life Techno
2 Arris Group
3 Covidien / C
4 Charles Sc
5 SandRidge
6 Baxter Inter
New Position
None
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
Ed Gilhuly ad Scott Stuart w
& Co. in San hey continued ws a highly con
Rank™ – Top
ny / Ticker
oup / ARRS
/ COV
hnologies / LIFE
Schwab / SCHW
nternational / BAX
ge Energy / SD
s of Sageview
/ Ticker
ologies / LIFE
p / ARRS
COV
hwab / SCHW
Energy / SD
rnational / BAX
ns
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
and Scott Stwere classmatesFrancisco, whiserving in lead
ncentrated, valu
p Current Idea
Market Value
($mn)
1,684
25,394
10,160
W 23,239
X 30,902
3,609
w Capital – B
Market Value
($mn)
10,160
1,684
25,394
23,239
3,609
30,902
$190 million
100%
$4.5 billion
$9.2 billion
20x
15x
3.0x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
tuart) s at Stanford Bile Stuart startedership roles atue-oriented inv
as of Sagevi
Price
Recent ($) D
13.63
51.42
54.41
19.45
53.03
8.92
By Dollar Val
Price
Recent fr($) Dec
54.41
13.63 2
51.42 1
19.45 1
8.92 2
53.03
th the SEC. Excludnon-equity securitie
AY! www.manualo
Business Schooed with KKR int KKR until 20vestment appro
ew Capital
Shar
from RecenDec. 31 ('000
21% 3,84
13% 66
-2% 1,58
14% 73
5% 2
22% 20
lue
Shares
rom Recentc. 31 ('000)
-2% 1,586
21% 3,849
13% 666
14% 734
22% 205
5% 21
Sold O
Huron Co
Symantec
Sector
des es.
Value-oriented Eq
ofideas.com
ol. After graduan New York. E
005, at which tioach.
res Owned
nt from 0) Sep. 30
49 7%
66 0%
86 -38%
34 -32%
21 -72%
05 -96%
s Owned
from Sep. 30 C
-38% <1
7% 3
0% <1
-32% <1
-96% <1
-72% <1
Out Positions
onsulting / HURN
c / SYMC
r Weightings
quity Investment Id
ating in 1986, GEach became a ime they teame
Holdings as % of
Co. Fund*
3% 28%
<1% 18%
<1% 45%
<1% 8%
<1% <1%
<1% <1%
Holdings as % of T
Co. Fund*
% 45%
3% 28%
% 18%
% 8%
% <1% >
% <1%
s
N
*
eas for Sophisticate
February 28, 2011 –
Gilhuly joined partner of KK
ed up to start S
P/E (Est.)
This Next FY FY
16x 14x
n/a n/a
14x 13x
24x 17x
13x 12x
>99x >99x
P/E (Est.) P
This Next TFY FY B
14x 13x
16x 14x
n/a n/a
24x 17x
99x >99x
13x 12x
ed Investors
Page 57 of 170
Kohlberg KR at the Sageview.
Price/ Tang. Book
2.8x
n/m
2.3x
4.2x
7.8x
3.0x
Price/ Tang. Book
2.3x
2.8x
n/m
4.2x
3.0x
7.8x
©
SJ M
T
N
D
D
H
K
S
S
Y
P
* p
© 2008-2011 by Beyond
Scout (JameJames Crichton
MOI Signal R
Compan
1 McDonal
2 Sensata
3 Verisk An
4 eBay / EB
5 Domino's
6 Lamar Ad
7 Tyco Ele
8 CF Indus
9 Kroger /
10 Yum! Bra
Top Holdings
Company
1 Coca-Cola
2 McDonald
3 Verisk Ana
4 Sensata T
5 eBay / EB
6 Tyco Elec
7 Lamar Adv
8 CF Industr
9 MSC Indu
10 Domino's
New Position
Domino's Pizza /
Dr Pepper Snapp
Hansen Natural /
Kroger / KR
Safeway / SWY
Supervalu / SVU
Youku / YOKU
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
es Crichton) n co-founded S
Rank™ – Top
ny / Ticker
d's / MCD
Tech / ST
nalytics / VRSK
BAY
s Pizza / DPZ
dvertising / LAMR
ctronics / TEL
stries / CF
KR
ands / YUM
s of Scout Ca
y / Ticker
a Enterprise / CC
d's / MCD
alytics / VRSK
Tech / ST
AY
tronics / TEL
vertising / LAMR
ries / CF
strial / MSM
Pizza / DPZ
ns
DPZ
ple / DPS
HANS
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
) cout with Adam
p Current Idea
Market Value
($mn)
80,432
5,793
5,819
45,018
1,029
R 3,830
16,804
9,807
14,691
23,919
apital – By D
Market Value
($mn)
CE 8,964
80,432
5,819
5,793
45,018
16,804
R 3,830
9,807
4,073
1,029
Yum! Brands
$1.8 billion
91%
$9.0 billion
$29 billion
15x
13x
4.7x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
m Weiss in 19
as of Scout C
Price
Recent ($) D
76.13
33.29
33.78
34.53
17.14
41.54
37.72
137.87
23.10
51.17
Dollar Value
Price
Recent ($) De
27.15
76.13
33.78
33.29
34.53
37.72
41.54
137.87
64.22
17.14
/ YUM
th the SEC. Excludnon-equity securitie
AY! www.manualo
99. The firm ru
Capital
Shar
from RecenDec. 31 ('000
-1% 3,32
11% 6,60
-1% 6,92
24% 5,45
7% 2,52
4% 2,70
7% 4,70
2% 64
3% 79
4% 73
Share
from Recentec. 31 ('000)
8% 10,690
-1% 3,325
-1% 6,925
11% 6,600
24% 5,450
7% 4,700
4% 2,700
2% 640
-1% 970
7% 2,520
Sold O
Alberto-C
Amazon.c
Axis Cap
Bank of A
CVS Care
Everest R
Gannett /
Sector
des es.
Value-oriented Eq
ofideas.com
uns a concentr
res Owned
nt from 0) Sep. 30
25 >100%
00 64%
25 25%
50 56%
20 new
00 80%
00 57%
40 13%
97 new
30 new
es Owned
t from ) Sep. 30 C
0 -35%
5 >100% <
5 25%
0 64%
0 56% <
0 57%
0 80%
0 13% <
0 -10%
0 new
Out Positions
Culver / ACV
com / AMZN
pital / AXS
America / BAC
remark / CVS
Re / RE
/ GCI
r Weightings
quity Investment Id
rated portfolio o
Holdings as % of
Co. Fund*
<1% 14%
4% 12%
4% 13%
<1% 10%
4% 2%
3% 6%
1% 10%
<1% 5%
<1% 1%
<1% 2%
Holdings as % of T
Co. Fund*
3% 16%
<1% 14%
4% 13%
4% 12%
<1% 10%
1% 10%
3% 6%
<1% 5%
2% 3%
4% 2%
s
Mast
Mols
New
North
PG&
Tupp
Vanc
*
eas for Sophisticate
February 28, 2011 –
of undervalued
P/E (Est.)
This Next FY FY
15x 14x
n/a n/a
24x 21x
18x 16x
13x 12x
n/m n/m
n/a n/a
11x 13x
13x 12x
18x 16x
P/E (Est.) P
This Next TFY FY
14x 12x
15x 14x
24x 21x
n/a n/a
18x 16x
n/a n/a
n/m n/m
11x 13x
21x 17x
13x 12x
terCard / MA
on Coors / TAP
Oriental Edu. / E
hwest Bancorp /
E / PCG
perware Brands C
ceInfo / VIT
ed Investors
Page 58 of 170
d equities.
Price/ Tang. Book
7.2x
n/m
n/m
5.3x
n/m
n/m
5.7x
5.0x
3.6x
>9.9x
Price/ Tang. Book
n/m
7.2x
n/m
n/m
5.3x
5.7x
n/m
5.0x
7.1x
n/m
EDU
NWBI
Corp. / TUP
©
STBo M
T
N
B
E
M
P
* p
© 2008-2011 by Beyond
Second CurvTom Brown waBarney, PaineWout on his own
MOI Signal R
Company
1 Banner Co
2 Taylor Cap
3 Tennesse
4 CompuCre
5 Primus Gu
6 CoBiz Fina
7 Mercantile
8 Hudson V
9 NewStar F
10 First Merc
Top Holdings
Company
1 Primus Gu
2 CompuCre
3 Banner Co
4 Synovus F
5 CoBiz Fina
6 West. Allia
7 Taylor Cap
8 Ocwen Fin
9 NewStar F
10 Hudson V
New Position
Bancorp / TBBK
Enterprise Financ
MainSource Fina
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
ve (Tom Broas a sell-side anWebber and Do
two years later
Rank™ – Top
y / Ticker
orp. / BANR
pital / TAYC
e Commerce / T
edit / CCRT
uaranty / PRS
ancial / COBZ
e Bank / MBWM
alley / HUVL
Financial / NEWS
chants / FRME
s of Second
y / Ticker
uaranty / PRS
edit / CCRT
orp. / BANR
Financial / SNV
ancial / COBZ
ance Banc / WAL
pital / TAYC
nancial / OCN
Financial / NEWS
alley / HUVL
ns
cial / EFSC
ncial / MSFG
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
own) nalyst focused onaldson Lufkir, founding Sec
p Current Idea
Market Value
($mn)
280
190
NCC 63
239
193
244
78
387
S 518
232
Curve – By D
Market Value
($mn)
193
239
280
2,136
244
L 671
190
1,110
S 518
387
Mercantile Ba
Sun Bancorp
$254 million
86%
$387 million
$2.2 billion
18x
13x
1.3x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
on the financiain & Jenrette. Icond Curve Ca
as of Second
Price
Recent f($) Dec
2.50
10.63 -
5.14
6.68
5.08
6.61
9.03
21.93 -
10.20
9.06
Dollar Value
Price
Recent ($) De
5.08
6.68
2.50
2.72
6.61
8.23
10.63
11.04
10.20
21.93
ank / MBWM
NJ / SNBC
th the SEC. Excludnon-equity securitie
AY! www.manualo
al services induIn 1998, he joinapital, a value-o
d Curve
Shares
from Recentc. 31 ('000)
8% 9,536
19% 2,037
5% 1,286
-4% 4,281
0% 6,461
9% 3,368
10% 443
11% 406
-4% 1,453
2% 35
Share
from Recentec. 31 ('000)
0% 6,461
-4% 4,281
8% 9,536
3% 8,357
9% 3,368
12% 2,634
-19% 2,037
16% 1,874
-4% 1,453
-11% 406
Sold O
CapitalSo
Encore C
Wintrust
Sector
des es.
Value-oriented Eq
ofideas.com
ustry in the 19ned Julian Roboriented firm w
s Owned H
from Sep. 30 Co
98% 9%
2% 11%
45% 11%
4% 12%
1% 17%
11% 9%
new 5%
>100% 2%
16% 3%
>100% <1%
es Owned
t from ) Sep. 30 C
1% 1
4% 1
6 98%
7 -8%
8 11%
4 -23%
7 2% 1
4 -19%
3 16%
6 >100%
Out Positions
ource / CSE
Capital / ECPG
Financial / WTFC
r Weightings
quity Investment Id
80s and 1990sbertson’s Tigerwith a focus on
Holdings Pas % of Tho. Fund*
% 9% n
% 9% n
% 3% 1
% 11% n
% 13% n
% 9% 3
% 2% >9
% 4% 1
% 6% 1
% <1% 1
Holdings as % of T
Co. Fund*
7% 13%
2% 11%
9% 9%
1% 9%
9% 9%
3% 9%
1% 9%
2% 8%
3% 6%
2% 4%
s
C
Zions
*
eas for Sophisticate
February 28, 2011 –
, working at Smr Management.n the financial
P/E (Est.) Pr
his Next TaFY FY B
n/m >99x
n/m 18x 2
16x 8x
n/m n/m 1
n/a n/a
31x 13x 1
99x 15x
16x 13x 1
19x n/a
19x 11x 1
P/E (Est.) P
This Next TFY FY
n/a n/a
n/m n/m
n/m >99x
n/m 16x
31x 13x
48x 16x
n/m 18x
26x 8x
19x n/a
16x 13x
s BanCorp / ZION
ed Investors
Page 59 of 170
mith He struck sector.
rice/ ang. ook
.7x
2.4x
.6x
1.8x
n/m
1.2x
.7x
1.5x
.9x
1.0x
Price/ Tang. Book
n/m
1.8x
.7x
1.1x
1.2x
1.6x
2.4x
1.7x
.9x
1.5x
N
©
SMina M
T
N
L
N
V
P
* p
© 2008-2011 by Beyond
SoutheasterMason Hawkinnvestment adv
assets under ma
MOI Signal R
Compan
1 Texas Ind
2 Vail Reso
3 tw teleco
4 Dell / DE
5 Chesape
6 Service C
7 Martin M
8 Wendy's
9 Bank of N
10 Markel /
Top Holdings
Company
1 Chesapea
2 DIRECTV
3 Dell / DEL
4 Walt Disne
5 Yum! Bran
6 Cemex / C
7 Pioneer N
8 Aon / AON
9 Liberty Int
10 Bank of N
New Position
Lockheed Martin
News Corp. / NW
Vail Resorts / MT
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
rn (Mason Hns is chairman aviser to the Lonanagement, inc
Rank™ – Top
ny / Ticker
dustries / TXI
orts / MTN
om / TWTC
LL
eake Energy / CH
Corp. / SCI
arietta / MLM
Arby's / WEN
NY Mellon / BK
MKL
s of Southea
y / Ticker
ake Energy / CHK
/ DTV
LL
ey / DIS
nds / YUM
CX
atural / PXD
N
eractive / LINTA
Y Mellon / BK
ns
/ LMT
WSA
TN
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Hawkins) and CEO of So
ngleaf Partners cluding $13 bil
p Current Idea
Market Value
($mn)
1,172
1,774
2,829
29,784
HK 19,899
2,673
4,195
2,038
39,310
4,108
astern – By D
Market Value
($mn)
K 19,899
36,934
29,784
82,724
23,919
9,425
11,520
17,010
20,220
39,310
$27 billion
60%
$10 billion
$24 billion
17x
16x
2.6x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
outheastern AsFunds, a famil
llion in separat
as of Southe
Price
Recent ($) D
42.11
49.30
18.70
15.43
30.43
11.13
92.14
4.87
31.69
422.83
Dollar Value
Price
Recent ($) De
30.43
44.30
15.43
43.56
51.17
9.69
99.23
52.93
17.41
31.69
th the SEC. Excludnon-equity securitie
AY! www.manualo
set Managemely of value-orietely managed a
eastern
Shar
from RecenDec. 31 ('000
-8% 4,71
-5% 2,16
10% 27,53
14% 145,15
17% 81,84
35% 31,82
0% 4,47
5% 29,70
5% 31,29
12% 86
Share
from Recentec. 31 ('000)
17% 81,849
11% 50,816
14% 145,156
16% 37,369
4% 30,231
-10% 132,804
14% 12,614
15% 23,229
10% 61,586
5% 31,296
Sold O
InterCont
Shanda G
Sector
des es.
Value-oriented Eq
ofideas.com
ent, a firm he foented mutual f
accounts.
res Owned
nt from 0) Sep. 30
15 3%
66 new
36 1%
56 2%
49 1%
28 6%
79 1%
05 10%
96 7%
63 8%
es Owned
t from ) Sep. 30 C
9 1% 1
6 -10%
6 2%
9 -19%
1 -9%
4 -1% 1
4 -19% 1
9 -1%
6 -2%
6 7%
Out Positions
tinental H. / IHG
Games / GAME
Weightings
quity Investment Id
founded in 1975funds. The firm
Holdings as % of
Co. Fund*
17% <1%
6% <1%
18% 2%
8% 8%
13% 9%
13% 1%
10% 2%
7% <1%
3% 4%
9% 1%
Holdings as % of T
Co. Fund*
3% 9%
6% 8%
8% 8%
2% 6%
6% 6%
4% 5%
1% 5%
7% 5%
5% 4%
3% 4%
s
*
eas for Sophisticate
February 28, 2011 –
5. Southeasternm has $22 billio
P/E (Est.)
This Next FY FY
n/m n/m
47x 38x
48x 33x
9x 9x
10x 11x
18x 16x
36x 27x
30x 22x
12x 11x
24x 23x
P/E (Est.) P
This Next TFY FY
10x 11x
19x 14x
9x 9x
17x 15x
18x 16x
n/m 69x
32x 22x
15x 14x
17x 23x
12x 11x
ed Investors
Page 60 of 170
n serves as on of
Price/ Tang. Book
1.6x
4.6x
2.9x
>9.9x
1.6x
>9.9x
5.1x
n/m
4.6x
1.6x
Price/ Tang. Book
1.6x
n/m
>9.9x
>9.9x
>9.9x
.6x
2.9x
n/m
n/m
4.6x
©
SD M
T
N
H
Im
J
P
* E
© 2008-2011 by Beyond
Spencer (KeDr. Shubin Stei
MOI Signal R
Company
1 J.C. Penn
2 MRV Com
3 Howard H
4 Immucor /
5 Quest Dia
6 LECG Cor
7 Myriad Ge
8 Iridium Co
9 PNI Digita
10 Spark Net
Top Holdings
Company
1 Iridium Co
2 Spark Net
3 J.C. Penn
4 General G
5 MRV Com
6 dELiA*s /
7 Immucor /
8 Markel / M
9 Quest Dia
10 Howard H
New Position
Howard Hughes /
mmucor / BLUD
J.C. Penney / JC
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on informatExcludes portfolio c
Proxy LLC. All rights res
en Shubin Stin is the founde
Rank™ – Top
y / Ticker
ey / JCP
mmunications / M
ughes / HHC
/ BLUD
gnostics / DGX
rp. / XPRT
enetics / MYGN
omms / IRDM
al Media / PNDM
tworks / LOV
s of Spencer
y / Ticker
omms / IRDM
tworks / LOV
ey / JCP
Growth / GGP
mmunications / M
DLIA
/ BLUD
MKL
gnostics / DGX
ughes / HHC
ns
/ HHC
P
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
tion provided to Thecash, certain non-U
erved.
Stein) er of Spencer C
p Current Idea
Market Value
($mn)
8,759
RVC 276
2,106
1,427
9,852
31
1,714
583
F 57
68
r Capital – By
Market Value
($mn)
583
68
8,759
19,896
RVC 276
60
1,427
4,108
9,852
2,106
LECG Corp. /
Myriad Genet
Quest Diagno
$7 million
93%
$1.7 billion
$22 billion
22x
18x
2.0x
e Manual of Ideas b.S. holdings, and n
SUBSCRIBE TODA
Capital, a deep
as of Spence
Price
Recent f($) Dec
37.02
1.76
55.83
20.38
57.56
0.81 -4
19.07 -
8.31
1.66
3.28
y Dollar Valu
Price
Recent f($) Dec
8.31
3.28
37.02
15.76
1.76
1.92
20.38
422.83
57.56
55.83
/ XPRT
tics / MYGN
ostics / DGX
by Spencer Capitanon-equity securitie
AY! www.manualo
value-oriented
er Capital
Shares
from Recentc. 31 ('000)
15% 19
-2% 351
3% 4
3% 19
7% 5
41% 106
17% 12
1% 240
4% 127
10% 228
ue
Shares
from Recentc. 31 ('000)
1% 240
10% 228
15% 19
2% 43
-2% 351
10% 238
3% 19
12% 1
7% 5
3% 4
Sold O
Resource
Sears Ca
Wendy's
Sector
l. es.
Value-oriented Eq
ofideas.com
d investment m
s Owned H
from Sep. 30 Co
new <1%
>100% <1%
new <1%
new <1%
new <1%
new <1%
new <1%
-27% <1%
-71% <1%
-58% 1%
s Owned H
from Sep. 30 Co
-27% <1%
-58% 1%
new <1%
-78% <1%
>100% <1%
-73% <1%
new <1%
-71% <1%
new <1%
new <1%
Out Positions
e America / REX
anada / SEARF
Arby's / WEN
r Weightings
quity Investment Id
management fir
Holdings Pas % of Tho. Fund* F
% 10% 2
% 9% 2
% 3% n
% 6% 1
% 4% 1
% 1% n
% 3% 1
% 28% 2
% 3% n
% 11% n
Holdings Pas % of Tho. Fund* F
% 28% 2
% 11% n
% 10% 2
% 10% n
% 9% 2
% 7% n
% 6% 1
% 5% 2
% 4% 1
% 3% n
s
XI
*
eas for Sophisticate
February 28, 2011 –
rm.
P/E (Est.) Pri
his Next TaFY FY Bo
24x 21x 1
22x 13x 1
/m n/m 1
8x 16x 4
3x 12x n
/m n/m
9x 16x 3
27x 14x 1
n/a n/a 3
n/a n/a 6
P/E (Est.) Pri
his Next TaFY FY Bo
27x 14x 1
n/a n/a 6
24x 21x 1
/m 53x >9
22x 13x 1
/m n/m
8x 16x 4
24x 23x 1
3x 12x n
/m n/m 1
ed Investors
Page 61 of 170
ice/ ang. ook
1.8x
1.9x
1.4x
4.0x
n/m
.9x
3.1x
1.3x
3.7x
6.4x
ice/ ang. ook
1.3x
6.4x
1.8x
9.9x
1.9x
.8x
4.0x
1.6x
n/m
1.4x
©
TQp M
T
N
A
B
H
P
* p
© 2008-2011 by Beyond
Teton (QuinQuincy Lee is apartnership at a
MOI Signal R
Compan
1 Aon / AO
2 CBS / CB
3 ZipRealty
4 Quality D
5 NXP Sem
6 Valeant P
7 Northern
8 Howard H
9 Goldman
10 Orbitz W
Top Holdings
Company
1 Valeant P
2 Clear Cha
3 Aon / AON
4 American
5 CBS / CBS
6 Quality Dis
7 Nicholas F
8 NXP Sem
9 Liberty Glo
10 Goldman S
New Position
Aon / AON
BofI Holding / BO
Howard Hughes /
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
ncy Lee) an Austin, Texan annual rate w
Rank™ – Top
ny / Ticker
ON
BS
y / ZIPR
Distribution / QLT
miconductors / N
Pharma / VRX
Oil & Gas / NOG
Hughes / HHC
n Sachs / GS
orldwide / OWW
s of Teton Ca
y / Ticker
harma / VRX
annel / CCO
N
Dental / ADPI
S
stribution / QLTY
Financial / NICK
iconductors / NX
obal / LBTYA
Sachs / GS
ns
OFI
/ HHC
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
xas-based valuewell in excess o
p Current Idea
Market Value
($mn)
17,010
15,605
60
TY 268
XPI 7,302
11,989
G 1,686
2,106
85,909
W 385
apital – By D
Market Value
($mn)
11,989
615
17,010
199
15,605
Y 268
146
XPI 7,302
10,033
85,909
Northern Oil &
NXP Semicon
Quality Distrib
$200 million
72%
$771 million
$6.7 billion
18x
16x
1.3x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
e investor who of 20%, net of
as of Teton C
Price
Recent ($) D
52.93
22.91
2.94
11.40
29.30
40.47
27.85
55.83
168.04
3.76
Dollar Value
Price
Recent ($) De
40.47
15.06
52.93
12.93
22.91
11.40
12.35
29.30
42.19
168.04
& Gas / NOG
nductors / NXPI
bution / QLTY
th the SEC. Excludnon-equity securitie
AY! www.manualo
is said to havef fees.
Capital
Shar
from RecenDec. 31 ('000
15% 36
20% 63
13% 2,21
25% 1,09
40% 35
43% 56
2% 12
3% 10
0% 5
-33% 1,31
Share
from Recentec. 31 ('000)
43% 561
7% 1,282
15% 360
-4% 1,203
20% 634
25% 1,093
21% 866
40% 351
19% 242
0% 58
Sold O
eBay / EB
Furiex Ph
iStar Fina
Sector
des es.
Value-oriented Eq
ofideas.com
e compounded
res Owned
nt from 0) Sep. 30
60 new
34 44%
0 0%
93 new
51 new
61 0%
20 new
05 new
58 0%
5 -7%
es Owned
t from ) Sep. 30 C
0% <
2 -10%
0 new <
3 -1%
4 44% <
3 new
6 -3%
new <
2 -1% <
8 0% <
Out Positions
BAY
harma / FURX
ancial / SFI
r Weightings
quity Investment Id
capital in his T
Holdings as % of
Co. Fund*
<1% 10%
<1% 7%
11% 3%
5% 6%
<1% 5%
<1% 11%
<1% 2%
<1% 3%
<1% 5%
1% 2%
Holdings as % of
Co. Fund*
<1% 11%
3% 10%
<1% 10%
8% 8%
<1% 7%
5% 6%
7% 5%
<1% 5%
<1% 5%
<1% 5%
s
MI D
Repu
Scien
*
eas for Sophisticate
February 28, 2011 –
Teton investme
P/E (Est.)
This Next FY FY
15x 14x
16x 12x
n/m n/m
39x 19x
n/a n/a
n/a n/a
77x 26x
n/m n/m
10x 9x
29x 16x
P/E (Est.) P
This Next TFY FY
n/a n/a
>99x 72x
15x 14x
12x 12x
16x 12x
39x 19x
n/a n/a
n/a n/a
35x 39x
10x 9x
evelopments / M
ublic Airways / RJ
ntific Games / SG
ed Investors
Page 62 of 170
ent
Price/ Tang. Book
n/m
n/m
1.8x
n/m
n/m
n/m
7.3x
1.4x
1.4x
n/m
Price/ Tang. Book
n/m
n/m
n/m
n/m
n/m
n/m
1.3x
n/m
n/m
1.4x
MIM
JET
GMS
©
TL M
T
N
AABCCCCLLMMN P
* p
© 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
10 CIT Grou
Top Holdings
Company1 Potash / P2 LyondellB3 Alcon / AC4 Massey E5 Williams C6 NXP Sem7 PHH / PH8 Health Ne9 Liberty Int
10 CIT Group
New Position
AbitibiBowater / AApple / AAPL Bank of America Capitol Federal / Citigroup / C Comcast / CMCSCVR Energy / CVLender ProcessinLyondellBasell / LMarathon Oil / MRMassey Energy / NXP Semiconduc
Portfolio Met
Portfolio size
Top 10 as % of
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
t (Dan Loeb) nder of long/sh
Rank™ – Top
ny / Ticker Basell / LYB Energy / MEE Companies / WM
ACL POT
miconductors / NEnergy / BIOF o / RIO p / C up / CIT
s of Third Po
y / Ticker POT asell / LYB
CL nergy / MEE
Companies / WMiconductors / NXH t / HNT eractive / LINTA
p / CIT
ns
ABH
/ BAC CFFN
SA VI ng / LPS LYB RO MEE
ctors / NXPI
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
) hort activist fun
p Current Idea
Market Value
($mn)21,467
6,565MB 17,760
49,54651,207
XPI 7,30285
140,370142,677
8,667
oint – By Dol
Market Value
($mn) 51,207 21,467 49,546
6,565 MB 17,760 XPI 7,302
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
$26 billion
17x
14x
2.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
nd Third Point
as of Third P
Price Recent ($) 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
th the SEC. Excludnon-equity securitie
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
-45% 5,570% 304% 7,00
-8% 1,55
Sharefrom Recent
ec. 31 ('000)16% 1,20010% 4,463
1% 80020% 2,00023% 4,00040% 3,151
9% 3,50013% 2,80010% 4,000-8% 1,550
Sold O
Apple / ANorthern
Sector
des es.
Value-oriented Eq
ofideas.com
massed a respec
res Owned nt from 0) Sep. 30 63 new 00 new 00 new 00 14% 00 20% 51 new 79 0% 00 new 00 new 50 0%
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%
<1% 1% <1% 2% <1% 3%
Holdings as % of T
Co. Fund* <1% 11% <1% 8% <1% 7%
2% 6% <1% 6%
1% 5% 6% 4% 3% 4%
<1% 3% <1% 3%
s
*
eas for Sophisticate
February 28, 2011 –
m investment r
P/E (Est.) This Next
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
P/E (Est.) PThis Next T
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
Page 63 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
©
TCp M
T
N
B
C
V
P
* p
© 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
U
P
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
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
$31 billion
18x
14x
3.9x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ork Governor P
as of Tiger G
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
Peter Stuyvesan
Global
Shar
from RecenDec. 31 ('000
19% 7,77
18% 14,10
2% 4,13
4% 1,00
15% 3,57
-2% 1,31
-26% 1,17
8% 2,05
-1% 11,95
-12% 2,58
Share
from Recentec. 31 ('000)
9% 1,133
15% 7,447
19% 7,777
11% 6,325
18% 14,100
15% 3,572
9% 3,274
11% 6,307
12% 457
4% 1,000
Sold O
Apollo Gr
CNinsure
Green Do
Sector
des es.
Value-oriented Eq
ofideas.com
nt, worked for
res Owned
nt from 0) Sep. 30
77 43%
00 8%
30 0%
00 20%
72 34%
6 new
70 34%
50 new
50 0%
87 17%
es Owned
t from ) Sep. 30
3 -10% <
7 -15%
7 43%
5 -16% <
0 8%
2 34%
4 -14%
7 -13%
7 -18% <
0 20% <
Out Positions
roup / APOL
e / CISG
ot / GDOT
r Weightings
quity Investment Id
Julian Roberts
Holdings as % of
Co. Fund*
3% 8%
4% 7%
12% 3%
<1% 5%
1% 6%
<1% 1%
5% <1%
<1% 4%
7% 3%
5% 2%
Holdings as % of
Co. Fund*
<1% 10%
1% 8%
3% 8%
<1% 7%
4% 7%
1% 6%
7% 6%
2% 6%
<1% 5%
<1% 5%
s
Lock
Nike
TAL
*
eas for Sophisticate
February 28, 2011 –
son’s Tiger Ma
P/E (Est.)
This Next FY FY
35x 39x
29x 22x
n/a n/a
58x 42x
n/m n/m
32x 25x
6x 6x
16x 13x
n/m n/a
18x 15x
P/E (Est.) P
This Next TFY FY
15x 13x
13x 12x
35x 39x
19x 14x
29x 22x
n/m n/m
57x 47x
19x 15x
34x 25x
58x 42x
heed Martin / LM
/ NKE
Education / XRS
ed Investors
Page 64 of 170
anagement
Price/ Tang. Book
n/m
5.9x
n/m
>9.9x
>9.9x
7.8x
.9x
>9.9x
n/m
4.4x
Price/ Tang. Book
6.0x
n/m
n/m
n/m
5.9x
>9.9x
>9.9x
n/m
>9.9x
>9.9x
MT
S
©
VAa
M
T
NCCCCCCCDEFGGHHIlMNOS
P
* p
© 2008-2011 by Beyond
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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
SRX
GS
cience / HGSI
MGLN L
er / SWK
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
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
$33 billion
16x
15x
3.5x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
en) wegian Naval Aanagement. Ha
as of Viking
Price Recent ($) 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
th the SEC. Excludnon-equity securitie
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
16% 2,862% 6,26
-12% 3,7519% 14,72
Sharefrom Recen
ec. 31 ('00014% 35,572
4% 150,9859% 9,210
17% 6,32331% 4,704
4% 11,0482% 6,266
16% 2,8685% 7,696
19% 14,724
Sold OAcme PacAkamai TeAmerisourApollo GroBeckman CBlackRockBroadcom Capital OnCommunitD.R. HortoFifth Third Fortinet / FGoogle / GH&R BlockHealthsoutHospira / HJack HenryLas VegasLifePoint H
Sector
des es.
Value-oriented Eq
ofideas.com
ormer platoon cded Viking Glo
res Owned nt from
00) Sep. 30 10 >100% 85 56% 04 >100% 13 new 23 31% 48 new 68 >100% 66 47% 58 new 24 36%
es Owned nt from 0) Sep. 30 2 -7% 5 56% <0 >100% 3 31% 4 >100% 8 new 6 47% 8 >100% 6 -10% 4 36% <
Out Positionscket / APKT echnologies / AKAMrceBergen / ABC oup / APOL Coulter / BEC k / BLK / BRCM
ne / COF ty Health / CYH on / DHI
Bancorp / FITB FTNT GOOG k / HRB th / HLS HSP ry / JKHY s Sands / LVS Hospitals / LPNT
r Weightings
quity Investment Id
commander of obal Investors i
Holdings as % of
Co. Fund* 3% 5%
<1% 6% 1% 4% 7% <1% 3% 4% 2% 4% 1% 4% 6% 4% 2% 1%
<1% 3%
Holdings as % of
Co. Fund* 8% 7%
<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!
*
eas for Sophisticate
February 28, 2011 –
f the Norwegianin 1999.
P/E (Est.) This Next
FY FY 16x 13x 11x 9x 51x 35x 13x 12x 26x 22x 18x 16x n/a n/a 17x 14x 26x 23x 18x 16x
P/E (Est.) PThis Next T
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
Page 65 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
Price/ Tang. Book
n/m 1.1x n/m
>9.9x >9.9x >9.9x >9.9x
6.6x n/m
>9.9x
MC
U
WE
N
©
WWu M
T
N
A
Ir
IT
R
P
* p
© 2008-2011 by Beyond
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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
Weitz) ed “The Other has since grow
p Current Idea
Market Value
($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
n 13F-HR filings wiU.S. holdings, and n
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
36.45
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
th the SEC. Excludnon-equity securitie
AY! www.manualo
aha,” founded Wllion asset man
Shar
from RecenDec. 31 ('000
6% 4,74
15% 2,30
11% 2,91
32% 2,27
-17% 6
-10% 3
3% 67
-7% 28
10% 3
-3% 26
Share
from Recentec. 31 ('000)
6% 4,742
10% 7,166
15% 2,307
13% 6,463
11% 2,913
6% 1
-3% 3,609
13% 1,274
14% 6,244
19% 2,225
Sold O
Apollo Gr
AutoZone
Coinstar
Telephon
Sector
des es.
Value-oriented Eq
ofideas.com
Wallace R. Wenager best know
res Owned
nt from 0) Sep. 30
42 8%
07 20%
3 4%
70 0%
60 20%
36 33%
79 37%
80 17%
30 50%
60 new
es Owned
t from ) Sep. 30
2 8%
6 -18% <
7 20% <
3 -6%
3 4% <
1 -4% <
9 0% <
4 -1% <
4 -5% <
5 -24% <
Out Positions
roup / APOL
e / AZO
/ CSTR
ne & Data / TDS
r Weightings
quity Investment Id
eitz & Co. in 1wn for the Wei
Holdings as % of
Co. Fund*
4% 6%
<1% 5%
<1% 5%
25% <1%
<1% <1%
<1% <1%
5% 1%
<1% <1%
<1% <1%
<1% <1%
Holdings as % of
Co. Fund*
4% 6%
<1% 6%
<1% 5%
8% 5%
<1% 5%
<1% 5%
<1% 4%
<1% 4%
<1% 4%
<1% 4%
s
Weig
*
eas for Sophisticate
February 28, 2011 –
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
Page 66 of 170
million d.
Price/ Tang. Book
n/m
n/m
4.6x
2.8x
1.9x
>9.9x
1.1x
n/m
1.7x
4.4x
Price/ Tang. Book
n/m
n/m
n/m
1.3x
4.6x
2.1x
6.5x
1.7x
>9.9x
n/m
WTW
©
WLinW M
T
N
C
M
P
* p
© 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
(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)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
fert and Paua co-founded Wsaw a $1 billionalued equities a
p Current Idea
Market Value
($mn)
G 8
8,470
227,369
26,776
9,378
24,791
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
$35 billion
14x
12x
5.8x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
aul Orfalea) West Coast Assn portfolio at Wand follows a c
as of West C
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
set ManagemenWilshire Assocconcentrated in
Coast Asset M
Shar
from RecenDec. 31 ('000
-6% 7,06
-9% 25
-3% 17
4% 17
8% 18
8% 21
-91% 5
-2% 15
-1% 13
-1% 51
– By Dollar V
Share
from Recentec. 31 ('000)
8% 181
-9% 256
4% 177
8% 212
-1% 214
-1% 137
-1% 518
6% 208
-2% 153
-3% 173
Sold O
Contango
Sector
des es.
Value-oriented Eq
ofideas.com
nt in 2000. Helciates. Orfalea investment appr
Management
res Owned
nt from 0) Sep. 30
62 16%
56 1%
73 new
77 3%
81 1%
12 1%
56 0%
53 7%
37 2%
18 1%
Value
es Owned
t from ) Sep. 30
1 1% <
6 1% <
7 3% <
2 1% <
4 -12% <
7 2% <
8 1% <
8 2% <
3 7% <
3 new <
Out Positions
o Oil & Gas / MC
r Weightings
quity Investment Id
lfert, who direcis the founder roach.
t
Holdings as % of
Co. Fund*
14% 1%
<1% 13%
<1% 5%
<1% 13%
<1% 14%
<1% 12%
<1% <1%
<1% 5%
<1% 9%
<1% 7%
Holdings as % of
Co. Fund*
<1% 14%
<1% 13%
<1% 13%
<1% 12%
<1% 11%
<1% 9%
<1% 7%
<1% 5%
<1% 5%
<1% 5%
s
CF
*
eas for Sophisticate
February 28, 2011 –
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
Page 67 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
6.8x
n/m
>9.9x
n/m
6.5x
©
WDpF M
T
N
A
B
P
* p
© 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
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
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)
gible book
oldings disclosed inrage, certain non-U
erved.
Winters) Series in 1987Series in 2001
ows an active, v
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
$51 billion
16x
14x
2.4x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
7 and was ment. He left in 200value-oriented
as of Winterg
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
tored by famed05 to form Win
d investment ap
green Advise
Shar
from RecenDec. 31 ('000
-3% 89
8% 2,17
10% 1,54
17% 50
6% 1,25
-11% 1,04
0% 14
-8% 18
-1% 15
-2% 36
ar Value
Share
from Recentec. 31 ('000)
8% 2,170
6% 1
17% 508
10% 1,543
-3% 890
6% 1,251
5% 689
10% 366
0% 142
-2% 360
Sold O
Fomento
Mead Joh
Sector
des es.
Value-oriented Eq
ofideas.com
d value investontergreen Advipproach.
ers
res Owned
nt from 0) Sep. 30
90 new
70 16%
43 4%
08 0%
51 90%
46 new
42 0%
86 0%
56 0%
60 -3%
es Owned
t from ) Sep. 30
0 16% <
1 -8% <
8 0% <
3 4% 2
0 new <
1 90% <
9 -4% <
6 -23% <
2 0% <
0 -3% <
Out Positions
Economico / FM
hnson / MJN
r Weightings
quity Investment Id
or Michael Pricisers and mana
Holdings as % of
Co. Fund*
<1% 8%
<1% 18%
27% 8%
<1% 11%
<1% 7%
<1% 2%
<1% 4%
<1% 2%
<1% 2%
<1% 4%
Holdings as % of
Co. Fund*
<1% 18%
<1% 12%
<1% 11%
27% 8%
<1% 8%
<1% 7%
<1% 7%
<1% 5%
<1% 4%
<1% 4%
s
MX
*
eas for Sophisticate
February 28, 2011 –
ce. Winters becage the Winterg
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
Page 68 of 170
came green
Price/ Tang. Book
3.8x
2.4x
1.6x
4.8x
n/m
5.6x
1.4x
.4x
7.2x
>9.9x
Price/ Tang. Book
2.4x
2.1x
4.8x
1.6x
3.8x
n/m
n/m
n/m
1.4x
>9.9x
©
WWa M
T
N
B
D
H
P
* p
© 2008-2011 by Beyond
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
10 Internatio
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
Median market
Average market
Median P/E (thi
Median P/E (ne
Median P / tang
Based on equity hoportfolio cash, lever
Proxy LLC. All rights res
Co. (Wilbur orn in 1937, hayout and distre
Rank™ – Top
ny / Ticker
/ DYN
corp NJ / SNBC
esources / XCO
ands / HBI
Guaranty / AGO
rgy Services / KE
xploration / PXP
Tire & Rubber / C
/ BIOS
onal Coal / ICO
s of WL Ross
y / Ticker
sources / XCO
Guaranty / AGO
nal Coal / ICO
orp NJ / SNBC
DYN
re & Rubber / CT
gy Services / KEG
nds / HBI
ploration / PXP
/ IPHS
ns
BI
trics *
portfolio
value
t value
s FY)
xt FY)
gible book
oldings disclosed inrage, certain non-U
erved.
r Ross) as become welssed investor i
p Current Idea
Market Value
($mn)
727
226
4,329
2,443
O 3,004
EG 1,991
5,467
CTB 1,513
250
1,939
s & Co. – By
Market Value
($mn)
4,329
3,004
1,939
226
727
TB 1,513
G 1,991
2,443
5,467
929
$812 million
100%
$1.9 billion
$2.3 billion
13x
13x
2.9x
n 13F-HR filings wiU.S. holdings, and n
SUBSCRIBE TODA
ll-known for ren steel, coal, te
as of WL Ro
Price
Recent ($) 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
th the SEC. Excludnon-equity securitie
AY! www.manualo
estructuring faielecom, financ
ss & Co.
Shar
from RecenDec. 31 ('000
7% 4,00
-3% 12,46
5% 15,88
0% 15
-8% 16,01
8% 62
21% 9
4% 50
-11% 14
23% 12,26
e
Share
from Recentec. 31 ('000)
5% 15,882
-8% 16,016
23% 12,269
-3% 12,469
7% 4,000
4% 504
8% 620
0% 155
21% 93
20% 16
Sold O
Jo-Ann S
Lear / LE
Sector
des es.
Value-oriented Eq
ofideas.com
iled companiesial and other c
res Owned
nt from 0) Sep. 30
00 new
69 >100%
82 >100%
55 new
6 0%
20 8%
93 0%
04 -5%
46 new
69 -50%
es Owned
t from ) Sep. 30 C
2 >100%
6 0%
9 -50%
9 >100% 2
0 new
4 -5% <
0 8% <
5 new <
3 0% <
6 -81% <
Out Positions
Stores / JAS
EA
r Weightings
quity Investment Id
s in a variety ofompanies.
Holdings as % of
Co. Fund*
3% 3%
25% 7%
7% 40%
<1% <1%
9% 32%
<1% 1%
<1% <1%
<1% 2%
<1% <1%
6% 14%
Holdings as % of T
Co. Fund*
7% 40%
9% 32%
6% 14%
25% 7%
3% 3%
<1% 2%
<1% 1%
<1% <1%
<1% <1%
<1% <1%
s
*
eas for Sophisticate
February 28, 2011 –
f industries. He
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
Page 69 of 170
e has been
Price/ Tang. Book
.3x
1.0x
3.1x
n/m
.7x
3.7x
1.9x
3.4x
n/m
2.6x
Price/ Tang. Book
3.1x
.7x
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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 –
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
Page 70 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.
Proxy LLC. All rights res
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 $850 millit from 18,000 tebruary, Abitibrtain Ontario htional asset saled in January.atalyst Paper, afrom early 2007r base, includinson, and 2% by
ERNS ty business withile AbitibiBoh-improved co
nderlying businve — it is capitt global comperticular, are in land 15% of s
hat profitabilityby a rising Canoo conservativcharges low ennts in the cycleequity unattra
nto bankruptcy e used their owbitibiBowater e
Watsa’s Fairfaxough industry, an-to-be-release
SUBSCRIBE TODA
products December 201
ual operatingtons of pulp anof lumber.
on tons of 660K tons of
ican capacity); % of N.A.
ket pulp (7% ofoperates 18 cilities in Canacialized producr. AbitibiBowauced fixed costn annually. Tent facilities are ibitibiBowater ipaper in N.A.
bt reduced fromion at yearend to 11,000 durinbiBowater agrehydro assets fores are possible. Richard Garna distressed pap7 to mid 2010.ng 18% ownedy Third Point.
th tough long-water has re-
ost structure anness remains tal-intensive anetition. Marketslong-term decliales are basedy could be
nadian dollar. ve? Managemenough to generae.” Will this mactive?
in April 2009.wnership of theemerged as a sx holding an 18as newsprint an
ed Q4 2010 fina
AY! www.manualo
0.
nd
1.8
f
ada cts. ater ts n in is
m ‘10
ng eed r e. neau per
d by
-
d
nd s ine.
d in
ent ate ake
SELECTEFYE DeceRevenue Change% of reveNewsprinCoated pSpecialtyMarket puWood proShipmentNewsprinCoated pSpecialtyMarket puWood proAverage NewsprinCoated pSpecialtyMarket puWood proOperatingNewsprinCoated pSpecialtyMarket puWood proSelected Cost of reD&A and DistributioSelling anNon-recu OperatiD&A and NewsprinCoated pSpecialtyMarket puWood proCorporate D&A an % of revTotal debEmployee
MAJOR Fairfax RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
George Sorose company’s deignificantly lea
8% equity stakend other paper ancials prior to
Value-oriented Eq
ofideas.com
D OPERATING cember 31 ($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
eas for Sophisticate
February 28, 2011 –
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
Page 71 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
A
S
© 2008-2011 by Beyond
ABITIBIBOWAT
ABITIBIBOWAT
ABITIBIBOWAT
Source: Company p
Proxy LLC. All rights res
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
February 28, 2011 –
ed Investors
Page 72 of 170
©
A
S
© 2008-2011 by Beyond
ABITIBIBOWAT
Source: Company p
Proxy LLC. All rights res
TER – EXPECTE
presentation dated
erved.
D RESULTS OF
January 14, 2011.
SUBSCRIBE TODA
RESTRUCTURIN
AY! www.manualo
NG
Value-oriented Eq
ofideas.com
quity Investment Ideas for Sophisticate
February 28, 2011 –
ed Investors
Page 73 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
Proxy LLC. All rights res
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/
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/
570
(2)
(85)
(140)
(35.90)
4
(39)
20
(60)
57
199
217
672
398
474
0
900
0
(228)
-28%
ynamics
eas for Sophisticate
February 28, 2011 –
www.a
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
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
ed Investors
Page 74 of 170
accuridecorp.com
on
n/m
n/a
n/a
n/a
1.8x
32x
n/m
Criteria
3%
13%
E FQE
9 9/30/10
5 206
2 21
) 43
) 12
) (0.08)
4 13
) 7
5 3
) 3
5 51
8 227
1 363
3 866
2 0
7 110
0 587
5 832
0 0
) 34
m n/m
Feb 11
©
BA
Te I
I
TAfveta
© 2008-2011 by Beyond
BUSINESS OVEAccuride manu
The company’sexited bankrupt
NVESTMENT H One o
vehiclproducend cochassi
#1 or aluminspoke assemassem
GenerimplyWhilelevel, U.S. c
“Freigincreawill coand trasegme5-8 vechann
Guidi2011 (millionClass
NVESTMENT R Valua
peak ptarget on theimplie
~$2252010 Erestrucretains
CompLemmMetcoassemtrailerThe tru
55% oDaiml
THE BOTTOM LIAs one of the lafreight tonnagevaluation is undearnings achievangible asset b
Proxy LLC. All rights res
RVIEW ufactures comm
s U.S. entities ftcy in February
HIGHLIGHTS of the largest mle componentscts include comomponents ands parts, and oth#2 market posnum wheels, brwheels, metal
mblies, chrome pmblies and fuel t
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
filed for Chapty 2010.
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
the next severe increased demrward.” The thsupplies (Northailers, and relattinued to impro
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 $875-925
ment expects 20235,000 units.
ery to prior-an unrealistic margins. Basedguidance, the exceeds 8x. end 2010 (~3.5ching financial rs, Accuride n-rate EBITDAr, and Hayes , Consolidatedin wheel-ends aand commerciaating assembliee fragmented. tar, PACCAR, d Volvo/Mack.
mercial vehicleoperating marg
peak earnings, erage FY06-10ulnerable if a re
AY! www.manualo
and
ial de’s eel-
d , n g s.
x. 006 he
h ks
ss et 10. in
011
d
5x
A.
and l es.
SELECTEFYE DeceRevenue ∆ reven% of reveComponeWheels Other Revenue ComponeWheels Other Gross maComponeWheels Other Total gr% of reveU.S. InternatioRevenue U.S. InternatioSelected Adj. EBITEBIT Net incomD&A Capex Adjusted Tangible
1 Financialentities filin2 Revenue3 For 2010restructurin
COMPAR
MGA
DAN
ARM
AXL
ACW
MAJOR Insiders FMR 7% RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
e components igins appears likshares are not
0 EBITDA is ~ecovery in com
Value-oriented Eq
ofideas.com
D OPERATING cember 31 ($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%
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
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 $40 milltion items.
COMPANY AN P
EV / Tann) Rev. Bo
90 .6x 2.1
10 .5x 5.8
40 .7x n/
00 .8x n/
60 1.8x n/
oint 8% | Whipp% | Cetus 6% |
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
rica, Accuride srecovery scena
measured againser, the leveragee markets fails
eas for Sophisticate
February 28, 2011 –
007 2008 20091.0 0.9 0.68% -8% -39%
8% 53% 52%7% 42% 42%4% 5% 6%
8% 0% -39%0% -18% -39%6% 6% -32%
1% -4% -9%5% 17% 9%6% 28% 25%9% 6% 0%
6% 83% 86%4% 17% 14%
5% -11% -37%2% 10% -49%
1% 8% 4%3% -30% -11%1% -35% -25%6% 5% 9%4% 3% 4%13 79 24
9% -51% -98%period due to Accu bankruptcy in Feb
mmercial vehicle indion in benefits asso
NALYSIS / This Neng. FY FY
ook P/E P/
1x n/a n/
8x 29x 16
m 21x 8x
m 8x 6x
m n/a n/
poorwill 8% | YApollo 4% | B
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
stands to benefario. While thest “through-theed balance sheto sustain itsel
ed Investors
Page 75 of 170
9 2010 6 0.8
% 34%2
% 54% % 37% % 8%
% 39% % 20% % 90%
% n/a % n/a % n/a % 8%
% n/a % n/a
% n/a % n/a
% 9%3 % -1% % -10% % 7% % 3% 4 663
% -12% uride’s U.S.
bruary 2010. dustry. ociated with
ext Y /E
/a
6x
x
x
/a
York 7% | Brigade 1%
fit as U.S. e recent e-cycle” et, with no f.
©
A
1 2 3 4 5 S A
1 o2 S
© 2008-2011 by Beyond
ACCURIDE – OU
($ 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
Proxy LLC. All rights res
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
$700
(224)
$476 millio
$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
Value-oriented Eq
ofideas.com
ve
2011 nus capex
10x E
main
on $
hare $14
f cash outflows rela
on and $319.4 milli
e notes due 2020.
quity Investment Id
Base Case
estimated 2011 BITDA minus ntenance capex
108
(20)
$88
10.0x
$875
(224)
$651 million
4.10 per share
2%
13x
1.1x
1.0x
ated to financial res
ion, respectively. M
eas for Sophisticate
February 28, 2011 –
Aggre
12x estimEBITDA
maintena
10
(2
$8
12
$1,
(22
$826 m
$17.89 p
2
1
1.
1.
structuring.
Market value of con
ed Investors
Page 76 of 170
essive
mated 2011 A minus nce capex
08
20)
88
2.0x
,050
24)
million
per share
2%
6x
.4x
.2x
vertible notes
©
A
S A
S
© 2008-2011 by Beyond
ACCURIDE – “P
Source: Company p
ACCURIDE – 20
Source: Company p
Proxy LLC. All rights res
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
quity Investment Ideas for Sophisticate
February 28, 2011 –
ed Investors
Page 77 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 –
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
Page 78 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
a
a
a
8
9
9
5
2
4
4
0
0
5
m
©
BB I
I
*
**
“suH**
C
TAlinthoW
© 2008-2011 by Beyond
BUSINESS OVEBelgium-based
NVESTMENT H #1 bre
nearlyin the Canad(16%)
BenefmarkeBudwbeer p
Shareadjustrevenuvia a 5attractand br
Grew up 4%down Europ
Ownsbrewe
NVESTMENT R ~55%
maturwhere
Furthsynergmostly
Reinvcarrie
$42 biadj. EB
Based on ‘09 mark* AB InBev owns/m
“multi-country” brauch as Bud Light,
Harbin, Sedrin, Klin** 1H10 annualized
COMPARABLE P MV ($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
Proxy LLC. All rights res
RVIEW d Anheuser-Bus
HIGHLIGHTS ewer in the woy every majorU.S. (49% ma
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
%), despite a fla2%) and a volue. Volume grew 50% of Grup
er. The stake is
RISKS & CONCE% of revenue (~
re markets in organic reven
her margin impgies from the Ay realized and investment of caes risks, includiillion of net deBITDA). $18 bket share. Mexico pmanages ~200 branands Leffe and HoeSkol, Brahma, Quinskoye, Sibirskayad FCF (incl. adjustm
PUBLIC COMPA
EV ) ($mn) R
70 41,210
70 9,210
20 129,740 3
INE esents an oppoobal beer indusurns due to glo
Busch deal in 2firms that tradechallenges in E
erved.
sch InBev prod
orld with top m beer market.rket share), Br
Mexico (56%). (9%), and #3 advantages in
global brandsrtois, and Beck~95 million he
risk-reward tr.*** With roughand China, and
n Modelo, growwer due to strofford protectionnue 5% y-y inat result in N. Aume-driven 5%w 13% in Braz
po Modelo, Mes worth ~$10 bi
ERNS ~60% of adj. EU.S./Canada aue growth is a provement ma
Anheuser-Buschnput costs coulsh flow into eming overpayingebt at June 30billion of debt presence is throughnds in total. Ownedegaarden, as well asilmes, Michelob, La Korona, Chernigivment for Modelo st
ANY ANALYSIS P /
EV / Tang. Rev. Book
1.8x n/m
2.8x 5.1x
3.6x n/m
ortunity to comstry. Cash flowobal brands and2008 (helped bye at an ~8% FC
Europe /U.S. –
SUBSCRIBE TODA
duces beer.
market share AB InBev is #
razil (69%), It is #2 in Rusin China (11%n consolidated, including
k’s.** ~140 glob
ectoliters in 3Qading at an 8%hly one third ofd Mexico exposwth prospects aong market sharn from cost ris 3Q10 (volum
America (volum% decline in Wzil, 8% in Chinexico’s top illion at market
EBITDA) is frand Europe, challenge. ay be difficult
h merger in ‘08 ld continue risinmerging mark
g for M&A. , 2010 (~3x ‘1is due by 2013
h 50% stake in Modd brands also includs “local champions
Löwenbräu, Spaten,vske, and Jupiler.take at market valu
S This Next FY FY P/E P/E
16x 13x
12x 11x
17x 14x
mpound capital aw can be reinved strong local py disposals) sh
CF yield and haand leverage –
AY! www.manualo
in #1
sia %).* d
bal Q10. % f sure are res es. e
me est
na.
t.
rom
t as are
ng. kets
0E 3. delo. de s” ,
ue).
SELECTE
FYE Dece∆ organic∆ organic∆ volume∆ revenu∆ employRevenue % of reveNorth AmLatin AmeLatin AmeWestern Central aAsia PaciGlobal exRevenue North AmLatin AmeLatin AmeWestern Central aAsia PaciAdj. EBITNorth AmLatin AmeLatin AmeWestern Central aAsia Paci
Total aSelected Gross proEBIT excNet incomNet cash D&A Capex Volume (∆ shares
1 Financial2 “Organic”3 Declines 5 ~90% of
MAJOR Non-Sti* Includes representin
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
at superior riskested from matupresence (~70%ould soon enabave such domin– may be reason
Value-oriented Eq
ofideas.com
D OPERATING
cember 31 c volume2 c revenue2 e e
yees ($bn)
enue by segment: merica
erica – North (mostlyerica – South (mostlEurope
and Eastern Europe ific xport/holding compa growth by selected
merica erica - North erica - South Europe
and Eastern Europe ific
TDA margin by selecmerica
erica - North erica - South Europe
and Eastern Europe ific adj. EBITDA margin items as % of revenofit cl. special items me from ops
million hectoliters)5 out (avg) ls include Anheuse” excludes the impamainly reflect the iYTD volume is bee
HOLDERS chting insidersentities acting in cng the interests of
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
k-adjusted rateture into high-g% market shareble more aggresnance in an indns, the risk-rew
quity Investment Id
DATA1
y Brazil) ly Argentina)
anies segment (organic):
cted segment (ex. sp
nue:
er-Busch from its acact of exchange raimpact of divestiturer (99+% own beer
s <1% | Stichtinconcert with the Sf the Belgian and B
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
s of return withgrowth marketse in Brazil). Rassive return of dustry as attracward appears at
eas for Sophisticate
February 28, 2011 –
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%
pecial items): 35% 38% 46% 46% 44% 46% 20% 23% 17% 24% 23% 18% 33% 35%
56% 53% 25% 28%
8% 13% 24% 25%
8% 8% 11% 5% 285 409 2% 59%
cquisition in Novemtes and acquisitionres. 4 Estimated.r); 1 hectoliter=100
ng AB InBev 5tichting, which is
Brazilian founding
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
h the undisputes at likely attraapid deleveragicapital. We don
ctive as the beettractive nonet
ed Investors
Page 79 of 170
YTD 9/30/10
2% 4%
-3%3 -2%3 -3%3 26.8
44% 26%
5% 11%
5% 5% 4%
-2% 19% 14% -3% 0% 8%
42% 46% 45% 29% 20% 17% 37%
55% 30% 11%
24%4 7%
6%4 299 1%
mber 2008. ns/divestitures.
0 liters.
53%* a foundation
g families.
ed market active ing after n’t know
er business. theless.
©
A
1 2 3 4 eo5 6 7 A8 S G
S
© 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
Estimated fair
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
Based on balanceBased on 1,591 mBased on the 2009
Anheuser-Busch in Based on annualiz
Source: Company f
GLOBAL CONSU
Source: Company p
Proxy LLC. All rights res
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 $
$4
during the first nines (1Q-3Q10: 37.2%$2.0-2.2 billion in 20upo Modelo, Mexico recent market valu
dinary share). d for 2009. The comh flow has been me
assumptions and e
ES – $1+ BILLI
Annual E
0.
AY! www.manualo
TY FAIR VALUE
onservative
mated trailing adBITDA minus tenance capex
$36.0
37.5%
$13.5
(2.1)
$11.4
10.0x
$114.0
9.8
(42.1)
(2.5)
(3.2)
$76 billion
48 per ADS
9.1%
1.2%
8.6x
3.2x
-months of 2010. %). 010, representing ~o's leading brewer ue of Grupo Modelo
mpany has adoptederger-related debt p
estimates.
ON BRANDS v
BITDA ($ bil
Value-oriented Eq
ofideas.com
E RANGE
Bas
dj. 12x estimaEBITD
mainten
$
3
$
(
$
1
$
(4
(
(
$99
$62
7
0
~6% of estimated rand owner of the Co. The total value o
d a more conservatpaydown.
vs. EBITDA
lions)
quity Investment Id
se Case
ated trailing adj. DA minus
nance capex
$36.0
37.5%
$13.5
(2.1)
$11.4
12.0x
136.8
9.8
42.1)
(2.5)
(3.2)
9 billion
per ADS
7.0%
0.9%
9.7x
3.8x
revenue. D&A is anCorona brand. Thisof "investments in a
tive dividend payou
eas for Sophisticate
February 28, 2011 –
Aggres
14x estimatedEBITDA
maintenan
$36
37.5
$13
(2.1
$11
14.0
$159
9.8
(42.
(2.5
(3.2
$121 b
$76 per
5.7
0.7
11.3
4.5
n estimated ~7% ofs stake is accountedassociates" on the
ut following the mer
ed Investors
Page 80 of 170
ssive
d trailing adj. minus ce capex
6.0
5%
3.5
1)
.4
0x
9.6
8
1)
5)
2)
billion
r ADS
%
%
3x
5x
f revenue. d for as an balance sheet
rger with
©
A
1 2 3 S A
1 2 S
© 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
Proxy LLC. All rights res
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.
AY! www.manualo
ST-GROWING
GLOBAL BEER “
Value-oriented Eq
ofideas.com
GLOBAL BEER
“MARGIN POO
quity Investment Id
MARKETS
LS”
eas for Sophisticate
February 28, 2011 –
ed Investors
Page 81 of 170
©
B
© 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
Proxy LLC. All rights res
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
ments 1,3
ssets 61,4
ts 15,0
194,6
t 10,1
bilities 63,1
12,9
117,7
y 76,8
mployed 26
Feb 02
erved.
e , BP Capd
98
on
a
: 0
): 0
O
/04 12/31/05
604 245,486
219 60,868
746 32,182
088 22,024
.78 6.13
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
36%
Stock Price Perf
Feb 05eb 04
AY! www.manualo
hou , Gree
Consensus EP
Lat
$1
r 1
1 5
2 6
3 5
5.
se Actu
$1.3
ormance and Fin
Years Ended
2/31/07 12/31
291,438 367,0
64,757 73,3
32,352 35,2
20,843 21,1
6.47 6
3,194 3,1
24,709 38,0
17,830 22,6
6,879 15,4
3,562 8,1
80,202 66,3
17,658 20,1
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
30% 3
formance and T
Feb 065
Value-oriented Eq
ofideas.com
eenlight London, EN, Un
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
32% 24%
Trading Volume
FFeb 07
quity Investment Id
nited Kingdom, 800-638-
# of P
Ests P
4 P
4 P
11 E
10 E
4 P
1
imate LT
1.60 LT
n
12/31/10 1
308,928 3
28,102
(3,702)
(3,721)
(1.19)
3,131
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
eas for Sophisticate
February 28, 2011 –
-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,
-3%
Feb 1009
ed Investors
Page 82 of 170
www.bp.com
ation
0 n/m
1 8x
2 7x
3 9x
e 0.6x
n/m
2.1x
tt Criteria
-2%
C -3%
FQE FQE
1/09 12/31/10
,636 83,988
,395 18,127
,934 8,905
,294 5,566
1.36 1.76
,125 3,132
,288 (178)
,647 5,118
,641 (5,296)
,306 24,444
,653 96,853
,168 22,896
,968 272,262
,109 14,626
,320 83,879
,518 30,710
,355 177,275
0 0
,613 94,987
n/m n/m
Feb 11
m
5
)
)
5
©
BB I
I
MI*
is
TDtrithth
© 2008-2011 by Beyond
BUSINESS OVEBP is an integra
NVESTMENT H Prove
equivaboe ofreserv65/35%develo
AdjusversusEnterpremainprovisBP’s p
Dividerelateannualthe 20adj. EBhigher
Long-BP’s a2010 r“Reso
Targe$21+ bJanuar
AnnouRosnewill owRosne
NVESTMENT R Ultim
largerBP too$18 bibillionAdditi
ReinvThe comuch,profits
$26 bi
MAJOR HOLDERInsiders <1% | Does not reflect ths due to own 5% o
THE BOTTOM LIDespite significrade at an estims after adjustinhe liability remhrough 2010. T
Proxy LLC. All rights res
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.
18.1 billion bat yearend 2010 production in
ears). Reservesand natural gahly a third are f proved reser$15+ for U.S./Edjusted to inclu
Mexico (GOM) billion of pensits averaged ~$
ment signals rnd cash flow rvidend, which rl dividend, yiel billion is up 2j. EV/2010 EBpower is larg
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
23% y-y due toBITDA is <5x).gely unaffectedact. Yearend espite disposalup 10+% y-y. posals, of whic
ounced throughf proved reserval alliance witcompletion, Bsting 1% stakerged shares.
may be much llion provision
ge and has paids to contribute
d through 2013re further cash.e depleting asse
may go up just aces. Historical
AP accounting. adj. EBITDA)
State Street 1%based Rosneft, whfter the deal.
since the lowseers, based on he remaining $djusted EBITDend, which yie
AY! www.manualo
on d hly
U.S.
ers. n of
007. M-e % of
d as
ls.
ch h es). th
BP e).
n. d $5 . ets. as
).
% hich
SELECTEFYE DeceProved re ∆ provePV-10, afΔ oil/gas Δ avg reaΔ avg reaΔ product∆ refineryΔ revenuRevenue % of reveExploratioRefining/MCorporateRevenue ExploratioRefining/MAdjusted ExploratioRefining/M Total ad% of reveSelected EBIT Net incomDD&A Capex Selected Avg oil prAvg gas pProductioReturn onTangible ∆ shares
1 In billions2 Based on3 Estimate4 Excludes2010 exclu5 As report
COMPAR
XOM
RDS.A
CVX
BP
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
s related to the enterprise valu
$23 billion of sDA of $43 billiolds a decent ~4
Value-oriented Eq
ofideas.com
D OPERATING cember 31 eserves (Bboe)1 ed reserves fter-tax ($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
Exploration/Productrice, $/boe price, $/mcf on cost, $/boe n tang. equity equity/assets out (avg) s of oil-equivalent bn SEC method. Incld.
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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
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
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
co oil spill in 20ivalent barrel oovisions. Whil$18 billion of ctential to more
eas for Sophisticate
February 28, 2011 –
007 2008 2007.8 18.1 181% 2% 1%176 57 8-3% 1% 4%4% 34% -38%
-4% 32% -46%6% 1% -12%
-3% 1% 6%7% 27% -34%284 361 23
3% 24% 24%
88% 89% 89%1% -12% -13%
-3% 31% -33%8% 28% -33%
42% 46% 38%
1% 1% 2%0% 12% 9%
36% 34% 35%
1% 10% 11%7% 6% 7%4% 3% 5%6% 6% 9%
67.5 90.2 564.5 6.0 37.1 7.2 69% 29% 22%
34% 35% 36%-4% -2% 0%P’s share of equity iequity-accounted e
on-operating items (pre-tax, pre-partned other items).
NALYSIS P / This
Tang. FY Book P/E
2.9x 12x
1.5x 11x
2.0x 9x
2.1x 8x
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
010, BP continof proved reserve the ultimate acash costs incu
e than double o
ed Investors
Page 83 of 170
09 2010 .3 18.1 % -1% 89 n/a % -4% % 30% % 22% % 13%3 % 6% % 24% 39 297
% 22% % 90% % -12%
% 15% % 25%
% 42% % 2% % 11% % 33%
% -1%5 % -1% % 4% % 6%
.3 73.4 .3 4.0 .4 7.13 % -5% % 33% % 0% nvestees).
entities.
in 2007-10). er recovery).
Next FY P/E
10x
10x
9x
7x
nues to ves. This amount of urred over time.
©
B
1 ocBthre2 b~v3 4 5 6 pacpin7 oofo8 9
S
© 2008-2011 by Beyond
BP – OUR ESTI
($ 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
Proxy LLC. All rights res
MATE OF THE E
odology
d reserves:1
s, including shar
tiple"2
roved reserves
onal "resources":3
ources" as of 12/3
tiple"4
dditional "resou
l enterprise val
t5
ng liability for Gu
n for post-retirem
ntrolling interest5
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
on is $12+ per boeChevron and Conontegrated oil and gaup includes Shell, T
ed resources" in ad
we attach zero valu
0 cash payments of n of cash into a trusarend 2010 provisio(the eventual amoue substantial furthe
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
eas for Sophisticate
February 28, 2011 –
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
Page 84 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
Proxy LLC. All rights res
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.
eas for Sophisticate
February 28, 2011 –
o oil spill.
cquisitions and diveforex and energy c
te in subsequent pe
ed Investors
Page 85 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
Proxy LLC. All rights res
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
g)
rations
ments
ssets
ts
t
bilities
y
mployed
erved.
ure Partner
79
This
Next
FYE
FYE
FYE
: 0 LT g
): 0 EPS
n
Op
Ten-Year Sto
SUBSCRIBE TODA
rs (BIP) — PHamilt
Consensu
La
quarter
quarter
12/31/11
12/30/12
12/30/13
rowth
Surprise Act
n/a n/
perating Perform
ock Price Perfor
AY! www.manualo
Pabrai ton, Bermuda, 416-956-5
us EPS Estimate
Mont
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
ual Es
/a
mance and Finan
Fisca
12/31/09
290
92
(70
25
0.52
48
22
0
22
10
195
89
6,046
0
102
0
4,169
19
1,858
-4%
rmance and Tra
Value-oriented Eq
ofideas.com
5154
es
h # of
o Ests
a n/a
a n/a
a n/a
a n/a
a n/a
a n/a
stimate
n/a
ncial Position
al Years Ended
9 12/31/10
0 634
2 221
0) 495
5 467
2 4.25
8 110
2 42
0 0
2 42
7 154
5 2,244
7 3,494
6 13,109
0 615
2 2,743
0 0
9 9,729
9 23
8 3,357
% 10%
ading Volume Dy
Feb
quity Investment Id
P/E FYE 12/31
P/E FYE 12/31
P/E FYE 12/30
P/E FYE 12/30
EV/ LTM reven
EV/ LTM EBIT
P / tangible bo
Gre
LTM EBIT yield
LTM pre-tax R
LTME
12/31/10
634
n/a
125
496
4.25
110
n/a
n/a
n/a
154
2,244
3,494
13,109
615
2,743
0
9,729
23
3,357
3%
ynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 –
brookfieldin
Valuation
1/10
1/11
0/12
0/13
nue
T
ook
eenblatt Criteria
d
ROC
Feb 10
ed Investors
Page 86 of 170
frastructure.com
6x
n/a
n/a
n/a
5.0x
25x
n/m
a
4%
3%
FQE
12/31/10
634
221
495
467
4.25
110
n/a
n/a
n/a
154
2,244
3,494
13,109
615
2,743
0
9,729
23
3,357
n/m
Feb 11
©
BBo
UtogthA
Tegpin
To I
I
TBdpa
© 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
throuassets contra
Tradedistribfor thedistrib
Targedue torecoveassets,
Non-rconsol
Will 2createto capi
NVESTMENT R Acqui
BIP opinfrast(e.g. A
“Cont~50% (most appearChina
Reguland m
ValueBrookbase feincenti
THE BOTTOM LIBIP owns long distribution yieprojects. Howeacquisition-led
Proxy LLC. All rights res
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
erved.
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 $4.6 billion os at project-levfrastructure enhance” accesuture growth.
create value amarket for existing facilitthis to an exten
ways stable. Wtal in Australiacture), unitholddemand from everage. ceiling on retute for risk. eement with hich gets a 1.25and escalating
unit distribution
to entry that phe non-recourseished by exposage to the gene
AY! www.manualo
n of
n in n
es ural le nly ).
res
ets fe
al. rate ma y y. s rice ng tial. f el.
ss
s
ties nt.
With a ders
rns
5%
ns).
SELECTE
FYE DeceProportioUtilities TransportTimber Corporate ProportProportioUtilities TransportTimber Corporate ProportProportio% of propUtilities TransportTimber ProportioUtilities TransportTimber ProportTotal assSelected Cash andGoodwill/Other assDebt (99+Other liabNon-contPartnersh∆ units ou
1 BIP was based on I2 Proforma3 Funds frotaxes, and4 AFFO=Acapital exp5 Defined a6 Based on
MAJOR General Connor,* Estimate
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * FFO=netStated on ** The masof a limite
provide essentiae nature of the sure to cyclicaleral partner. On
Value-oriented Eq
ofideas.com
D OPERATING
cember 31 onate FFO by segme
rt and Energy
e/Other tionate FFO
onate FFO less main
rt and Energy
e/Other tionate AFFO
onate invested partneportionate invested p
rt and Energy
onate AFFO yield by
rt and Energy
tionate AFFO yield sets ($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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
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
partnership capital b
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
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
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
eas for Sophisticate
February 28, 2011 –
2009 2010
61 144 13 91 -3 11
-22 -49 49 197
FO) by segment ($m49 131 13 58 -9 8
-22 -49 31 148
5 1.8 2.9 by selected segment
39% 38% 26% 46% 31% 18%
15% 15% 15% 9% -2% 2% 4% 8% 6.0 13.1
2% 1%
15% 27% 83% 72% 33% 35% 15% 27% 21% 12% 31% 26% n/m 48%
set Management. Fd after non-controllture (completed in
et income plus DD&udes a gain on salepany (FFO minus main on sale. ustments.
nvested partnership
sset ManagemeRBC 2% | Pabnew units in Dece
market value? manent loss? ivized? ? d capital?
mproving? secular trends? s, and certain othe
a for Prime mergercture combines thepublicly traded sec
ices. The 5% rurganic growth xecution risk ti
e valuation com
ed Investors
Page 87 of 170
Pro-forma2 2010
200 175 11
-58 328
mn):4 180 91
8 -55 224 2.9
t: 45% 43% 16%
14%
7% 2% 8%
13.1
1% 27% 72% 35% 27% 12% 26% 48%
Financials are ing interest. Dec. 2010).
&A, deferred e.
maintenance
p capital.
ent 30% | brai 1% ember 2010.
er items. r in 2010. tax benefits
curities.
un-rate at existing ied to an
mpelling.
©
B
1 d2 3 5 S B
S B
S
© 2008-2011 by Beyond
BROOKFIELD IN($ 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
Proxy LLC. All rights res
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
(104)
$224
15.0x
$3.4 billio
$21 per u
5.8%
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
ofideas.com
UITY FAIR VALtive
-forma us capex
18x
ma
on
nit
Funds from operatterests. capital expenditureterly cash distributionership capital less
quity Investment Id
LUE RANGE Base Case
x 2010 pro-formaFFO minus
intenance capex
$328
(104)
$224
18.0x
$4.0 billion
$26 per unit
4.8%
8.1%
1.2x
4.0x
tions (FFO) is defin
s per Brookfield. on of $0.31 per unestimated proporti
eas for Sophisticate
February 28, 2011 –
Aggre
a
x
20x 2010FFO
maintena
$3
(1
$2
20
$4.5
$28 p
4.
7.
1.
4.
ned as net income
it. ionate attribution of
ed Investors
Page 88 of 170
essive
0 pro-forma minus
ance capex
328
04)
224
0.0x
billion
per unit
4%
3%
.3x
.4x
plus DD&A,
f intangibles.
©
B
S
B
S
B
S
© 2008-2011 by Beyond
BROOKFIELD IN
Source: Company p
BROOKFIELD IN
Source: Company p
BROOKFIELD IN
Source: Company p
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 –
hare)
)
010)
ed Investors
Page 89 of 170
©
G
© 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
Proxy LLC. All rights res
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
mployed -1
FFeb 02
erved.
ST) — BP Ca
n
a
: 1
): 5
Op
/03 12/31/04
2 6
0 0
(5) (10)
(5) (13)
24) (0.57)
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
Fiscal Y
12/31/05 12
27
0
(12)
(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
n/a
mance and Finan
Years Ended
2/31/06 12/31/
27
0
(71) (5
(85) (3
(2.50) (0.7
34
(1)
53
(54) (5
41
55
0
229 2
0
32
94 1
131 1
0
98
-47% -42
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
eas for Sophisticate
February 28, 2011 –
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
ed Investors
Page 90 of 170
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
©
BGaP I
I
TGAapR
© 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
AdjusMarceEV byof probased
Recen$1 perboe (2
Low asince 2breakeand $3
~$25 madjustprocee($4.00well a
NVESTMENT R Prove
resultWhilehave s62,000Megae
Futurcapex by Ati
Long-entirepushed
Natur
THE BOTTOM LIGastar’s strategA joint ventureacreage far abopotential value Reducing the ri
Proxy LLC. All rights res
RVIEW nd produces nat(East Texas), Mand the Powde
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
of recent EV,elopment risk.
Gastar’s resourct EV, the sale ootal) to Gastar
y ~$410 per acrut given high ture capex fund$54-73 milliono Investors solAlto successfuld chairman roleear-term upsid
nal natural gas nt firm Atinum Given a debt-freisting shareholdur enthusiasm,
AY! www.manualo
S. d a).
49 rves .* s in of ng. irm l.
00
000 m in us. r ing 0 ver) 9.** han lion
cfe
50
mber as
als.
, . ces of by
re.
ding n. ld lly es. de.
SELECTE
FYE DeceOil and gaProved re % natur % prodPV-10 proΔ proved Δ proved Δ productΔ revenuProductioRevenue Selected Lease opSG&A EBIT5 Net incomNet cash DD&A Capex7 Net cash Realized Selected Lease opG&A DD&A Tangible ∆ shares
1 Bcf(e) = b2 Present vbefore incobeen incluSEC methmethodolounder the “3 After unre4 Includes 5 Excludesobligation, 6 2009 net 7 Includes
MAJOR CEO PoBlackRo RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * Based on“Unconvecompletio** EV is alshares, a li
resources in thappears to val
ee balance sheeders, among wis the fact that
Value-oriented Eq
ofideas.com
D OPERATING
cember 31 gas reserves (period-eserves ral gas ucing oved reserves ($mn reserves producing
ction e
on (Bcfe) ($mn)3 items as % of reven
perating expenses4
me6 from operations
from operations ($m avg gas price ($/Mc expenses ($ per Mc
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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
n “new” SEC methentional” because pon technologies, prlso adjusted for allitigation settlemen
he U.S., includiidate this strateet and operatio
which is naturalproved reserv
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
proceeds from the s
er insiders 1% |ueville 6% | Ri
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and shod (69 Bcfe at “Nprior to advances iroduction from sucl transactions in 4Qnt, and the Marcell
ing sands, shalegy and indica
onal control by l gas giant Chees likely justify
eas for Sophisticate
February 28, 2011 –
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 $113MEX strip" prices a
and treating costs.nt, accretion of assrce properties expesale of Australian a
| Chesapeake 1iver Road 4%
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
NYMEX strip pricein drilling, fracturich reserves was unQ10, including thelus sale and purch
le and coalbed ate a value of G
Gastar, much esapeake Energfy only half of r
ed Investors
Page 91 of 170
9 YTD
9/30/10
9 n/a % n/a % n/a 6 n/a
% n/a % n/a % -26% % 44% 3 5.3 3 36
% 25% % 32% % 26% % -26% % 22% % 17% % 121% 3 8 6 4.13
2 1.71 8 2.20 7 1.15
% 67% % 9% of cf(e). e net revenue payable have d on “old” new” SEC 3 million re used.
et retirement ense.
assets.
13% | Rima 3%
es”). ing and neconomic. e issue of new ase deals.
methane. Gastar’s
of that gy (CHK). recent EV.
©
G
1 m(9gMinerec4 5 ncapG(3vdo$Vtracwafin4mfo~mtop
S
© 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
Proxy LLC. All rights res
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
-tangible book vanet cash from op
% 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
eas for Sophisticate
February 28, 2011 –
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
Page 92 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 $5.79 at Appalachia.
©
N
G
G
S
© 2008-2011 by Beyond
NATURAL GAS
GASTAR EXPLO
GASTAR EXPLO
Source: Company p
Proxy LLC. All rights res
INDUSTRY – P
ORATION – PRO
ORATION – 201
presentation dated
erved.
PRICE LEVEL RE
O FORMA BALA
11 DRILLING P
February 2011.
SUBSCRIBE TODA
EQUIRED FOR 1
ANCE SHEET (S
PROGRAM
AY! www.manualo
10% IRR ($ pe
eptember 30,
Value-oriented Eq
ofideas.com
er mmbtu) (sel
2010)
quity Investment Id
ected geograp
eas for Sophisticate
February 28, 2011 –
phic areas)
ed Investors
Page 93 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
Proxy LLC. All rights res
— 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
Op
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
eas for Sophisticate
February 28, 2011 –
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
Page 94 of 170
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
©
BG
Ga I
I
TTinrtha
© 2008-2011 by Beyond
BUSINESS OVEGeneral Motors
GM emerged frand completed
NVESTMENT H One o
globalGM haglobal(~60%
ImpliebusineAssummargin
Shareon $6.exclud
Automlower GM hasince 2from thdeman
Acqui2010. presenvehicle
GM Fequityyearenof rece
NVESTMENT R Is a 5+
sustaiupswinoperatmarginnotorio
~80%Amerturnarobillionprofits
Balanpost-ryearen
Diluti1.5 bil
THE BOTTOM LIThe post-bankrndustry upswin
relative to a mohe $20+ billion
as well as the st
Proxy LLC. All rights res
RVIEW s manufactures
rom Chapter 1an IPO at $33
HIGHLIGHTS of the world’s l market share as 19% share il vehicle sales)
% of its U.S. saled enterprise ess is only ~50
ming a return ton, automotive tes trade at a 104 billion of aut
ding a $4.0 billimotive has ~$2cost base after
as lowered ann2008. EBIT mahe ~4% achiev
nd can sustainabired AmeriCreThe $3.5 billio
nce in the potene financing ma
Financial appeay representing nd 2010. Annuaeivables in 4Q1
RISKS & CONCE+% EBIT marinable? While ng in demand cting cost base, ns over time wously cyclical
% of 2010 EBITican market. Wound potential
n) and emergins, GM’s fortunence sheet remaretirement liabnd 2010. GM hion. While GMllion, the dilute
INE ruptcy GM is bng, this has led ore normalizedn of net cash intill sizable pen
erved.
s cars, trucks an
1 reorganizatioper share in N
largest automin 2010, basedn the U.S. mar, including 14%les) and 23% svalue of the a
0% of depresso 2007 revenue trades at an imp0% trailing FCtomotive free caion voluntary p22 billion of ner bankruptcy
nual payroll expargin could impved in 2010 if wbly recover to pedit to form G
on purchase prontially attractivearket after the 2ars in good sh20+% of total
alized net charg10, down from
ERNS rgin in the autGM is benefiticombined withmaintaining m
will likely proveand competitiv
T derives fromWhile Europe (2010 EBIT log markets proves remain largeains burdened bilities, totalinhas negative tan
M reports sharesed figure is clo
benefiting fromto a respectabl
d environment, n the automotivnsion liabilities
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
pension paymenet cash and a restructuring.
penses by 17% prove materiallyworldwide vehicpre-crisis levels
GM Financial inovides GM withe sub-prime 008-09 bust. ape with tangil assets as of ge-offs were 5.5~9% a year-ag
to business ing from an h a lower
mid-single digit e challenging inve car industry
m mature Nortmay have oss of $1.8 vide increasingly tied to the Uwith significa
g $32 billion angible book. s outstanding oser to 1.9 billio
m a significantlye automotive Eprofitability im
ve business. Neand dilutive se
AY! www.manualo
les.
9 0.
1% old. its s
nue. BIT ~5x. d 10, nt.
.
y cle s. n h a
ible
5% o.
n a . th
g U.S. ant at
of on.
SELECTEFYE DeceRevenue ∆ revenSelected Gross proSG&A EBIT GM world% of worlNorth AmNorth Am Total NEurope South AmInternatioInternatio Total InGM world% of worlU.S. Canada, Europe South AmInternatio
1 Includes sales data
SELECTEAs of DecTotal assSelected Finance rTangible
1 The GM Facquisitionacquired A COMPAR
TM
F
NSANY
GM
MAJOR Insiders UAW R RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
y improved opeEBIT margin ofmprovements megatives includecurities. On b
Value-oriented Eq
ofideas.com
D OPERATING cember 31 ($bn) nue items as % of revenofit
dwide units producedldwide units produce
merica - cars merica - trucks
orth America
merica onal – other (consolidonal – other (joint venternational - other dwide vehicle sales (ldwide vehicle sales
Mexico
merica onal - other HUMMER, Saturn
a is included throug
D OPERATING cember 31 sets ($bn) items as % of total areceivables (include shareholders' equityFinancial segment n of AmeriCredit, anAmeriCredit for $3.5
RABLE PUBLIC
MV ($mn) (
160,800 26
56,350 15
Y 48,030 8
54,770 3
HOLDERS <1% | U.S. go
Retiree Trust 13
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
erating cost baf ~5% in 2010. may be sustainede the notorioubalance, valuati
quity Investment Id
DATA — AUTO
nue:
d (mn) ed by geography:
dated entities) ntures)
(mn)1 s by geography:
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
EV EV / ($mn) Rev.
62,950 1.1x
55,050 1.2x
84,620 .7x
36,860 .3x
ov’t 33% | Mot3% | Canadian
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
ase. Combined Given that rev
ed for some timusly difficult naion is attractive
eas for Sophisticate
February 28, 2011 –
OMOTIVE 2008 2009 2
149 105 -17% -30% 2
0% -7%
14% 13% -14% -20%
8.1 6.5
19% 11% 23% 18% 242% 29% 319% 17%
n/a 12% n/a 12% n/a 30% 3
39% 41% 48.4 7.5
36% 28% 2
7% 5% 24% 22% 2
33% 12% 45% 4
cle sales data. GM S
FINANCIAL1
ecial purpose entities
s result of the Octoomobile finance com
NALYSIS P / This
Tang. FY Book P/E
1.3x 46x
n/m 8x
1.5x 20x
n/m 13x
tors Liquidationgov’t 9% | Cap
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
with a cyclicavenue remains dme. Another poature of the aute, but not comp
ed Investors
Page 95 of 170
2010 135
29%
12% 8% 4% 8.7
11% 21% 32% 14% 11% 12% 31% 43%
8.4
26% 5%
20% 12% 49% Saab vehicle
2010 10.9
s) 75%
21% ober 2010 mpany. GM
Next FY P/E
28x
8x
19x
9x
n Co. 23% p Re 3%
l auto depressed ositive is to industry, pelling.
©
G
1 2 3 4 S G
S
© 2008-2011 by Beyond
GENERAL MOTO($ 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
Automotive revenuReported automotBased on yearendBased on an estim
Source: Company f
GENERAL MOTO
Source: Company p
Proxy LLC. All rights res
ORS – OUR EST
odology
usiness:
enue1
T margin2
malized EBIT
ple
rprise value of Au
ve net cash3
ity value of Aut
ices business (G
holders' equity as
ple
ity value of GM
abilities:
d value of equity i
ployment benefit
stock
rolling interests
value of the equ
on ratios of Autombased on autom
IT
enue
enue
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
E EQUITY FAIR
Sval
normon a$13GM
1
1, 2010
Motors4
pension
ased on EBIT exclug restricted cash annding. assumptions and e
REDUCTION IN
AY! www.manualo
R VALUE RANGConservative
Sum-of-the-partsluation: Automot
valued at 10x malized EBIT (baa 4% EBIT margi5 billion of reven
M Financial valued.0x tangible boo
$135.0
4.0%
$5.4
10.0x
$54.0
22.0
$76.0
$2.3
1.0x
$2.3
$8.5
(31.8)
(11.9)
(1.0)
$42 billion
$22 per share
8%
10.4x
0.40x
0.36x
4.3x
uding income from nd restricted marke
estimates.
LONG-TERM L
Value-oriented Eq
ofideas.com
E B
s tive
ased n on
nue); d at
ok
Sumvaluatio
valnormalizon a 5% $150 bilGM Fina
1.5x t
$6
$34
equity investees. etable securities.
IABILITIES
quity Investment Id
ase Case
m-of-the-parts on: Automotive lued at 10x zed EBIT (based EBIT margin onlion of revenue); ancial valued at tangible book
$150.0
5.0%
$7.5
10.0x
$75.0
22.0
$97.0
$2.3
1.5x
$3.5
$8.5
(31.8)
(11.9)
(1.0)
64 billion
4 per share
7%
14.4x
0.55x
0.50x
6.5x
eas for Sophisticate
February 28, 2011 –
Aggre
n
Sum-of-tvaluation: A
valued normalized Eon a 6% EBI$160 billion oGM Financia
2.0x tang
$16
6.0
$9
10.
$96
22
$11
$2
2.0
$4
$8
(31
(11
(1.
$86 b
$46 per
5%
18.
0.7
0.6
8.6
ed Investors
Page 96 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
Proxy LLC. All rights res
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
quity Investment Ideas for Sophisticate
February 28, 2011 –
ed Investors
Page 97 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
Proxy LLC. All rights res
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
erved.
— 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
eas for Sophisticate
February 28, 2011 –
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
Page 98 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
I
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
Proxy LLC. All rights res
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 $400+ million
ble value creatianslate into vaailer customerscts are challengffer better riskdustry growthades at an EV-ain’s 1.5x. 2.0x EBITDA)
M&A in 2011.
S his Next Y FY /E P/E
4x 12x
5x 13x
4x 21x
d brands that shcent scale, servecent valuation% – and have btake-out scena
AY! www.manualo
ls s), s.
EV. ion
tion EV-0. nt
0. el
ties.
sis pe
nue.
d ain, as
n on ion. alue s ges. k-h. to-
),
SELECTEFYE June∆ revenu∆ employRevenue % of reveGrocery Snacks Tea Personal Other3 Revenue Grocery Snacks Tea Personal % of reveU.S. InternatioPre-tax mU.S. Internatio
Total pSelected Gross proEBIT EBIT ex sNet incomNet cash D&A Capex EmployeeReturn onTang. equ∆ shares
1 Financialof acquisit2 Reflects t30, 2009. Imillion andaccounted3 Includes 4 Primarily 5 Includes 6 Excludes
MAJOR CEO Sim RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * Organic fpesticidesmodified ogenerally r
hould enable it ve as competitin, with shares tboard representario above rece
Value-oriented Eq
ofideas.com
D OPERATING e 30 200
ue 19yees 39 ($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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
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%
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
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
eas for Sophisticate
February 28, 2011 –
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
market value? manent loss? ivized? ? d capital?
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
Page 99 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
Proxy LLC. All rights res
AL – OUR ESTIM
odology
nd base case me
enue1
T margin2
T
ple3
rprise value
e metrics:
A synergies4
ple
e of M&A synergi
e of existing cash
enterprise value
contribution EBI
t5
ourmet continge
equity affiliates5
value of the equ
s yield based on
FCF yield
evenue based on
revenue estimate orgin during FY06-1ems, is 10% (this in
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
eas for Sophisticate
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
Page 100 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 101 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
Proxy LLC. All rights res
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
n/m n
ock Price Perfor
Feb 0504
AY! www.manualo
, MHR
nsensus EPS E
Latest
n/a
n/a
n/a
n/a
n/a
n/a
e Actual
n/a
mance and Finan
ars Ended
/07 3/31/08
977 1,361
541 700
42 (60)
16 (87)
0.14 (0.74)
108 118
60 89
8 4
51 86
52 372
0 0
188 227
137 1,538
0 0
0 0
325 329
889 1,350
0 0
248 188
n/m n/m
rmance and Tra
Feb 06
Value-oriented Eq
ofideas.com
Santa
stimates
Month #
Ago E
n/a n
n/a n
n/a n
n/a n
n/a n
n/a n
Estimate
n/a
ncial Position
3/31/09 3/3
1,466 1
673
(138)
(179)
(1.53) (
117
(102)
9
(111)
139
0
458
1,667 1
0
0
537
1,626 1
0
42
n/m
ading Volume Dy
FebFeb 07
quity Investment Id
Monica, CA, 877-848-38
# of P/E FYE
Ests P/E FYE
n/a P/E FYE
n/a P/E FYE
n/a EV/ LTM
n/a EV/ LTM
n/a P / tang
n/a G
LTM EB
LTM pre
LTM
31/10 12/31/
1,584 1,6
776 8
58
(19) (12
(0.17) (1.0
118 1
(122) (9
7
(128) (10
91
0
463 2
1,705 1,6
0
0
540 5
1,651 1,5
0
54
n/m n
ynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
866 ww
Valuation
E 3/31/10
E 3/31/11
E 3/30/12
E 3/30/13
M revenue
M EBIT
ible book
Greenblatt Crite
BIT yield
e-tax ROC
ME FQE
/10 12/31/09
636 343
849 142
1 (48)
22) (65)
00) (0.55)
22 118
99) 31
5 0
05) 31
70 105
0 0
239 451
630 1,699
0 0
0 0
559 529
553 1,627
0 0
77 72
n/m n/m
Feb 10
ed Investors
Page 102 of 170
ww.lionsgate.com
n/m
n/a
n/a
n/a
0.8x
1105x
n/m
eria
0%
n/m
FQE
12/31/10
423
218
22
(6)
(0.04)
137
(21)
0
(21)
70
0
239
1,630
0
0
559
1,553
0
77
n/m
Feb 11
©
BLp I
I
MC2*
TLfnnlo
© 2008-2011 by Beyond
BUSINESS OVELionsgate, founpictures and tel
NVESTMENT H One o
and dWeinsmoviebroadc
PotenCarl Iattempterms.MGMfight astake i
EV-toon aveLionsgannual
Stronproduonly 1self-di
ConteLionsgsuch a(Jillian
NVESTMENT R Busin
recentlarge cmost v
Lack has segenera
IcahnMGMsharehlitigatiand mMHR,
~$550(includ
MAJOR HOLDERCEO Feltheime26% | Cap Re 9Excludes MHR, w
THE BOTTOM LILionsgate’s shafight against mnow. Investors not enticed by tow FCF, and a
Proxy LLC. All rights res
RVIEW nded in 1997, plevision progra
HIGHLIGHTS of the largest inistributors, ne
stein. Lionsgatee and 4,000+ TVcast/cable TV atial benefits fr
Icahn to bid $7pt to combine t** While a mer
M exited bankrupagainst Icahn inin Lionsgate ano-average threerage revenue ogate aims to relly “going forwg presence in
uction/distribu0-20% of revenistribution via Dent library is agate has strong as horror (Saw)n Michael), and
RISKS & CONCEess could likelt enterprise vacontent library valuable asset –of free cash flen much commation and capita’s activism, in
M, may not resholders. Icahn’ion against Lion
management ent, a 29% owner,
0 million of netdes Pennsylvan
RS er 2% | Other in9% | BNY Melwhose president M
INE are price has deanagement, anmay pin their h
the risk-rewardbusiness lackin
erved.
produces and damming. It has
ndependent* fext to MGM, Se owns a large pV titles it distrand online chanrom a merger7.50 per sharethe two companrger appears mptcy and Lionsg
n December, Icand likely owns mee-year revenuof $1.5 billion lease 12-15 mo
ward,” in-line wTV and home
ution. Movie thnue, with the reDVD, TV, and
a source of recfranchises in a
), documentaried TV series (M
ERNS ly be recreatedalue of $1.4 biand distributio
– human capitaow. While Lio
mercial and crital return have u
ncluding a posult in value crs likely stake innsgate invite cotrenchment. M, is supportive t debt guarantenia loan and co
nsiders 4%* | Mlon 3% | Clearb
Mark Rachesky is a
eclined from ~nd missed an ophopes on more
d offered by potng tangible ass
SUBSCRIBE TODA
distributes moti~500 employe
film producerSummit, and part of the 8,00ibutes into DVnnels worldwi with MGM lee in 2010 in annies on his ow
more distant aftegate won a proahn retains a 26much of MGMue is <1.0x, basduring FY08-1otion pictures
with recent histoe entertainmenheaters represenest mostly from
d online channecurring revenuattractive genreses, fitness DVD
Mad Men).
d for less thanillion despite thon assets. The al – is mobile. onsgate’s contetical success, Funderwhelmedsible deal with
reation for all n MGM and hionflicts of interark Rachesky’of managemeneed by Lionsgaonvertible debt
MHR 29% | Icarbridge 2%
Lionsgate directo
$7.50 last Decpportunity to efe activism, incltential M&A, asets, there are m
AY! www.manualo
ion ees.
s
00+ VD,
de. ed
n n er xy 6%
M. sed 10.
ory. nt nt m els. ue s Ds
n he
ent FCF d. h
is rest s
nt. ate t).
ahn
r.
SELECTE
FYE Marc∆ revenu∆ employRevenue % of reveMotion piTelevisionMedia neEBIT marMotion piTelevisionMedia neCorporate
Total ERevenue DVD/blu-TV (broadMovie theInternatio% of reveU.S. InternatioSelected Direct expDistributioG&A expeNet incomNet cash D&A10 Capex10 FCF ($mn∆ shares
1 Includes TV Guide Maple Pictunder the e2 As of Ma3 Reflects T4 Includes 5 Excludes6 Referred motion pict7 The TV p8 Includes Pictures an9 Includes10 Excludeswithin direc
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * As opposTime War** Lionsgafrom Icahn
ember as Carl ffect a merger luding the poteand much less thmany ways to l
Value-oriented Eq
ofideas.com
D OPERATING
ch 31 200ue 13%yees2 19% ($mn) 94
enue by segment: ctures 86%n production 14%
etworks3 0%rgin by segment: ctures 6%n production 6%
etworks n/e4 -5%EBIT margin5 2% by distribution chan
-ray/EST6 56%dcast/cable)7 22%eaters 15%onal/other8 7%enue by customer lo
90%onal 10% items as % of revenpenses9 48%on expenses 42%enses 7%
me 0% from ops 13%
0%1%
n) 11 out (avg) 6%the results of LionsNetwork from their tures from consolidequity-method from
ay of each year. TVTV Guide from its aD&A other than am
s equity affiliates (YT to as “home entertture segment accouproduction segmenrevenue from internd other assets. FYfilm/TV program ams amortization/invesct expenses/net cas
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit frsed to the six “majrner, Viacom, Sonyate management ann in 2010. Icahn d
Icahn droppedwith MGM on
ential for a futuhe valuation oflose as an outsi
quity Investment Id
DATA1
06 2007 2008% 3% 39%% 13% 11%45 977 1,361
% 88% 85%% 12% 15%% 0% 0%
% 12% 2%% 1% -2%/m n/m n/m% -6% -6%% 4% -4%nnel: % 55% 47%% 22% 22%% 11% 14%% 12% 16%cation: % 86% 79%% 14% 21%nue: % 45% 49%% 41% 47%% 9% 9%% 2% -6%% 11% 7%% 0% 0%% 1% 0%15 99 86% 5% 9%sgate UK, Debmar-r acquisition dates. dation in July 2007.m May ‘09 when LioV Guide employees
acquisition in FY09mortization of films TD: $46 million lossrtainment” (EST= eunts for 90+% of YTt accounts for ~60%rnational motion picY10 includes ~$114mortization as well stment in films and sh from operations)
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and sjor studios” owned
ny, News Corp., NBnd MGM negotiatedropped his Lionsg
d his takeover bn his terms, Icaure deal with Mf stand-alone Lide shareholder
eas for Sophisticate
February 28, 2011 – P
8 2009 2010 % 8% 8% % 15% -2%
1,466 1,584
% 84% 71% % 15% 22% % 1% 7%
% -6% 10% % 3% 8% m 10% 17% % -5% -7% % -10% 3%
% 46% 38% % 24% 30% % 15% 9% % 14% 23%
% 82% 80% % 18% 20%
% 54% 51% % 46% 33% % 9% 11% % -12% -1% % -7% -8% % 1% 2% % 1% 0% 6 -111 -128
% -1% 1% -Mercury, MandateAlso includes the r
. TV Guide is accouonsgate sold a 49%
are excluded. 9 to deconsolidationand television prog
s, mainly from EPIX lectronic sell-throug
TD home entertainm% of YTD televisionctures, Lionsgate U4 million of TV Guid as participations/reTV programs (acco.
market value? manent loss? ivized? ? d capital?
mproving? secular trends? d by media congloBCUniversal, and ed a possible deal gate bid in Decemb
bid. Having losahn appears sidMGM. Howeve
ionsgate. With r in this “inside
ed Investors
Page 103 of 170
YTD 12/31/10
11% n/a
1,206
78% 22%
0%
7% 12% n/m -8% 0%
35% 33% 17% 15%
n/a n/a
50% 38% 11% -8%
-10% 0% 0%
-117 10%
e Pictures and results of unted for stake to OEP.
n in FY10. grams. joint venture).
gh). The ment revenue. n revenue.
UK, Mandate de revenue. esidual costs.
ounted for
omerates Walt Disney. separately ber 2010.
st a proxy delined for r, we are high debt, er” battle.
©
L
1 2 RhD3 in4 v5 mpfra6 $7 8 9 10
S F
1 2 S
© 2008-2011 by Beyond
LIONS GATE – O
($ in millions)
Valuation metho
Normalized reve
Normalized EBI
Normalized EBI
Fair value multip
Estimated enter
Plus: Value of s
Plus: Value of o
Minus: Net debt
Estimated fair
Implied adj. EV-
Implied adj. EV-
Implied adj. EV
Implied adj. EV
Average revenue dEBIT, which exclu
Related investmentshas a history of highDecember 2010 is ~
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
$8.25+ per share; cEnterprise value isInvestment in filmsBased on manage
0 Based on 497 emSource: Company f
FILM INDUSTRY
Release Period
Theatrical
Home entertain
Video-on-dema
Pay television
Network (free a
Licensing and m
All international
These patterns maFirst pay television
Source: Company 1
Proxy LLC. All rights res
OUR ESTIMATE
odology
enue1
T margin2
T
ple
rprise value
stake in TV Guide
other equity-meth
t5
value of the equ
-to-trailing revenu
-to-trailing invest
per annual motio
per employee ($
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
ilings, The Manual
Y – TYPICAL R
d
ment/DVD/Blu-ra
nd, pay-per-view
nd basic)
merchandising
releasing
ay not be applicabln window. 10-K.
erved.
E OF THE EQUIT
e Network3
hod investments4
uity of Lionsgat
ue7
tment in film/TV p
on picture releas
$mn)7, 10
$1.5 billion. Trailing investments, is staision programs ("ca
margins ranging fromrgin assumption is
work, a U.S. cable Tn May 2009. Our varamount unit and nvested $80 millionteed by Lionsgate of debt. Debt is commatures 2016), $13lion of Pennsylvaniobligations and proding (excludes potencluded within net stimated value of eograms was ~$500 y plans to release
y 2010 (excludes TVof Ideas analysis,
ELEASE WINDO
ay/digital (1st cyc
w and digital renta
e to every film, and
SUBSCRIBE TODA
TY FAIR VALUE
4
te6
programs7, 8
se ($mn)7, 9
g revenue is $1.7 bated after the amorapex") is an incomem positive 2-4% in therefore a pure g
TV channel, for $24alue estimate of LioMetro-Goldwyn-Ma
n into the JV througas of December 31mprised of a revolv36 million of three sia Regional Centeroduction loans of $2ential shares to be debt). quity-method invesmillion for the year
12-15 motion pictuV Guide Network eassumptions and e
OWS 1
cle)
al
d may change with
AY! www.manualo
E RANGE
Conservativ
8x estimatenormalized EBIT
estimated valuequity-methoinvestments
$1,500
10.0%
$150
8.0x
$1,200
125
0
(555)
$770 millio
$5.60 per sha
0.6x
2.1x
$72
$2.2
billion. rtization of films ande statement expensFY06/07 to negativuess as to the "nor42 million in Februaonsgate's remaininayer Studios (MGM
gh yearend 2010. T1, 2010. The figure,ver ($224 million boseparate tranches or production loans (278 million (other thissued upon conve
stments. r ended Decemberres annually, in-line
employees). estimates.
Months
Initial Re—
3-6 mo
4-8 mo
9-12 mo
27-30 m
Concu
Concu
the emergence of
Value-oriented Eq
ofideas.com
ve
d T (plus ue of od s)
1norma
estieqin
n $1
are $8
d television prograse and accounted fve 4-10% in FY08/rmalized" earning pary 2009. It then song stake approximaM) formed in 2008 tThe JV remains loss, which excludes re
orrowed; matures Jof convertible note(maturity in 2013). han the included Persion of convertibl
r 31, 2010. e with recent histor
s After A
elease R—
onths
onths
onths2
months 4
urrent
urrent
new technologies.
quity Investment Id
Base Case
0x estimated alized EBIT (plusmated value of quity-method nvestments)
$1,500
10.0%
$150
10.0x
$1,500
125
80
(555)
1,150 million
.40 per share
0.8x
2.6x
$86
$2.6
ms as well as partifor within net cash 09. EBIT margin fo
power of the busineold a 49% stake to Oates the price paid bto create a premiums-making based onestricted cash and uly-13), $236 millios (carried at $109 mNot included in the
Pennsylvania produle debt, as the latte
ry. Our ratios assum
Approximate
Release Period 0-3 months
1-3 months
3-4 months
18 months
48-72 months
Ongoing
Ongoing
eas for Sophisticate
February 28, 2011 – P
Aggre
s 12x es
normalizedestimated
equity-invest
$1,
10.
$1
12
$1,
12
16
(55
$1,530
$11.20 p
0.
3.
$1
$3
cipations and residflow from operatio
or the nine months ess at recent revenOEP, the global priby OEP of $122 mm TV channel and sn the most recent fiinvestments, includon of senior securemillion; conversion
e debt figure are pauction loans of $66 er has conversion p
me 15 releases per
ed Investors
Page 104 of 170
essive
timated d EBIT (plus d value of method ments)
500
.0%
150
2.0x
800
25
60
55)
million
per share
9x
0x
101
3.0
dual expense. ns. Lionsgate ended ue levels. ivate equity illion in cash. subscription nancials. des $70 ed second-
prices range articipations million).
prices of
r year.
©
L
C
E
I
S
© 2008-2011 by Beyond
LIONS GATE – S
Complementary as
Estimated pro form
Illustrative valuati
Source: SEC filing,
Proxy LLC. All rights res
SELECTED INFO
ssets:
ma cash flow ($ m
ion ($ billions):
available at http://w
erved.
ORMATION FRO
millions):
www.sec.gov/Archi
SUBSCRIBE TODA
OM JULY 2010
ves/edgar/data/929
AY! www.manualo
0 PRESENTATIO
9351/00009501231
Value-oriented Eq
ofideas.com
ON ON POTENT
10095415/v57635e
quity Investment Id
TIAL MGM/LG
exv99w1.htm
eas for Sophisticate
February 28, 2011 – P
GF DEAL
ed Investors
Page 105 of 170
©
M
© 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
Proxy LLC. All rights res
d (MA) — Aksumer Financia
Trading Data
4 (as of 2/18/11)
ge: $191.00 - $26
: $32.8 billion
lue: $28.6 billion
30.9 million
Ownership Data
rship: 10%
(last six months)
(last six months)
wnership: 75%
ept
2
2
me
g)
rations
ments 1
ssets 1
ts
3
t
bilities 1
2
y
mployed
erved.
Akre , Braval Services, Mem
)
69.22
n
a
: 10
): 4
Op
2004 2005
,593 2,938
347 393
238 267
1.76 1.98
135 135
344 273
78 82
266 191
,138 1,282
,903 2,228
547 471
,265 3,701
0 0
,301 1,557
230 230
,290 2,531
0 0
975 1,169
n/m n/m
Ten-Year Sto
SUBSCRIBE TODA
ave Warrior mber of S&P 500
C
This quarter
Next quarte
FYE 12/31/1
FYE 12/30/1
FYE 12/30/1
LT growth
EPS Surpris
2/3/11
perating Perform
Fiscal Years En
2006 2
3,326 4
230 1
50 1
0.37
135
650
95
556
2,484 2
3,577 4
488
5,083 6
0
1,812 2
230
2,718 3
0
2,364 3
n/m
ock Price Perfo
AY! www.manualo
r , Lone Pi0
Consensus EPS
Latest
r $4.07
r 4.13
11 16.66
12 19.52
13 22.53
20.1%
se Actual
$3.16
mance and Fina
nded December 3
2007 2008
4,068 4,992
,099 (546)
,076 (253)
7.96 (1.94)
135 130
770 413
156 170
614 243
,970 2,247
4,592 4,312
560 692
6,260 6,476
80 149
,363 2,991
150 19
3,233 4,548
0 0
3,027 1,927
n/m n/m
rmance and Tra
Value-oriented Eq
ofideas.com
Pine , TigPu
Estimates
Month
Ago
$4.00
4.12
16.48
19.57
23.06
20.1%
Estimat
$3.04
ancial Position
31,
2009
5,099
2,260
1,463
11.25
130
1,378
139
1,239
2,880
5,003
724
7,470
0
3,167
22
3,967
0
3,504
n/m
ading Volume D
FeFeb 07
quity Investment Id
iger urchase, NY, 914-249-200
# of P/E F
Ests P/E F
26 P/E F
25 P/E F
29 EV/ L
25 EV/ L
7 P / ta
13
te LTM E
LTM p
LT
2010 12/31
5,539 5,
2,752 2,
1,846 1,
14.09 14
131
1,697 1,
151
1,546 1,
4,198 4,
6,454 6,
1,207 1,
8,837 8,
0
3,143 3,
0
3,632 3,
0
5,205 5,
n/m
Dynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
00 ww
Valuation
FYE 12/31/10
FYE 12/31/11
FYE 12/30/12
FYE 12/30/13
LTM revenue
LTM EBIT
ngible book
Greenblatt Cr
EBIT yield
pre-tax ROC
TME FQE
1/10 12/31/09
539 1,298
752 468
844 292
4.05 2.24
131 130
697 284
151 43
546 241
198 2,880
454 5,003
207 724
837 7,470
0 0
143 3,167
0 22
632 3,967
0 0
205 3,504
n/m n/m
Feb 109
ed Investors
Page 106 of 170
w.mastercard.com
n
18x
15x
13x
11x
5.2x
10x
8.2x
iteria
10%
n/m
FQE
12/31/10
1,438
569
415
3.17
131
670
46
624
4,198
6,454
1,207
8,837
0
3,143
0
3,632
0
5,205
n/m
Feb 11
©
BM I
I
MIJ
TMsnthM
© 2008-2011 by Beyond
BUSINESS OVEMasterCard pro
NVESTMENT H #2 glo
$2.7 trtransabrandswhich
EPS isfrom ngrowthEPS gmay w
2011-1EPS grevenuTargetthere iof the
$4 billyearenannou
ThreefranchtransaAmEx
Generprocesfees), wof Ma
NVESTMENT R “Open
acquirsimilaloop ncontro
RegulMasteinterchimportthe po(~15%
Litiga$2+ bipendin
MAJOR HOLDERInsiders <1% | Jennison 3% | V
THE BOTTOM LIMasterCard is astrong attributenet cash balanche “open-loop”
Merchant litigat
Proxy LLC. All rights res
RVIEW ovides global e
HIGHLIGHTS obal payment crillion in gross ctions processes including Ma
h it licenses to 2s likely to be mnow based on ah in electronic
growth prospecwell compensat13 financial ta
growth based onue CAGR and “ts exclude M&is more clarity final U.S. debilion of cash/send 2010. A $1 bunced in Septeme-tiered businehising paymentctions and prov
x, MasterCard drates ~75% ofssing and paymwith the remainsterCard-brand
RISKS & CONCEn-loop” modelrers and card r model, Amer
network that givol over the funclatory scrutinyrCard does nothange (its banktant driver of sy
otential impact % of company ration risk. Afteillion in ‘06, Mng merchant in
RS MasterCard FoVanguard 3% |
INE a high-ROIC bes, it should conce sheet, may th” payment netwtion and potent
erved.
electronic paym
card brand bedollar volume
ed in 2010. ThasterCard, Mae23,000+ financmuch higher fiva defensible mopayments worts and a net caste for a trailingargets: 20+% cn a 12-14% co“minimum” 50
&A and may be around the lonit [card industr
ecurities and nbillion share re
mber 2010 remess model, witht platforms, providing related does not issue cf revenue fromment-related sernder based on tded card activit
ERNS l relies on 3rd-issuers. While
rican Express oves it more revctioning of the y of interchant directly generk clients do), thystem volume. on its U.S. debrevenue) as “mer settling an an
MasterCard facenterchange and
oundation 10%State Street 3%
business with a ntinue to benefiherefore compe
work structure, itial new regulat
SUBSCRIBE TODA
ment networks.
ehind Visa, wie and 23+ billioe company ow
estro, and Cirrucial institutionsve and ten yeaoat and continurldwide. Strongsh balance she
g P/E of ~17x.compound annnstant-currency
0% EBIT margiadjusted “whe
nger-term impary] regulations.no debt as of epurchase
mains unutilizedh revenue fromocessing paymeservices. Unlikards/extend cre
m transaction rvices (operatiothe dollar volumty (assessments
-party merchae Visa has a operates a closevenue streams anetwork.
nge fees. Whilerate revenue frhe fees are an MasterCard pe
bit card businesmanageable.”
nti-trust case foes new risks froother litigation
% | T. Rowe 5%% | GS 3%
worldwide-acit from global gensate for a ratin which Mastetions, however,
AY! www.manualo
ith on
wns us, s. ars ued g et
nual y ins. en act .”
d. m ent ke edit.
ons me s).
ant
ed-and
e om
egs ss
for om n.
% |
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
1 Includes debit trans3 Class A cwhile classFoundationcontrolled
COMPAR
V
AXP
DFS
MA
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
cepted brand agrowth in electrther high trailinerCard has to re, are unlikely to
Value-oriented Eq
ofideas.com
D OPERATING cember 31 sed transactions1
dollar volume (GDV)ocal currency) e
yees ($bn) items as % of reven
ng and marketing settlements/other
me from ops
ed transactions (bn) ollar volume ($trn) V by card type: ard credit and chargard debit V by geography:
ific/Mideast/Africa erica/Canada wth by selected geo
ific/Mideast/Africa wnership / voting powvestors (class A) affiliate members (claon (class A) out (avg) transactions proce
sactions, regardlesscommon stock is ens B stock has no von is a private charitby directors who a
RABLE PUBLIC
Price ($)
MarkeValue($mn
75.80 54,04
45.50 54,81
21.90 11,92
250.70 32,81
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
and a sustainabronic paymentsng P/E of ~17xely on third-paro reduce netwo
quity Investment Id
DATA 2006 218%
)2 14% 15% 13%
7% 3.3
nue: 45% 32% 13%
7% 2%
20% 3% 3%
16.1 1.9
e 73% 27%
48% 27% 15% 10%
ography: 16% 15%
0% wer (period end) (%/
49/83 5ass B) 41/0
10/17 10%
essed by MasterCas of brand). 2 Purcntitled to one vote peoting power (only dtable foundation inc
are independent of
COMPANY ANet e
n)
Price to Tangible
Book 40 20.5x
0 3.4x
20 2.0x
17 8.2x
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
ble competitives. High EPS grox. Business riskrty merchant ac
ork growth and/
eas for Sophisticate
February 28, 2011 – P
2007 2008 2016% 12% 18% 11% -14% 11% 22% 23%
9% 10% -4.1 5.0
43% 38% 327% 20% 1
1% 50% 27% -11% 427% -5% 219% 8% 2
2% 2% 4% 3%
18.7 21.0 22.3 2.5
72% 71% 628% 29% 3
45% 42% 429% 31% 315% 17% 211% 11% 1
11% 4% -27% 17% -24% 19% 1/%):3 57/85 66/86 7433/0 24/0 1
10/15 10/14 100% -4%
ard (including PIN-bchase volume plus er share and has di
dividend rights). Thecorporated in CanaMasterCard and its
NALYSIS This FY P/E
Next FY P/E
F
16x 13x S
12x 11x D
11x 10x N
15x 13x D
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
e moat. Given towth prospectsks appear maincquirers and ca/or economics m
ed Investors
Page 107 of 170
009 2010 7% 3%
-3% 11% 2% 9% 2% 9%
-7% n/a 5.1 5.5
38% 33%
5% 14% 0% 0%
44% 50% 29% 33% 27% 31%
3% 3% 3% 3%
22.4 23.1 2.5 2.7
66% 65% 34% 35%
40% 36% 30% 30% 20% 23%
1% 12%
-7% 0% -6% 11% 6% 27%
4/88 84/89 15/0 6/0 0/12 10/11 0% 1%
based online cash volume. vidend rights, e MasterCard ada. It is s members.
FY End Date
Sep-30
Dec-31
Nov-30
Dec-31
these s, and the nly tied to ard issuers. materially.
©
M
1 2 inwm3 4 S M
D
S
© 2008-2011 by Beyond
MASTERCARD –
($ 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
Per the balance shObligations under
ncluding merchant with other defendanmerchant litigation,
Based on 131 millManagement is ta
Source: Company f
MASTERCARD –
Derivation of mana
Source: Company p
Proxy LLC. All rights res
– OUR ESTIMA
odology
gin
ple
rprise value
n-related liabilitie
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
UITY FAIR VAL
Conser
10x trailin
$5.
50%
$2.
10.0
$27
4.3
(2.0
ard3 $30 bi
$228 per
als:
5%
6%
5x
9x
curities as of Decen per the balance sWhile the companyof any potential mose regulatory chang
2011-13, based on assumptions and e
TERM PERFOR
venue CAGR:
AY! www.manualo
UE RANGE
rvative Ba
ng EBIT 12x tr
.5
%
.8
0x
7.5
3
0)
illion $36
r share $278
%
%
x
x
mber 31, 2010 (no sheet value as of Dy has recently execonetary damages awges related to interc
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
(1.0)
6 billion
per share $3
4%
5%
6x
11x
o debt outstanding).December 31, 2010cuted a sharing arrawarded against thechange fees, espec
currency revenue C
CTIVES
quity Investment Id
Aggressive
4x trailing EBIT
$5.5
50%
$2.8
14.0x
$38.5
4.3
(0.3)
$43 billion
325 per share
4%
4%
7x
13x
. . MasterCard is expangement that alloce company remainscially with respect t
CAGR and “minimu
eas for Sophisticate
February 28, 2011 – P
posed to various litcates financial resps uncertain. In addito its U.S. debit car
um” 50% EBIT mar
ed Investors
Page 108 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
Proxy LLC. All rights res
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”
quity Investment Id
015E
eas for Sophisticate
February 28, 2011 – P
ed Investors
Page 109 of 170
©
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
Proxy LLC. All rights res
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
12/31/
me (13
(13
(1.4
g)
rations (2
1
(19
ments 4
ssets 5
ts
7
t
bilities
2
2
y 4
mployed -98
FFeb 02
erved.
— Baupos& Drugs
n
: 0
): 0
Op
/03 12/31/04
67 85
0 0
30) 73
30) (53)
40) 0.74
92 95
24) (27)
71 96
94) (123)
492 232
502 242
32 31
742 714
1 1
35 44
259 258
294 301
0 0
448 413
8% 43%
Ten-Year Sto
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
Fiscal Y
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
Feb 0504
AY! www.manualo
Consensus EPS
Lates
$0.2
r 0.2
0 0.9
1 1.1
2 1.4
n/
e Actua
$0.24
mance and Fina
Years Ended
/31/06 12/31/0
187 22
0
155 18
(130) (21
1.20 1.3
114 11
79 6
55 9
24 (28
333 41
380 72
356 9
1,142 1,19
1
106 12
537 53
674 68
0
468 50
59% 49%
rmance and Tra
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%
ading Volume D
FebFeb 07
quity Investment Id
Incline Village, NV, 775-
# of P/
Ests P/
7 P/
4 P/
7 EV
7 EV
6 P /
n/a
mate LT
25 LT
12/31/09 9
318
0
299
190
1.07
119
187
0
187
303
316
0
338
278
294
461
754
0
(416)
>100%
Dynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
-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
V/ LTM EBIT
/ tangible book
Greenblatt C
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
ed Investors
Page 110 of 170
www.pdl.com
on
5x
5x
4x
3x
2.8x
3x
n/m
Criteria
30%
n/m
E FQE
9 9/30/10
1 86
0 0
7 73
6 40
9 0.24
9 127
9 31
0 0
9 31
2 227
0 235
0 0
5 258
0 112
7 209
9 353
7 562
0 0
2) (305)
m n/m
Feb 11
©
BPh I
I
*
TPaafB
© 2008-2011 by Beyond
BUSINESS OVEPDL BioPharmhumanization p
NVESTMENT H “Roya
its formcommsince tlicenseRoyalt
Sharerisk-rthe runmateriexistinif PDL
Lack strongdrivendrugs y-y) an
Potenindicaapprovinto an
May bfor brebetweclaims
CEO optimwhose1987-9costs a
NVESTMENT R Paten
will nolicenserevenu
Litigawhichon saleoutsid– acco
Potencash tohas bebusine
PDL has no relate
THE BOTTOM LIPDL manages aappears to provand related profor 1) growing Baupost has re-
Proxy LLC. All rights res
RVIEW ma manages a ppatents and rela
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
” business modovery, manufacons in 2008. Itsnt portfolio, whnd pharma com100% of YTD ffer a favorabldownside mayhe existing royd be driven by ) potential news against Genelated royaltiesy-y revenue grelated to sales of 1Q-3Q10 re
(33% of revenuoyalties from ang products andechnology has bat cancer and op to $1 billion”2003 settlementenentech, base
n PDL’s Januarghlin (58) is fofor shareholdes Genentech’s galuable, has alsal dividends fro
ERNS 013-14. Upon eve royalty revenDL develops othill likely cease ts largest licen80+% of reve
ch drugs that are subject of Ge% of PDL’s rev strategy, inclu
siness. While Pr-friendly so faferred over a ru
uirements such as f
ent portfolio ane, asymmetric oing return of cexisting drugs
PDL’s share reg
SUBSCRIBE TODA
ibody sets.
del. PDL divescturing and primary asset hich PDL
mpanies. 2010 revenue.le, asymmetri
y be protected byalty stream and
1) the growth royalties; and
entech are uphes in 2010 maskrowth of ~20%of Genentech
evenue; up 30%ue; up 18% y-yadditional d new product been incorpora
other conditions” from Genentt agreement
ed on certain ry presentationocused on ers. McLaughligeneral counseso cut corporatom excess cash
expiration, PDLnue from her sources of by 2014.
nsee Genentecenue. Royaltiesre made and soenentech’s claivenue in 1H10uding the use o
PDL managemear, running a un-off scenariofor R&D.
nd receives royrisk-reward: docapital. On thes; 2) new royaltgister in the De
AY! www.manualo
sted
ic by d of 3)
eld. ks
%,
% y).
ated s. ech
.
in, el in te h.
L
ch, s old ims 0. of ent
o.
SELECTE
FYE DeceRevenue ∆ revenSelected G&A expeEBIT Net incomD&A Capex % of reveRoyaltiesLicense aRevenue RoyaltiesLicense a% of reveGenentecMedImmuOther (inc% of reveAvastin (GHerceptinLucentis Synagis (Revenue Avastin HerceptinLucentis Synagis Tangible ∆ shares
1 Based onresults relaoperationsany busine2 Revenue3 G&A expmillion rela4 Per repor
MAJOR Insiders Arrowst RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
yalties mainly fownside may bother hand, sig
ties; and 3) a secember quarte
Value-oriented Eq
ofideas.com
D OPERATING
cember 31 ($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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
from Genentecbe protected bygnificant value
speculative, litier, when PDL’
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
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
ch. At the receny the run-off vae may accrue, digation-related s share price e
eas for Sophisticate
February 28, 2011 – P
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
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
nt share price, value of existingdriven by the paward. Seth Kxceeded recent
ed Investors
Page 111 of 170
YTD 9/30/10
269 3%2
11%3 89% 43%
0% 0%
100%
0%
9% -100%
81%
0% 19%
34% 33% 14%
0%
30% 18% 45%
-100% -118%
2% he financial
mercial id not have to-date period. in 2010).
hich $23 egal costs.
f yearend flow from and UCB ly dilutive per share).
Mellon 7% | ost 4%
valuation g royalties potential Klarman’s
t levels.
©
P
1 dassreGdF$wdrere"caoGPcEaAS
P
S
© 2008-2011 by Beyond
PDL BIOPHARM($ in millions)
Valuation metho
2010 revenue (s
Less: estimated
Less: estimated
Estimated annu
Estimated annu
Remaining roya
Estimated cumu
Plus: Estimated
Plus: Estimated
Estimated valu
Minus: Estimate
Plus/Minus: Pot
Plus/Minus: Pot
Estimated fair
Implied trailing F
Implied dividend
Per company presdecline going forwaas well as other litigshould decline as a statutory tax rates bevenue sources, m
Genentech drugs Adebt values per comFebruary 2011. Acc$10 million to the cowell as a $204 milliodue in 2015. While telates mainly to PDevenue in the first hcompensatory dam
attorney’s fees." Acon past and future UGenentech productsPDL, our estimates case. 9 In addEuropean Patent Ofaccounted for in ourApril 2010 and the sSource: Company f
PDL BIOPHARM
Source: Company p
Proxy LLC. All rights res
MA – OUR ESTI
odology
solely derived fro
d annual G&A2
d annual interest
ual pre-tax incom
ual net income4
alty revenue perio
ulative cash flow
d additional value
d additional value
ue of cash flows
ed net financial li
tential award/liab
tential award/liab
value of the equ
FCF yield (year e
d yield based on
sentation in Januaryrd. While settlemen
gation, represent ofportion of debt is p
based on its deferremost of its royalties wAvastin, Herceptin ampany presentationcording to these setompany to resolve on remaining balanthe legal maturity o
DL's European patehalf of 2010). While
mages, including liqcording to the comU.S.-based Sales os made in the U.S. related to Genenteition to the Genentffice opposition. r estimate of net finsecond, totaling $7ilings, The Manual
MA – ROYALTIE
presentation dated
erved.
IMATE OF THE
om royalties)1
expense3
e
od in years5
during 2011-14
e from growth of e
e from potential ro
s during 2011-14
abilities as of 12
bility related to Ge
bility related to ot
uity of PDL BioP
ended Septembe
2010 special div
y 2011. 2 3Q1nts with MedImmunffsets. 3 Estimpaid down over timeed tax assets. will likely cease aro
and Lucentis. PDL'sn from January 201ttlements, PDL will all legal disputes. A
nce on a $300 millioof the note is also dents (royalties on sae Genentech appeauidated damages apany, "PDL may al
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
Pharma10
er 2010)
vidends11
10 G&A expense wne and UCB in Feb
mated based on debe, we keep interest 5 Most of the pate
ound that time. s 1Q-3Q10 revenue1, adjusted for exppay $93 million to
As of yearend 2010on note securitized due in 2015, PDL exales of the Genentears to be seeking aand other monetarylso be entitled to eiroducts." PDL mane plus interest is upuch more conservais involved in vario0 million shares ou 11 PDL paid twin October 2010. Passumptions and e
CT, 2000-2010
AY! www.manualo
VALUE RANGE
0 revenue kept fl
s6
n new drugs
usted)
on8
was $11 million. As bruary 2011 should bt outstanding, inclut expense constant
ents underlying PDL 6 ~80% of PDL's
e related to these thpected cash outflow
MedImmune to res0, PDL had $314 mby Genentech royaxpects to repay theech products that a
a halt in royalty payy remedies set forthther terminate our
nagement has statep to $1 billion [empative and reflect a nous other litigation iutstanding (not incluwo special dividendPDL does not pay restimates.
0 ($ in millions)
Value-oriented Eq
ofideas.com
Conserv
Run-off v(detail
assumptfollow
$345
(44)
(19)
$282
197
3.5
at $690
200
0
$890 mi
(353
(50)
0
$490 mi
$3.50/sh
43%
27%
this included ~$9 mcontribute to lower
uding convertible dt for simplicity. L's royalties are ses 1Q-3Q10 revenuehree drugs grew 27
w/inflow from annousolve all legal dispu
million of convertiblealties (non-recourse note by Septembare made and sold yments related to thh in the 2003 Settlelicense agreement
ed that a "retroactivhasis added]." Whnet liability of $50 mncluding proceedinuding any potentialds in 2010. The firstregular dividends.
quity Investment Id
vative Base
value ed tions
w)
Run-o(de
assumfo
5 $
) (
) (
2 $
7 2
3
0 $
0 3
llion $1,103
3) (3
)
llion $750
hare $5.50
% 2
% 1
million of costs relar legal costs, an on
debt, at yearend 20 4 Assumes PDL m
et to expire in 2013/e is represented by7% y-y. 7 Basunced settlements wutes The settlemene debt outstanding se to the company)er 2012. 8 Thoutside the U.S. ac
hese patents, PDL ement Agreement, ts with Genentech ove royalty rate of 3.ile this may provide
million to be paid tongs related to U.S. shares related to ct special dividend,
eas for Sophisticate
February 28, 2011 – P
e Case Ag
off value etailed mptions llow)
Ru
as
345
20)
19)
306
229
3.5
803
300
0
3 million $1,
353)
0
0
million $1
0/share $8
28%
17%
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
Page 112 of 170
ggressive
un-off value (detailed
ssumptions follow)
$345
(10)
(19)
$316
253
3.5
$884
400
100
384 million
(353)
150
0
1.18 billion
8.50/share
18%
11%
&A may Genentech, expense destly reduce evelops other o fast-growing 10 cash and and UCB in or UCB to pay 11/share) as ertible debt is ech litigation
% 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
S P
S P
S
© 2008-2011 by Beyond
PDL BIOPHARM
Source: Company p
PDL BIOPHARM
Source: Company p
PDL BIOPHARM
Source: Company p
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
ed Investors
Page 113 of 170
©
S
© 2008-2011 by Beyond
Seagate TecTechnology: C
Price: $13.72
52-week rang
Market value:
Enterprise va
Shares out: 4
O
Insider owner
Insider buys (
Insider sales
Institutional o
($ 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
Proxy LLC. All rights res
chnology (STComputer Storag
Trading Data
(as of 2/18/11)
ge: $9.84 - $21.5
: $6.2 billion
lue: $6.3 billion
453.0 million
wnership Data
rship: <1%
(last six months)
(last six months)
wnership: n/a
ept
7/2/
6,2
1,4
me 4
5
1
g) 4
rations 6
6
ments 1,1
ssets 2,4
ts
3,9
t
bilities 1,2
7
2,0
y 1,8
mployed 33
F
erved.
STX) — ESL ge Devices
8
: 0
): 0
Op
/04 7/1/05
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
Feb 0eb 03
SUBSCRIBE TODA
, Glenv
Con
This quarter
Next quarter
FYE 7/2/11
FYE 7/1/12
FYE 7/1/13
LT growth
EPS Surprise
n/a
perating Perform
Fiscal Ye
6/30/06 6/29
9,206 11,
2,137 2,
874
840
1.60 1
495
1,457
1,008
449
1,733 1,
4,333 3,
2,782 2,
9,544 9,
330
3,337 2,
640 1,
4,332 4,
0
5,212 4,
56% 2
ock Price Perfor
Feb 0504
AY! www.manualo
view , P
nsensus EPS E
Latest
n/a
n/a
n/a
n/a
n/a
n/a
Actual
n/a
mance and Finan
ears Ended
9/07 6/27/08
360 12,708
185 3,205
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
737 4,586
28% 52%
rmance and Tra
Feb 06
Value-oriented Eq
ofideas.com
Paulson Dubl
Estimates
Month #
Ago E
n/a
n/a
n/a
n/a
n/a
n/a
Estimate
n/a
ncial Position
7/3/09 7
9,805 1
1,410
(2,665)
(3,125)
(6.40)
488
823
633
190
1,541
4,294
73
7,087
771
3,194
1,926
5,533
0
1,554
-102%
ading Volume Dy
FebFeb 07
quity Investment Id
lin, Ireland, 354-1-618-0
# of P/E FY
Ests P/E FY
n/a P/E FY
n/a P/E FY
n/a EV/ LT
n/a EV/ LT
n/a P / tang
n/a
e LTM EB
LTM pr
LT
7/2/10 12/3
11,395 11
3,204 2
1,740 1
1,609 1
3.14
491
1,932 1
639 1
1,293
2,515 2
5,418 5
38
8,247 8
329
2,997 3
2,173 2
5,523 5
0
2,724 2
69% 5
ynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
517 w
Valuation
YE 7/2/10
YE 7/2/11
YE 7/1/12
YE 7/1/13
M revenue
M EBIT
gible book
Greenblatt Crit
BIT yield
re-tax ROC
TME FQE
1/10 1/1/10
,121 3,027
,708 923
,377 578
,196 533
2.37 1.03
486 498
,653 753
,007 103
646 650
,814 2,092
,826 4,881
0 0
,658 7,388
560 96
,178 2,793
,365 1,895
,882 5,053
0 0
,776 2,335
58% n/m
Feb 10
ed Investors
Page 114 of 170
ww.seagate.com
4x
n/a
n/a
n/a
0.6x
5x
2.2x
eria
22%
58%
FQE
12/31/10
2,719
529
206
150
0.31
469
507
202
305
2,814
5,826
0
8,658
560
3,178
2,365
5,882
0
2,776
n/m
Feb 11
©
BS I
I
*
ma
MC9
TDau“aw
© 2008-2011 by Beyond
BUSINESS OVESeagate manufa
NVESTMENT H World
the Demillion10 mil(~30%and m
Surprbusinerevenuflow raverag
ShareFY07-This aleadinunit grdecent
Chairfocuseto shar
$2.7 bcarryf$1.9 b
ESL’s
NVESTMENT R Pricin
comperising cyclesby 30%
VarioindepeDigitaand alt
Reliesalumin
Intellevariou
Hard disk drives amagnetic surfaces. alternative products
MAJOR HOLDERCEO Luczo 2%9% | BlackRock
THE BOTTOM LIDisk drive maka capital-intensunderappreciate“discussions wiaround the sustwith shares trad
Proxy LLC. All rights res
RVIEW actures hard di
HIGHLIGHTS d’s largest proecember 2010 qn enterprise unillion units for c
%), and 32 millimobile computinrisingly resilieess through thue have been vemained positi
ging ~$780 miles trade at a lo-10 free cash f
appears attractivng scale and tecrowth despite ct balance sheet
rman and CEOed on cash genreholders. Luc
billion of U.S. fforwards as of
billion state ands Lampert bou
RISKS & CONCEng pressure duetition. While demand for digand industry ri
% since 2006. us sources of endent disk drial), large captivternative storags on few supplnum/glass subsectual propertus companies inare devices that stoWhile they are oft
s include flash mem
RS % | Other insidek 7% | Clearbr
INE ker Seagate hassive and compee the strong maith private equtainability of diding at a low-te
erved.
isk drives.
ovider of hardquarter, Seagatits (~50% of mconsumer election units for trng applicationsnt and cash-fl
he cycle. Whilevolatile since 20ive throughout llion annually d
ow-teens FCF flow (10% trailve given Seagachnology, conticompetitive thrt (~$100 millioO Stephen Lucneration and rzo and other infederal tax nef July 2010. Sed $589 million ught 4 million
ERNS ue to technologshipments havegital data storagivalry have drivThis is likely tcompetition inve producers (
ve manufacturege makers (e.g. liers for some strates and rarety litigation wncluding Siemeore digital data on ften used as a primmory, tape, optical a
ers 1% | FMR 1ridge 5% | LSV
s shown it can getitive industryarket position tity firms regarisk drive growteens FCF yield
SUBSCRIBE TODA
d disk drives.*
te shipped 7 market shipment
tronic devices aditional deskts (~25%). low generativee shipments an007, free cash the period,
during FY07-1yield on averaling FCF yieldate’s market-inued disk drivreats, and a
on of net debt).czo (53) has
return of capitnsiders own 3%et operating loeagate also hasnon-U.S. NOL shares in 4Q1
gical change ae grown based ge, short producven ASPs downo continue. ncluding other e.g. Western
ers (e.g. HitachEMC, SanDiskinputs such as
e earth elementwith the MIT an
ens and Ramburotating disks with
mary storage mediuand solid-state driv
13% | WellingtV 3% | Iridian 2
generate signify. While capablthe business ocding a going pth in the face o
d on average fr
AY! www.manualo
In
ts),
top
e nd
10. age
d).
ve
tal %. ss
Ls. 10.
and on ct n
hi) k). s ts. nd us. h
um, ves.
ton 2%
SELECTE
FYE June∆ unit shi∆ averag∆ revenuRevenue % of reveOEMs DistributoRetailers % of reveAsia PaciAmericasEMEA Selected Gross proR&D EBIT Net incomNet cash D&A Capex Unit shipm% of unit Client comClient nonEnterpriseASP per Return onTangible ∆ shares
1 Financial2 Based on3 Stated af4 FY06/07 5 Disk drive6 Disk drivegaming de7 Disk drive
COMPAR
EMC
SNDK
WDC
STX
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
ficant free cashle and incentiviccupies. It is thrivate transacti
of alternative stree cash flow d
Value-oriented Eq
ofideas.com
D OPERATING
e 30 20ipments 2
ge selling price e 22 ($bn)
enue by channel: 72
ors 25 3enue by geography:2ific 43
s 3027
items as % of revenofit 23
99
me 9 from ops 16
71
ments (mn) 1 shipments by type:4mpute5 73n-compute6 15e7 12unit ($) n tang. equity 33 equity/assets 42 out (avg) 6ls reflect results fron the shipping locatfter goodwill impairbreakdown and FYes designed for traes designed for co
evices and disk drives designed for mis
RABLE PUBLIC
MV EV($mn) ($m
56,000 54,0
12,050 10,9
7,700 4,9
6,210 6,3
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
h flow through ized managem
herefore not surion” (discussiotorage technolo
during 2007-10
quity Investment Id
DATA1
006 2007 20081% 34% 15%1% -9% -4%2% 23% 12%9.2 11.4 12.7
2% 64% 67%5% 30% 26%3% 6% 7%2 3% 43% 43%0% 30% 30%7% 27% 27%nue: 3% 19% 25%9% 8% 8%9% 5% 11%9% 8% 10%6% 8% 20%7% 7% 7%1% 8% 7%119 159 1834 3% 74% 69%5% 16% 15%2% 10% 15%78 71 68
3% 39% 55%2% 35% 31%6% 13% -8%
om Maxtor from its tion of the custome
rments. Y06-08 growth rateaditional desktop annsumer electronic
ves used for direct-ssion- and busines
COMPANY AN P
V EV / Tamn) Rev. Bo
070 3.2x 14
910 2.3x 2
940 .5x 1
320 .6x 2
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
the cycle. Thiment has helped
rprising that Seons ended in laogies may be l
0, these concern
eas for Sophisticate
February 28, 2011 – P
8 2009 2010% -10% 18%% -13% -2%% -23% 16%7 9.8 11.4
% 64% 71%% 27% 21%% 9% 8%
% 45% 52%% 28% 26%% 27% 22%
% 14% 28%% 10% 8%% -4%3 15%% -32% 14%% 8% 17%% 9% 7%% 6% 6%3 164 193
% 70% 70%% 16% 17%% 14% 13%8 59 58
% -170% 77%% 25% 27%% -5% 1%acquisition in May er.
es are estimated. nd mobile applicatiodevices such as DV
-attached storage (ss-critical applicatio
NALYSIS P / This Neang. FY Fook P/E P
4.0x 18x 1
.1x 12x 1
.6x 11x 9
.2x n/a n
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
s is despite oped, investors seeeagate was rec
ate 2010). Concegitimate. Howns appear disco
ed Investors
Page 115 of 170
0 YTD
12/31/10 % 2% % -7% % -5% 4 5.4
% 69% % 22% % 9%
% 50% % 29% % 21%
% 20% % 8% % 8% % 6% % 14% % 7% % 10% 3 98
% 66% % 20% % 14% 8 54
% 24% % 32% % -5%
2006.
ons. VRs and DAS).
ons.
ext FY P/E
6x
2x
9x
n/a
erating in em to also ently in cerns wever, ounted.
©
S
1 FcampmbdimS S
S
© 2008-2011 by Beyond
SEAGATE TECHN
($ in billions)
Valuation metho
Normalized reve
Normalized EBI
Estimated norm
Fair value multip
Estimated enter
Minus: Net debt
Minus: Litigation
Estimated fair
Implied valuatio
FCF yield
Earnings yield
EV-to-EBITDA
EV-to-EBITDA m
EV-to-EBIT
EV-to-revenue
Implied valuatio
FCF yield
EV-to-EBITDA
EV-to-EBITDA m
EV-to-EBIT
EV-to-revenue
Other valuation
Implied fair valu
Implied EV per
Implied EV per
Average selling
Average revenue dFY09 (fiscal yearenconsidered conservassets in FY09), witmargin for the year period, due to a gromillion). Average neby the MIT as well adiligence is requiredmpairment of goodwSource: Company f
SEAGATE TECHN
Source: Company p
Proxy LLC. All rights res
NOLOGY – OU
odology
enue1
T margin2
malized EBIT
ple
rprise value
t3
n liability4
value of the equ
on metrics based
minus capex
on metrics based
minus capex
metrics:8
ue of the equity to
employee ($)
unit shipped in F
price per unit in
during FY07-10 (fod is June). Revenu
vative in the historicth a peak of 15% inended December 2
oss margin decline oet debt may be highas numerous compd. 5 Based onwill where applicabilings, The Manual
NOLOGY – FRE
presentation dated
erved.
R ESTIMATE O
uity of Seagate5
d on trailing financ
d on average fina
o tangible book
FY10 ($)
FY10 ($)
ollowing the acquisiue for the year endecal context. 2 An FY10 and a troug2010 is 12% (howeof ~800 bps). her than the yearenanies including Sie 470 million diluted
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
nd figure due to seaemens, Rambus, and shares outstandinon latest available fassumptions and e
, FISCAL Q2 20
AY! www.manualo
FAIR VALUE RA
Co
8xnorm
$
$11.
Y07-10:7
Y06) was $11.3 bill0 is $11.1 billion. Ourgin during FY07-10after adjusting for t
% in the seasonally eet values as of Decasonality. 4 Send Convolve amon
ng. 6 Based onigures. FY10 is for
estimates.
011
Value-oriented Eq
ofideas.com
ANGE
onservative
x estimated malized EBIT
$10.0
7.5%
$0.8
8.0x
$6.0
(0.1)
(0.5)
$5.4 billion
.50 per share
12%
22%
2.8x
5.3x
4.4x
0.5x
15%
3.5x
5.9x
7.1x
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
quity Investment Id
Base Cas
10x estimatnormalized E
$10.0
7.5%
$0.8
10.0x
$7.5
(0.1)
(0.3)
$7.1 billio
$15.20 per sh
9%
17%
3.5x
6.6x
5.4x
0.7x
11%
4.4x
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
ation liability estimaDecember 2010. uly 2, 2010.
eas for Sophisticate
February 28, 2011 – P
e Agg
ted EBIT
12x enorma
$
7
1
n $8.9
hare $18.90
1
6 $1
Y07 and a trough of10.0 billion may thef goodwill and otherlong-lived assets).
pared to 14% in thed cash and investmlectual property law
ates are a guess; fu 7 FY09 financia
ed Investors
Page 116 of 170
gressive
estimated alized EBIT
$10.0
7.5%
$0.8
12.0x
$9.0
(0.1)
(0.0)
9 billion
0 per share
7%
13%
4.2x
7.9x
6.5x
0.8x
9%
5.3x
9.7x
10.6x
0.8x
3.2x
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
S S
S
© 2008-2011 by Beyond
SEAGATE TECHN
Source: Company p
SEAGATE TECHN
Source: Company p
Proxy LLC. All rights res
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
quity Investment Ideas for Sophisticate
February 28, 2011 – P
ed Investors
Page 117 of 170
©
S
© 2008-2011 by Beyond
Sprint NextServices: Com
Price: $4.50 (
52-week rang
Market value:
Enterprise va
Shares out: 2
O
Insider owner
Insider buys (
Insider sales
Institutional o
($ 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
Proxy LLC. All rights res
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
bilities 6,90
15,9
27,55
24
y 13,52
mployed -9
FFeb 02
erved.
hou , Golervices, Membe
n
: 0
): 1
Op
F
04 2005
47 28,771
09 16,234
99) 2,141
28) 1,778
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
Feb 0504
AY! www.manualo
, Greenlig
nsensus EPS Es
Latest
-$0.21
-0.18
1 -0.79
2 -0.59
3 -0.03
0.9%
e Actual
-$0.29
mance and Finan
ed December 31
007 2008
146 35,635
955 18,889
740) (2,642)
444) (2,796)
.24) (0.98)
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
Feb 06
Value-oriented Eq
ofideas.com
ight Overla
stimates
Month #
Ago Es
-$0.19 2
-0.16 2
-0.73 2
-0.47 2
0.01 1
0.9% 2
Estimate
-$0.30
ncial Position
,
2009 2
32,260 32
15,825 15
(1,398) (
(2,436) (3,
(0.84) (1
2,886 2
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
18,095 14
-7%
ading Volume Dy
FebFeb 07
quity Investment Id
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
LTM
2010 12/31/
2,563 32,5
5,071 15,0
(595) (59
,465) (3,46
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
eas for Sophisticate
February 28, 2011 – P
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
4% n/m
Feb 10
ed Investors
Page 118 of 170
www.sprint.com
n/m
n/m
n/m
n/m
0.9x
n/m
n/m
eria
-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
©
BS I
I
C
TTmthrh
© 2008-2011 by Beyond
BUSINESS OVESprint Nextel p
NVESTMENT H #3 U.S
custom(94 mi
2010 Fwithoflow blosses
Margiadjust18% insmalle
May rthe creto adju($2.4 b
Ownsan indfootprcoversto comHSPA
Dan Hreducexpand
U.S. w3% Coffset
NVESTMENT R Challe
ongoinas marLess s
Capexnetwowell a2011 c
$14.7
COMPARABLE P MV ($mn)
VZ 103,520
Q 11,990
PCS 4,750
S 13,440
THE BOTTOM LIThe share pricemerger integrathe form of mu
rival T-Mobile high-teens FCF
Proxy LLC. All rights res
RVIEW provides comm
HIGHLIGHTS S. wireless sermers,* behind Aillion), ahead oFCF yield in thut likely EBIT
benefits from loand lower rece
in expansion oed EBITDA mn 2010 (2009: 2er T-Mobile anreinstate dividedit facility prousted EBITDAbillion in 2010 large, next-ge
dustry with scarrint, including as ~110 million mpete against riA+ (AT&T/T-MHesse (56), whed churn by imding the produ
wireless industAGR 2010-15by SMS/voice
RISKS & CONCEenges to EBITng requirementrketing and othscale versus ATx requirementrk buildout/mas regulatory ancapex guidancebillion of net
PUBLIC COMPA
EV E($mn) R
0 149,100 1
0 23,570 2
0 7,190 1
0 28,160
INE e of U.S. wireletion problems alti-year bests fUSA, shares m
F yield is attrac
erved.
munications serv
rvice provider AT&T (96 milof T-Mobile UShe high-teens iTDA improvemow cash taxes dent capex relatopportunity. S
margin on servic20%). This comnd 40+% at ATdends/share buohibits dividen
A is >2.5x, furth0) could enableeneration wirerce spectrum. Sa stake in Cleapoints of preseival “4G” techn
Mobile) and LTo became CEOmproving custo
uct lineup to Antry service rev5, driven by 19%e declines (sour
ERNS TDA margin ets for handset sher costs, to staT&T/Verizon its may increasaintenance costnd technology-e is $3 billion (debt (2.6x 201
ANY ANALYSIS P /
EV / Tang. Rev. Book
1.4x n/m
2.0x n/m
1.8x 295.0x
.9x n/m
ess communicaand a weak ecofor new custommay be worth twctive (at recent
SUBSCRIBE TODA
vices in the U.S
with 50 milliollion) and VerizSA (34 millionis attractive evments. Free cadue to GAAP tive to 2006-08Sprint’s wirelesce revenue was
mpares to 25+%&T and Verizouybacks. Whilds as long as dher debt paydo capital return.eless networksSprint’s WiMArwire (CLWR)ence, enabling nologies such
TE (Verizon). O in 2007, hasomer service android devices.venue to grow% data growthrce: T-Mobile)
xpansion inclusubsidies, as way competitive.s a disadvantagse given high ts, competitionrelated risks.**
(up 25+% y-y)10 adj. EBITDA
S This Next FY FY P/E P/E
16x 14x
16x 16x
20x 14x
n/m n/m
ations provideronomy. Turnar
mers and churnwice recent pricapex). Assum
AY! www.manualo
S.
on zon
n). ven ash
8. ss s
% at on. le debt wn . s in
AX ), it as
s nd
at h, .
ude well
. ge.
n, as . A).
SELECTEFYE Dece∆ wireles∆ wireles∆ wireles∆ wireles∆ total wi∆ wireles∆ revenu∆ employRevenue % of reveWireless3
Wireline Adj. EBITWireless Wireline
Total aSelected Gross proEBIT5 Net incomNet cash D&A Capex InvestmeFCF afterWireless % of wirePostpaid Prepaid WholesalMonthly wPostpaid Prepaid Tangible ∆ shares
1 FinancialMobile USClearwire (which was2 2006 dec3 ~90% of 4 ExcludesAlso exclu5 Excludes6 Book valu MAJOR Insiders RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO * 66% of w** The com
r Sprint Nextel round efforts byin 2010. If wirices. Even if E
ming further de
Value-oriented Eq
ofideas.com
D OPERATING cember 31 ss postpaid ARPU2 ss prepaid ARPU2
ss postpaid customess prepaid customersireless customers
ss retail service revee
yees2 ($bn)
enue by segment: 3
TDA margin by segm adj. EBITDA margin items as % of revenofit
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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
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
-11% -9rs 13% -3s 53% 14
12% 0nue 12% 0
43% -2-19% -741.0 40
86% 8614% 14
ment:4 20% 2918% 20
20% 27nue:
59% 576% 22% -73
25% 2323% 2218% 16
2% 2) 1.7 2
53.1 53type:
79% 778% 9
14% 14ustomer type:
2.2% 2.26.2% 6.8-18% -1645% -3
able due to acquisitribution of the next nt-Nextel merger (2Certain 2006 y-y fig
Embarq spin-off. 20etail service revenuosts, impairments, f Clearwire and othent and contributions is subtracted from
4% | Dodge & C
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s(contract) versus p
WiMAX, CDMA an
from $20+ in 2are finally showcan be improveflat at the depr
dividends or bu
eas for Sophisticate
February 28, 2011 – P
07 2008 20093% -5% 0%9% 0% 10%3% -10% -7%4% -21% 197%0% -9% 0%0% -11% -8%2% -11% -9%7% -7% -29%0.1 35.6 32.3
6% 85% 86%4% 15% 14%
9% 22% 19%0% 23% 27%7% 22% 20%
7% 53% 49%2% -5% -4%3% -8% -8%3% 17% 15%2% 24% 23%6% 11% 5%2% 2% 2%2.1 1.5 2.73.0 48.3 48.1
7% 76% 71%9% 7% 22%4% 17% 7%
2% 2.2% 2.2%8% 8.4% 6.3%6% -8% -17%3% 0% 1%ions of PCS affiliatgeneration wireles
2005). Financials exgures are pro-form010 figure is estimaue; rest mostly equiand merger/integraer equity-method inn of equity-method
m equity and assets
Cox 8% | Black
market value? manent loss? ivized? ? d capital?
mproving? secular trends? pre-paid, wholesalend iDEN technolog
2006 as a resultwing signs of sed to the level oressed 2010 levuybacks may so
ed Investors
Page 119 of 170
9 2010 % -2% % -15% % -3% % 15% % 4% % 2% % 1% % -3% 3 32.6
% 88% % 12%
% 16% % 27% % 17%
% 46% % -2% % -11% % 15% % 19% % 6% % 1% 7 2.4 1 49.9
% 66% % 25% % 9%
% 2.0% % 5.4% % -28% % 4% es and Virgin ss network to xclude Embarq a for Nextel.
ated. ipment sales. ation costs. nvestments. investments.
s.
kRock 8%
e or affiliate. gies.
t of Nextel success in of smaller vel, the oon follow.
©
S
1 2 gs3 lic4 5 6 7 s8 (Co9 10
11
S
© 2008-2011 by Beyond
SPRINT NEXTEL
($ 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
Proxy LLC. All rights res
L – OUR ESTIM
odology
ess:
venue1
TDA margin2
TDA
zed capex3
malized EBITDA m
ple
rprise value of wi
ss:
enue4
TDA margin5
TDA
zed capex6
malized EBITDA m
ple
rprise value of wi
l enterprise val
counted investme
t (12/31/2010)
t-retirement liabil
value of the equ
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 $
omer11
e in 2010, with the rdjusted EBITDA divtion expenses. Sprd Verizon.
% 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
AY! www.manualo
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
10.0x
$4.5
$29.8
0.0
(14.7)
(0.4)
$15 billion
$4.90 per share
16%
14%
5.3x
0.9x
$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.
Value-oriented Eq
ofideas.com
Ba
A .0
es nus
CC e)
10x norma
minus cbillion (asservice Eexpansio
17.5
$3
$10.3
uipment sales. pment revenue). Adsted EBITDA margi
Average 2006-10 wpex guidance is "a
illion (~6% of wireliant historically. Acc
earend 2010. The nterest separately, contribution from eqed benefit obligatio
, 25% pre-paid and
quity Investment Id
ase Case
x estimated lized EBITDA capex of ~$4.5 ssumes wireless EBITDA margin on to 25%, from 5% in 2010)
$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%
7%
8.1x
1.4x
$919
$616
djusted EBITDA exin on service reven
ireless capex, inclupproximately $3 bi
ine revenue). cordingly, the comb
main component isas we assume it is
quity-method investons was $1.6 billion
d 9% wholesale/affi
eas for Sophisticate
February 28, 2011 – P
Aggre
10x estnormalized
minus capebillion (assumservice EBITexpansion to
17.5% in
$25
30.0
$7
(3.
$4
10.
$47
$4
30.0
$1
(0.4
$0
10.
$8
$55
0.
(14
(0.4
$41 b
$13.60 pe
6%
5%
9.9
1.7
$1,1
$81
xcludes severance, nue compares to 25
uding expenditure ollion" including wire
bined wireless and
s an interest in Cleas effectively reflectetments including Cn.
liate).
ed Investors
Page 120 of 170
ssive
imated d EBITDA ex of ~$5.5 mes wireless TDA margin o 30%, from n 2010)
5.9
0%
.8
0)
.8
0x
7.7
.0
0%
.2
4)
.8
0x
.0
5.7
0
.7)
4)
illion
er share
%
%
9x
7x
116
13
exit costs, 5+% at
on FCC eline and
wireline
arwire ed in the value learwire).
©
S
* S
I
* S
I
1 S
© 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
Proxy LLC. All rights res
L – FREE CASH
rovided by operatintel presentation dat
NNUAL POSTP
ro-forma results fortel presentation dat
EVENUE AND P
A OIBDA margin in %SA investor day pr
erved.
FLOW, 2009-
g activities less theted February 10, 20
AID SUBSCRIB
r 2005, Verizon Proted February 10, 20
PROFITABILITY
% of service revenesentation, dated J
SUBSCRIBE TODA
10
e cash used in inve011.
BER CHANGE V
o-forma results for 011.
Y DEVELOPMEN
ues (US GAAP) forJanuary 20, 2011.
AY! www.manualo
esting activities othe
VERSUS PRIOR
2008-2010 and T-M
NT IN U.S. MO
r better comparabil
Value-oriented Eq
ofideas.com
er than short-term
YEAR, 2006-1
Mobile Q4 consens
OBILE MARKET,
lity with the other U
quity Investment Id
investments and eq
10 *
sus estimates.
, 2009-10 *
US carriers.
eas for Sophisticate
February 28, 2011 – P
quity method inves
ed Investors
Page 121 of 170
stments.
©
V
© 2008-2011 by Beyond
Vulcan MatCapital Goods
Price: $46.73
52-week rang
Market value:
Enterprise va
Shares out: 1
O
Insider owner
Insider buys (
Insider sales
Institutional o
($ 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
$20
$40
$60
$80
$100
$120
$140
Proxy LLC. All rights res
terials (VMC: Construction -
Trading Data
(as of 2/18/11)
ge: $35.40 - $59.
: $6.0 billion
lue: $8.7 billion
28.4 million
Ownership Data
rship: <1%
(last six months)
(last six months)
wnership: 89%
ept
2
2
me
g)
rations
ments
ssets 1
ts
3
t
bilities
1
y 2
mployed
FFeb 02
erved.
C) — South- Raw Materials
90
: 5
): 6
Op
F
2004 2005
2,454 2,895
583 709
410 477
287 389
2.52 3.31
102 102
581 473
204 216
377 258
451 450
,418 1,165
600 676
3,665 3,590
3 272
427 571
605 323
,651 1,457
0 0
2,014 2,134
20% 23%
Ten-Year Sto
Feb 0eb 03
SUBSCRIBE TODA
heastern ,, Member of S&
Con
This quarter
Next quarter
FYE 12/31/1
FYE 12/30/1
FYE 12/30/1
LT growth
EPS Surpris
2/2/11
perating Perform
Fiscal Years End
2006 200
3,343 3,32
932 95
695 7
470 45
4.81 4.6
98 9
579 70
435 48
144 22
55 3
731 1,15
691 3,9
3,428 8,93
200 2,12
488 2,52
322 1,53
1,417 5,17
0
2,011 3,76
33% 22
ock Price Perfor
Feb 0504
AY! www.manualo
, Weitz &P 500
nsensus EPS Es
Latest
-$0.49
r 0.10
1 -0.36
2 0.21
3 1.57
10.6%
e Actual
-$0.36
mance and Finan
ed December 31
07 2008
28 3,651
51 750
14 249
51 1
66 0.03
97 110
08 435
83 353
25 82
35 47
57 894
11 3,759
36 8,917
27 1,394
28 1,663
30 2,154
77 5,363
0 0
60 3,554
2% 5%
rmance and Tra
Feb 06
Value-oriented Eq
ofideas.com
Birmingh
stimates
Month # of
Ago Ests
-$0.43 15
0.14 15
-0.13 19
0.81 16
n/a 3
9.5% 5
Estimate
-$0.18
ncial Position
1,
2009 20
2,691 2,5
446 3
149 (1
30 (9
0.16 (0.8
119 1
453 2
110
343 1
26
733 7
3,779 3,7
8,525 8,3
622 2
857 5
2,116 2,4
4,488 4,3
0
4,037 3,9
3% 0
ading Volume Dy
FebFeb 07
quity Investment Id
ham, AL, 205-298-3000
f P/E FYE 1
s P/E FYE 1
P/E FYE 1
P/E FYE 1
EV/ LTM re
EV/ LTM E
P / tangible
G
LTM EBIT
LTM pre-ta
LTME
010 12/31/1
559 2,55
301 30
15) (15
96) (97
80) (0.80
28 12
203 20
86 8
16 11
48 4
772 77
789 3,78
338 8,33
291 29
566 56
428 2,42
373 4,37
0
965 3,96
0% 0%
ynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
www.vulc
Valuation
2/31/10
2/31/11
2/30/12
2/30/13
evenue
EBIT
e book
Greenblatt Criter
yield
ax ROC
E FQE
0 12/31/09
59 590
1 68
5) 1
7) (13)
0) (0.10)
8 126
3 98
6 16
6 83
8 26
2 733
9 3,779
8 8,525
1 622
6 857
8 2,116
3 4,488
0 0
5 4,037
% n/m
Feb 10
ed Investors
Page 122 of 170
anmaterials.com
n/m
n/m
223x
30x
3.4x
n/m
34.0x
ria
0%
0%
FQE
12/31/10
586
51
(30)
(47)
(0.36)
129
75
24
51
48
772
3,789
8,338
291
566
2,428
4,373
0
3,965
n/m
Feb 11
©
BV I
I
*
V**
TAohar
© 2008-2011 by Beyond
BUSINESS OVEVulcan provide
NVESTMENT H #1 U.S
whichin dowis alsobough
High win maadvantreserv
Ownsreservlocatio
EquitydemanAggreprior paggreg
~50%and mhighwwater/comm
“Expeincreakey dr
Maintgenera
NVESTMENT R Valua
normaadj. EBAvera3% yiebenefi
$2.7 bat yearin Deccapex
“To dsignifibased aggregin 201
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
Proxy LLC. All rights res
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 $300 mil125 million (upomic recovery
some of our knt comments innd shipments dness in Florida
alt mix and 78% of largely supplied frontribution from Flo
nstruction aggrmodity nature of
aggregates andnd financial levearnings. Given
SUBSCRIBE TODA
he U.S.
aggregates, venue, including
erations.* Vulcin Florida afterion in 2007. gregates resultre. Given its scl as own aggreg
modity player.bable stone . The competit
e barriers to entprovement in als in the U.S. roughly half ofings per ton of
higher versus ’0re used to buildojects includinrailroads, and
nclude residentg construction.nd pricing to owth in 2011.”
ulus funding. h the downtur
116 million in ‘
turn to more erage 2006-10 k in 2007).
million implies an 2009, which lows).** adj. EBITDA
nt debt maturitylion is due. 20
p 45% y-y). has not had a
key end marken February. Bodeclined 2% y-a and Californiaf concrete by weighom its own aggregaorida Rock Industr
regates, Vulcanf aggregates, thd control over sverage to an imn a weak balan
AY! www.manualo
g can r it
ts cale gate
tive try.
f f 06). d ng
ial,
” A
rn, 10.
a
A) y is 11
a ets” oth -y a.
ht. ates. ries.
SELECTEFYE DeceΔ aggregΔ aggreg∆ revenuRevenue % of reveAggregatConcreteCement6 Gross maAggregatConcreteCement
Total gSelected EBIT (excNet incomNet cash DD&A Capex Unit ShipAggregatConcreteAsphalt mCement (Average AggregatReady-mAsphalt mCement Tangible ∆ shares
1 Vulcan a2 Freight-aremote dis3 Excludes4 Produces5 Aggregat6 Produces
COMPAR
MLM
VMC
MAJOR CEO Jam9% | Pri RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
n provides basihe company’s ostrategically lo
mproving U.S. ence sheet, the ris
Value-oriented Eq
ofideas.com
D OPERATING cember 31 gates tons shipped gates avg unit sale pue ($bn)3
enue by segment: tes4
e/asphalt5 argin by segment: tes
e/asphalt
gross margin items as % of revencl. special items) me from ops
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
6,000 8,67
HOLDERS mes 1% | OtherimeCap 6% | S
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
ic materials essoperations hav
ocated rock reseconomy, the rsk-reward does
quity Investment Id
DATA1 2006 20-1% -1
rice2 n/a 116%
3.0
75% 725% 2
0%
36% 315% 1n/m n
31% 3nue:
22% 215% 119% 2
7% 14% 1
ternal shipments): 242 2
2,893 2,512
n/m (includes internal sa)2 8.30 9
90.37 9543.12 48
n/m 9349% 1-5% -
ock Industries for $3sales dollars (internded by total sales uwhich has a grossnd, gravel and othet’s production are a
a, mainly for use in
COMPANY AN P
EV / Tann) Rev. Boo
60 2.9x 5.1
70 3.4x 34.0
r insiders 1% | outheastern 5%
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
sential to the eve significant loerves. While sorecent valuations not strike us a
eas for Sophisticate
February 28, 2011 – P
007 2008 200% -14% -263% 7% 32% 12% -263.1 3.5 2
75% 64% 6625% 35% 33
0% 2% 1
36% 30% 246% 6% 7n/m 34% -5
31% 22% 18
21% 12% 55% 0% 1
23% 13% 189% 11% 166% 10% 4
219 188 1584 6,350 4,3
11 10 80 595 2
ales): 9.35 9.98 10.5.56 97.78 96.8.47 55.94 52.3.85 96.75 95.5% -4% 1
-1% 13% 83.3 billion cash/stocal and external) les
units (internal and es margin of zero. er aggregates, mainalmost wholly suppown concrete/asph
NALYSIS / This Ne
ng. FY FYok P/E P/E
1x 36x 27
0x n/m >99
T. Rowe 9% | S% | Dodge & C
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
conomic infrasocal moats dueome investors n already appe
as attractive.
ed Investors
Page 123 of 170
009 2010 6% -2% 3% -2% 6% -5% 2.5 2.4
6% 67% 3% 31% 1% 2%
4% 20% 7% -2% 5% -10% 8% 12%
5% -1% 1% -4% 8% 8% 6% 16% 4% 4%
39 136
337 4,138 7 7
262 301
30 10.13 53 86.95 66 50.58 70 79.27
1% 5% 8% 8% ck in 2007. ss freight to external).
nly in the U.S. plied internally. halt business.
xt Y E
7x
9x
State Farm Cox 5%
structure e to the may be
ears to
©
V
1 2am3 lov6 yFS
V
S
© 2008-2011 by Beyond
VULCAN MATER
($ 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
Implied valuatio
EV-to-EBITDA (
Other valuation
Implied fair valu
Implied dividend
Average EBITDA, 2006-10 financials dassumption of mainmaintain operations
Vulcan deserves aocal moats due to tvalues of pension a
Based on the yearyears. Financials doFlorida Rock IndustSource: Company f
VULCAN MATER
Source: Company p
Proxy LLC. All rights res
RIALS – OUR E
odology
TDA1
zed capex2
malized EBITDA m
ple3
rprise value
t (12/31/10)
t-retirement liabil
value of the equ
on metrics based
(excl. special item
minus capex
on metrics based
(excl. special item
minus capex
on metrics based
(excl. special item
metrics:
ue of the equity to
d yield9
excluding special ido not include a fultenance capital ex
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
RIALS – AGGR
presentation dated
erved.
ESTIMATE OF T
minus capex
ity4
uity of Vulcan M
d on trailing financ
ms)
d on average fina
ms)
d on peak financia
ms)
o tangible book
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
ncials during 200
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
AY! www.manualo
IR VALUE RAN
Co
12x $e
normm
$
$4
06-10:7
-10, with a peak ofes acquired in Novalized" EBITDA. Th2009 and 2010, re
the fact that it is noover strategically loenefit obligation wa
of "through-the-cycls acquired in Novemalizing the latest qu
estimates.
Value-oriented Eq
ofideas.com
NGE
onservative
$725 million of estimated alized EBITDA
minus capex
$800
(75)
$725
12.0x
$8,700
(2,671)
(322)
$5.7 billion
44 per share
2%
25x
32x
3.6x
3%
12x
21x
3.0x
9x
32x
2%
f ~$930 million in 2vember 2007. he 2009-10 period iespectively. Managot just a commodityocated, long-life rocas ~$0.7 billion). le" economics as 2mber 2007. 8
uarterly dividend of
quity Investment Id
Base Cas
12x $800 milliestimated
normalized EBminus cape
$900
(100)
$800
12.0x
$9,600
(2,671)
(322)
$6.6 billio
$51 per sha
2%
27x
36x
4.0x
3%
14x
24x
3.3x
10x
37x
2%
007 and a trough o2 Normalized cape
is likely a good indement's 2011 cape
y player. The compack reserves. 4
5 Based on 1292006-07 were "boom8 Financials do not f $0.25 per share.
eas for Sophisticate
February 28, 2011 – P
e Agg
on of d BITDA ex
12x $87est
normalizminu
$
(
$
1
$1
(2
(
n $7.5
are $58 p
of $355 million in 20ex is intended to reficator of capex reqex guidance is ~$1any’s operations ha4 Based on balance9 million shares oum" years and 2009include a full contri
ed Investors
Page 124 of 170
gressive
75 million of timated zed EBITDA us capex
$1,000
(125)
$875
12.0x
10,500
2,671)
(322)
5 billion
per share
2%
30x
39x
4.4x
2%
15x
26x
3.6x
11x
43x
2%
010. Average flect our uired to 25 million. ave significant e sheet
utstanding. 9-10 "bust" ibution of
©
I
S V
L
S
© 2008-2011 by Beyond
NDUSTRY FUN
Source: Company p
VULCAN MATER
Latest highway
Source: Company p
Proxy LLC. All rights res
NDAMENTALS –
presentation dated
RIALS – U.S. F
y funding proje
presentation dated
erved.
– U.S. AGGREG
November 2010.
EDERAL HIGHW
ction by Congr
November 2010.
SUBSCRIBE TODA
GATES
WAY FUNDING
ressional Budg
AY! www.manualo
G
get Office, 2009
Value-oriented Eq
ofideas.com
9-2013
quity Investment Ideas for Sophisticate
February 28, 2011 – P
ed Investors
Page 125 of 170
©
W
© 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
Proxy LLC. All rights res
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
12/2
me
(
g)
rations
ments
ssets
ts
1
t
bilities
y
mployed
FFeb 02
erved.
N) — Southeer of S&P MidC
a
: 3
): 0
Op
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
ofideas.com
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
eas for Sophisticate
February 28, 2011 – P
4100 www.w
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
Page 126 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
2,175
n/m
Feb 11
©
BW
Wsa
AOa I
I
C
TLtoaB
© 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
behindWendy
“ExplincludJanuaris worWEN
Modegoing-WEN’Arby’
Guidi$345-3and Gtargeteinitiati
Nelsonbeen cwith W
NVESTMENT R Declin
and alEBITDand coawaren
Execuwhich20% odue on
$1.1 b
COMPARABLE P MV ($mn)
MCD 80,430
YUM 23,920
JACK 1,250
SONC 580
WEN 2,040
THE BOTTOM LILess than threeo focus on We
and seems inceBurger King’s r
Proxy LLC. All rights res
RVIEW ’s operates and
#3 U.S. fast-foof a total ~6,550company-opera
2 U.S. sandwich~3,660 stores, ~perated (of wh
HIGHLIGHTS dy’s is #3 burgd McDonald’s y’s accounts foloring strategiding a sale of try. Proceeds frrth ~$400 millimarket value),stly undervalu-private multi’s recent EV-tos historical proing for pro for355 million in &A reductionsed at 10-15% pives: breakfast n Peltz and affchairman sinceWendy’s to cre
RISKS & CONCEning system-wlready high coDA growth depompetition in thness globally, a
ution risk tied h has not grownof Arby’s francn royalty or othbillion of net d
PUBLIC COMPA
EV EV) ($mn) Re
0 89,370 3.
0 26,080 2.
0 1,550 .7
0 1,100 2.
0 3,100 .9
INE years after Ne
endy’s. While tntivized to marecent LBO mu
erved.
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
.0x n/m 1
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)
S This Next FY FY P/E P/E
15x 14x
18x 16x
15x 13x
18x 15x
30x 22x
gineered a mergturn is tainting
for all shareholArby’s can be so
AY! www.manualo
rger S. d).
). 0%
es, K). A.
in ate
of rn. g’s
x).
by’s h is Key ion.
d .
les, ke tion
. y’s, 6. st
y. ).
SELECTE
FYE Dece∆ Wendy∆ Arby’s ∆ Wendy∆ Arby's s∆ revenuRevenue % of reveWendy's Arby's Adj. EBITWendy's Arby's Corporate
Total a% of reveCompanyRoyaltiesSelected EBIT (adjNet incomD&A Capex Selected System-s % compAvg revenRestauraRevenue Selected System-s % compAvg revenRestauraRevenue ∆ shares
1 FinancialWendy’s InTriarc ‘07 f2 Based on3 Reflects t4 90+% of Canada. 95 Excludes6 Company7 Based on
MAJOR Chairmainsiders * Includes
RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
ger of Arby’s wg management cders. Assuminold for 7x depr
Value-oriented Eq
ofideas.com
D OPERATING
cember 31 y's same-store sales same-store sales2 y's system-stores system-stores e ($bn)
enue by segment:4
TDA margin by segm
e adj. EBITDA margin enue by type: y-operated store sales/franchise fees items as % of revenjusted)5 me
Wendy’s metrics: stores (period-end) pany-operated nue/company store
ant margin6 from franchisees ($ 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
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
with Wendy’s, credibility, Pel
ng Wendy’s is wressed EBITDA
quity Investment Id
DATA1
2007 s2 1%
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%
$mn) 87 7% 1
er of Triarc Companm Wendy’s/Arby’s Gsted to exclude theystem-stores (U.S. ndy’s from its acquis derived from theenue is derived fromodwill and other lonBITDA margin befo
8 figures.
ffiliated entitiestern 7% | Blackd directors Peter M
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
the company iltz retains a maworth 9x trailinA, shares appea
eas for Sophisticate
February 28, 2011 – P
2008 2009 14% -1%
-4% -9% 0% -1% 2% -1%
52%3 96%3 1.8 3.6
n/m 68%
67% 32%
9% 13% 11% 7% -2% -1% 8% 11%
91% 89%
9% 11%
4% 5% -26% 0%
5% 5% 6% 3%
6,630 6,541 21% 21% 1.47 1.4
12%7 15% 2987 303
3,756 3,718 31% 31%
1.0 0.9 16% 14%
86 80 101% 151% nies (franchisor of AGroup on Septembee divested asset mgstores only in 2007
uisition in 2008. e U.S. with the rest m the U.S. ng-lived assets. ore corp. SG&A/sp
s 24%* | Non-PkRock 6% | VanMay and Edward G
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
is seeking to seaterial economng EBITDA (inar modestly un
ed Investors
Page 127 of 170
YTD 0/3/10
-1% -8% -1% -2% -4% 2.6
70% 30%
15%
5% 0%
12%
89% 11%
6% 0% 5% 4%
6,554 21%
1.4 15% 223
3,662 31%
0.8 12%
56 -8%
Arby's) with er 29, 2008. gmt business. 7).
mainly from
ecial items.
Peltz nguard 3%
Garden.
ell Arby’s mic interest
n-line with ndervalued.
©
W
1 22 m3 4 frA5 6 ths7 aS B
S
© 2008-2011 by Beyond
WENDY’S/ARB
($ 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
Based on manage2011. In January, th
Based on managemillion for remodels
Adjusted EBITDA The relatively lowe
rom franchisees. WArby's has approxim
Based on 418 millIn October 2010, 3
he year ended Junesystem-stores, of w
The company hadand Arby’s royalty aSource: Company f
BURGER KING
BKC enterprise
Selected valuat
EV/trailing EBIT
EV/trailing EBIT
EV/trailing EBIT
EV/store ($)
EV/trailing reven
Selected BKC fi
Revenue
EBITDA
EBIT
Capex
Stores (~90% o
Source: The Manua
Proxy LLC. All rights res
BY’S – OUR EST
odology
y's:
EBITDA1
ed maintenance c
TDA minus maint
ple
rprise value of W
-trailing adj. Wen
-trailing Wendy's
:
by's segment EBI
ple4
rprise value of Ar
-trailing Arby's ro
enterprise value
t at 12/31/2010
value of the equ
FCF yield
EV-to-adj. EBITD
railing royalty/fran
ement guidance for he company has anement guidance, cas (100 company-opeexcludes impairme
er EBITDA multipleWhile the brand maymately $200 million ion shares outstand3G Capital acquirede 2010. Burger Kinhich ~75% are ope $377 million of rev
agreements provideilings, The Manual
LEVERAGED BU
e value in sale t
tion ratios:
TDA
TDA minus capex
T
nue
financials (fiscal y
operated by franc
al of Ideas analysis
erved.
TIMATE OF THE
capex2
enance capex
Wendy's (A)
ndy's segment EB
s royalties/franch
ITDA3
rby's (B)
oyalties/franchise
of Wendy's/Arby
uity of Wendy's
DA6
nchise fees7
pro forma compannnounced it is “explapex in 2011 is experated store remodent of goodwill and es for Arby's versusy have turnaround of capital lease ob
ding. d Burger King for ~
ng has ~12,150 syserated by franchiseevenue from royalty/e for royalties of 4.0of Ideas analysis,
UYOUT VALUA
to private equity
x
year ended June
chisees)
, assumptions and
SUBSCRIBE TODA
E EQUITY FAIR
ana
BITDA3
ise fees
e fees
y's (A+B)
/Arby's5
ny EBITDA of $345loring strategic alteected at $145 millio
dels), $36 million foother long-lived as
s Wendy's reflect Arpotential, significan
bligations.
~$4.0 billion, includistem-stores, of whices. /franchise fees for t0% of franchise revassumptions and e
ATION METRICS
y buyer
e 30, 2010):
estimates.
AY! www.manualo
VALUE RANGE
Conservative
Sum-of-the-partnalysis (see detaassumptions belo
$350
(100)
$250
10.0x
$2,500
7.6x
8.3x
$56
6.0x
$334
4.5x
$2,834
(1,059)
$1.8 billion
$4.20 per shar
5%
7.4x
7.5x
-355 million in 201ernatives for Arby's,on. This includes $
or "maintenance," $ssets. rby's weaker brandnt capital expenditu
ing debt. The acquch ~90% are opera
the year ended Octvenues. estimates.
S ($ in millions)
$4,000
9.0x
13.6x
12.0x
$329,218
1.6x
$2,502
445
333
150
12,150
Value-oriented Eq
ofideas.com
E
e B
ts ailed ow)
Sumanalysassum
$
re $5.6
1, assuming a sale, including a sale o
$31 million for new $12 million for techn
d positioning, deterure on the part of th
isition price impliedated by franchisees
tober 3, 2010 (~80
quity Investment Id
Base Case
m-of-the-parts sis (see detailed mptions below)
$350
(100)
$250
12.0x
$3,000
9.1x
10.0x
$56
7.0x
$390
5.2x
$3,390
(1,059)
$2.3 billion
60 per share
4%
8.9x
9.0x
e of Arby’s and G&Aof the brand.” units (20 new comnology projects, $3
riorating same-storehe company and/or
d an EV-to-EBITDAs. This compares to
% of which from W
eas for Sophisticate
February 28, 2011 – P
Aggre
Sum-of-tanalysis (seassumptio
$3
(10
$2
14
$3,5
10.
11
$5
8.0
$4
5.9
$3,9
(1,0
$2.9 b
$6.90 pe
3%
10
10
A reductions at beg
pany-operated stor39 million for "other
e sales, and declinr franchisees is like
A of ~9.0x based ono Wendy's/Arby's ~
Wendy's). Most of th
ed Investors
Page 128 of 170
essive
the-parts ee detailed
ons below)
50
00)
50
.0x
500
.6x
.7x
56
0x
46
9x
946
059)
billion
er share
%
.4x
.5x
ginning of
res), $27 projects."
ing revenue ely required.
n EBITDA for 10,200
he Wendy’s
©
W
* W(b
Q
B
“
S
© 2008-2011 by Beyond
WENDY’S/ARB
Includes breakfast
WENDY’S/ARB(beginning in 2012)
QUARTERLY SS
BENEFITS OF P
“Sale would be
Source: Company p
Proxy LLC. All rights res
BY’S – 2011 M
t expense in 2010 a
BY’S – LONG-TE2)
S TRENDS OF S
OTENTIAL SALE
e accretive to e
presentations dated
erved.
ANAGEMENT G
and 2011.
ERM EBITDA G
SELECTED HAM
E OF ARBY’S
earnings and fr
d January 27, 2011
SUBSCRIBE TODA
GUIDANCE
GROWTH TARGE
MBURGER CHAI
ree cash flow”
; available at http:/
AY! www.manualo
ET OF 10-15%
NS (% change)
//bit.ly/ijZmqO
Value-oriented Eq
ofideas.com
%
WENDY’S/AND CAPIT
)
quity Investment Id
/ARBY’S – 201TAL EXPENDITU
eas for Sophisticate
February 28, 2011 – P
1 DEVELOPMEURE PLAN
ed Investors
Page 129 of 170
ENT PLAN
©
Z
© 2008-2011 by Beyond
Zimmer HolHealth Care: M
Price: $63.73
52-week rang
Market value:
Enterprise va
Shares out: 1
O
Insider owner
Insider buys (
Insider sales
Institutional o
($ 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
$80
$90
$100
Proxy LLC. All rights res
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
ssets
ts 3
5
t
bilities
y 3
mployed
FFeb 02
erved.
H) — Baresent & Supplies,
22
n
a
: 2
): 2
Op
F
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
56% 75%
Ten-Year Sto
Feb 0eb 03
SUBSCRIBE TODA
s , EdinMember of S&P
Con
This quarter
Next quarte
FYE 12/31/
FYE 12/30/
FYE 12/30/
LT growth
EPS Surpris
1/27/11
perating Perform
Fiscal Years End
2006 20
3,495 3,8
2,715 3,0
1,165 1,
835 7
3.40 3
243 2
1,041 1,0
268 3
772 7
266 4
1,746 2,0
3,228 3,3
5,974 6,6
0
628 7
100
1,054 1,
0
4,921 5,4
75% 6
ock Price Perfor
Feb 0504
AY! www.manualo
nburgh P 500
nsensus EPS Es
Latest
r $1.13
er 1.19
11 4.69
12 5.15
13 5.54
10.0%
se Actual
$1.27
mance and Finan
ded December 31
007 2008
898 4,121
022 3,124
128 1,090
773 849
3.26 3.72
236 227
084 1,038
331 488
753 550
464 213
083 2,179
365 3,647
634 7,239
0 0
749 771
104 460
184 1,589
0 0
450 5,650
64% 51%
rmance and Tra
Feb 06
Value-oriented Eq
ofideas.com
, Gates Warsa
stimates
Month # o
Ago Est
$1.13 28
1.19 27
4.65 33
5.11 28
5.45 7
9.9% 14
Estimate
$1.19
ncial Position
1,
2009 20
4,095 4,2
3,105 3,2
1,019 9
717 5
3.32 2
215 2
1,118 1,1
229 2
889 9
758 9
2,738 3,0
3,642 3,4
7,786 7,9
0
691 7
1,128 1,1
2,147 2,2
0
5,639 5,7
41% 36
ading Volume Dy
FebFeb 07
quity Investment Id
aw, IN, 574-267-6131
of P/E FYE 1
ts P/E FYE 1
8 P/E FYE 1
7 P/E FYE 1
3 EV/ LTM r
8 EV/ LTM E
7 P / tangibl
4 G
LTM EBIT
LTM pre-ta
LTME
010 12/31/10
220 4,220
208 3,208
917 917
597 802
.97 2.94
200 200
194 1,194
272 272
922 922
934 934
008 3,008
409 3,409
998 7,998
0 0
702 702
142 1,142
227 2,227
0 0
771 5,771
6% 36%
ynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
w
Valuation
12/31/10
12/31/11
12/30/12
12/30/13
revenue
EBIT
e book
Greenblatt Criter
T yield
ax ROC
E FQE
0 12/31/09
0 1,107
8 833
7 239
2 155
4 0.73
0 210
4 386
2 49
2 336
4 758
8 2,738
9 3,642
8 7,786
0 0
2 691
2 1,128
7 2,147
0 0
1 5,639
% n/m
Feb 10
ed Investors
Page 130 of 170
www.zimmer.com
21x
14x
12x
12x
3.0x
14x
5.3x
ria
7%
36%
FQE
12/31/10
1,135
861
123
35
0.18
196
341
98
243
934
3,008
3,409
7,998
0
702
1,142
2,227
0
5,771
n/m
Feb 11
©
BZtr I
I
*
TZkaa
© 2008-2011 by Beyond
BUSINESS OVEZimmer manufrauma devices,
NVESTMENT H Mark
impla27% g‘09) an
Sharestrongtime gZimm
Aims 2011, $506 mmilliongenera
Agingemergfootprpositioglobalsegme
PatenproveOne inworldwsellingmillion
Proprorthobtissue
Expec$100+
NVESTMENT R Indus
challerivals Biomegoverncontin
M&Ato acceemergimpair2008 i
Frequproduc
M&A is also a po
THE BOTTOM LIZimmer has maknow-how, as wadvantage fromand largely non
Proxy LLC. All rights res
RVIEW factures orthop, dental implant
HIGHLIGHTS ket leader in or
nts, including global market snd #2 in hips w
es trade at 8%g balance sheetgiven good pros
mer’s likely durato repurchaseon top of 9.1 mmillion in 2010n of net debt atation, may allog populations aging markets arint, brand, payon to benefit frl market. Reconent with $13 bilts, technologicn products pr
n four primary wide uses the Ng product. Sincen NexGen kneerietary trabecubiologic applicgraft may acce
cts to generate+ million from
RISKS & CONCEtry rivalry an
enges to pricinincluding J&J-
et, Smith & Nenment budgeta
nue to affect paA-related risks
elerate growth ging markets anrment related tois an example ouency of “non-ct-related claimtential positive as
INE arket-leading pwell as strong m
m continued indn-cyclical, dem
erved.
edic reconstructs, and related s
rthopedic recoa #1 position i
share (~$6.5 biwith 21% (~$6.
% trailing FCF . FCF is likely spects for induable competitive $500 million million shares b0 (~$55/share).t yearend 2010w even higher and rising liviare growth dr
yor relationshiprom growth of nstructive implllion of sales, gcal/regulatoryrovide competknee-replacem
NexGen brande introduction ies have been imular metal teccations such aelerate growth e annualized p restructuring
ERNS nd regulatory png. Zimmer fac-owned DePuyephew and Synary pressures arayor reimbursem.* Managemenvia acquisition
nd new producto the Abbott Sof value-destro-recurring” items and other “s
Zimmer may be a
positions in knemindshare amodustry growth.
mand drivers. V
SUBSCRIBE TODA
ctive, spinal ansurgical produc
onstructive in knees with llion market in.0 billion markyield, with a to increase ov
ustry growth anve advantages.of shares in
bought back fo. Only $200 0, and strong FC
return of capiting standards rivers. Zimmerps put it in a the $35 billionants, the largesrew 5% in 200
y know-how antitive advantagment surgeries , Zimmer’s besin 1994, 3+ mplanted globalchnology and s DeNovo natuvia new produ
pre-tax savingg in 2011.
pressure pose ces numerous y, Stryker, nthes. In additiore likely to ment levels.
nt may be temptns, especially it areas. Recentpine purchase
oying M&A. ems includingspecial” items.an acquisition targe
ee and hip recoong patients, suAging populat
Valuation is attr
AY! www.manualo
nd cts.
n ket).
ver nd
or
CF tal. in
r’s
n st 9. nd ges.
st-
lly.
ural ucts. s of
on,
ted n t in
et.
SELECTEFYE Dece∆ revenu ∆ due t ∆ due t ∆ due tRevenue % of reveReconstrOther3 % of reveAmericasEurope Asia PaciRevenue AmericasEurope Asia PaciAdj. EBITAmericasEurope Asia PaciCorporate
Total aSelected Gross proR&D EBIT Net incomNet cash D&A Capex Return onTangible ∆ shares
1 The $3632 Includes 3 Includes 4 Excludes COMPAR
JNJ
SYK
SNN
WMGI
ZMH MAJOR Insiders RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
onstruction marurgeons, and ptions, rising livractive at an ~8
Value-oriented Eq
ofideas.com
D OPERATING cember 31 ue to volume/mix to price to currency ($bn)
enue by product cateructive implants2
enue by geography: s
ific growth by geograph
s
ific T margin by geograps
ific e adj. EBIT margin items as % of revenofit
me from ops
n tangible equity equity to assets out (avg)
3 million Abbott Spinknees (~55% of ‘1dental, trauma, sp
s goodwill impairme
RABLE PUBLIC
MV E($mn) ($
167,820 157
25,020 21
10,700 11
630
12,580 12
HOLDERS 1% | T. Rowe
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
rkets globally. ayors worldwi
ving standards, 8% trailing FCF
quity Investment Id
DATA1 2006 2
6% 17% 0%
-1% 3.5
egory: 76% 724% 2
59% 527% 214% 1
hy (at constant curre7% 16% 7%
phy:4 53% 541% 447% 4
-15% -134% 3
nue: 78% 7
5% 33% 224% 230% 2
6% 8%
52% 460% 6-2%
ne purchase in 20080 segment revenueine, surgical and otent and other speci
COMPANY AN
EV EV / $mn) Rev.
7,720 2.6x
1,660 3.0x
1,190 2.8x
660 1.3x
2,790 3.0x
e 3% | Edinburg
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
Patented produide position the and new produF yield on a str
eas for Sophisticate
February 28, 2011 – P
2007 2008 2012% 6% -1
9% 3% 20% 0% -13% 3% -23.9 4.1 4
76% 77% 7624% 23% 24
58% 57% 5828% 29% 2714% 14% 15ency): 10% 3% 1
7% 4% 18% 2% 0
52% 51% 4940% 40% 3948% 44% 4314% -17% -1734% 30% 29
78% 76% 76
5% 5% 529% 26% 2520% 21% 1828% 25% 27
6% 7% 88% 14% 6
41% 41% 3663% 60% 52-3% -3% -58 is the largest deale), hips (~40%) andther products. ial items.
NALYSIS P / This
Tang. FY Book P/E
6.8x 13x
4.6x 17x
8.6x 18x
1.6x 22x
5.3x 14x
gh 2% | Pzena
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
ucts, technologe company to t
ducts provide lorong balance s
ed Investors
Page 131 of 170
09 2010 1% 3% 2% 3% 1% -1% 2% 1% 4.1 4.2
6% 76% 4% 24%
8% 58% 7% 26% 5% 16%
1% 2% 1% 1% 0% 6%
9% n/a 9% n/a 3% n/a 7% n/a 9% 29%
6% 76% 5% 5% 5% 22% 8% 14% 7% 28% 8% 8% 6% 7% 6% 27% 2% 50% 5% -7% l in 2006-10. d extremities.
Next FY P/E
12x
15x
17x
19x
12x
2%
gical take ong-term, heet.
©
Z
1 ha2 3 (po
S Z
1 2 3
S
© 2008-2011 by Beyond
ZIMMER HOLD
($ in millions)
Valuation metho
2010 revenue
2010 adj. EBIT
Trailing adjusted
Fair value multip
Estimated enter
Minus: Net debt
Estimated fair
Implied trailing F
Implied FCF yie
Implied earning
Implied EV-to-2
Implied EV-to-2
Implied EV-to-2
Implied EV-to-2
Adjusted to excludhas averaged 31% averaged EBIT mar
Based on 197 mill
Zimmer is guiding primarily related to
of share repurchase
Source: Company f
ZIMMER HOLD
Product
Category
Knees
Hips
Extremities
Total Recons
Dental
Trauma
Spine3
Source: Zimmer 2
Excludes the effec
Includes related or
Source: Company f
Proxy LLC. All rights res
INGS – OUR E
odology
margin1
d EBIT
ple
rprise value
t (12/31/2010)
value of the equ
FCF yield
eld based on 200
s yield based on
2010 revenue
2010 gross profit
2010 adj. EBITDA
2010 adj. EBITDA
de goodwill impairmduring 2006-10 (rergins of ~31% durin
ion shares outstand
for adjusted EPS orestructuring and i
es in 2011.
ilings, The Manual
INGS – ESTIMA
Glo
Ma
Size
6
5
1
structive 1
3
4
8
009 10-K (“estimat
ct of changes in for
rthobiologics.
ilings, The Manual
erved.
STIMATE OF TH
uity of Zimmer2
06-10 average FC
n 2011 adj. EPS g
A
A minus capex
ment, net curtailmeneported EBIT marging 2008-10, exclud
ding.
of $4.60-4.80 in 20ntegration costs), r
of Ideas analysis,
ATED 2009 GL
obal Glo
arket Ma
e ($bn) Growth
6.4 5
5.8 4
1.0 15
3.2 5
3.3 -5
4.4 6
8.7 10
es are not precise
eign currency exch
of Ideas analysis,
SUBSCRIBE TODA
HE EQUITY FAI
CF
guidance midpoin
nt and settlement cn has averaged 27ing special items.
11 (up 6-11% y-y) reported EPS is ex
assumptions and e
OBAL MARKET
obal Zimm
rket Mark
h (Y-Y)2 Shar
% 27%
% 21%
5% 13%
% 24%
5% 6%
% 5%
0% 3%
and are based on c
hange rates on sale
assumptions and e
AY! www.manualo
R VALUE RANG
Conse
10x trailinEB
$4,
29
$1,
1
$12
(20
$12.1
$61 pe
8
6
nt3 8
2.
3.
7.
9.
charges, certain pro7% during 2006-10)
based on constant pected at $4.25-4.4
estimates.
T SIZE AND MA
mer Zimmer
ket Market
re Position
% 1
% 2
% 3
% 1
% 5
% 5
% 6
competitor annual
es growth.
estimates.
Value-oriented Eq
ofideas.com
GE
ervative
ng adjusted BIT
1
,220
9%
,230
0x
2,304
08)
billion
er share
8%
6%
8%
.9x
.8x
.8x
.5x
oduct-related claim).For reference, J&
t currency revenue 45. Both EPS meas
ARKET SHARE 1
Ma
DePuy (J&J), SSmith & NepheSynthes, Japa
Nobel Biocare,Astra Tech De
Same as in rec
Medtronic, DePStryker, Biome
filings, Wall Street
quity Investment Id
Base Case
2x trailing adjustEBIT
$4,220
29%
$1,230
12x
$14,765
(208)
$14.6 billion
$74 per share
6%
5%
6%
3.5x
4.6x
9.4x
11.4x
s, and other specia&J's medical device
growth of 2-4% y-ysures include a be
1
ain Competitors
Stryker, Biomet, ew, Wright Medicn Medical, Mathy
, Straumann, ental, Biomet.
constructive mar
Puy (J&J), Synthet, NuVasive.
equity research an
eas for Sophisticate
February 28, 2011 – P
Aggr
ted 14x trailiE
$4
2
$1
1
$1
(2
$17.0
e $86 p
4
5
1
1
al items. Adjusted Es and diagnostics s
y. Excluding adjustnefit from planned
s
cal, ys, Aesculap
rkets.
hes,
nd company estima
ed Investors
Page 132 of 170
ressive
ng adjusted EBIT
4,220
29%
1,230
14x
7,226
208)
0 billion
er share
5%
4%
5%
4.1x
5.4x
1.0x
3.3x
EBIT margin segment has
tments $500 million
ates”).
©
Z
S Z
S
© 2008-2011 by Beyond
ZIMMER HOLD
Source: Company p
ZIMMER HOLD
Source: Company p
Proxy LLC. All rights res
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
ofideas.com
quity Investment Ideas for Sophisticate
February 28, 2011 – P
ed Investors
Page 133 of 170
©
RB
© 2008-2011 by Beyond
Reduced oBroadridge
Financial: Misc
Price: $23.24
52-week rang
Market value:
Enterprise va
Shares out: 1
O
Insider owner
Insider buys (
Insider sales
Institutional o
($ 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
Common equity
EBIT/capital em
$0
$5
$10
$15
$20
$25
$30
Proxy LLC. All rights res
or Offsettine (BR) — Bra
c. Financial Serv
Trading Data
(as of 2/18/11)
ge: $18.51 - $24.
: $2.9 billion
lue: $3.0 billion
25.3 million
Ownership Data
rship: <1%
(last six months)
(last six months)
wnership: 87%
ept
6/3
1
me
g)
rations
ments
ssets
ts
t
bilities
y
mployed
erved.
ng Superinrave Warrio
vices, Member o
02
a
: 1
): 0
Op
0/04 6/30/05
,526 1,717
393 444
250 274
146 165
1.06 1.20
138 139
8
39
(31)
Ten-Year Sto
SUBSCRIBE TODA
nvestor Hoor , Centa
of S&P MidCap
C
This quarte
Next quarte
FYE 6/30/1
FYE 6/29/1
FYE 6/29/1
LT growth
EPS Surpri
2/8/11
perating Perform
Fiscal Ye
6/30/06 6
1,933
500
303
167
1.30
139
426
41
385
90
1,406
537
2,135
116
990
0
1,092
1,043
58%
ock Price Perfor
AY! www.manualo
oldings aur , Gle
400
onsensus EPS
Lates
r $0.19
er 0.97
1 1.35
2 1.64
3 2.1
10.0%
se Actual
$0.08
mance and Finan
ears Ended
/30/07 6/30/08
2,138 2,13
550 583
321 320
197 192
1.42 1.34
139 140
161 482
38 47
123 436
155 232
1,960 2,079
512 514
2,678 2,834
109 0
1,429 1,525
618 448
2,147 2,088
531 746
59% 66%
rmance and Tra
Value-oriented Eq
ofideas.com
lenview Lake Success, NY, 516
Estimates
Month
st Ago
9 $0.27
7 1.05
5 1.57
4 1.81
1 2.11
% 10.0%
l Estima
$0.13
ncial Position
8 6/30/09 6
1 2,073
3 563
0 346
2 223
4 1.58
0 140
2 359
7 30
6 329
2 173
9 2,052
4 511
4 2,775
0 0
5 1,430
8 324
8 1,866
6 909
% 75%
ading Volume Dy
Feb
quity Investment Id
, Greenlig6-472-5400
# of P/E FY
Ests P/E FY
5 P/E FY
5 P/E FY
5 EV/ LT
5 EV/ LT
1 P / tan
2
te LTM E
3 LTM p
LTM
6/30/10 12/31/
2,209 2,1
593 5
342 2
190 1
1.62 1
136 1
494 1
53
441
413 1
992 6
556 6
1,794 1,5
0
486 2
324 3
987 7
807 7
97% 78
ynamics
Feb 09b 08
eas for Sophisticate
February 28, 2011 – P
ght www
Valuation
YE 6/30/10
YE 6/30/11
YE 6/29/12
YE 6/29/13
TM revenue
TM EBIT
ngible book
Greenblatt Crit
EBIT yield
pre-tax ROC
ME FQE
/10 12/31/09
105 530
534 130
275 69
154 34
.25 0.37
133 136
142 393
55 11
87 383
188 147
608 1,980
653 514
515 2,696
0 0
288 1,420
324 324
786 1,849
729 847
8% n/m
Feb 10
ed Investors
Page 134 of 170
w.broadridge.com
14x
17x
14x
11x
1.4x
11x
38.4x
teria
9%
78%
FQE
12/31/10
442
86
17
10
0.08
125
53
9
43
188
608
653
1,515
0
288
324
786
729
n/m
Feb 11
©
BBm
IpCF
Sfraf I
I
*
dn
TBhpy
© 2008-2011 by Beyond
BUSINESS OVEBroadridge promutual funds an
Investor Commprocesses proxyCustomers are bFY10), mutual
Securities Procfor equity and frevenue, respecand accountingfunctions accou
NVESTMENT H World
commprocesserviccomm
ShareFY08-$130-millionon temwell a
Recenbe conbased “event
~80%command othproces
Richaspin-o
NVESTMENT R Reimb
commBroadprofitspublicpayme
Financlientsclients
$136 mmillion
SEC rules requiredistributing investoname.” Self-regula
THE BOTTOM LIBroadridge shahigh returns onpredictability oyears 2008-10 (
Proxy LLC. All rights res
RVIEW ovides outsourcnd corporate is
munication Soluy votes, and prbanks and brokfunds (8%) an
cessing Solutionfixed income trctively), includg. Outsourcing unted for the re
HIGHLIGHTS d’s largest pro
munication massed 66% of U.es and distribu
munications in pes trade at a ~9-10 free cash f190 million forn FY08-10 ave
mporary (“evens higher capex
nt decline in mnsidered a disaon management-driven” fees r
% of revenue ismunications is ti
her regulatory-ssing revenue iard Daly (57) hoff from ADP.
RISKS & CONCEbursement rat
munication madridge claims els, this may not c issuers on behents to nominee
ncial services cs moving mores comprised 25million of net dn of debt due t public companies
or communicationstory organizations
INE ares many opern capital. Recenof the vast majo(a reasonable a
erved.
cing to financiassuers through
utions mails prorovides transacker-dealers (88
nd corporate iss
ns provides barading (80% an
ding trade execuof broker-deal
emaining 5% o
ocessor of inveaterials. In FY1.S. shares relat
uted over one bpaper or electro9% FCF yieldflow. While FCr FY11 is downerage, the declint-driven”) revex related to IT/omutual fund re
appointing onnt. The declinerelated to muturecurring as t
ied to regular c-required distribis also largely rhas been CEO Daly joined A
ERNS tes for distribu
aterials may delectronic distribbe sustainable
half of “nominees (after deduc
consolidation ce operations in-5% of revenue debt at 12/31/10to Matrix purchs to reimburse noms to owners of secus (e.g. NYSE) set r
ating characternt revenue declority of the comassumption in o
SUBSCRIBE TODA
al institutions, two segments:
oxy materials,tion reporting.
8% of revenue suers (4%).
ack-office servind 15% of FY1ution, settlemeer administrati
of FY10 revenu
estor-related 10, Broadridgeted to their proxillion investor
onic form. d on average CF guidance ofn from the $27ine is likely baenue shortfallsoutsourcing deevenue “shouldne-time event,”e is due to loweual fund proxiethe majority ofcorporate eventbution. Securitirecurring.
O since the 200ADP in 1989.
uting investorecline. While bution increase
e. Broadridge bees” and remitcting own fees)could result in -house. Top fivin FY10. 0 (excludes ~$2hase in Januaryminees for the costurities held in “strereimbursement rate
ristics with its lines related to mpany’s busineour view), shar
AY! www.manualo
:
in
ices 10 ent, ive ue.
e xy
f 70+ sed , as als. d ” er es. f ts ies
07
r
es bills s ).*
ve
200 y).
of eet es.
SELECTE
FYE June∆ revenu∆ employRevenue % of reveInvestor cSecuritiesPre-tax mInvestor cSecuritiesCorporate
Total p% of reveRecurringDistributioEvent-drivRevenue RecurringDistributioEvent-driv% of reveSelected Gross proEBIT Net incomNet cash D&A Capex ∆ shares
1 Financial2 Seasonal3 Due to lo4 Based onthe two seevents sucEvent-drive~50%), sp
COMPAR
BK
DST
BR
MAJOR CEO DaVanguar RATINGVALUE IDOWNSIMANAGEFINANCIMOAT AEARNINGMACRO
former parent Alower “event-
ess. Assuming res are underva
Value-oriented Eq
ofideas.com
D OPERATING
e 30 e
yees ($bn)
enue by segment: communications s processing
margin by segment: communications s processing e/other pre-tax margin enue by type: g fees on revenue (mostly ven fees growth by type: g fees on revenue (mostly ven fees
enue from U.S. items as % of revenofit
me from ops
out (avg) ls reflect continuinglity is strongest in th
ower event-driven fen FY11 revenue guiegments. ~80% of Fch as annual stockhen fees relate to muecial corporate eve
RABLE PUBLIC
Price ($)
MarkeValue($mn)
31.70 39,310
50.80 2,350
23.20 2,912
HOLDERS aly 1% | Other ird 4% | Brave W
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
ADP, includindriven” mutuafree cash flow
alued trading a
quity Investment Id
DATA1
2008 3%
14% 2.1
74% 25%
16% 24% -3% 15%
50%
recurring) 38% 11%
5%
recurring) -2% -2% 88%
nue: 27% 16%
9% 14%
2% 2% 1%
g operations (excluhe June quarter wheees/distribution revdance. FY11E recu
FY11E distribution holder meetings anutual fund supplemeents (~30%), and m
COMPANY ANet e )
Price to Tangible
Book
T
0 4.6x
0 5.9x
2 38.4x
insiders 3% | BWarrior 3% | O
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
ng recurring reval fund proxy vw reverts back tat a high single-
eas for Sophisticate
February 28, 2011 – P
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%
-6% 3% -9% 35% 89% 87%
27% 27% 17% 16% 11% 10% 13% 16%
3% 3% 1% 2% 0% -3%
de securities clearen most proxies arevenue from mutual urring fees split ~50/revenue is based o
nd regular mutual fuents/pre-sale fulfillmmutual fund proxies
NALYSIS This FY P/E
Next FY P/E
F
12x 11x D
12x 12x D
17x 14x D
BlackRock 8% Omega 3% | Gre
market value? manent loss? ivized? ? d capital?
mproving? secular trends?
venue and sustvolume mask thto the average o-digit implied F
ed Investors
Page 135 of 170
YTD2 12/31/10
-11%3 n/a 0.9
66%
3%
2% 14% -1% 4%
59%4 32%4
8%4
14%4 -10%4 -40%4
n/a
20% 5% 3% 3% 4% 2%
-8% ing business).
e processed. fund proxies. /50 between on “recurring” und mailings.
ment (FY11E: s (~20%).
FY End Date
Dec-31
Dec-31
Dec-31
| Harris 7% eenlight 2%
tainably he of fiscal FCF yield.
©
B
1 $2 3 a4 5 rea6 7 S B
S
© 2008-2011 by Beyond
BROADRIDGE F
($ in millions)
Valuation metho
Normalized reve
Normalized EBI
Normalized EBI
Fair value multip
Estimated enter
Minus: Net debt
Estimated fair
Implied trailing F
Implied FCF yie
Implied FCF yie
Implied dividend
Implied EV-to-tr
Implied EV-to-tr
Implied EV-to-a
Implied EV per
Figures exclude th$500 million credit f
Average revenue iAverage EBIT mar
assume that marginBased on 129 millBased on guidanc
elates to investmenagreement. FY08-1
Based on annualizBased on 5,400 em
Source: Company f
BROADRIDGE F
Source: Company p
Proxy LLC. All rights res
FINANCIAL – O
odology
enue2
T margin3
T
ple
rprise value
t (12/31/10)
value of the equ
FCF yield
eld based on FY1
eld based on ave
d yield6
railing revenue
railing EBIT
verage EBIT dur
employee ($mn)
he impact of the Mafacility (expires in Min FY06-10 is $2.1 rgin during FY08-1
ns will be largely maion shares outstand
ce for free cash flownt implementation c0 average annual czing the dividend ofmployees as of Junilings, The Manual
FINANCIAL – M
presentation dated
erved.
OUR ESTIMATE
uity of Broadrid
11 FCF guidance
rage FCF during
ring FY08-10 7
atrix Financial SolutMarch 2012).
billion (based on c0 is 16%. The comaintained through inding.
w of $130-190 milliocosts in connectioncapex is $43 milliof $0.15 per share dne 30, 2010. of Ideas analysis,
MANAGEMENT
February 8, 2011.
SUBSCRIBE TODA
OF THE EQUIT
dge4
e midpoint5
g FY08-10
tions acquisition in
ontinuing ops). Wempany's historic mar
ncreased efficienci
on in FY11 (ended n with the Penson oon. declared for the Dec
assumptions and e
’S FINANCIAL
AY! www.manualo
Y FAIR VALUE
Conservativ
10x estimatenormalized EB
$2,200
15%
$330
10.0x
$3,300
(136)
$3.2 billion
$25 per shar
7%
5%
9%
2%
1.6x
11.9x
9.3x
$0.6
January 2011. The
e assume slightly hrgins have been vees and the introduc
June 2011). Guidaoutsourcing service
cember 2010 quart
estimates.
GUIDANCE
Value-oriented Eq
ofideas.com
RANGE
ve B
d BIT
12nor
$
re $3
e company paid ~$
igher normalized reery stable. While thction of new produc
ance includes total es agreement and t
ter.
quity Investment Id
Base Case
2x estimated rmalized EBIT
$2,200
15%
$330
12.0x
$3,960
(136)
$3.8 billion
30 per share
6%
4%
7%
2%
1.9x
14.3x
11.2x
$0.7
$200 million in cash
evenue due to the ere may be some pcts.
capex of $55-65 mhe IBM information
eas for Sophisticate
February 28, 2011 – P
Aggre
14x estnormaliz
$2,
15
$3
14
$4,
(13
$4.5 b
$35 pe
5
4
6
2
2.
16
13
$0
h for Matrix by borro
contribution of paspricing pressure in
million, of which ~$4n technology servic
ed Investors
Page 136 of 170
essive
timated zed EBIT
200
5%
330
.0x
620
36)
billion
r share
%
%
%
%
2x
6.7x
3.1x
0.9
owing from its
t acquisitions. the future, we
45 million ces
©
B
S B
S
© 2008-2011 by Beyond
BROADRIDGE F
Source: Company p
BROADRIDGE F
Source: Company p
Proxy LLC. All rights res
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
FY11
eas for Sophisticate
February 28, 2011 – P
ed Investors
Page 137 of 170
©
C
© 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
Proxy LLC. All rights res
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
y 30,1
mployed 40
FFeb 02
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
Fiscal Ye
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
eas for Sophisticate
February 28, 2011 – P
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
Page 138 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
©
BCc I
I
TCFsin2b
© 2008-2011 by Beyond
BUSINESS OVEChina Mobile, communication
NVESTMENT H #1 pro
in ma(~69%provid
Sharedividehas grat 25+
Net cabased June 3
EBITDdrivencustomdeclinpressu
UpgraSCDMgeneraservic
Enter2010, $6 bill
NVESTMENT R Vulne
intervmandaadditio
ChineTelecoby encprovid
ContrCommowns a
CMCand spand 35
Technongoinon theversus
THE BOTTOM LIChina Mobile iFCF yield, valustrong currencyntervention app
2008. Minoritybrand and 3G s
Proxy LLC. All rights res
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
ile ong.
es *
% CF ex .0x.
alue of te). 10
ing ff
TD--ata
n for ces.
ms
ion. a s ces
h
** M
ge).
s
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 <
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
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 (
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
M Fundamentals imrom economic and s
y of customers are pMobile offers only mademark license fe
With shares trs for growing crolled companyna Telecom andMCC, who alsoseemingly attra
eas for Sophisticate
February 28, 2011 – P
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)
market value? manent loss? ivized? ? d capital?
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
Page 139 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.
©
C
1 in2 msMs3 4 "ntoa5 in6 U7 8 9 10
S
© 2008-2011 by Beyond
CHINA MOBILE
(RMB in billions
Valuation metho
Normalized reve
Normalized EBI
Normalized EBI
Minus: Normaliz
Estimated norm
Fair value multip
Estimated enter
Plus: Net cash (
Plus: Value of e
Estimated fair
Implied trailing F
Implied dividend
Implied EV-to-tr
Implied EV-to-tr
Implied EV-to-tr
Implied EV per
Implied value of
Implied premium to the sale pri
Trailing revenue isn customers offset
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
Proxy LLC. All rights res
E – OUR ESTIM
s)
odology
enue1
TDA margin2
TDA3
zed capex4
malized EBITDA m
ple
rprise value
(6/30/2010)
e-commerce oppo
value of the equ
FCF yield
d yield7
railing revenue
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.
Value-oriented Eq
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 $6 billi
e estimated renmin
f 2010 net income
hare in mainland C
ent banks in Septe
eas for Sophisticate
February 28, 2011 – P
Aggre
B
A
10x esnormalizeminus cap~165 billi
above trailiminus
RMB
50
RMB
(16
RMB
10
RMB
28
7
RMB 1,9
US$ 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
Page 140 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.
©
C
CP
C
S
© 2008-2011 by Beyond
CHINA MOBILE
CHINA MOBILEPROFIT ATTRIB
CHINA MOBILE
Source for above ch
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
NUE DISTRIBU
RVICES FEES
ed Investors
Page 141 of 170
UTION
©
H
© 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 142 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
Proxy LLC. All rights res
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 $32 million ofigures reflect deco
of production from o
HOLDERS* dmiston 2% | O% | Porter Orlinng shares issuable ury 2010 at a convearrants (issued to MD Capital owned s
S ntrinsic value mateDE PROTECTIONEMENT Capable aAL STRENGTH S
Able to sustain high GS MOMENTUM Poised to benefit fr
n Ryder Scott Co. oved+probable res
based on the inrodelta gives itl. This may be ain risk remainse less attractivend’s stake duri
quity Investment Id
DATA1
2006 2007 net to Harvest (32%) n/m2 43.6
n/m 87%n/m 30%n/m 523
(100%): n/m 5,374n/m 13,456n/m 7,617n/m 58.61n/m 1.54n/m 4.20
ncials ($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
erially higher than mN Low risk of permand properly incentiSolid balance sheet?returns on invested
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
eas for Sophisticate
February 28, 2011 – P
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 $32 million of d71/share) and exerctober 2010). As oe debt and warrant
market value? manent loss? ivized? ? d capital?
mproving? secular trends? boe = barrel of oil-d+probable+possi
of its key asset arrels of low-con acquirer, espegovernment codue to the risingquarter of 2010
ed Investors
Page 143 of 170
9 YTD
9/30/10
3 50.4 % 83% % 27% 0 n/a
5 6,142 7 1,780 8 6,439 2 68.77 4 1.54 6 5.03
2 13 0 8 1 -21 6 53
0 50 5 -5 8 -25 3 19
9 281 6 12 4 166 0 -29 9 430
% 73% % 1% zuela, was ed PDVSA ch owns the uity affiliate).
71 per share). nue reflects
KVO 7% brai 3% debt (issued rcise of 6.0 of October ts in Harvest.
-equivalent. ible reserves.
– a 32% ost, oil-ecially as
ontrol of g share 0.
©
H
1 aP
2 reSpu
3 ino
4 soOw$
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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 144 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 145 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 146 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 147 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 148 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 149 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
Vulcan Materials / V
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
Electronic Arts / ER
Texas Industries / T
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
Plains Exploration /
Foster Wheeler / FW
Cardinal Health / C
Arris Group / ARRS
Gap / GPS
Fiserv / FISV
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
) 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
Page 150 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
Tyco International /
Stanley Black Deck
Schlumberger / SLB
MRV Comms / MRV
Life Technologies /
Sears Holdings / SH
Ross Stores / ROS
Sprint Nextel / S
International Paper
Flowserve / FLS
Liberty Global / LBT
Gastar Exploration
CBS / CBS
Harvest Natural / H
Seagate Technolog
Flextronics / FLEX
Lamar Advertising /
Asbury Automotive
Valeant Pharma / V
Massey Energy / M
Loral Space / LORL
Liberty Interactive /
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 /
Vishay Precision / V
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
) 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
Page 151 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
Vishay Precision / V
McDonald's / MCD
Ensco / ESV
Cardinal Health / C
Proxy LLC. All rights res
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%
eas for Sophisticate
February 28, 2011 – P
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
Page 152 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
Electronic Arts / ER
Liberty Interactive /
Plains Exploration /
Anadarko Petroleum
Vail Resorts / MTN
Liberty Global / LBT
American Tower / A
General Growth / G
Charter Comms / C
Sears Holdings / SH
Vulcan Materials / V
ZipRealty / ZIPR
Flextronics / FLEX
Seagate Technolog
LyondellBasell / LY
Foster Wheeler / FW
Lions Gate / LGF
Sprint Nextel / S
Leap Wireless / LEA
Tyco International /
Loral Space / LORL
Level 3 Comms / LV
Texas Industries / T
Amylin Pharma / AM
Teck Resources / T
Lamar Advertising /
Gastar Exploration
Valeant Pharma / V
Theravance / THRX
Proxy LLC. All rights res
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 -
eas for Sophisticate
February 28, 2011 – P
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
Page 153 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
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 154 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
Vulcan Materials / V
Molson Coors / TAP
Omnicare / OCR
Plains Exploration /
Arris Group / ARRS
Vail Resorts / MTN
Learning Tree / LTR
International Paper
Texas Industries / T
Comcast / CMCSA
CommScope / CTV
Harvest Natural / H
Theravance / THRX
Hain Celestial / HA
Tyco International /
Watson Pharma / W
Life Technologies /
Liberty Interactive /
Time Warner Cable
Massey Energy / M
Sears Holdings / SH
Lamar Advertising /
Electronic Arts / ER
American Tower / A
Liberty Global / LBT
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
Vishay Precision / V
Gastar Exploration
AbitibiBowater / AB
Amylin Pharma / AM
Lions Gate / LGF
Loral Space / LORL
Level 3 Comms / LV
Spectrum Brands /
General Motors / G
Proxy LLC. All rights res
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
eas for Sophisticate
February 28, 2011 – P
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
Page 155 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
Proxy LLC. All rights res
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
The reasefficient at pproduct, in tha reason for tthe inefficienas an investor
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
risk with their low the industr
came to provritical for its cby and existed
Value-oriented Eq
ofideas.com
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.
nary pricing poattractive, but ited about is t
for above-inflcharacteristic
olidated industrrs that makes iore than standa
e characteristine of the strongth rational comnot in excess o
ng power is rah thing would
mers. With sucouldn’t necessa
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
pricing power business were mn terms of purcerwise, I woul
r is not unusua
ower a (near) nit’s not really
the ability to r
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
eas for Sophisticate
February 28, 2011 – P
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
Page 156 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
Proxy LLC. All rights res
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.
eas for Sophisticate
February 28, 2011 – P
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—$20. On avera
de at about 25hat if their busod, investment
ed Investors
Page 157 of 170
ugh Verisk
customers’ despite the
value-add. I
ve inflation he resultant ocal of the ng margins
40%. While st inflation
er is Scotts 4%, which roduce 7%
eal price of minimum of
products in Its brands
y because it negotiating
material in lizer prices n about the owever, the ong drivers
w fit.
y absorbed SMG was
y given the er, volumes
passionate roducts are s are very
—enough to age, people
5x and 15x inesses are ts—even at
©
F“C
© 2008-2011 by Beyond
Favorite St“Magic FormCompanies with h
Company
1 InfoSpace
2 * Daily Journ
3 EarthLink
4 PDL BioPhar
5 Terra Nova R
6 ITT Educatio
7 Bridgepoint E
8 Unisys
9 Metropolitan
10 Amerigroup
11 Apollo Group
12 Impax Labs
13 Medicis Phar
14 AutoChina
15 ePlus
16 VirnetX
17 Tessera Tech
18 Career Educa
19 Oshkosh
20 H&R Block
21 Power-One
22 Cardiome Ph
23 USA Mobility
24 Dell
25 Amedisys
26 United Online
27 * Veeco Inst
28 * China Cera
29 Rigel Pharma
30 ViroPharma
31 SuperGen
32 Global Cash
33 Argan
34 Providence S
35 * Gilead Scie
36 AmSurg
37 Nephros
38 Deluxe
39 Lihua Interna
40 Lincoln Educ
41 Value Line
42 * Santarus
43 * Microsoft
44 Aeropostale
45 DeVry
Company we
* New additions are
Proxy LLC. All rights res
tock Screemula,” basehigh returns on c
Ticker
INSP
nal DJCO
ELNK
rma PDLI
Royalty TTT
nal ESI
Edu. BPI
UIS
Health MDF
AGP
p APOL
IPXL
rma MRX
AUTC
PLUS
VHC
hnologies TSRA
ation CECO
OSK
HRB
PWER
harma CRME
y USMO
DELL
AMED
e UNTD
ruments VECO
amics CCCL
aceuticals RIGL
VPHM
SUPG
Access GCA
AGX
Service PRSC
ences GILD
AMSG
NEP
DLX
ational LIWA
cational LINC
VALU
SNTS
MSFT
ARO
DV
bsite SEC
e highlighted. Sc
erved.
ens For Vased on Trailicapital employed
Mov
Price 52-Wr ($) 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
eas for Sophisticate
February 28, 2011 – P
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
Page 158 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
39 Medicis Phar
40 SkyPeople Ju
41 * Gulf Resou
42 * Marvell Tec
43 DeVry
44 Almost Famil
45 * Xyratex
Company we
* New additions are
Proxy LLC. All rights res
mula,” basehigh returns on c
Ticker
GTXI
nal ESI
VHC
Health MDF
IPXL
PLUS
DELL
ation CECO
amics CCCL
Edu. BPI
SOLR
CRTX
e PWER
AMED
NEP
p APOL
aceuticals RIGL
FRX
cational LINC
ces GILD
ments VECO
ational LIWA
MSFT
ar-Mart CRMT
a ENDP
CEPH
GME
olleges COCO
BIRT
s CVVT
Soffa KLIC
pany EDS
ch LRCX
AGP
arma SCLN
ems CSCO
ARO
TER
rma MRX
uice SPU
urces GFRE
chnology MRVL
DV
ly AFAM
XRTX
bsite SEC
e highlighted. Sc
erved.
sed on This Ycapital employed
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
eas for Sophisticate
February 28, 2011 – P
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
Page 159 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
38 * SinoCoking
39 * Marvell Tec
40 * Amtech Sy
41 * Amgen
42 * Harris Corp
43 Cephalon
44 Intel
45 Primoris Serv
Company we
* New additions are
Proxy LLC. All rights res
mula,” basehigh returns on c
Ticker
Edu. BPI
harma NABI
SOLR
amics CCCL
DELL
PWER
PLUS
nal ESI
a ENDP
ational LIWA
ar-Mart CRMT
ces GILD
NEP
FRX
BIRT
ation CECO
cational LINC
Health MDF
MSFT
Soffa KLIC
GME
s CVVT
p APOL
pany EDS
TER
ms CSCO
ce LTXC
rma MRX
uice SPU
ces GFRE
PMCS
ch LRCX
XRTX
ARO
ealth USNA
DV
LXK
g Coal SCOK
chnology MRVL
ystems ASYS
AMGN
p. HRS
CEPH
INTC
vices PRIM
bsite SEC
e highlighted. Sc
erved.
sed on Next capital employed
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
eas for Sophisticate
February 28, 2011 – P
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
Page 160 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
Proxy LLC. All rights res
: Biggest YTmpanies with no
Tick
ducation AMB
ya Fashion XN
Software SM
LED
s CVV
tech CAG
TKL
less NVT
ation XR
Global Water DG
Estate CR
Worldwide MW
crosystems TR
ma VND
oratories DL
erapeutics ACO
ging HTH
ENO
ealth USN
one RS
om SYM
ernational LA
echnologies TSR
omms ENT
KSW
INF
LF
lecular AM
Tech TST
hnologies SIG
TLA
FTE
ance Online JRJ
chnical UT
nerals AUM
y REX
ciences ALI
VIM
CRE
crosys SMS
Blood CO
s & Hotels HM
netics MYG
he CC
chnologies ACL
bsite SE
e highlighted. Sc
erved.
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
eas for Sophisticate
February 28, 2011 – P
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 > $10
ed Investors
Page 161 of 170
00 million
©
VC
© 2008-2011 by Beyond
Value with Companies that m
Company
1 Elron Electro
2 Endurance S
3 Allied World
4 Scorpio Tank
5 * Vishay Inte
6 FPIC Insuran
7 ITT Educatio
8 * Aspen Insu
9 Fox Chase B
10 * Telenor
11 * Chubb
12 * Tyson Foo
13 * XL Group
14 Scholastic
15 Platinum Und
16 * Corinthian
17 Aetna
18 H&R Block
19 Employers H
20 Best Buy
21 Lukoil
22 * Hawaiian H
23 * O2Micro
24 * PAA Nat. G
25 America's Ca
26 * ArvinMerito
27 Hewlett-Pack
28 * Multi-Fineli
29 Forest Labs
30 Gilead Scien
31 White Mounta
32 * Alterra Cap
33 PartnerRe
34 * AstraZenec
35 Torchmark
36 Stage Stores
37 W.R. Berkley
38 * Axis Capita
39 Blyth
40 * Raytheon
41 * Exxon Mob
42 Qlogic
43 * Rent-A-Ce
44 ProAssuranc
45 LSI Corp.
Company we
* New additions are
Proxy LLC. All rights res
Catalyst: Chmay be creating v
Tick
nic ELR
Specialty EN
AW
kers STN
ertech VS
nce FP
nal ES
urance AH
Bancorp FXC
TEL
CB
ds TS
X
SC
derwriter PT
Colleges COC
AE
HR
oldings EI
BB
LUK
Holdings HA
OII
Gas Storage PN
ar-Mart CRM
or AR
kard HP
ine MF
FR
ces GIL
ains WT
pital ALT
PR
ca AZ
TM
s SS
y WR
al AX
BT
RT
bil XO
QLG
nter RC
ce Corp. PR
LS
bsite SE
e highlighted. Cri
erved.
Cheap Repurvalue by reducin
Price ker ($) (
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 > $10
eas for Sophisticate
February 28, 2011 – P
ders
Buys/ Sells
- / -
- / -
- / -
- / -
7 / 1
4 / 3
13 / 2
- / -
- / -
- / -
8 / 10
16 / 8
- / -
10 / 6
13 / 4
19 / 3
3 / 2
14 / 2
4 / -
7 / 3
- / -
- / -
- / -
- / -
3 / 2
17 / 13
15 / 12
5 / 5
8 / 10
8 / 5
- / -
- / -
- / -
- / -
21 / 14
4 / 1
3 / 4
- / -
- / 1
3 / 3
30 / 20
8 / 4
7 / -
6 / 6
3 / 1
Y!
00mn ► Q-Q
ed Investors
Page 162 of 170
shares < 0
©
PD
© 2008-2011 by Beyond
Profitable DDividend-paying c
Company
1 Two Harbors
2 Life Partners
3 Himax Tech
4 PennyMac M
5 TICC Capital
6 NGP Capital
7 Mesabi Trust
8 Crexus Inves
9 Lorillard
10 Gladstone In
11 BGC Partner
12 Nokia
13 CTC Media
14 BBVA Banco
15 Colony Finan
16 Telecom Arg
17 * Old Repub
18 American So
19 * NY Commu
20 Nat'l Australia
21 Westpac Ban
22 Bristol Myers
23 AstraZeneca
24 * Tower Ban
25 Australia and
26 People's Unit
27 THL Credit
28 * Banco Arge
29 * Bank of Ea
30 American Ec
31 Renasant
32 Santander Br
33 United Banks
34 Baldwin & Ly
35 * Canon
36 Safety Insura
37 * Electrolux
38 Female Heal
39 * Chemical F
40 * China Mob
41 Electro Rent
42 Washington T
43 Credit Suisse
44 GFI Group
45 * Intersil
Company we
* New additions are
Proxy LLC. All rights res
Dividend Pacompanies with n
Ticke
Invest. TWO
LPHI
HIMX
Mortgage PMT
TICC
NGPC
t MSB
stment CXS
LO
vestment GAIN
rs BGCP
NOK
CTCM
o Frances BFR
ncial CLNY
entina TEO
lic ORI
ftware AMSW
unity NYB
a Bank NABZY
nking WBK
s Squibb BMY
AZN
ncorp TOBC
d NZ ANZBY
ted PBCT
TCRD
entaria BBVA
ast Asia BKEAY
ology ECOL
RNST
rasil BSBR
shares UBSI
yons BWINB
CAJ
ance SAFT
ELUXY
th FHCO
Financial CHFC
bile CHL
ELRC
Trust WASH
e CS
GFIG
ISIL
bsite SEC
e highlighted. Cri
erved.
ayors with Dno net debt and
M
Price 5r ($) 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
eas for Sophisticate
February 28, 2011 – P
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 > $100 m
ed Investors
Page 163 of 170
Insiders Buys/ n. Sells
% 5 / 1
% 1 / -
% - / -
% 1 / 1
% 1 / -
% 4 / -
% - / -
% - / -
% 11 / 3
% 3 / -
% 7 / 4
% - / -
% 7 / 7
% - / -
% 4 / -
% - / -
% 2 / 1
% 2 / -
% 11 / 6
% - / -
% - / -
% 4 / 8
% - / -
% 31 / -
% - / -
% 5 / 12
% 5 / -
% - / -
% - / -
% 7 / 1
% 12 / 10
% - / -
% 3 / 8
% 5 / 4
% - / -
% 3 / 5
% - / -
% 8 / 3
% 7 / 2
% - / -
% 3 / 3
% 5 / 7
% - / -
% 8 / 8
% - / -
xy Y!
million
©
DC
© 2008-2011 by Beyond
Deep ValueCompanies that t
Company
1 Ingram Micro
2 Eastman Kod
3 Tech Data
4 Amerisource
5 World Fuel S
6 Systemax
7 Cardinal Hea
8 Office Depot
9 Sunoco
10 Kelly Service
11 Insight Enter
12 SYNNEX
13 McKesson
14 Barnes & No
15 * Delek US H
16 Supervalu
17 BJ's Wholesa
18 Celestica
19 Owens & Min
20 Tesoro
21 Flextronics
22 Brightpoint
23 Kroger
24 Valero Energ
25 Best Buy
26 General Moto
27 IDT Corp.
28 Administaff
29 Fred's
30 Tyson Foods
31 Manpower
32 Kindred Heal
33 * Coca-Cola
34 Rite Aid
35 Tutor Perini
36 Avnet
37 Arrow Electro
38 Sears Holdin
39 Western Refi
40 Sonic Autom
41 Safeway
42 Sanmina-SC
43 EMCOR Gro
44 Centene
45 * Bunge
Company we
* New additions are
Proxy LLC. All rights res
e: Lots of Rerade at low multi
Ticker
o IM
dak EK
TECD
Bergen ABC
Services INT
SYX
alth CAH
ODP
SUN
es KELYA
prises NSIT
SNX
MCK
ble BKS
Holdings DK
SVU
ale Club BJ
CLS
nor OMI
TSO
FLEX
CELL
KR
gy VLO
BBY
ors GM
IDT
ASF
FRED
s TSN
MAN
lthcare KND
FEMSA KOF
RAD
TPC
AVT
onics ARW
gs SHLD
ining WNR
otive SAH
SWY
I SANM
up EME
CNC
BG
bsite SEC
e highlighted. Cri
erved.
evenue, Lowiples of net reven
Mov
Price 52-W($) 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
eas for Sophisticate
February 28, 2011 – P
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 > $500
ed Investors
Page 164 of 170
million
©
DC
© 2008-2011 by Beyond
Deep ValueCompanies that t
Company
1 Stewart Infor
2 Winn-Dixie S
3 Five Star Qua
4 WellCare
5 * Kindred He
6 Eastman Kod
7 Charming Sh
8 Blyth
9 E.W. Scripps
10 * Village Sup
11 Office Depot
12 Humana
13 Imation
14 * Hudson Hig
15 MedCath
16 * Coca-Cola
17 * Natuzzi
18 Haverty Furn
19 American Eq
20 Coldwater Cr
21 Molina Health
22 Corinthian Co
23 Gleacher & C
24 Hot Topic
25 Liz Claiborne
26 Christopher &
27 * Lawson Pr
28 RadioShack
29 Barnes & No
30 Retail Ventur
31 Core-Mark
32 Stein Mart
33 Celadon Gro
34 Brown Shoe
35 Spartan Store
36 Kenneth Cole
37 Lincoln Educ
38 PC Connectio
39 Skechers
40 * Kimball
41 42 43
44 45 Company we
* New additions are
Proxy LLC. All rights res
e: Neglectedrade at low multi
Ticke
mation STC
Stores WINN
ality FVE
WCG
ealthcare KND
dak EK
hoppes CHRS
BTH
s SSP
per Market VLGE
ODP
HUM
IMN
ghland HHGP
MDTH
FEMSA KOF
NTZ
niture HVT
uity AEL
reek CWTR
hcare MOH
olleges COCO
Co. GLCH
HOTT
e LIZ
& Banks CBK
oducts LAWS
RSH
ble BKS
res RVI
CORE
SMRT
up CGI
BWS
es SPTN
e KCP
cational LINC
on PCCC
SKX
KBAL
bsite SEC
e highlighted. Cri
erved.
d Gross Profiples of gross pro
Mo
Price 52er ($) Low
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
iteria: ► EV no
SUBSCRIBE TODA
ofiteers ofit
ove To 2-Week MV
w High ($mn)
% 30% 211
% 99% 389
% 13% 240
% 2% 1,635
% 2% 993
145% 998
% 99% 402
% 75% 282
% 23% 554
% 8% 222
% 68% 1,516
% 5% 10,342
% 12% 435
% 9% 208
% 7% 280
% 12% 2,063
% 31% 249
% 40% 283
% 1% 812
% 189% 280
% 2% 1,052
% 266% 447
% 149% 251
% 78% 249
% 95% 472
% 86% 222
% 12% 208
53% 1,787
% 33% 1,121
% 6% 886
% 9% 372
% 32% 360
% 5% 361
% 30% 674
% 14% 353
% 58% 254
% 78% 352
% 6% 252
% 108% 1,030
% 14% 207
r companies had en
ce Charts
t more than traili
AY! www.manualo
E
EV ) ($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
eas for Sophisticate
February 28, 2011 – 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 > $2
ed Investors
Page 165 of 170
siders
Buys/ Sells
1 / -
19 / 13
5 / -
8 / 10
12 / 12
5 / 3
3 / -
- / 1
3 / 8
3 / 4
4 / -
6 / 6
4 / 2
6 / 6
- / 5
- / -
- / -
1 / 3
6 / 6
- / -
4 / 7
19 / 3
- / 3
2 / -
9 / -
3 / 5
- / 2
2 / 3
9 / 10
- / -
14 / 8
14 / 6
8 / 4
1 / 4
2 / 2
- / -
4 / 8
2 / 3
4 / 6
6 / 1
Y!
200 million
©
AC
© 2008-2011 by Beyond
Activist TargCompanies that m
Company
1 Qiao Xing Mo
2 Qiao Xing Un
3 Audiovox
4 Maxygen
5 Crexus Inves
6 Myriad Pharm
7 Exceed Com
8 Alvarion
9 Sycamore Ne
10 Tuesday Mor
11 Sprott Physic
12 Ingram Micro
13 Imation
14 Flexsteel Ind
15 Movado
16 * China Agrit
17 FormFactor
18 Rimage
19 Xyratex
20 PC Connectio
21 * Kimball
22 Colony Finan
23 InfoSpace
24 * Telestone T
25 Benchmark E
26 QLT
27 Tech Data
28 ModusLink
29 Callaway Go
30 PennyMac M
31 Exar
32 Cutera
33 * Cytokinetic
34 Nam Tai Elec
35 * China Fire
36 BigBand Netw
37 RTI Biologics
38 Force Protec
39 Universal Tra
40 West Marine
41 Hardinge
42 Cogo Group
43 * G. Willi-Foo
44 TomoTherap
45 * Richardson
Company we
* New additions are
Proxy LLC. All rights res
rgets: Potenmay unlock value
Ticke
obile QXM
niversal XING
VOXX
MAXY
stment CXS
ma MYRX
pany EDS
ALVR
etworks SCMR
rning TUES
cal Gold PHYS
o IM
IMN
ustries FLXS
MOV
tech CAGC
FORM
RIMG
XRTX
on PCCC
KBAL
ncial CLNY
INSP
Tech TSTC
Electron. BHE
QLT
TECD
MLNK
lf ELY
Mortgage PMT
EXAR
CUTR
cs CYTK
ctronics NTE
CFSG
works BBND
s RTIX
ction FRPT
avel UTA
WMA
HDNG
COGO
od WILC
py TOMO
n Electron. RELL
bsite SEC
e highlighted. Cri
erved.
ntial Sales, e through a corpo
Mo
Price 52er ($) 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
eas for Sophisticate
February 28, 2011 – P
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%
x 15x 0%
x 15x 1%
x - 0%
x 14x 0%
x - 2%
x 10x 0%
x - 0%
x n/m 7%
x 47x 0%
Proxy
et cash ► MV >
ed Investors
Page 166 of 170
siders
Buys/ Sells
- / -
- / -
10 / 10
1 / -
- / -
5 / -
- / -
- / -
1 / -
5 / 5
- / -
5 / 5
4 / 2
10 / 4
7 / 8
- / 2
1 / 1
4 / -
- / -
2 / 3
6 / 1
4 / -
3 / 9
- / -
3 / 5
3 / -
1 / 5
12 / 5
8 / 6
1 / 1
8 / 4
- / -
- / -
- / -
- / -
12 / 8
3 / 1
4 / 3
1 / -
2 / 2
6 / 1
- / -
- / -
14 / 5
7 / 6
Y!
> $100mn
©
TA C
© 2008-2011 by Beyond
This MonthA Selection of
Click on the lin
Financ
Bill Gr
Jeremy
Consue
Charli
Notes
Micha
Ravi N
Notes
Hayma
Proxy LLC. All rights res
h’s Top 10Our Favorite F
nk next to each
cial Crisis In
ross’s Inves
y Grantham
elo Mack In
e Rose Inte
from Meet
el Maubous
Nagarajan o
from Howa
an Letter: “
erved.
0 Web LinkFreely Accessi
title, or type th
nquiry Com
stment Outl
m’s Letter: “
nterview wi
erview with
ing with Ch
ssin: “The R
on Nokia’s
ard Marks P
“The Cogniti
SUBSCRIBE TODA
ks ible Internet R
he Web addres
mmission Re
look: “Devi
“Pavlov’s B
ith Chuck Ro
Chris Ande
harlie Mung
Real Role of
“Burning P
Presentatio
ive Dissona
AY! www.manualo
Resources
ss into your We
eport and Re
l’s Bargain
Bulls”
oyce
erson of TED
ger
f Dividends
Platform”
on at UCLA
ance of It Al
Value-oriented Eq
ofideas.com
eb browser:
esources
n”
D
s…”
ll”
quity Investment Id
http://
http://
http://
http://
http://
http://
http://
http://
http://
http://
eas for Sophisticate
February 28, 2011 – P
/www.fcic.gov
/bit.ly/dGcWW
/bit.ly/gy5dRL
/bit.ly/hY1KJb
/bit.ly/g93Xre
/bit.ly/h7XEQf
/bit.ly/gnRYqH
/bit.ly/fk3zc1
/scr.bi/gkAJN
/scr.bi/eW9IFx
ed Investors
Page 167 of 170
v
WP
L
b
f
H
b
x
©
©AcaCe TBcueeB Tgwb Csw4t E A T GU ToowcdscT NTaad
© 2008-2011 by Beyond
Abo
© 2009-‘10 by All content is pcopyright laws any third-party Copyright Act each act of will
THE MANUAL OF
BeyondProxy. computer and suse only. Any oediting of the celectronic, withBeyondProxy i
Terms of use: governed by thwww.manualofbelow.
Contact informsubscription or www.manualof427 N Tatnall Selephone: 415-
Editor-in-chie
Annual subscr
To subscribe, v
General PublUse
THE MANUAL OF
of this newslettof Use describewww.manualofconvenience, a disclosures andsummary is mecircumscribe thTerms of Use.
No InvestmentThis newsletteran offer to buy an offer or solicdistributed for i
Proxy LLC. All rights res
out THE MA
BeyondProxyprotected by U.
and is the propproviders of suimposes liabililful infringeme
F IDEAS is publSubscribers ma
store and print mother reproductontent by any m
hout the prior ws strictly prohi
Use of this newe Terms of Usefideas.com. Se
mation: For allother inquiries
fideas.com, or St #27878, Wil-412-8059.
f: John Mihalj
ription price: $
visit www.man
lication Infor
F IDEAS is publter and its conted in detail at fideas.com/termsummary of ce
d disclaimers iseant in no way he full scope an
t Advice r is not an offerany security in
citation would informational p
erved.
ANUAL OF ID
y LLC. All rigS. and internat
perty of Beyonuch content. Thity of up to $15ent of a copyrig
lished monthlyay download cmaterials for thtion, transmissmeans, mechan
written permissibited.
wsletter and itse described in e a summary o
l customer servs, please visit contact us at Blmington, DE 1
evic, CFA.
$1,285.
nualofideas.com
rmation and
lished by Beyoent is governed
ms.html. For yoertain key polis reproduced beto limit or othe
nd effect of the
r to sell or the n any jurisdictibe illegal. Thi
purposes only
SUBSCRIBE TODA
DEAS
ghts reserved. tional
ndProxy and he U.S. 50,000 for ght.
y by content to their heir individualion, display ornical or sion of
s content is detail at
of key terms
vice,
BeyondProxy, 19801-2230;
m/pmr.html
Terms of
ondProxy. Use d by the Terms
our cies, elow. This erwise e complete
solicitation of ion where suchs newsletter is and should not
AY! www.manualo
r
s
h
t
be coto selundegenerthe por nesecurperforeturncapitmay futursubst DisclTheraccurinfornot bresulinforor in repor RelaBeyoprincpositor saevalu John princ(“MCinvessecurnewsother It is tfull trnewsfinan ComBeyothe psubscor re-intere
Value-oriented Eq
ofideas.com
onstrued as invll or buy any s
ertake any inveral or personal
particular inveseeds of individurities referred tormance is not rns are not guartal invested in aoccur. Certain
res, options, antantial risk and
laimers re are no warranracy, completermation set fortbe liable to youlting directly orrmation containpart by its neg
rting or deliver
ated Persons ondProxy’s offcipals (collectivtions in and maales of the secuuated in this ne
Mihaljevic, Ccipal of MihaljeCM”), which sstment partnersrities and finansletter on behalr accounts it m
the policy of Mtrading day to esletter before pncial instrumen
mpensation ondProxy receipublication of thcription fees ch-disseminationested in the new
quity Investment Id
vestment adviceecurity or othestment strategyl recommendatstment objectivual investors. Tto in this newsla guide to futu
ranteed, and a a security discu
n transactions, ind other derivatd are not suitab
nties, expresseeness, or resultsth in this news
u or anyone elsr indirectly froned in this newgligence in comring the conten
ficers, directorsvely “Related Pay, from time turities or other iewsletter.
Chairman of Beevic Capital Merves as the geship. MCM mancial instrumenlf of the invest
manages.
MCM and all Relapse after the
purchases or salnts discussed he
ives compensathis newsletter harged to subscn fees charged twsletter conten
eas for Sophisticate
February 28, 2011 – P
e or a recommeer investment, oy. It does not ction or take intoves, financial siThe price and vletter will flucture performancloss of all of thussed in this neincluding thosetives, give rise
ble for all inves
ed or implied, as obtained fromletter. BeyondPe for any loss o
om the use of thwsletter, causedmpiling, interprnt in this newsl
s, employees anPersons”) mayo time, make pinvestments di
eyondProxy, is Management LLeneral partner oay purchase or nts discussed inment partnersh
Related Personse publication oles of any secuerein are made
tion in connectonly in the forcribers and repto subscribers nt.
ed Investors
Page 168 of 170
endation or constitute a o account ituations, value of tuate. Past ce, future he original ewsletter e involving to
stors.
as to the m any Proxy will or injury he d in whole reting, etter.
nd/or y have purchases iscussed or
also a LC of a private sell
n this hip or
s to allow a f this
urities or e.
tion with rm of production or others
The Manual of Ideas research team is gratified to have won high praise for our investment idea generation process and analytical work.
“I highly recommend MOI — the thoroughness of the product coupled with the quality of the content makes it an invaluable tool for the serious investor.”
—TIM DAVIS, MANAGING DIRECTOR, BLUESTEM ASSET MANAGEMENT
“We do similar work ourselves.”
—GLENN GREENBERG, MANAGING DIRECTOR, BRAVE WARRIOR CAPITAL
“The Manual of Ideas is a tremendous effort and very well put together.”
—MOHNISH PABRAI, MANAGING PARTNER, PABRAI INVESTMENT FUNDS
“Outstanding.”
—JONATHAN HELLER, CFA, EDITOR, CHEAP STOCKS
“Your reports provide serious investors with a plethora of bargain stocks and sound advice. I highly recommend them.”
—MIGUEL BARBOSA, EDITOR, SIMOLEON SENSE
“Very impressive.”
—SHAI DARDASHTI, MANAGING PARTNER, DARDASHTI CAPITAL MANAGEMENT
“It’s little surprise MOI is a winner. When you start with superior stock screening and combine it with good judgment, you put yourself in a great position to outperform.”
—MARKO VUCEMILOVIC, FOUNDER AND MANAGING DIRECTOR, ALKAR GLOBAL
“This is the best institutional-quality equity research to come along in a long time. It not only unearths companies with compelling risk-reward profiles but also analyzes them with a clear understanding of business economics and competitive dynamics.”
—PAVEL SAVOR, ASSISTANT PROFESSOR OF FINANCE, THE WHARTON SCHOOL
“I am (as always) impressed with your work.”
—MARK SPROULE, SCOPIA CAPITAL
“Keep up the great work, you are quickly becoming one of my must-read sources.”
—CORY JANSSEN, FOUNDER, INVESTOPEDIA.COM
FIND OUT WHAT THE BUZZ IS ABOUT.
WWW.MANUALOFIDEAS.COM
T
Y
N F M C Z E
H
Y
P
CW
Q
To Do: Pl
Ma
Your Infor
Name: _____
Firm: ______
Mailing Addre
City: _______
ZIP / Postal C
Email: _____
How Did Y
Your Subs
The Ma
One Ye
Payment I Che
Ema
ConfirmatiWe will confirm
Questions ab
Fo
ease print thi
ail the comple
rmation:
___________
____________
ess: _______
___________
Code: ______
____________
You Hear A
cription:
anual of Ideas
ear (12 month
nformatioeck enclosed (
ail me an elec
ion: m by email th
bout your ord
or faster enrol
s form and fil
eted form (an
____________
___________
____________
___________
___________
___________
About Us?
s
ly issues)
on: (make payab
ctronic invoice
he receipt of y
der? Email u
llment, subscr
l in the follow
d payment) to
___________
___________
___________
____________
___ Country
___________
? _________
Primary
Addition
* Same co
le to “Beyond
e payable by
your request a
us at subscrib
ibe online at w
wing informatio
o: Beyo427 Wilm
___________
___________
___________
_______ S
y: _________
____________
____________
y Subscriber:
nal Users: *
mpany only.
dProxy LLC”)
credit card via
and welcome
be@manualof
www.manualo
on legibly and
ondProxy LLCN Tatnall St #27
mington, DE 198
___________
____________
___________
State (if applic
___________
____________
____________
1
a Google Che
you to The M
fideas.com.
SubscriPublisher: B
ofideas.com
d completely.
7878 801-2230
____________
___________
____________
cable): _____
___________
___________
___________
$ 1,285
$ 585
Total
eckout
Manual of Idea
ption FormBeyondProxy LL
___________
___________
___________
___________
___________
___________
___________
= $ 1,285
= $
$
as. Thanks!
m
LC
____
____
____
____
____
____
____
5
Recommended