Quarterly Report 4/17/2011
Prepared for:
BIFX Fund Prepared by:
DANIEL BECKERMAN, CFP® BECKERMAN INSTITUTIONAL 406 W PARK AVENUE OAKHURST, NJ 07755 877-892-7738
Quarterly Report | Release date 03-31-2011
Page 2 of 31
BIFX Fund: Client Aggregate Portfolio Snapshot
Portfolio Value
Benchmark
$10,903.01
Custom
Analysis 03-31-2011 Asset Allocation
17
0
7
0
11
8
12
100.00
100.00
Value
Core
0
0
0
Not Classified % 6
0
0
0
0
0
0
Growth
Ltd
0-10 10-25 25-50 >50
Stock Analysis 03-31-2011 Stock Sectors ns Se
Greater Asia
Not Classified % 100
Ext
0-10 10-25 25-50 >50
Performance 03-31-2011
Stock Regions e itiv
Benchmark Portfolio
Mod
Total Bond Holdings __
Low
15
Med
24
High
2.71 29.98 9.93 57.22 0.16
Small
0.00 83.00 17.00 0.00 0.00
Morningstar Fixed Income Style Box %
Total Stock Holdings 14
Mid
Total
Bmark Net %
Large
Cash US Stocks Non-US Stocks Bonds Other/Not Classified
Morningstar Equity Style Box %
Portfolio Net %
Americas
Greater Europe
Investment Activity Graph
Portfolio Initial Mkt Val: $2,571 Benchmark
Final Mkt Val: $10,903 $1,000 14.0 11.2
ive
8.4
Def
ens
5.6 2.8
Cyclical N/C
% of Stocks
0-10
10-20
50-90
>90%
Portfolio %
Bmark %
Portfolio %
Bmark %
45.00
32.64
Americas
83.00
79.07
Basic Materials 0.00 Consumer Cyc 18.00 Financial Services 27.00 Real Estate 0.00
5.30 9.09 16.31 1.95
North America Latin America
83.00 0.00
77.23 1.84
Greater Europe
11.01
12.05
Sensitive
33.00
44.63
Comm Services 0.00 Energy 0.00 Industrial 0.00 Technology 33.00
5.11 12.60 12.83 14.08
United Kingdom Europe-Developed Europe-Emerging Africa/Middle East
11.01 0.00 0.00 0.00
3.44 7.36 0.64 0.61
Cyclical
Defensive
22.00
22.73
Consumer Def Healthcare Utilities
7.01 15.00 0.00
9.97 9.38 3.38
Not Classified
0.00
0.00
% of Stocks
20-50
0.0 2001
2002
2003
2004
2005
2006
Trailing Returns
Pre-Tax Portfolio Return Benchmark Return +/- Benchmark Return
2007
2008
2009
2010
3Mo
1Yr
3Yr
5Yr
10Yr
-0.03 2.44 -2.47
-13.18 9.69 -22.87
1.61 4.51 -2.90
4.50 5.31 -0.80
15.54 5.56 9.98
Time Period Return
Best %
Worst %
3 Months 1 Year 3 Years
63.01 (03-09/05-09) 99.42 (03-09/02-10) 43.54 (04-03/03-06)
-34.07 (09-08/11-08) -45.28 (03-08/02-09) -11.08 (03-06/02-09)
Greater Asia
6.00
8.86
Japan Australasia Asia-Developed Asia-Emerging
0.00 0.00 0.00 6.00
3.25 1.52 1.98 2.11
Portfolio Yield
Not Classified
0.00
0.02
The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit
Yield %
Trailing 12 Month
0.68
Performance Disclosure
data http://advisor.morningstar.com/familyinfo.asp. See Disclosure Page for Standardized Returns.
Holdings 03-31-2011 Top 10 holdings out of 14
Ticker
Type
Cisco Systems Barclays PL Google LHC Group Apollo Group Johnson & Johnson Johnson Controls Itron Knight Capital Group Xinyuan Real Estate
CSCO BCS GOOG LHCG APOL JNJ JCI ITRI KCG XIN
ST ST ST ST ST ST ST ST ST ST
Holding Value $
% Assets
1,200.00 1,200.00 1,090.01 872.00 764.00 763.00 763.00 763.00 654.00 654.00
11.01 11.01 10.00 8.00 7.01 7.00 7.00 7.00 6.00 6.00
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Quarterly Report | Release date 03-31-2011
Page 3 of 31
BIFX Fund: Client Aggregate Portfolio Snapshot
Portfolio Value
Benchmark
$10,903.01
Custom
Risk Analysis 03-31-2011 Risk/Reward Scatterplot
Portfolio
Holding
Bmark
3 Year Mean
Performance History Graph
Portfolio
Quarterly returns +/- Benchmark in %
28.00
40.0
20.70 30.0
13.40 6.10
20.0
-1.20 -8.50
10.0
-15.80 Bmark
-23.10 -30.40
-10.0
-37.70 3.0
9.1
15.1
21.2
27.3
33.3
39.4
45.5
51.5
57.6
63.7
69.7
75.8
81.9
87.9
-45.00
2001
2002
2003
2004
2005
2006
2007
2008
2009
-20.0
2010
3 Year Standard Deviation Risk and Return Statistics
3 Year
5 Year
10 Year
Portfolio
Bmark
Portfolio
Bmark
Portfolio
Bmark
33.01 1.61 0.19
10.11 4.51 0.44
27.61 4.50 0.22
8.14 5.31 0.42
25.19 15.54 0.62
6.82 5.56 0.52
Standard Deviation Mean Sharpe Ratio
MPT Statistics
Alpha Beta R-squared
3Yr Portfolio
5Yr Portfolio
10Yr Portfolio
-6.32 2.83 76
-3.82 2.86 72
5.23 2.91 62
Fundamental Analysis 03-31-2011 Asset Allocation
-100
-50
0
50
100
Portfolio Net %
Portfolio Long %
Portfolio Short %
Cash US Stocks Non-US Stocks Bonds Other/Not Classified
0.00 83.00 17.00 0.00 0.00
0.00 83.00 17.00 0.00 0.00
Total
100.00
100.00
High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Available
Portfolio
Bmark
0.00 0.00 0.00 46.99 8.43 0.00 44.58 0.00 0.00
0.22 0.66 13.29 43.93 14.80 6.74 16.07 1.98 2.30
Geometric Avg Capitalization ($Mil) Portfolio
Bmark
0.00 0.00 0.00 0.00 0.00
Developed Markets 94.00 Emerging Markets 6.00 Not Available 0.00
94.94 5.05 0.00
Valuation Multiples
Portfolio
Bmark
0.00
Price/Earnings Price/Book Price/Sales Price/Cash Flow
10.91 1.21 1.08 5.17
15.54 2.06 1.28 8.79
Portfolio 2010
Bmark 2010
15.94 5.98 21.11
12.89 20.91 8.47 35.67
Type Weightings % of US Stocks
Market Maturity % of Stocks
Profitability % of US Stocks
Net Margin ROE ROA Debt/Capital % 0
5
10
15
20
25
30
35
40
45
50
__
Fund Statistics
Potential Cap Gains Exposure Avg Net Expense Ratio Avg Gross Expense Ratio
Portfolio Benchmark Credit Quality Breakdown
AAA AA A BBB BB B Below B NR/NA Interest Rate Risk
Maturity Duration (total portfolio) Avg Credit Quality
__ __ __
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
11,936.77 42,106.65 % of Bonds
__ __ __ __ __ __ __
100.00 Portfolio
__ __ __
Quarterly Report | Release date 03-31-2011
Page 4 of 31
BIFX Fund: Client Aggregate Portfolio Snapshot
Portfolio Value
Benchmark
$10,903.01
Custom
Disclosure for Standardized™ and Tax Adjusted Returns The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus, an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end please visit http://advisor.morningstar.com/familyinfo.asp An investment in a money-market vehicle is not insured or guaranteed by the FDIC or any other government agency. The current yield quotation reflects the current earnings of the money market more closely than the total return quotation. Although money markets seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them. Standardized Returns assume reinvestment of dividends and capital gains. They depict performance without adjusting for the effects of taxation, but are adjusted to reflect sales charges and ongoing fund expenses. If adjusted for taxation, the performance quoted would be significantly reduced. For variable
annuities, additional expenses will be taken in , including M&E risk charges, fund-level expenses such as management fees and operating fees, and contract-level istration fees, charges such as surrender, contract and sales charges. After-tax returns are calculated using the highest individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or an IRA. After-tax returns exclude the effects of either the alternative minimum tax or phase-out of certain tax credits. Any taxes due are as of the time the distributions are made, and the taxable amount and tax character of each distribution are as specified by the fund on the dividend declaration date. Due to foreign tax credits or realized capital losses, after-tax returns may be greater than before-tax returns. After-tax returns for exchange-traded funds are based on net asset value.
Annualized returns 03-31-2011 Standardized Returns (%)
Standard & Poor's 500 TR BarCap's Agg Bond Index MSCI EAFE Index Ndtr_D 3 Month T-Bill
7-day Yield
1Yr
5Yr
10Yr
Since Inception
Inception Date
-----
15.65 5.12 10.42 0.15
2.62 6.03 1.30 2.08
3.29 5.56 5.39 2.14
-----
-----
Max Front Load %
Max Back Load %
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Net Exp Ratio %
Gross Exp Ratio %
Quarterly Report | Release date 03-31-2011
Page 5 of 31
BIFX Fund: Client Aggregate Portfolio Snapshot
Portfolio Value
Benchmark
$10,903.01
Custom
Non-Load Adjusted Returns Total 14 holdings as of 03-31-2011
Type Holdings % of Date Assets
Cisco Systems-CSCO Barclays PL-BCS Google-GOOG LHC Group-LHCG Apollo Group-APOL
ST ST ST ST ST
__ 11.01 __ 11.01 __ 10.00 __ 8.00 __ 7.01
Holding Value $
1,200 1,200 1,090 872 764
Johnson & Johnson-JNJ Johnson Controls-JCI Itron-ITRI Knight Capital Group-KCG Xinyuan Real Estate-XIN
ST ST ST ST ST
__ __ __ __ __
7.00 7.00 7.00 6.00 6.00
Bank of America-BAC SunPower-SPWRA SORL Auto Parts-SORL American Express-AXP
ST ST ST ST
__ __ __ __
6.00 5.00 5.00 4.00
7-day Yield
__ __ __ __ __
1Yr Ret %
3Yr Ret %
5Yr Ret %
10Yr Ret %
-33.88 -15.02 3.46 -10.53 -31.95
-10.60 -18.64 10.03 21.32 -1.16
-4.50 -12.04 8.51 13.40 -4.50
0.85 0.12 __ __
763 763 763 654 654
__ __ __ __ __
-5.81 27.77 -22.23 -12.25 -41.10
0.17 8.51 -14.48 -6.21 -34.57
654 545 545 436
__ __ __ __
-25.10 -8.68 -34.42 10.86
-26.55 -38.73 6.13 2.70
Since Inception Max Front Max Back Inception Date Load % Load %
6.67
__ __ __ __ __
__ __ __ __ __
NA NA NA NA NA
NA NA NA NA NA
2.92 11.73 -1.17 -0.77 __
5.30 15.88 16.87 -0.87 __
__ __ __ __ __
__ __ __ __ __
NA NA NA NA NA
NA NA NA NA NA
-15.45 -14.79 2.33 -1.57
-0.03 __ __
__ __ __ __
__ __ __ __
NA NA NA NA
NA NA NA NA
3.35
Performance Disclosure The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp.
See Disclosure Page for Standardized Returns. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Quarterly Report | Release date 04-15-2011
Page 6 of 31
American Express AXP American Express, best known for its flagship green charge card, is segmented into three main businesses: U.S. card services, international card and global commercial services, and global network and merchant services. Its former financial advisor segment, American Express Financial Advisors, was spun off to shareholders in 2005 and is now known as Ameriprise.
Morningstar Rating
Uncertainty
High
Sales $Mil
Mkt Cap $Mil
Industry
$46.25
$27,819
$55,611
Specialty Finance
Fair Value
Economic Moat
Style
Sector
$54.00
As of 04-15-2011
49.91 21.19
Last Close $
Wide
Large Core
Financial Services
As of 01-27-2011
39.33 23.26
42.99 27.06
49.96 41.44
53.06 43.35
62.50 49.73
65.89 50.37
52.63 16.55
42.25 9.71
49.19 36.60
46.95 42.19
Annual Price High Low Recent Splits
Price Volatility 39.0 19.0
Monthly High/Low Rel Strength to S&P 500 52 week High/Low $ 49.19 - 37.13 10 Year High/Low $ 65.89 - 9.71
5.0
World Financial Center 200 Vesey Street New York, NY 10285 Phone: 1 212 640-2000Website: http://www.americanexpress.com
2.0 19.0
Bear-Market Rank __ (10=worst) Trading Volume Million
7.0
Growth Rates Compound Annual Grade: C
2002
2003
2004
2005
2006
2007
2008
2009
-34.5 -21.4 -156.0 0.9 41697
0.2 23.5 -30.8 0.9 40683
37.5 11.1 -22.9 0.8 54324
17.5 8.5 -5.2 0.8 61957
5.1 2.1 43.2 0.9 63897
18.9 5.3 8.1 0.9 73094
-13.3 -16.8 -33.8 1.2 60834
-63.0 -24.5 -43.8 3.9 21516
122.3 98.9 103.8 1.8 48300
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
636 20445 __
1909 20816 __
2158 22803 __
2251 25997 __
135 23212 __
-158 26058 __
3590 24141 __
3646 24719 __
3124 21399 __
4869 22950 __
4869 22950 __
Mkt
1311
2671
2987
3445
3734
3707
4012
2699
2130
4057
4057
Net Income $Mil
__ __ __ __
0.98 0.32 1336 9.02
2.01 0.32 1330 10.55
2.31 0.38 1298 11.91
2.74 0.44 1285 12.76
2.56 0.48 1258 8.50
3.01 0.57 1238 8.72
3.39 0.63 1196 9.43
2.48 0.72 1157 10.21
1.54 0.72 1171 12.09
3.35 0.72 1195 13.56
3.35 0.72 1195 13.50
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
3 Yr
5 Yr
10 Yr
13.4 __
0.1 __
3.6 __
2.2 __
117.5 0.0 12.2 0.6 -166.9 -8.3
-0.4 4.6 12.9 3.9 -33.8 4.3
5.5 8.5 9.8 -0.6 -23.6 -1.1
4.9 8.5 4.4 3.4 -14.9 2.3
Grade: C
Current
5 Yr Avg
Ind
Return on Equity % Return on Assets % Revenue/Employee $K Compensation Exp/Rev
26.5 3.0 456.0 0.2 __
27.8 2.5 435.5 0.2 __
2.5 0.3 __ __
14.6 8.0
12.3 __
__ __
__ __ __
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market Profitability Analysis
Operating Margin % Net Margin % Free Cash Flow/Rev %
4.0
Financial Position Grade: C
12-09 $Mil
12-10 $Mil
Loans (Gross) Less: Allowances Net Loans
33305 3295 30010
57204 3646 53558
Securities Trading Assets Intangibles Other Total Assets
24337 __ __
14010 __ __
69741 124088
79474 147042
Deposits Short-Term Debt Long-Term Debt Other Total Liabilities Preferred Stock
26289 8319 52338 22736 109682 __
29727 9032 66416 25637 130812 __
14406
16230
Total Equity Valuation Analysis Price/Earnings Forward P/E Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil Financials
Net Interest Inc $Mil Fee Income Oper Income $Mil
Assets $Mil Total Equity $Mil Free Cash Flow
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
0.9 11.1 6.2 0.14 12.6
1.7 20.6 11.8 0.15 11.3
1.8 20.5 12.0 0.15 11.4
1.9 22.0 12.2 0.15 12.0
2.4 28.1 16.0 0.15 10.8
3.1 35.2 14.3 0.21 12.2
2.9 37.3 14.5 0.20 13.6
2.0 23.6 9.5 0.21 10.7
1.7 16.2 8.7 0.20 8.6
3.0 26.5 14.6 0.21 9.1
3.0 26.5 14.6 0.21 9.1
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
26440 8288 14557
27822 16819 18317
32300 20654 21250
38381 33061 21091
40801 30781 24579
50248 42747 24656
53436 55285 15397
40659 60041 15486
30010 52338 26289
53558 66416 29727
53558 66416 29727
Net Loans $Mil Long-Term Debt $Mil Deposits $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
36.4 __
17.6 __
20.9 __
20.6 __
20.1 __
20.2 __
15.3 __
7.5 __
26.3 __
12.8 __
13.8 __
2.3 4.0
2.1 3.4
2.5 4.1
2.6 4.4
2.8 6.1
2.9 7.0
2.2 5.5
0.8 1.8
1.9 3.4
1.8 3.2
2.0 3.4
Price/Earnings P/E vs. Market Price/Sales Price/Book
Quarterly Results 5 Yr Avg
Ind
Mkt
Revenue $Mil
13.8 11.2 24.8 1.6 3.4 2.0 1.0
16.4 __ __ __
40.3 __
__ __ __ __ __ __ __
Most Recent Previous
4.2 1.9 __
YTD
7.7 8.6 -5.1 3.7 -7.5 -156.2 __ 1.7 51375 55611
151100 157253 175001 192638 113960 127853 149830 126074 124088 147042 147042 12037 13861 15323 16020 10549 10511 11029 11841 14406 16230 16230 958 847 1525 2748 9205 3745 3494 1887 -435 2233 2233
Current
142.9 4.4 2.2 5.7 __
2010
Stock Performance
2001
1 Yr
Close Competitors Mar
Jun
Sep
Dec
6606.0 6858.0 7033.0 7322.0 5926.0 6092.0 6016.0 6489.0
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
11.5 -17.5
12.6 -18.6
16.9 -16.0
12.8 -0.3
Mar
Jun
Sep
Dec
0.73 0.32
0.84 0.09
0.90 0.54
0.88 0.59
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
Visa, Inc. MasterCard Incorporated
63695 34945
P/E
ROE%
8343 18.2 5539 19.1
12.6 42.4
Major Fund Holders % of shares
Davis NY Venture A American Funds Washington Mutual A American Funds American Balanced A
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
2.66 1.48 1.25
Quarterly Report | Release date 04-15-2011
Page 7 of 31
Apollo Group APOL Apollo Group is one of the world's largest for-profit education companies, with 405,000 degreed students enrolled in its core school, the University of Phoenix. The company offers classes online and through physical learning centers in nearly 40 states as well as various international locations. Programs range from associate to doctorate degrees in areas such as business, education, health care, technology, and social and behavioral sciences.
Morningstar Rating
Uncertainty
High
3:2
46.15 28.13
Sales $Mil
Mkt Cap $Mil
Industry
$40.10
$4,972
$5,678
Education & Training Services
Fair Value
Economic Moat
Style
Sector
$55.00
As of 04-15-2011
33.31 19.33
Last Close $
Narrow
Mid Core
Consumer Defensive
As of 03-30-2011
73.09 40.72
98.01 62.55
84.20 57.40
63.26 33.33
80.75 39.02
81.68 37.92
90.00 52.79
66.69 33.75
46.42 34.43
Annual Price High Low Recent Splits
3:2
Price Volatility 79.0 39.0 19.0
6.0
4025 S. Riverpoint Parkway Phoenix, AZ 85040 Phone: 1 480 966-5394Website: http://www.apollogrp.edu
2.0 4.0
Monthly High/Low Rel Strength to S&P 500 52 week High/Low $ 66.69 - 33.75 10 Year High/Low $ 98.01 - 19.33 Bear-Market Rank __ (10=worst) Trading Volume Million
2.0
Growth Rates Compound Annual Grade: B
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
2001
1 Yr
3 Yr
5 Yr
10 Yr
23.9 -2.8 -0.8 __
21.8 17.3 16.5 __
17.0 7.2 9.3 __
23.2 24.4 24.6 __
22.9 -37.4 -3.6 -46.3
36.0 -3.3 0.7 -2.9
18.6 -5.4 -0.5 -5.8
19.5 6.7 3.0 5.6
Profitability Analysis Grade: C
Current
5 Yr Avg
Ind
Mkt
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
29.5 12.8 8.1 __
59.7 26.1 8.1 __
88.6
78.0 *
9.5 5.0 5.3 90.7 __
__ __ __ __ __
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
56.6 16.7 7.9 18.4 __
56.5 24.0 14.6 18.8 __
__ __ __
__ __ __ __ __
13.2
Financial Position Grade: C
02-10 $Mil
02-11 $Mil
661 __
1033 __
261 1643
218 1948
Fixed Assets Intangibles Total Assets
574 669 3001
654 257 3116
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
72 55 1316 115 1661
79 23 1356 168 1801
Total Equity
1340
1315
Cash Inventories Receivables Current Assets
Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
2005
2006
2007
2008
2009
2010
YTD
Stock Performance
46.6 70.0 33.4 __
54.1 27.7 -8.5 __
19.0 10.0 13.3 __
-25.1 -28.1 -6.6 __
-35.5 -49.2 -20.3 __
80.0 76.5 39.5 __
9.2 47.7 24.7 __
-20.9 -44.4 -18.0 __
-34.8 -47.6 -8.7 __
1.5 -3.4 -4.3 __
2002
37.3 50.3 26.6 __
2003
2004
5170
7676
11959
14950
10665
6749
11766
12224
9383
5653
5678
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Financials
769 46.7 161 20.9
1009 50.6 254 25.2
1340 54.2 387 28.9
1798 57.4 438 24.4
2251 58.4 713 31.7
2478 55.1 650 26.2
2724 54.6 626 23.0
3141 56.4 749 23.9
3974 59.7 1039 26.2
4926 56.9 1011 20.5
4972 56.6 829 16.7
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
108
161
247
278
445
415
409
477
598
553
392
Net Income $Mil
0.57 __
0.84 __
1.27 __
0.77 __
2.39 __
2.35 __
2.35 __
2.87 __
3.75 __
3.72 __
2.67 __
189 3.01
191 4.49
194 6.53
179 4.15
186 3.28
176 4.23
174 5.16
166 6.50
160 9.36
153 10.01
147 9.29
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
165 -44 120
261 -37 224
343 -56 287
513 -113 400
566 -104 462
551 -111 440
589 -105 484
726 -105 621
960 -127 833
1045 -168 877
1094 -182 913
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
19.9 29.0 14.0 1.42 1.4
19.4 27.3 16.0 1.22 1.4
21.0 28.6 18.4 1.14 1.3
19.6 28.0 15.5 1.27 1.5
32.3 53.5 19.8 1.63 1.8
32.1 63.3 16.7 1.92 2.1
29.9 66.0 15.0 1.99 2.3
28.8 64.9 15.2 1.90 2.2
23.4 60.1 15.1 1.55 2.8
16.1 44.0 11.2 1.44 2.7
12.8 29.5 7.9 1.63 2.4
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
02-11
Financial Health
305 15 482 0.03
466 16 699 0.02
615 15 1027 0.01
389 29 957 0.03
317 78 707 0.11
207 __
182 __
304 __
604 __
634 __
834 __
125 128 1158 0.11
460 168 1356 0.12
592 168 1315 0.13
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
49.3 __
45.5 __
48.1 __
47.2 __
23.8 __
17.0 __
27.8 __
24.3 __
14.6 __
10.5 __
17.8 __
7.0 10.0 34.5
7.7 9.8 28.9
9.2 10.4 33.1
7.5 19.5 27.8
4.7 18.5 18.0
2.7 9.2 14.0
4.3 13.6 18.8
3.8 11.8 14.0
2.2 6.5 9.7
1.2 3.9 5.6
1.2 4.3 5.4
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
17.8 12.0 5.4 6.5 0.0 4.3 1.2 1.6
18.8 __
12.0 __
Most Recent Previous
12.4 14.9 __
7.3 10.2 0.5 2.7 1.3 __
__ __ __ __ __ __ __ __
9.0 2.8 __
Close Competitors May
Aug
Nov
Feb
1337.4 1259.4 1326.4 1048.6 1051.3 1075.8 1270.3 1070.3
Rev Growth %
May
Aug
Nov
Feb
Most Recent Previous
27.2 25.9
17.1 29.4
4.4 30.8
-2.0 22.2
May
Aug
Nov
Feb
1.16 1.26
0.35 0.60
1.61 1.54
-0.47 0.67
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
DeVry, Inc. Strayer Education, Inc.
3596 1605
P/E
ROE%
2084 11.7 637 12.5
27.2 71.8
Major Fund Holders % of shares
PowerShares QQQ Yacktman Vanguard Mid Cap Index Ins
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
1.22 1.13 1.08
Quarterly Report | Release date 04-15-2011
Page 8 of 31
Bank of America BAC Bank of America is the nation's largest consumer and small business bank. The bank has offices in 32 states, Washington, D.C., and more than 30 countries. Along with its complete product offerings for the retail client, B of A also has a sizable middle-market and large corporate lending business, asset-management unit, and investment banking business.
Morningstar Rating
Uncertainty
Very High
Sales $Mil
Mkt Cap $Mil
Industry
$12.82
$110,220
$129,753
Banks - Regional - US
Fair Value
Economic Moat
Style
Sector
$18.00
As of 04-15-2011
32.80 22.50
Last Close $
Narrow
Large Value
Financial Services
As of 03-11-2011
38.55 26.98
42.45 32.13
47.47 38.51
47.44 41.13
55.08 40.93
54.21 40.61
45.08 10.01
19.10 2.53
19.86 10.91
15.31 13.16
Annual Price High Low Recent Splits
2:1
Price Volatility 39.0 19.0 9.0 4.0
Bank of America Corporate Center 100 N. Tryon Street Charlotte, NC 28255 Phone: 1 704 386-5681Website: http://www.bankofamerica.com
1.0 199.0
Monthly High/Low Rel Strength to S&P 500 52 week High/Low $ 19.86 - 10.91 10 Year High/Low $ 55.08 - 2.53 Bear-Market Rank __ (10=worst) Trading Volume Million
29.0
Growth Rates Compound Annual Grade: D
2001
1 Yr
3 Yr
5 Yr
10 Yr
-7.9 __ __
18.5 __ __
14.0 __ __
12.8 __ __
0.0 -6.5 -34.0 -15.2 -42.9
-74.5 -13.2 -25.8 -18.6 -25.5
-53.8 -0.7 -16.0 -8.8 -16.4
-27.7 3.7 0.0 -2.0 -1.1
Grade: D
Current
5 Yr Avg
Ind
Return on Equity % Return on Assets % Revenue/Employee $K Compensation Exp/Rev
-1.8 -0.2 382.7 0.3 __
5.5 0.5 367.8 0.3 __
1.9 0.2 __ __
-3.3 0.9
10.0 __
__ __ __
__ __ __
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
2007
YTD
Stock Performance Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2004
2005
2006
2007
2008
2009
2010
TTM
30737 26438 __
34591 37989 __
34433 31886 __
45360 27422 __
47109 72534 __
51523 58697 __
51523 58697 __
Net Interest Inc $Mil Fee Income Oper Income $Mil
Mkt
6787
9244
10806
14127
16447
21111
14800
2556
-2210
-3595
-3595
Net Income $Mil
__ __ __ __
2.09 1.14 3190 15.40
2.96 1.22 3040 16.79
3.57 1.44 3030 16.13
3.69 1.70 3824 24.51
4.04 1.90 4068 25.21
4.59 2.12 4596 29.49
3.30 2.40 4480 32.05
0.55 2.24 4612 27.77
-0.29 0.04 7729 22.45
-0.37 0.04 9790 20.99
-0.37 0.04 9790 20.92
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
311441 182206 118114 704736 2223299
338054 194671 98961 699610 2264909
Deposits Short-Term Debt Long-Term Debt Other Total Liabilities Preferred Stock
991611 69524 438521 492199 1991855 37208
1010430 59962 448431 517838 2036661 16562
231444
228248
Valuation Analysis
621764 660458 736445 1110457 1291803 1459737 1715746 1817943 2223299 2264909 2264909 48520 50319 47980 99645 101533 135272 146803 177052 231444 228248 228248 5900 7450 13149 -37522 14577 -12606 3451 -26241 -48116 958 958
Financials
Assets $Mil Total Equity $Mil Free Cash Flow
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
1.1 14.1 19.3 0.06 12.8
1.4 18.7 26.3 0.05 13.1
1.6 22.0 27.8 0.06 15.4
1.5 19.2 27.7 0.06 11.2
1.4 16.4 28.8 0.05 12.8
1.5 18.1 29.1 0.05 11.0
0.9 10.8 22.3 0.04 12.1
0.1 1.8 3.5 0.04 13.1
-0.1 -1.3 -1.9 0.06 11.5
-0.2 -1.8 -3.3 0.05 10.7
-0.2 -1.8 -3.3 0.05 10.7
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
322278 335904 365300 513211 565746 697474 864756 939829 906802 933613 933613 68026 67176 75343 98078 100848 146000 197508 268292 438521 448431 448431 373495 386458 414113 618570 634670 693497 805177 882997 991611 1010430 1010430 2001
2002
2003
2004
2005
2006
2007
2008
15.1 __
11.8 __
11.3 __
12.7 __
11.4 __
11.6 __
12.5 __
25.6 __
__ __
2.9 2.0
3.0 2.1
3.1 2.5
3.5 1.9
3.3 1.8
3.3 1.8
2.8 1.3
0.9 0.5
1.0 0.7
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
__
__ __ __ __
45.9 __ __
__ __ __ __ __ __ __
Most Recent Previous
1.0 1.8 __
2010
28797 22220 __
Securities Trading Assets Intangibles Other Total Assets
1.1 1.0 1.7 __
2009
-60.4 7.2 -11.2 -3.8 -22.0 -16.2 -23.9 -8.8 -29.3 2.7 -16.2 -2.3 __ 15.9 0.3 0.3 70648 130273 134536 129753
2003
975498 41885 933613
7.1 131.6 0.3 0.6 1.1 0.8
2008
21464 17363 __
944002 37200 906802
Price/Earnings Forward P/E Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
2006
2002
12-10 $Mil
Total Equity
2005
20923 14201 __
12-09 $Mil
Loans (Gross) Less: Allowances Net Loans
2004
2001
Financial Position Grade: D
2003
20290 14823 __
Profitability Analysis
Operating Margin % Net Margin % Free Cash Flow/Rev %
2002
42.2 14.4 19.7 21.1 2.3 20.3 -18.2 55.2 37.8 -6.6 12.1 -0.7 6.7 -21.8 37.6 8.5 -7.1 6.7 2.0 3.0 2.6 3.6 3.5 3.6 3.6 4.1 4.0 5.8 99040 104125 119503 190480 185342 239758 183286
Jun
Sep
Dec
31969 35758
29153 32774
26700 26035
22398 25076
Mar
Jun
Sep
Dec
Most Recent Previous
-10.6 110.3
-11.1 61.3
2.6 32.7
-10.7 86.1
Mar
Jun
Sep
Dec
0.28 0.44
0.27 0.33
-0.77 -0.26
-0.16 -0.68
Most Recent Previous
2010
__ __
1.2 0.6
TTM
__ __
1.1 0.6
Net Loans $Mil Long-Term Debt $Mil Deposits $Mil Valuation
Price/Earnings P/E vs. Market Price/Sales Price/Book
Close Competitors Mar
Rev Growth %
Earnings Per Share $
2009
Financial Health
Mkt Cap $Mil Rev $Mil
JP Morgan Chase & Co Wells Fargo Company
P/E
ROE%
178820 102694 11.3 157463 85210 13.5
9.7 10.5
Major Fund Holders % of shares
Vanguard US Total Market Shares (AU) ETF Vanguard 500 Index Investor American Funds Growth Fund of Amer A
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
1.05 0.90 0.82
Quarterly Report | Release date 04-15-2011
Page 9 of 31
Barclays PL BCS Barclays is one of the largest banks in the United Kingdom and has operations around the world. Its businesses include U.K. banking, which serves retail and business customers in the U.K.; Barclays Capital, a debt-focused investment bank; international banking, which serves retail and business customers in Europe, Africa, and Asia; and Barclaycard, a large credit card issuer. Barclays has a 20% stake in BlackRock as a result of the 2009 sale of Barclays Global investors.
Morningstar Rating
Uncertainty
Very High
Sales $Mil
Mkt Cap $Mil
Industry
$19.68
$59,886
$59,935
Banks - Global
Fair Value
Economic Moat
Style
Sector
$29.00
As of 04-15-2011
35.00 21.50
Last Close $
None
Large Value
Financial Services
As of 11-10-2010
38.00 21.37
36.57 20.30
45.99 32.78
47.00 37.16
61.52 41.80
62.68 38.14
41.58 7.13
25.68 2.75
24.11 15.36
21.69 16.60
Annual Price High Low Recent Splits
4:1
Price Volatility 39.0 19.0 9.0 4.0
1 Churchill Place London, E14 5HP Phone: 020 7116 1000 Website: http://www.barclays.com
1.0 3.0 1.0
Growth Rates Compound Annual
2003
2004
2005
2006
2007
2008
2009
2010
YTD
Stock Performance
52.2 25.8 -1.8 3.4 59755
29.9 21.0 12.7 3.4 73700
-3.9 -6.9 -14.8 4.4 67891
42.9 29.3 18.1 3.5 94325
-26.1 -29.7 -14.0 6.4 65951
-69.2 -30.7 -27.9 26.9 20511
80.3 56.8 27.7 0.4 50211
-4.6 -17.4 2.6 1.7 50311
20.1 15.2 13.3 __
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
8799 8197 __
9294 7672 __
10792 9544 __
12510 13177 __
14774 19445 __
16775 26097 __
19159 29749 __
21414 24844 __
18515 28405 __
19461 31001 __
23095 36791 __
Mkt
3554
3340
4485
5975
7028
8387
8806
8181
14593
5539
6573
Net Income $Mil
__ __ __ __
2.12 0.88 1680 12.67
2.02 1.03 1656 14.91
2.77 1.28 1616 18.18
3.74 1.56 1600 20.70
3.83 1.79 1829 18.58
5.12 2.04 1638 23.90
5.34 2.60 1651 28.30
4.24 2.53 1894 25.15
1.41 0.06 2871 26.76
1.77 0.28 3113 26.15
2.10 0.33 3113 27.23
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
10 Yr
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
7.5 __
9.9 __
11.6 __
12.6 __
25.6 350.6 0.8 -15.4 -2.0 -24.3
-24.7 -48.3 5.5 -16.2 -13.3 -15.8
-11.5 -28.7 9.2 -11.3 -9.9 -11.8
-3.4 -10.8 7.7 0.1 -3.5 -1.0
Grade: D
Current
5 Yr Avg
Ind
Return on Equity % Return on Assets % Revenue/Employee $K Compensation Exp/Rev
7.3 0.3 366.9 0.4 __
17.9 0.4 321.2 0.3 __
-4.4 -0.2 __ __
11.0 __
19.5 __
__ __ __
__ __ __
Profitability Analysis
Financial Position
Deposits Short-Term Debt Long-Term Debt Other Total Liabilities Preferred Stock Total Equity
12-09 $Mil
12-10 $Mil
745029 __
729190 __
745029
729190
91893 244399 14203 1131249 2226773
167702 264388 13617 1157375 2332271
644126 __
663467 __
263863 1242438 2150427 __
289837 1299341 2252645 __
76346
79626
Valuation Analysis Price/Earnings Forward P/E Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
Net Interest Inc $Mil Fee Income Oper Income $Mil
Assets $Mil Total Equity $Mil Free Cash Flow
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
0.7 17.8 20.9 0.04 24.6
0.6 15.0 19.7 0.03 26.5
0.7 17.1 22.1 0.03 26.5
0.7 19.2 23.3 0.03 30.0
0.5 22.1 20.5 0.03 53.0
0.5 24.5 19.6 0.02 50.4
0.4 20.5 18.0 0.02 52.7
0.3 14.7 17.7 0.02 56.1
0.5 22.3 31.1 0.02 29.2
0.3 7.3 11.0 0.02 29.3
0.3 7.3 11.0 0.02 29.3
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
332570 419912 514944 632824 516092 613484 765292 741660 745029 729190 729190 72753 92536 110407 153535 177755 27001 36030 43438 263863 289837 289837 336666 417269 497497 630264 543876 160180 183300 169643 644126 663467 663467
Financial Health
Net Loans $Mil Long-Term Debt $Mil Deposits $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
15.8 __
11.4 __
12.0 __
11.7 __
11.7 __
10.6 __
7.6 __
3.0 __
12.0 __
9.3 __
10.6 __
3.3 2.7
2.2 1.7
2.7 2.0
2.7 2.2
2.3 2.3
2.2 2.4
1.4 1.4
0.5 0.4
1.0 0.7
1.0 0.6
1.2 0.7
Price/Earnings P/E vs. Market Price/Sales Price/Book
Quarterly Results
Close Competitors
Ind
Mkt
Revenue $Mil
Mar
Jun
Sep
Dec
10.6 __ __
8.5 __ __ __
9.9 __ __
__ __ __ __ __ __ __
Most Recent Previous
__ __
__ __
__ __
__ __
Rev Growth %
Mar
Jun
Sep
Dec
1.1 1.2 __
Financials
2001
5 Yr Avg
1.5 0.9 1.5 __
59935
519352 649541 790690 1000949 1590171 1952307 2436434 2988318 2226773 2332271 2332271 21127 24503 29883 33392 29978 38778 46235 53301 76346 79626 79626 1656 2287 2069 4694 6901 4076 1983 -17354 -1261 -26 -26
Current
1.8 0.7 1.2 __
Trading Volume Million
-23.6 -0.2 -2.9 4.1 40604
5 Yr
Securities Trading Assets Intangibles Other Total Assets
Bear-Market Rank __ (10=worst)
2002
3 Yr
Loans (Gross) Less: Allowances Net Loans
10 Year High/Low $ 62.68 - 2.75
7.2 20.3 -10.3 2.6 56075
1 Yr
Grade: C
52 week High/Low $ 24.11 - 15.36
2001
Grade: D
Operating Margin % Net Margin % Free Cash Flow/Rev %
Monthly High/Low Rel Strength to S&P 500
Most Recent Previous
__ __
__ __
__ __
__ __
Earnings Per Share $
Mar
Jun
Sep
Dec
Most Recent Previous
__ __
__ __
__ __
__ __
Mkt Cap $Mil Rev $Mil
HSBC Holdings PLC JP Morgan Chase & Co
P/E
ROE%
188898 80014 14.8 178820 102694 11.3
9.5 9.7
Major Fund Holders % of shares
Scout International DFA Intl Value I T. Rowe Price Intl Gr & Inc
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
0.16 0.10 0.08
Quarterly Report | Release date 04-15-2011
Page 10 of 31
Cisco Systems CSCO Cisco Systems is the world's leading supplier of data networking equipment and software. Its products include routers, switches, access equipment, and network-management software that allow data communication among dispersed computer networks. The firm has also entered newer markets, such as video conferencing, web-based collaboration, and data center servers.
Morningstar Rating
Uncertainty
Medium
21.84 8.12
Sales $Mil
Mkt Cap $Mil
Industry
$17.03
$42,361
$94,142
Communication Equipment
Fair Value
Economic Moat
Style
Sector
$30.00
As of 04-15-2011
44.50 11.04
Last Close $
Wide
Large Core
Technology
As of 02-17-2011
24.60 12.33
29.39 17.53
20.25 16.83
27.96 17.10
34.24 24.82
27.72 14.20
24.83 13.61
27.74 19.00
22.34 16.97
Annual Price High Low Recent Splits
Price Volatility 39.0 19.0
5.0
170 West Tasman Drive San Jose, CA 95134-1706 Phone: 1 408 526-4000Website: http://www.cisco.com
2.0 69.0
Monthly High/Low Rel Strength to S&P 500 52 week High/Low $ 27.74 - 16.97 10 Year High/Low $ 44.50 - 8.12 Bear-Market Rank __ (10=worst) Trading Volume Million
29.0
Growth Rates Compound Annual Grade: C
2001
1 Yr
3 Yr
5 Yr
10 Yr
10.9 25.2 26.7 __
4.7 2.1 4.4 __
10.1 4.3 8.9 __
7.8 11.0 14.0 __
17.2 -37.2 -32.5 -46.1
14.8 -9.6 -5.0 -9.2
16.6 -4.2 -0.6 -4.7
7.6 0.9 1.5 -0.2
Grade: C
Current
5 Yr Avg
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
17.4 9.6 10.6 11.3 599.2
22.0 12.8 9.3 10.2 586.6 *
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
62.4 20.6 17.9 21.8 13.5
64.4 23.3 19.5 25.1 13.6
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market Profitability Analysis
Ind
Mkt
9.1 4.5 10.4 7.9 __
__ __ __ __ __
__ __ __
__ __ __ __ __
11.4
Financial Position Grade: C
2002
-52.7 -39.6 2.6 __ 132835
-27.7 -4.3 9.0 __
2003
85.0 58.6 19.7 __
2004
2005
-20.3 -29.3 -28.8 __
-11.4 -14.4 -15.9 __
2006
59.6 46.0 42.3 __
2007
2008
2009
2010
YTD
-1.0 -4.5 -12.7 __
-39.8 -1.3 7.8 __
46.9 23.4 10.1 __
-15.5 -28.3 -15.6 __
-15.5 -20.5 -20.2 __
95438 137717 112130
94142
94649 167268 127217 105160 165967 164232
Stock Performance Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
22293 49.7 -2004 -9.0
18915 63.5 2919 15.4
18878 70.1 4882 25.9
22045 68.6 6292 28.5
24801 67.2 7416 29.9
28484 65.8 6996 24.6
34922 64.0 8621 24.7
39540 64.5 9442 23.9
36117 63.9 7322 20.3
40040 64.0 9164 22.9
42361 62.4 8705 20.6
Financials
-1014
1893
3578
4401
5741
5580
7333
8052
6134
7767
7578
Net Income $Mil
-0.14 __
0.25 __
0.50 __
0.70 __
0.87 __
0.89 __
1.17 __
1.31 __
1.05 __
1.33 __
1.32 __
7196 3.74
7447 3.95
7223 3.97
7057 3.73
6612 3.49
6272 4.20
6265 5.58
6163 5.98
5857 6.95
5848 8.06
5730 8.26
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
6392 -2271 4121
6587 -2641 3946
5240 -717 4523
7121 -613 6508
7568 -692 6876
7899 -772 7127
10104 -1251 8853
12089 -1268 10821
9897 -1005 8892
10173 -1008 9165
10475 -1252 9223
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
-3.0 -3.8 -4.6 0.65 1.3
5.2 6.8 10.0 0.52 1.3
9.6 12.6 19.0 0.50 1.3
12.1 16.3 20.0 0.61 1.4
16.5 23.4 23.2 0.71 1.5
14.5 23.7 19.6 0.74 1.8
15.2 26.5 21.0 0.72 1.7
14.4 24.5 20.4 0.71 1.7
9.7 16.8 17.0 0.57 1.8
10.4 18.7 19.4 0.54 1.8
9.6 17.4 17.9 0.53 1.8
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
01-10 $Mil
01-11 $Mil
Cash Inventories Receivables Current Assets
4710 1215 4237 50139
4924 1602 4620 52066
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
01-11
Financial Health
Fixed Assets Intangibles Total Assets
3958 17084 76403
4031 19545 81981
4739 __
9058 __
5121 __
5640 __
3520 __
27120 __
28656 __
28029 __
25826 __
23174 __
14363 6332 23912 0.26
18216 6408 31480 0.20
21841 6393 34353 0.19
30522 10295 38647 0.27
32188 12188 44267 0.28
33561 12152 45641 0.27
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
853 __
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
35.1 __
42.9 __
25.5 __
19.9 __
28.7 __
21.5 __
12.3 __
24.4 __
14.8 __
12.9 __
5.1 3.3 15.6
9.1 6.1 33.8
5.9 5.2 17.6
4.4 4.9 14.8
5.7 6.5 19.5
4.7 4.9 15.6
2.5 2.7 8.5
4.0 3.4 16.1
2.8 2.5 11.3
2.3 2.1 9.3
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
14405 15194 34891
959 3089 18505 12152 36340
Total Equity
41512
45641
Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
__ __
6.5 4.8 20.5
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
12.9 9.7 9.3 10.6 0.4 2.1 2.3 1.0
20.4 __
20.7 __
Most Recent Previous
14.2 15.8 __
11.9 15.1 1.0 2.4 1.7 __
__ __ __ __ __ __ __ __
4.0 3.9 __
Close Competitors Apr
Jul
Oct
Jan
10368 10836 10750 10407 8162.0 8535.0 9021.0 9815.0
Rev Growth %
Apr
Jul
Oct
Jan
Most Recent Previous
27.0 -16.6
27.0 -17.7
19.2 -12.7
6.0 8.0
Apr
Jul
Oct
Jan
0.37 0.23
0.34 0.19
0.34 0.30
0.27 0.32
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
Hewlett-Packard Company __
P/E
ROE%
87120 127158 10.3
22.0
Major Fund Holders % of shares
Vanguard US Total Market Shares (AU) ETF Vanguard 500 Index Investor American Funds Growth Fund of Amer A
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
1.09 0.90 0.87
Quarterly Report | Release date 04-15-2011
Page 11 of 31
Google GOOG Google manages an Internet search engine that generates revenue when s click or view advertising related to their searches. This activity generates more than 80% of the company's revenues. The remaining revenue comes from advertising that Google places on other companies' websites and relatively smaller initiatives, such as hosted enterprise products including e-mail and office productivity applications.
Morningstar Rating
Uncertainty
High
Last Close $
Sales $Mil
Mkt Cap $Mil
Industry
$530.70
$29,321
$170,632
Internet Content & Information
Fair Value
Economic Moat
Style
Sector
$720.00
As of 04-15-2011
Wide
Large Growth
Technology
As of 04-12-2011
201.60 446.21 513.00 747.24 697.37 625.99 630.85 642.96 95.00 172.57 331.55 437.00 247.30 282.75 433.63 551.28
Annual Price High Low Recent Splits
Price Volatility 499.0 199.0
1600 Amphitheatre Parkway Mountain View, CA 94043 Phone: 1 650 623-4000Website: http://www.google.com
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
2001
1 Yr
3 Yr
5 Yr
10 Yr
24.0 24.9 28.9 __
20.9 26.9 25.6 __
36.7 38.8 39.3 __
28.4 -10.9 -11.0 -19.8
26.1 5.9 -0.8 6.3
35.5 5.7 -0.2 5.2
108.3 __ __ __ __ __ __ __
Current
5 Yr Avg
Ind
Mkt
20.7 17.3 4.7 __
20.4 18.2 5.1 __
4.7 3.8 4.6 88.6 __
__ __ __ __ __
__ __ __
__ __ __ __ __
Profitability Analysis Grade: C
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
1201.7 1157.3 * 64.5 35.4 29.0 24.1 12.8
61.5 33.0 26.1 24.3 12.4
21.3
Financial Position Grade: A
12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
10198 __
13630 __
3202 29167
5002 41562
Fixed Assets Intangibles Total Assets
4845 5678 40497
7759 7300 57851
216 __ 2747 __
2881 3465 9996 __
4493
11610
36004
46241
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities Total Equity Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
2002
2003
2004
__ __ __ __
19.0
Bear-Market Rank __ (10=worst)
2005
2006
2007
2008
2009
2010
YTD
50.2 46.6 8.7 __
-55.5 -17.0 -0.5 __
101.5 78.1 14.2 __
-4.2 -17.0 -11.7 __
-10.7 -15.6 -6.5 __
__ __ __ __ __
__ __ __ __ __
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
86 83.5 11 12.7
440 70.1 186 42.4
1466 57.3 342 23.4
3189 54.3 640 20.1
6139 58.1 2017 32.9
10605 60.2 3550 33.5
16594 59.9 5084 30.6
21796 60.4 6632 30.4
23651 62.6 8312 35.2
29321 64.5 10381 35.4
29321 64.5 10381 35.4
11.0 -2.6 12.4 __
52712 122611 140979 216323
96834 197012 188747 170632
Trading Volume Million
Stock Performance Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil Financials
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
7
100
106
399
1465
3077
4204
4227
6520
8505
8505
Net Income $Mil
0.04 __
0.41 __
0.41 __
1.46 __
5.02 __
9.94 __
13.29 __
13.31 __
20.41 __
26.31 __
26.31 __
187 __
257 __
257 __
273 10.71
292 31.87
310 55.66
396 72.53
393 394 323 323 89.72 113.30 145.52 143.82
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
__ __ __
155 -37 118
395 -177 219
977 -319 658
2459 -838 1621
3581 -1903 1678
5775 -2403 3373
7853 -2358 5494
9316 -810 8506
11081 -4018 7063
11081 -4018 7063
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
8.1 __ __
34.7 76.9 22.7 1.53 2.2
18.2 31.4 7.2 2.53 1.6
19.1 23.0 12.5 1.52 1.1
21.6 23.7 23.9 0.90 1.1
21.4 23.3 29.0 0.74 1.1
19.2 21.2 25.3 0.76 1.1
14.8 16.6 19.4 0.76 1.1
18.1 20.3 27.6 0.65 1.1
17.3 20.7 29.0 0.60 1.3
17.3 20.7 29.0 0.60 1.3
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
142 7 174 0.05
325 __
2353 __
8256 __
11735 __
15254 __
17876 __
26419 __
31566 __
31566 __
589 0.00
2929 __
9419 __
17040 __
22690 __
28239 __
36004 __
46241 __
46241 __
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2002
2003
__ __
__ __ __ __
2001
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
131.6 __
82.6 __
46.3 __
52.1 __
23.1 __
30.4 __
22.6 __
20.2 __
16.5 18.0 53.8
19.4 13.0 48.5
13.3 8.3 39.5
16.5 9.5 47.4
5.6 3.4 15.4
10.3 5.5 26.3
6.6 4.1 17.3
5.9 3.7 15.5
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
20.2 13.3 15.5 24.3 0.0 3.7 5.9 0.7
34.9 __
24.8 __
Most Recent Previous
29.2 48.7 __
19.4 30.3 0.0 4.1 6.5 __
__ __ __ __ __ __ __ __
6.2 10.5 __
10 Year High/Low $ 747.24 - 95.00
__ __ __ __ __
115.2 112.2 71.8 __
52 week High/Low $ 642.96 - 433.63
49.0
9.0 4.0
Growth Rates Compound Annual Grade: B
Monthly High/Low Rel Strength to S&P 500
Close Competitors Mar
Jun
Sep
Dec
6775.0 6820.0 7286.0 8440.0 5509.0 5522.9 5944.9 6673.8
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
23.0 6.2
23.5 2.9
22.6 7.3
26.5 17.1
Mar
Jun
Sep
Dec
6.06 4.49
5.71 4.66
6.72 5.13
7.82 6.14
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
Apple, Inc. Microsoft Corporation
P/E
ROE%
301682 76283 18.3 213168 66690 10.8
36.8 44.3
Major Fund Holders % of shares
American Funds Growth Fund of Amer A Fidelity Contrafund Vanguard US Total Market Shares (AU) ETF
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
2.41 2.01 0.82
Quarterly Report | Release date 04-15-2011
Page 12 of 31
Itron ITRI Itron Inc. supplies data-acquisition technology to electric, gas, and water utilities worldwide. The company designs and manufactures products and software for automatic meter-reading and handheld computer-based electronic meter reading systems, as well as products that help with the analysis, management, and application of energy data. In addition, the company provides project management, installation, and consulting services. The company operates as Itron in North America and as Itron International in the rest of the world.
Morningstar Rating
Uncertainty
__
—
Last Close $
Sales $Mil
Mkt Cap $Mil
Industry
$54.66
$2,259
$2,214
Scientific & Technical Instruments
Fair Value
Economic Moat
Style
Sector
__
__
Small Growth
Technology
As of
34.21 3.50
36.50 12.53
24.16 13.00
24.65 15.93
53.90 21.50
73.72 112.92 106.25 39.44 51.15 34.25
69.49 40.10
81.95 52.03
64.39 50.76
Annual Price High Low Recent Splits
Price Volatility 49.0 19.0
2111 North Molter Road Liberty Lake, WA 99019 Phone: 1 509 891-3523Website: http://www.itron.com
1.0 503.0 203.0
Growth Rates Compound Annual
2001
1 Yr
3 Yr
5 Yr
10 Yr
33.9 309.1 __ __
15.6 58.3 __ __
32.5 31.8 14.0 __
28.5 32.4 22.4 __
1.3 -28.0 -58.3 -36.9
12.5 -16.0 -24.6 -15.6
22.5 -2.3 -6.9 -2.8
25.9 16.9 11.1 15.8
Grade: C
Current
5 Yr Avg
Ind
Mkt
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
7.4 3.7 7.3 8.3 237.8
3.4 1.6 6.7 7.8 214.9 *
4.8 2.5 6.8 3.5 __
__ __ __ __ __
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
30.9 8.2 4.6 8.5 6.2
34.3 5.9 2.0 7.3 7.1
__ __ __
__ __ __ __ __
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market Profitability Analysis
10.7
Financial Position Grade: C
12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
122 170 338 726
169 208 372 882
Fixed Assets Intangibles Total Assets
318 1694 2855
299 1501 2746
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
305 11 443 771 1454
372 229 704 382 1318
Total Equity
1401
1428
Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
2002
735.9 748.9 766.4 __
2003
-36.7 -13.4 -8.1 __
-4.2 -30.6 -62.4 __
2004
30.2 21.2 29.1 __
2005
67.5 64.5 54.6 __
2006
29.5 15.9 8.4 __
2007
2008
2009
2010
YTD
85.1 81.6 59.1 __
-33.6 4.9 24.1 __
6.0 -17.4 -44.3 __
-17.9 -30.7 -40.6 __
-1.4 -6.4 -21.3 __
Bear-Market Rank __ (10=worst) Trading Volume Thousand
Stock Performance
482
387
377
506
992
1327
2937
2197
2712
2242
2214
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Financials
226 43.4 26 11.5
285 46.4 18 6.4
317 45.3 22 6.8
399 42.8 4 1.0
553 42.3 46 8.4
644 41.5 62 9.6
1464 33.3 46 3.2
1910 33.9 110 5.8
1687 31.9 45 2.7
2259 30.9 184 8.2
2259 30.9 184 8.2
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
13
9
10
-5
33
34
-16
28
-2
105
105
Net Income $Mil
0.75 __
0.41 __
0.48 __
-0.25 __
1.33 __
1.28 __
-0.55 __
0.80 __
-0.06 __
2.56 __
2.56 __
19 4.78
21 8.01
22 8.62
21 8.72
25 12.81
26 15.28
30 24.79
35 30.03
39 34.89
41 35.33
41 35.26
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
32 -8 25
49 -11 39
10 -10 1
53 -13 40
80 -32 48
95 -32 63
133 -41 93
193 -63 130
141 -53 88
255 -63 192
255 -63 192
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
7.1 20.7 6.0 1.19 2.7
3.9 7.3 3.1 1.27 1.5
3.8 6.2 3.3 1.15 1.7
-1.2 -2.9 -1.3 0.93 3.0
5.7 13.2 6.0 0.96 1.9
4.3 9.5 5.2 0.81 2.5
-0.8 -2.8 -1.1 0.72 4.0
1.0 3.1 1.5 0.64 2.8
-0.1 -0.2 -0.1 0.59 2.0
3.7 7.4 4.6 0.81 1.9
3.7 7.4 4.6 0.81 1.9
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
67 58 76 0.76
51 __
-2 __
162 __
177 __
58 243 184 1.32
116 163 318 0.51
493 469 391 1.20
250 1579 759 2.08
293 1179 1035 1.14
283 771 1401 0.55
178 382 1428 0.27
178 382 1428 0.30
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2001
2002
2003
2004
2006
2007
2009
2010
TTM
Valuation
38.3 __
30.1 __
40.5 __
__ __
2008
46.7 __
__ __
2005
40.3 __
21.7 __
21.4 __
2.5 6.3 17.6
1.4 2.4 8.3
1.3 2.1 38.9
1.3 2.7 9.4
1.7 3.1 11.5
2.1 3.4 14.3
1.9 3.9 21.3
1.0 1.6 8.9
1.0 1.6 8.8
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
21.4 13.1 8.8 11.7 0.0 1.6 1.0 0.6
__ __
27.0 __
Most Recent Previous
14.9 22.1 __
19.5 24.0 0.5 3.8 2.6 __
__ __ __ __ __ __ __ __
2.6 1.6 __
52 week High/Low $ 81.95 - 50.76 10 Year High/Low $ 112.92 - 3.50
4.0
Grade: B
Monthly High/Low Rel Strength to S&P 500
Jun
Sep
Dec
499.3 388.5
569.5 413.8
576.0 408.4
614.6 476.8
Mar
Jun
Sep
Dec
Most Recent Previous
28.5 -18.8
37.6 -19.5
41.0 -15.8
28.9 10.3
Mar
Jun
Sep
Dec
0.66 -0.55
0.65 0.40
0.71 -0.07
0.54 0.13
Most Recent Previous
__ __
1.2 2.1 11.5
1.5 1.9 18.5
Close Competitors Mar
Rev Growth %
Earnings Per Share $
79.4 __
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
Mkt Cap $Mil Rev $Mil
Agilent Technologies, Inc. Roper Industries, Inc.
16393 8089
P/E
ROE%
5750 21.0 2386 25.4
27.0 12.5
Major Fund Holders % of shares
Citibank QDII-Blackrock New Energy Pictet-Water-R EUR PowerShares Water Resources
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
4.22 2.51 2.40
Quarterly Report | Release date 04-15-2011
Page 13 of 31
Johnson & Johnson JNJ Johnson & Johnson ranks as the world's largest and most diverse health-care company. The company comprises three divisions: pharmaceutical, medical devices and diagnostics, and consumer. While the pharmaceutical division currently represents 35% of total sales, we expect patent losses to reduce this proportion to 30% over the next 10 years, with the remaining divisions picking up equal share.
Morningstar Rating
Uncertainty
Low
65.85 41.50
Sales $Mil
Mkt Cap $Mil
Industry
$60.56
$61,587
$165,645
Drug Manufacturers - Major
Fair Value
Economic Moat
Style
Sector
$75.00
As of 04-15-2011
60.97 40.25
Last Close $
Wide
Large Value
59.08 48.05
64.25 49.25
69.99 59.76
69.41 56.65
68.75 59.72
72.76 52.06
65.41 46.25
66.20 56.86
Price Volatility 69.0
2001 5 Yr
10 Yr
-0.5 6.0 8.6 9.3 12.7 -4.3 -13.0 -13.2
0.3 6.6 9.6 9.2 10.6 0.4 -3.1 0.8
4.0 4.9 6.7 10.6 10.2 3.8 1.1 3.3
7.8 9.8 10.9 13.0 11.8 5.3 3.9 4.2
Grade: C
Current
5 Yr Avg
Ind
Mkt
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
24.9 13.5 4.2 3.6 540.2
27.1 14.8 4.4 3.6 537.7 *
8.1 3.9 3.5 2.4 __
__ __ __ __ __
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
69.5 26.8 21.7 22.7 11.1
70.7 24.8 20.0 21.1 12.0
__ __ __
__ __ __ __ __
Profitability Analysis
21.7
Financial Position 12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
15810 5180 9646 39541
19355 5378 9774 47307
Fixed Assets Intangibles Total Assets
14759 31185 94682
14553 32010 102908
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
5983 6318 21731 8223 44094
6201 7617 23072 9156 46329
Total Equity
50588
56579
Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
19.0
10 Year High/Low $ 72.76 - 40.25
2002
2003
2004
2005
2006
2007
2008
2009
2010
YTD
13.8 -7.8 -2.1 24.9 -3.2 12.3 3.5 -7.6 10.9 -0.7 -1.2 26.9 15.6 -28.5 15.9 -6.2 -1.3 0.0 30.9 -12.6 -13.5 -6.1 25.8 3.9 -16.4 29.0 -5.8 -2.1 -0.7 9.6 -0.8 -2.4 -8.3 __ 1.2 1.5 1.8 1.7 2.1 2.2 2.4 3.0 3.0 3.4 180141 159550 153334 188213 178793 191415 188935 166002 177714 169856 165645
Bear-Market Rank __ (10=worst) Trading Volume Million
Stock Performance Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
33004 71.1 7780 23.6
36298 71.2 9489 26.1
41862 70.9 9953 23.8
47348 71.7 12845 27.1
50514 72.4 13009 25.8
53324 71.8 13150 24.7
61095 71.0 13661 22.4
63747 71.0 15988 25.1
61897 70.2 15590 25.2
61587 69.5 16527 26.8
61587 69.5 16527 26.8
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
5668
6597
7197
8509
10411
11053
10576
12949
12266
13334
13334
Net Income $Mil
1.84 0.70 3080 7.95
2.16 0.80 3054 7.64
2.40 0.93 2999 9.05
2.84 1.10 2996 10.72
3.46 1.28 3009 12.73
3.73 1.46 2963 13.56
3.63 1.62 2913 15.29
4.57 1.80 2836 15.32
4.40 1.93 2789 18.34
4.78 2.11 2789 20.60
4.78 2.11 2789 20.69
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
8864 -1731 7133
8176 -2099 6077
10595 -2262 8333
11131 -2175 8956
11877 -2632 9245
14248 -2738 11510
15249 -3310 11939
14972 -3066 11906
16571 -2365 14206
16385 -2384 14001
16385 -2384 14001
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
16.2 26.3 17.2 0.95 1.6
16.7 28.1 18.2 0.92 1.8
16.2 29.0 17.2 0.94 1.8
16.8 29.0 18.0 0.93 1.7
18.7 29.9 20.6 0.91 1.5
17.2 28.6 20.7 0.83 1.8
14.0 25.6 17.3 0.81 1.9
15.6 30.2 20.3 0.77 2.0
13.7 26.4 19.8 0.69 1.9
13.5 24.9 21.7 0.62 1.8
13.5 24.9 21.7 0.62 1.8
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
Financials
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
10429 2217 24233 0.09
7817 2022 22697 0.09
9547 2955 26869 0.11
13393 2565 31813 0.08
18759 2017 37871 0.05
3814 2014 39318 0.05
10108 7074 43319 0.16
13525 8120 42511 0.19
17810 8223 50588 0.16
24235 9156 56579 0.16
24235 9156 56579 0.16
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
32.2 __
24.9 __
21.5 __
22.3 __
17.4 __
17.7 __
18.4 __
13.1 __
14.6 __
12.9 __
12.7 __
5.5 7.4 20.5
4.5 7.0 20.1
3.7 5.7 14.6
4.0 5.9 17.1
3.6 4.7 15.2
3.7 4.9 13.8
3.2 4.4 12.7
2.7 3.9 11.3
2.9 3.5 10.9
2.8 3.0 10.5
2.7 2.9 10.3
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
12.7 11.8 10.3 12.1 3.6 2.9 2.7 1.6
15.4 __
17.5 __
11.9 14.5 __
10.0 11.7 4.0 2.6 2.6 __
__ __ __ __ __ __ __ __
3.9 3.1 __
52 week High/Low $ 66.20 - 56.86
14.0 8.0
3 Yr
Monthly High/Low Rel Strength to S&P 500
39.0
4.0
1 Yr
Grade: A
Annual Price High Low Recent Splits
8.0
Growth Rates Compound Annual Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
63.54 57.50
2:1
One Johnson & Johnson Plaza New Brunswick, NJ 08933 Phone: 1 732 524-0400Website: http://www.jnj.com
Grade: C
Healthcare
As of 01-26-2011
Close Competitors Mar
Jun
Sep
Dec
Most Recent Previous
15631 15026
15330 15239
14982 15081
15644 16551
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
4.0 -7.2
0.6 -7.4
-0.7 -5.3
-5.5 9.0
Mar
Jun
Sep
Dec
1.62 1.26
1.23 1.15
1.23 1.20
0.70 0.79
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
Novartis AG Merck & Co, Inc.
P/E
ROE%
153645 51561 13.1 106397 45987123.5
16.2 1.5
Major Fund Holders % of shares
Vanguard US Total Market Shares (AU) ETF Vanguard 500 Index Investor Vanguard Institutional Index Instl
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
1.06 0.90 0.77
Quarterly Report | Release date 04-15-2011
Page 14 of 31
Johnson Controls JCI Johnson Controls operates three businesses. The building efficiency segment is a $12.8 billion group that provides controls and services for HVAC systems. The automotive experience segment is a $16.6 billion business that primarily sells seats in addition to interior products, such as cockpit systems and other electronics. The power solutions unit is a $4.9 billion business that makes batteries for enger vehicles, trucks, and other applications.
Morningstar Rating
Uncertainty
Medium
Sales $Mil
Mkt Cap $Mil
Industry
$39.16
$35,434
$26,525
Auto Parts
Fair Value
Economic Moat
Style
Sector
$40.00
As of 04-15-2011
13.78 8.66
Last Close $
Narrow
Large Growth
Consumer Cyclical
As of 11-30-2010
15.53 11.52
19.37 11.96
21.33 16.52
25.07 17.52
30.00 22.12
44.46 28.09
2:1
36.52 13.65
28.34 8.35
40.15 25.56
42.53 36.95
Annual Price High Low Recent Splits
3:1
Price Volatility
19.0 9.0 4.0
5757 North Green Bay Avenue Milwaukee, WI 53201 Phone: 1 414 524-1200Website: http://www.johnsoncontrols.com
Growth Rates Compound Annual Grade: C
3 Yr
5 Yr
10 Yr
20.4 1440.4 __ 0.0 9.4 18.7 -26.1 9.8
-0.3 -2.2 0.5 5.7 -0.1 7.7 -6.4 8.1
4.5 9.5 11.0 9.3 7.3 10.7 -0.2 10.2
7.2 5.7 10.0 10.8 12.2 15.9 3.3 14.8
Grade: C
Current
5 Yr Avg
Ind
Mkt
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
15.3 6.1 8.7 17.1 258.6
10.7 3.9 8.2 16.8 247.2 *
-6.9 -2.1 5.5 9.5 __
__ __ __ __ __
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
15.4 5.1 4.3 __ __
14.2 3.7 2.5 2.3 __
__ __ __
__ __ __ __ __
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market Profitability Analysis
3.2
Financial Position Grade: B
12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
791 1571 5154 9676
321 1939 6142 10715
Fixed Assets Intangibles Total Assets
3918 7241 23805
4215 7274 25993
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
4504 367 8387 3077 14452
5340 850 9789 2684 15562
9353
10431
Total Equity Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
1.0 6.0 3.0
Bear-Market Rank __ (10=worst) Trading Volume Million
2003
2004
2005
2006
2007
2008
2009
2010
YTD
Stock Performance
46.8 20.4 -6.8 1.3 10487
10.9 1.9 4.5 1.5 12128
16.6 13.5 17.5 1.4 14070
19.4 5.8 6.8 1.4 16822
27.4 23.9 13.8 1.3 21399
-48.2 -9.7 8.6 2.9 10791
52.9 29.4 -27.9 1.9 18298
42.3 29.5 -31.3 1.4 25875
2.9 -2.0 -0.3 __
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
18427 14.1 961 5.2
20103 14.2 1122 5.6
22646 14.2 1162 5.1
26553 13.3 1301 4.9
27479 12.7 1066 3.9
32235 13.7 1282 4.0
34624 14.7 1795 5.2
38062 14.5 1466 3.9
28497 12.5 109 0.4
34305 15.4 1679 4.9
35434 15.4 1793 5.1
26525
Financials
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
470
593
676
816
909
1028
1252
979
-338
1491
1516
Net Income $Mil
0.85 0.21 551 5.81
1.06 0.22 560 6.86
1.20 0.24 563 8.45
1.41 0.30 577 9.73
1.30 0.33 583 10.61
1.75 0.37 590 12.90
2.16 0.44 599 15.28
1.63 0.52 601 13.99
-0.57 0.52 593 13.92
2.19 0.52 682 15.40
2.22 0.55 684 15.40
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
973 -622 352
989 -496 493
769 -664 105
1488 -862 626
858 -664 194
1417 -711 706
1913 -828 1085
1928 -807 1121
917 -647 270
1514 -777 737
812 -860 -48
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
4.9 17.7 2.6 1.91 3.5
5.6 19.0 3.0 1.91 3.3
5.6 17.8 3.0 1.86 3.1
5.8 17.3 3.1 1.88 2.9
5.8 16.2 3.3 1.76 2.7
5.4 15.3 3.2 1.69 3.0
5.4 15.4 3.6 1.50 2.7
4.0 10.7 2.6 1.55 2.7
-1.4 -3.6 -1.2 1.16 2.6
6.0 15.5 4.4 1.38 2.6
6.1 15.3 4.3 1.42 2.5
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
-36 1395 2985 0.49
140 1827 3500 0.54
36 1777 4314 0.42
-225 1631 5206 0.31
297 1578 6058 0.26
1118 4166 7355 0.57
952 3255 8907 0.37
866 3201 9424 0.34
1110 3168 9138 0.35
742 2652 10071 0.26
926 2684 10431 0.26
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
15.0 __
12.1 __
15.4 __
15.0 __
18.5 __
16.4 __
15.9 __
80.0 __
27.0 __
17.2 __
17.7 __
0.4 2.3 8.2
0.4 2.0 8.4
0.5 2.3 10.7
0.5 2.2 8.3
0.5 2.3 20.0
0.5 2.2 10.9
0.6 2.4 11.2
0.3 1.3 7.6
0.6 2.0 8.2
0.7 2.5 32.2
0.8 2.5 33.0
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Quarterly Results 5 Yr Avg
Ind
Mkt
Revenue $Mil
17.7 12.5 33.0 __
31.3 __
21.8 __
Most Recent Previous
14.0 __ __
12.6 23.7 0.9 3.1 0.8 __
__ __ __ __ __ __ __ __
2.1 0.5 __
10 Year High/Low $ 44.46 - 8.35
1.0 24.3 1.7 1.7 7134
2002
Current
1.5 2.5 0.8 0.8
52 week High/Low $ 42.53 - 25.56
57.7 70.8 11.0 1.6 7078
2001
1 Yr
Monthly High/Low Rel Strength to S&P 500
39.0
Close Competitors Mar
Jun
Sep
Dec
8317.0 8540.0 9040.0 9537.0 6315.0 6979.0 7867.0 8408.0
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
31.7 -32.9
22.4 -29.3
14.9 -15.5
13.4 14.6
Mar
Jun
Sep
Dec
0.40 -0.33
0.61 0.26
0.66 0.50
0.55 0.52
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
Siemens AG Siemens AG
P/E
ROE%
119301 104087 19.1 119301 104087 19.1
14.0 14.0
Major Fund Holders % of shares
American Funds Growth Fund of Amer A American Funds Washington Mutual A American Funds Invmt Co of Amer A
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
3.84 2.67 1.48
Quarterly Report | Release date 04-15-2011
Page 15 of 31
Knight Capital Group KCG Knight Capital Group provides electronic and voice financial security trade execution services to buy-side, sell-side, and corporate clients as a market maker, agent, and electronic execution provider. The company has also recently ventured into investment banking and asset management.
Morningstar Rating
Uncertainty
Very High
Sales $Mil
Mkt Cap $Mil
Industry
$12.84
$1,123
$1,301
Capital Markets
Fair Value
Economic Moat
Style
Sector
$19.00
As of 04-15-2011
24.50 7.25
Last Close $
None
Small Value
Financial Services
As of 03-28-2011
13.97 3.46
15.25 3.88
17.27 8.03
10.99 7.28
20.51 8.99
21.78 11.50
19.75 11.03
23.11 13.39
16.99 11.88
14.72 12.49
Annual Price High Low Recent Splits
Price Volatility 24.0 14.0
6.0
545 Washington Boulevard Jersey City, NJ 07310 Phone: 1 201 222-9400Website: http://www.knight-sec.com
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
2001
1 Yr
3 Yr
5 Yr
10 Yr
-3.0 __
7.5 __
12.1 __
-1.1 __
-39.4 __
-7.6 __
9.4 __
-7.2 __
6.4 -12.8 -4.4 -21.7
15.1 -5.1 2.3 -4.7
11.6 -1.7 6.6 -2.2
8.3 -0.9 0.9 -2.0
Current
5 Yr Avg
Ind
Mkt
7.1 2.4 10.4 __
13.4 6.4 13.2 __
847.0 __ __
959.6 * __ __
7.8 0.6 6.6 __ __
__ __ __ __ __
__ __ __ __
__ __ __ __ __
Profitability Analysis Grade: D
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
8.2 __ 1.7
13.1 __ __
Financial Position Grade: C
12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
427 __
376 __
500 __
476 __
Fixed Assets Intangibles Total Assets
99 343 3014
118 449 4670
2002
-20.9 -7.9 -9.4 __
-56.5 -33.2 -30.4 __
2004
2005
206.1 179.7 156.7 __
-25.3 -34.3 -23.8 __
-9.7 -12.7 -24.7 __
2006
93.8 80.2 66.3 __
2007
2008
2009
2010
YTD
-24.9 -28.4 -17.7 __
12.2 50.6 66.5 __
-4.6 -28.1 -48.4 __
-10.5 -23.2 -7.4 __
-6.9 -11.8 -6.9 __
1680
1246
1013
2011
1398
1447
1429
1348
1301
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Financials
685 __ __ __
527 __ __ __
670 __ __ __
626 __ __ __
635 __ __ __
951 __ __ __
905 __ __ __
1049 __ __ __
1158 __ __ __
1123 __ __ __
1123 __ __ __
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
39
-43
39
91
66
158
122
178
117
92
92
0.31 __
-0.36 __
0.35 __
-0.08 __
0.62 __
1.49 __
1.23 __
1.94 __
1.60 __
0.97 __
0.97 __
126 6.72
121 6.40
118 6.89
118 7.51
107 8.04
106 9.17
101 9.12
92 11.47
95 13.08
94 13.92
94 13.42
69 __
117 __
37 __
86 __
33 __
16 __
119 __
20 -42 -69
-87 -49 -55
-87 -49 -55
Net Income $Mil Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
-22
35
5
27
97
19
199
256 -38 36
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
1.3 4.8 5.6 0.24 3.9
-1.4 -5.4 -8.2 0.16 4.2
1.1 5.0 5.8 0.19 5.0
3.4 11.1 14.6 0.23 1.6
4.7 7.9 10.5 0.45 1.7
9.2 17.7 16.7 0.55 2.1
6.5 13.2 13.5 0.48 2.0
9.4 18.6 17.0 0.56 2.0
4.7 10.5 10.1 0.46 2.5
2.4 7.1 8.2 0.29 3.4
2.4 7.1 8.2 0.29 3.4
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
140 1027 0.14
140 1214 0.12
311 1360 0.23
311 1360 0.23
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
__ __
__ __
__ __
__ __
__ __
__ __
__
__
__
__
__
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
834 __
756 __
790 __
855 __
823 __
962 __
70 885 0.08
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
16.0 __
12.9 __
11.7 __
8.3 __
9.6 __
14.2 __
13.3 __
1.8 1.2 34.6
2.1 2.1 129.9
1.6 1.6 12.2
1.4 1.4 5.8
1.3 1.2 72.5
1.2 1.0 __
1.1 1.0 __
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
__ __
140 1801
311 3310
Total Equity
1214
1360
2.0 1.6 20.2
1.1 0.8 4.9
41.8 __
__ __
2.6 2.1 46.5
2.1 1.5 15.0
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
13.3 8.8 __ __
11.4 __ __ __ __
16.5 __
__ __ __ __ __ __ __ __
Most Recent Previous
1.0 1.3 1.3 __
Stock Performance
566
35.6 __
1.5 1.5 __
Trading Volume Million
2002
2001
0.0 1.0 1.1 0.6
Bear-Market Rank __ (10=worst)
1368
337 __ __
9.5 __
1.0
2001
155 __ __
Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
10 Year High/Low $ 24.50 - 3.46
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities Valuation Analysis
2003
52 week High/Low $ 15.89 - 11.88
3.0
2.0 1.0
Growth Rates Compound Annual Grade: C
Monthly High/Low Rel Strength to S&P 500
Close Competitors Mar
Jun
Sep
Dec
281.8 245.4
359.1 315.0
232.0 301.3
250.3 295.8
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
14.8 9.1
14.0 43.7
-23.0 14.7
-15.4 -13.0
Mar
Jun
Sep
Dec
0.30 0.33
0.58 0.52
0.00 0.32
0.09 0.44
Earnings Per Share $
Most Recent Previous
Mkt Cap $Mil Rev $Mil
MarketAxess Holdings, Inc. Investment Technology Grou
937 705
P/E
ROE%
146 31.1 571 30.9
13.9 2.8
Major Fund Holders % of shares
Royce Premier Invmt Royce Value Plus Svc Royce Low Priced Stock Svc
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
4.97 3.13 3.11
Quarterly Report | Release date 04-15-2011
Page 16 of 31
LHC Group LHCG LHC provides health care services primarily to Medicare beneficiaries in the southern U.S. The company is divided into two segments, Home-Based Services and Facility-Based Services. Home-Based Services provides nursing, physical therapy, speech therapy, medically oriented social services, and hospice care; Facility-Based Services owns and manages long-term acute care hospitals and outpatient rehabilitation clinics. The company currently operates four hospitals with six locations, in addition to over 100 home nursing locations.
Morningstar Rating
—
Uncertainty
__
Last Close $
Sales $Mil
Mkt Cap $Mil
Industry
$29.28
$635
$547
Medical Care
Fair Value
Economic Moat
Style
Sector
__
__
Small Core
Healthcare
As of
21.70 14.79
29.67 13.70
33.14 18.58
36.83 13.55
35.94 16.56
37.49 19.61
31.69 25.87
Annual Price High Low Recent Splits
Price Volatility Monthly High/Low Rel Strength to S&P 500 19.0
52 week High/Low $ 37.49 - 19.61
8.0
10 Year High/Low $ 37.49 - 13.55
4.0
420 West Pinhook Road Suite A Lafayette, LA 70503 Phone: 1 337 233-1307Website: http://www.lhcgroup.com
2.0 202.0
Bear-Market Rank __ (10=worst) Trading Volume Thousand
62.0
Growth Rates Compound Annual Grade: B
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
2001
1 Yr
3 Yr
5 Yr
10 Yr
19.4 12.4 10.3 __
28.7 35.2 31.1 __
31.3 36.1 31.2 __
22.5 -19.1 -38.6 -28.0
23.7 25.8 16.5 26.2
26.1 11.8 9.2 11.4
__ __ __ __ __ __ __ __
Profitability Analysis Grade: C
Current
5 Yr Avg
Ind
Mkt
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
19.7 14.7 26.3 __
20.6 15.6 25.1 __
79.6
75.7 *
15.9 2.8 3.3 23.7 __
__ __ __ __ __
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
48.0 15.1 7.7 9.5 __
49.2 15.1 8.5 9.7 __
__ __ __
__ __ __ __ __
5.4
Financial Position Grade: B
12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
0 __
0 __
79 95
86 107
Fixed Assets Intangibles Total Assets
21 186 306
27 211 357
26 0 47 10 85
30 0 51 0 84
221
274
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities Total Equity Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
2002
2003
2004
2005
__ __ __ __
2006
2007
2008
2009
2010
YTD
-12.4 -15.9 -11.1 __
44.1 82.6 72.6 __
-6.6 -30.1 -31.4 __
-10.7 -23.5 -15.6 __
-2.4 -7.3 -26.6 __
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
289
508
450
656
605
545
547
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Financials
28 52.3 4 12.8
47 53.1 9 19.5
69 49.7 10 14.2
123 48.6 20 16.3
163 45.7 20 12.6
215 49.0 34 15.9
298 48.8 39 13.0
383 51.3 60 15.7
532 49.2 85 16.0
635 48.0 96 15.1
635 48.0 96 15.1
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
63.6 49.9 59.3 __
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
1
3
3
9
10
21
20
30
58
49
49
0.06 __
0.27 __
0.27 __
0.74 __
0.69 __
1.21 __
1.19 __
1.72 __
2.43 __
2.68 __
2.68 __
12 __
12 __
12 __
12 __
15 4.73
17 6.84
18 7.96
18 9.71
18 12.29
18 15.06
18 14.66
__ __ __
__ __ __
__ __ __
7 -4 2
6 -2 4
22 -4 18
12 -3 9
86 -9 77
49 -8 41
72 -12 60
72 -12 60
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
7.8 __ 2.8 2.81 __
18.0 178.2 6.0 3.01 6.0
11.5 54.1 4.1 2.77 4.0
24.7 80.1 7.6 3.26 2.9
13.3 21.3 6.2 2.14 1.3
16.0 20.6 9.6 1.67 1.3
12.0 14.8 6.6 1.82 1.2
14.5 18.9 7.9 1.83 1.4
21.0 29.1 10.9 1.94 1.4
14.7 19.7 7.7 1.91 1.3
14.7 19.7 7.7 1.91 1.3
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
12-10
49 3 78 0.05
68 3 122 0.03
61 3 143 0.02
32 4 177 0.03
48 10 221 0.04
56 0 274 __
56 0 274 0.01
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2005
2006
2007
2008
2009
2010
TTM
Valuation
25.3 __
23.6 __
21.0 __
20.9 __
13.8 __
11.2 __
10.9 __
1.5 3.7 39.4
2.2 4.2 22.0
1.5 3.1 36.8
1.7 3.7 7.5
1.1 2.7 12.4
0.9 2.0 7.6
0.8 2.0 7.4
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
__ __
__ __
__ __
-0 __
4 __
7 __
22 15 16 1.02
2001
2002
2003
2004
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
10.9 12.2 7.4 8.8 0.0 2.0 0.8 0.9
18.1 __
14.3 __
Most Recent Previous
17.3 22.0 __
7.9 13.9 0.3 4.3 0.8 __
__ __ __ __ __ __ __ __
3.2 1.5 __
Stock Performance
__ __ __ __ __
Jun
Sep
Dec
145.9 124.6
154.2 132.6
166.6 132.5
168.1 142.7
Mar
Jun
Sep
Dec
Most Recent Previous
17.1 49.3
16.3 47.1
25.8 35.0
17.8 27.9
Mar
Jun
Sep
Dec
0.64 0.62
0.68 0.57
0.73 0.54
0.63 0.69
Most Recent Previous
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $ Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
Financial Health
Close Competitors Mar
Rev Growth %
Earnings Per Share $
Net Income $Mil
Mkt Cap $Mil Rev $Mil
P/E
ROE%
Netcare Limited 201924 22474 __ Bangkok Dusit Medical Serv 63236 24051 25.0
__ __
Major Fund Holders % of shares
Fidelity Low-Priced Stock Royce Value Svc Parnassus Small-Cap
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
10.28 5.10 4.95
Quarterly Report | Release date 04-15-2011
Page 17 of 31
SORL Auto Parts SORL SORL Auto Parts manufactures auto parts for commercial vehicles such as trucks and busses that weigh more than three tons. Its primary products include spring brake chambers, clutch servos, air dryers, and manual valves. The company produces over 40 categories of brake valves with over 800 different specifications. It manufactures parts in China and distributes them globally through international sales centers in the United States, The United Arab Emirates, and Australia.
Morningstar Rating
Uncertainty
__
—
Last Close $
Sales $Mil
Mkt Cap $Mil
Industry
$5.58
$199
$108
Auto Manufacturers
Fair Value
Economic Moat
Style
Sector
__
__
Small Value
Consumer Cyclical
As of
29.99 1.20
23.99 3.00
8.00 2.75
12.00 4.16
9.88 6.01
7.40 1.39
9.16 1.14
12.89 5.07
8.88 5.34
Annual Price High Low Recent Splits
22852814:0 22852814:0
Price Volatility 19.0
7.0 3.0
No. 1169 Yumeng Road Ruian Economic Development Zon Ruian, Zhejiang 325200 Phone: 86 57765817720 Website: http://www.sorl-autoparts.com
Growth Rates Compound Annual Grade: F
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
3 Yr
5 Yr
10 Yr
59.5 57.6 51.4 __
19.9 27.0 21.6 __
25.4 34.7 23.4 __
22.5 -45.9 -43.6 -54.8
20.3 3.9 7.5 4.2
42.0 -7.0 -1.6 -7.4
__ __ __ __ __ __ __ __
Current
5 Yr Avg
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
17.2 12.5 5.7 5.6 61.1
16.6 12.3 19.0 10.0 58.4 *
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
29.2 12.3 10.2 __
39.8 9.6 8.0 __ __
3.6
Ind
Mkt
-6.0 -1.4 3.6 10.5 __
__ __ __ __ __
__ __ __
__ __ __ __ __
5.8
Financial Position Grade: C
2999.0 49.0
2001
1 Yr
Profitability Analysis Grade: C
1.0
2002
2003
2004
2005
-72.9 -81.9 -81.6 __
-23.1 -26.1 -37.6 __
2006
2007
2008
2009
2010
YTD
-18.9 -22.5 -17.5 __
-78.3 -39.8 -26.3 __
441.2 417.8 407.5 __
-0.9 -13.7 -12.2 __
-34.6 -39.5 -24.8 __
0
86
67
121
134
29
158
165
108
2003
2005
2006
2007
2008
2009
2010
TTM
Financials
0 __
0 __
__ __
2004
0 __
0 __
-0 __
47 23.3 5 11.5
64 22.3 6 8.6
849 92.3 10 1.2
116 23.3 12 10.4
131 25.7 15 11.5
125 28.4 16 12.5
199 29.2 25 12.3
199 29.2 25 12.3
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
0 __ __ __ __
0 -0 __ __ __ __ __ __ __ -259.55
0 __ __
0 __ __
2001
2002
__ __ __ __ __
__ __ __ __ __
5
5
8
11
12
13
20
20
0.37 __
0.56 __
0.59 __
0.68 __
0.70 __
1.06 __
1.06 __
6 0.78
13 1.20
14 4.30
18 3.97
18 4.94
18 5.63
19 6.90
19 6.90
0 __ __
2 __ __
-7 -3 -10
-0 -10 -11
9 -19 -11
10 -3 7
10 -7 2
12 -17 -5
12 -17 -5
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
21.4 46.5 10.3 2.08 2.2
16.0 37.6 7.7 2.08 2.5
14.0 21.0 0.9 15.41 1.2
13.0 16.6 9.3 1.40 1.3
11.9 15.2 9.5 1.26 1.3
10.3 13.2 10.2 1.01 1.3
12.5 17.2 10.2 1.23 1.4
12.5 17.2 10.2 1.23 1.4
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2003
2004
2005
2006
2007
2008
2009
2010
12-10
-0 __
6 __
11 __
47 __
45 __
62 __
76 __
88 __
88 __
__ __ __ __ __
Fixed Assets Intangibles Total Assets
24 14 133
45 14 191
0 __
0 __
-0 __
10 __
16 __
57 __
73 __
90 __
103 __
133 __
133 __
10 __
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
19 __
12 17 43 __
8.6 __
13.5 __
16.1 __
12.4 __
2.3 __
12.3 __
8.1 __
5.3 __
30
58
103
133
0.9 8.4 16.6
0.5 4.2 __
0.1 2.1 __
1.2 1.9 15.2
0.2 0.3 3.0
1.3 1.5 16.2
0.8 1.2 13.4
0.5 0.8 8.8
__ __
__ __ __ __ __
2002
__ __
__ __ __ __ __
__ __ __ __
5.9
Quarterly Results 5 Yr Avg
Ind
Mkt
Revenue $Mil
Mar
Jun
Sep
Dec
5.3 4.2 8.8 __
10.3 __ __ __ __
18.7 __
__ __ __ __ __ __ __ __
Most Recent Previous
34.1 20.2
49.9 29.7
50.8 34.0
54.8 41.0
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
68.5 -34.0
67.8 -29.5
49.5 3.1
33.6 63.5
Mar
Jun
Sep
Dec
0.17 0.05
0.28 0.16
0.26 0.21
0.30 0.28
Earnings Per Share $
Most Recent Previous
Net Income $Mil Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $ Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
Financial Health
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity Valuation
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Close Competitors
Current
1.4 0.7 __
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
0.76 __
2001
0.0 0.8 0.5 0.2
Stock Performance
2002
7 32 81 131
4.9 9.5 0.1 1.5 0.6 __
Trading Volume
2001
80.6 67.0 50.7 __
12-10 $Mil
Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
Bear-Market Rank __ (10=worst)
__ __ __ __
10 19 58 95
Valuation Analysis
10 Year High/Low $ 29.99 - 1.14
__ __ __ __ __
12-09 $Mil
Total Equity
52 week High/Low $ 11.55 - 5.07
__ __ __ __ __
Cash Inventories Receivables Current Assets
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
Monthly High/Low Rel Strength to S&P 500
Mkt Cap $Mil Rev $Mil
P/E
ROE%
__ __
__ __
__ __
Toyota Motor Corporation 10253468 Honda Motor Company 5372944 Major Fund Holders
% of shares
Perritt Micro Cap Opportunities Gabelli Small Cap Growth AAA Fidelity Emerging Asia
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
2.21 0.91 0.98
Quarterly Report | Release date 04-15-2011
Page 18 of 31
SunPower SPWRA SunPower is a vertically integrated solar module manufacturer and systems installer. The company's modules derive from crystalline silicon technology and possess the industry's highest conversion efficiencies (the percentage of sunlight that is converted into electricity). The acquisitions of PowerLight (2007) and SunRay (2010) were are major components of its current systems offerings. New production capacity during the next two years will be part of a t venture the company entered into with AUO Optronics in 2010.
Morningstar Rating
Uncertainty
High
Last Close $
Sales $Mil
Mkt Cap $Mil
Industry
$15.74
$2,219
$1,546
Solar
Fair Value
Economic Moat
Style
Sector
$15.00
As of 04-15-2011
None
Small Growth
Technology
As of 03-31-2011
34.75 24.30
45.09 164.49 134.34 23.75 35.40 18.50
46.30 19.70
26.35 9.61
19.88 12.90
Annual Price High Low Recent Splits
Price Volatility 149.0
Monthly High/Low Rel Strength to S&P 500
49.0
52 week High/Low $ 19.88 - 9.61
19.0
10 Year High/Low $ 164.49 - 9.61
5.0
3939 North First Street San Jose, CA 95134 Phone: 1 408 204-5500Website: http://www.sunpowercorp.com
1.0 3.0
Bear-Market Rank __ (10=worst) Trading Volume Million
1.0
Growth Rates Compound Annual Grade: A
2001
1 Yr
3 Yr
5 Yr
10 Yr
45.6 124.6 355.6 __
42.0 290.0 146.1 __
95.0 __ __ __
19.2 -15.7 -25.6 -24.6
17.9 -45.0 -17.6 -44.6
31.9 -15.2 -20.8 -15.6
__ __ __ __ __ __ __ __
Grade: B
Current
5 Yr Avg
Ind
Mkt
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
11.8 5.9 3.5 6.6 430.9
6.6 3.8 2.6 7.1 330.7 *
4.4 1.9 1.4 4.4 __
__ __ __ __ __
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
23.0 6.3 8.1 2.1 2.2
21.5 6.1 5.8 __
__ __ __ __
2.3
__ __ __ __ __
12-09 $Mil
12-10 $Mil
Cash Inventories Receivables Current Assets
616 202 323 1282
605 313 381 1794
Fixed Assets Intangibles Total Assets
682 223 2696
579 412 3379
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
250 149 535 636 1321
395 198 788 642 1722
Total Equity
1376
1657
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market Profitability Analysis
Financial Position Grade: C
Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
2002
2003
2004
2006
2007
2008
2009
2010
YTD
Stock Performance
9.4 -4.3 -20.6 __
250.8 247.3 -56.0 __
-71.6 -33.1 1.1 __
-36.0 -59.5 -38.4 __
-45.8 -58.6 -32.4 __
22.7 17.7 0.8 __
2033
2573
10928
3174
2296
1256
1546
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
2005
2006
2007
2008
2009
2010
TTM
Financials
237 21.3 19 8.1
775 19.1 2 0.3
1435 25.3 168 11.7
1524 18.6 62 4.1
2219 23.0 139 6.3
2219 23.0 139 6.3
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
2005
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
__ __ __ __
2001
2002
2003
2004
6 -7.2 -3 -47.5
4 5 11 21.2 0.4 -43.1 -3 -13 -24 -75.6 -260.3 -220.8
79 5.6 -13 -16.5
-3
-4
-15
-29
-16
27
9
92
33
179
179
Net Income $Mil
-0.76 __
-1.11 __
-3.50 __
-8.00 __
-0.68 __
0.37 __
0.11 __
1.09 __
0.36 __
1.64 __
1.64 __
4 __
3 __
4 __
4 __
23 4.32
71 7.06
81 10.31
84 11.91
93 14.18
106 16.93
106 16.88
Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $
__ __ __
__ __ __
__ __ __
-14 -27 -41
18 -72 -54
-38 -108 -146
2 -193 -191
154 -266 -112
121 -168 -46
167 -119 47
167 -119 47
Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
2001
__ __
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Profitability
-67.5 __
-72.5 __
-48.0 __
5.9 7.1 11.2 0.53 1.2
0.8 1.4 1.2 0.69 1.9
5.0 9.8 6.4 0.77 2.0
1.4 2.8 2.2 0.64 2.0
5.9 11.8 8.1 0.73 2.0
5.9 11.8 8.1 0.73 2.0
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
-51.8 4.60 __
-87.0 -290.4 -265.5 0.77 0.25 0.18 __ __ __
-7.8 -12.8 -20.1 0.39 1.2
2001
2002
__
2003
2004
2005
2006
2007
2008
2009
2010
12-10
Financial Health
155 __
228 __
94 __
-6 __
-20 __
-54 22 -11 __
259 __
489 __
864 __
397 478 1021 0.47
747 636 1376 0.46
1005 642 1657 0.39
1005 642 1657 0.41
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2002
2003
2004
2005
2006
2007
2008
2009
2010
TTM
Valuation
33.9 __
65.8 __
7.8 __
9.6 __
2.2 3.1 20.3
1.4 1.7 18.1
0.6 0.8 8.1
0.8 0.9 10.0
__ __
0 -3 __ 2001
__ __ __ __ __
__ __ __ __ __
__ __
__ __ __ __ __
__ __ __ __ __
__ __
100.0 __
__ __
1.6 7.9 6.9
10.0 5.3 __
13.7 12.6 __
Quarterly Results Current
5 Yr Avg
Ind
Mkt
Revenue $Mil
9.6 6.4 10.0 35.1 0.0 0.9 0.8 0.3
__ __ __ __ __
__ __
Most Recent Previous
11.2 __ __
4.7 5.6 __
2.0 1.8 __
__ __ __ __ __ __ __ __
Close Competitors Mar
Jun
Sep
Dec
347.3 213.8
384.2 297.6
550.7 466.3
937.1 546.6
Rev Growth %
Mar
Jun
Sep
Dec
Most Recent Previous
62.4 -21.9
29.1 -22.2
18.1 23.5
71.5 36.3
Mar
Jun
Sep
Dec
0.13 -0.06
-0.15 0.26
0.19 0.13
1.46 0.01
Earnings Per Share $
Most Recent Previous
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Mkt Cap $Mil Rev $Mil
First Solar, Inc. Trina Solar Limited
11823 2026
P/E
ROE%
2564 17.9 1271 12.3
21.8 25.0
Major Fund Holders % of shares
Hussman Strategic Growth SAM Smart Energy EUR C PowerShares WilderHill Clean Energy
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
1.43 1.33 0.83
Quarterly Report | Release date 04-15-2011
Page 19 of 31
Xinyuan Real Estate XIN Xinyuan is a developer of large-scale residential real estate that targets middle-income consumers. It has completed 14 projects with a total gross floor area of more than 1 million square meters during the last 10 years. The firm currently develops its properties in second-tier Chinese cities, including Chengdu, Zhengzhou, Jinan, Hefei, Suzhou, and Kunshan. Xinyuan also provides property-management services in its buildings.
Morningstar Rating
—
Uncertainty
__
Last Close $
Sales $Mil
Mkt Cap $Mil
Industry
$2.17
$502
$165
Residential Construction
Fair Value
Economic Moat
Style
Sector
__
__
__
Consumer Cyclical
As of
18.00 12.00
14.71 1.54
7.65 2.43
4.82 2.20
2.92 2.20
Annual Price High Low Recent Splits
Price Volatility 14.0
6.0
27/F, China Central Place, Tower II 79 Jianguo Road Beijing, Chaoyang D 100025 Phone: 86 1085889200Website: http://www.xyre.com
Revenue Operating Income Earnings/Share Dividends Book Value/Share Stock Total Return +/- Industry +/- Market
2001
1 Yr
3 Yr
5 Yr
10 Yr
25.9 __ __ __
46.7 26.4 7.4 __ __
66.0 __ 49.3 __ __ __ __ __
__ __ __ __ __ __ __ __
11.2 -46.3 -35.1 -55.2
-37.2 -27.6 -36.8
Profitability Analysis
2002
2003
2004
2005
2006
10 Year High/Low $ 18.00 - 1.54
1.0
Bear-Market Rank __ (10=worst)
2007
2008
2009
2010
YTD
__ __ __ __
-82.9 -44.4 -44.3 __
83.2 59.7 52.1 __
-41.2 -53.9 -48.4 __
-17.5 -22.4 -13.3 __
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
1056
184
339
199
165
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
TTM
Financials
13 7.3 -0 -0.8
17 28.5 3 15.0
36 __ __ __
62 31.2 15 24.9
142 24.0 28 19.4
310 32.8 74 23.9
357 -0.1 -46 -13.0
449 19.9 56 12.4
502 23.0 79 15.7
Revenue $Mil Gross Margin % Oper Income $Mil Operating Margin %
__ __ __ __
__ __ __ __
5 Yr Avg
Ind
Mkt
__
__
1
4
10
15
-139
-24
42
55
8.8 -1.4 6.9 __
-45.9 -16.0 15.3 1.0 __
__ __ __ __ __
-0
12.1 5.6 95.2 0.7 1041.2
__ __ __ __
__ __ __ __
-0.02 __
0.00 __
0.07 __
0.16 __
0.42 __
-2.56 __
-0.32 __
0.52 __
0.70 __
24 __
30 __
60 __
60 __
36 5.25
54 5.30
75 5.89
80 6.46
Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev %
23.0 15.7 10.9 __ __
__ __ __
__ __ __ __ __
__ __ __
__ __ __
__ __ __
__ __ __
__ __ __
13 -0 12
-28 -2 -29
-175 -1 -176
-244 -1 -245
125 -0 124
79 6.46 __ __ __
2000
2001
21.6 13.5 -3.2 __ __
2.7
Financial Position Grade: D
06-09 $Mil
09-10 $Mil
Cash Inventories Receivables Current Assets
218 391 12 749
188 654 41 1012
Fixed Assets Intangibles Total Assets
5 __
6 __
906
1045
Payables Short-Term Debt Current Liabilities Long-Term Debt Total Liabilities
91 241 381 92 486
131 124 324 218 556
Total Equity
421
490
Valuation Analysis Price/Earnings Forward P/E Price/Cash Flow Price/Free Cash Flow Dividend Yield % Price/Book Price/Sales PEG Ratio
__ __ __ __ __
2000
__ __ __ __
2001
__ __ __ __ __
Net Income $Mil Earnings Per Share $ Dividends $ Shares Mil Book Value Per Share $ Oper Cash Flow $Mil Cap Spending $Mil Free Cash Flow $Mil
2002
2003
2004
2005
2006
2007
2008
2009
TTM
Profitability
-1.7 -69.5 -3.7 0.46 41.2
3.0 88.0 6.4 0.47 25.0
11.1 __ __
8.8 56.3 15.4 0.57 6.4
9.7 47.8 10.7 0.91 4.4
-27.5 -63.8 -45.0 0.61 2.1
-2.7 -6.0 -6.6 0.41 2.3
4.7 10.0 9.5 0.49 2.0
5.6 12.1 10.9 0.51 2.1
Return on Assets % Return on Equity % Net Margin % Asset Turnover Financial Leverage
2001
2002
2003
2004
2005
2006
2007
2008
2009
09-10
8 7 17 0.44
56 13 47 0.27
616 230 390 0.59
456 201 400 0.50
480 53 447 0.12
688 218 490 0.45
Working Capital $Mil Long-Term Debt $Mil Total Equity $Mil Debt/Equity
2006
2007
2008
2009
2010
TTM
Valuation
8.6 __
3.8 __
3.1 __
0.8 0.8 2.9
0.4 0.4 __
0.3 0.3 __
__ __ __ __
2002
__ __ __ __ __
__
2 __
__ __ __ __
2004
2005
6 __
4 1 __ 2003
__ __ __ __ __
__ __
__ __ __ __ __
__ __ __ __ __
__ __ __ __ __
__ __
2.5 2.7 __
Quarterly Results 5 Yr Avg
Ind
Mkt
Revenue $Mil
3.1 1.9 __ __
__ __ __ __ __ __ __ __
__ __
__ __ __ __ __ __ __ __
Most Recent Previous
0.0 0.3 0.3 0.1
Total Return % +/- Market +/- Industry Dividend Yield % Market Cap $Mil
__ __ __ __ __
Current
38.2 40.5 0.6 1.8 1.1 __
Stock Performance
__ __ __ __ __
Current
657.9 *
Trading Volume Million
__ __ __ __ __
Return on Equity % Return on Assets % Fixed Asset Turns Inventory Turns Revenue/Employee $K
Grade: D
52 week High/Low $ 4.10 - 2.11
3.0
1.0 0.6
Growth Rates Compound Annual Grade: B
Monthly High/Low Rel Strength to S&P 500
Mar
Jun
Sep
189.1 60.8
110.7 39.9
94.5 91.8
107.6 __ Sep
Dec
Mar
Jun
Most Recent Previous
210.9 -33.5
177.3 -68.1
2.9 4.6
__ __
Dec
Mar
Jun
Sep
0.32 -0.86
0.14 0.02
0.12 0.04
0.10 __
Most Recent Previous
0.5 0.5 __
Price/Earnings P/E vs. Market Price/Sales Price/Book Price/Cash Flow
Close Competitors Dec
Rev Growth %
Earnings Per Share $
__ __
Financial Health
Mkt Cap $Mil Rev $Mil
P/E
ROE%
Pruksa Real Estate Public 41929 23407 Dynasty Ceramic Public Com 23052 6531
__ __
__ __
Major Fund Holders % of shares
Federated Kaufmann Small Cap A AST Federated Aggressive Growth PowerShares Gldn Dragon Halter USX China
*3Yr Avg data is displayed in place of 5Yr Avg
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
2.83 1.30 0.18
Quarterly Report | Release date 03-31-2011
Page 20 of 31
Correlation Matrix: Item(s) from 4-01-2008 to 3-31-2011
1
1 American Express
1
2 Apollo Group
2
-0.18
3 Bank of America
3
0.52
0.22
4 Barclays PL
4
0.74
-0.02
0.76
5 Cisco Systems
5
0.59
0.07
0.49
0.61
6 Google
6
0.43
0.04
0.15
0.26
0.59
7 Itron
7
0.21
0.06
0.28
0.30
0.49
0.40
8 Johnson & Johnson
8
0.38
0.26
0.61
0.40
0.55
0.43
0.63
9 Johnson Controls
9
0.78
-0.11
0.59
0.79
0.68
0.39
0.38
0.56
10 Knight Capital Group
10
0.13
0.20
-0.19
0.05
0.22
0.29
0.32
0.09
0.14
11 LHC Group
11
0.11
0.24
0.30
0.01
0.28
0.09
0.15
0.44
0.21
-0.04
12 SORL Auto Parts
12
0.78
-0.23
0.41
0.59
0.50
0.41
0.16
0.24
0.59
-0.02
0.11
13 SunPower
13
0.35
0.30
0.24
0.36
0.55
0.51
0.58
0.62
0.56
0.44
0.30
0.19
14 Xinyuan Real Estate
14
0.25
0.02
-0.03
0.23
0.40
0.56
0.35
0.27
0.31
0.39
0.00
0.29
2 3 4 5 6 7 8 9 10 11 12 13 14 0.48
Degree of Correlation High .70 to 1.0
Moderate .11 to .69
None .10 to -.10
The Correlation Matrix demonstrates the relatedness of return patterns among investments. It is based upon the correlation coefficient, a number between -1.0 and 1.0. A perfect linear relationship between two investments has a correlation of 1.0. A perfect negative linear relationship between two investments has a correlation of -1.0.
Moderate Negative -.11 to -.69
Highly Negative -.70 to -1.0
A correlation coefficient of 0.0 indicates no linear relationship between the investments. Correlation infomation can be valuable in assessing the diversification effect of combining an investment with other investing options.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Page 21 of 31
Portfolio Snapshot Report Disclosure Statement
General Investment portfolios illustrated in this report can be scheduled or unscheduled. With an “unscheduled” portfolio, the inputs only the portfolio holdings and their current allocations. Morningstar calculates returns using the given allocations assuming monthly rebalancing. Taxes, loads, and sales charges are not taken into . With "scheduled" portfolios, s input the date and amount for all investments into and withdrawals from each holding, as well as tax rates, loads, and other factors that would have affected portfolio performance. A hypothetical illustration is one type of scheduled portfolio. Both scheduled and unscheduled portfolios are theoretical, for illustrative purposes only, and are not reflective of an investor's actual experience. For both scheduled and unscheduled portfolios, the performance data given represents past performance and should not be considered indicative of future results. Principal value and investment return of stocks, mutual funds, and variable annuity/life products will fluctuate, and an investor's shares/units, when redeemed, will be worth more or less than the original investment. Stocks, mutual funds, and variable annuity/life products are not FDIC-insured, may lose value, and are not guaranteed by a bank or other financial institution. Portfolio statistics change over time. Used as supplemental sales literature, the Portfolio Snapshot report must be preceded or accompanied by the fund/policy's current prospectus or equivalent. In all cases, this disclosure statement should accompany the Portfolio Snapshot report. Morningstar is not itself a FINRA-member firm. The underlying holdings of the portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Investing in securities involves investment risks including possible loss of principal and fluctuation in value. The information contained in this report is from the most recent information available to Morningstar as of the release date, and may or may not be an accurate reflection of the current composition of the securities included in the portfolio. There is no assurance that the weightings, composition and ratios will remain the same. Items to Note Regarding Certain Underlying Securities A closed-end fund is an investment company, which typically makes one public offering of a fixed number of shares. Thereafter, shares are traded on a secondary market such as the New York Stock Exchange. As a result, the secondary market price may be higher or lower than the closed-end fund's net asset value (NAV). If these shares trade at a price above their NAV, they are said to be trading at a . Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. An exchange-traded fund (ETF) is an investment company that typically has an investment objective of striving to achieve a similar return as a particular market index. The ETF will invest in either all or a representative sample of the securities included in the index it is seeking to imitate. Like closed-end funds, ETFs can be traded on a secondary market and thus have a market price that may be higher or lower than its net asset value. If these shares trade at a price
above their NAV, they are said to be trading at a . Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. Holding company depository receipts (HOLDRs) are similar to ETFs, but they focus on narrow industry groups. HOLDRs initially own 20 stocks, which are unmanaged, and can become more concentrated due to mergers or the disparate performance of their holdings. HOLDRs can only be bought in 100-share increments. Investors may exchange shares of a HOLDR for its underlying stocks at any time. A money-market fund is an investment company that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit and other highly liquid securities, and pays money-market rates of interest. Money markets are not FDIC-insured, may lose money, and are not guaranteed by a bank or other financial institution. Although the money market seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible to lose money by investment in the fund. A Unit investment trust (UIT) is an investment company organized under a trust agreement between a sponsor and trustee. UITs typically purchase a fixed portfolio of securities and then sell units in the trust to investors. The major difference between a UIT and a mutual fund is that a mutual fund is actively managed, while a UIT is not. On a periodic basis, UITs usually distribute to the unit holder their pro rata share of the trust's net investment income and net realized capital gains, if any. If the trust is one that invests only in tax-free securities, then the income from the trust is also tax-free. UITs generally make one public offering of a fixed number of units. However, in some cases, the sponsor will maintain a secondary market that allows existing unit holders to sell their units and for new investors to buy units. Variable annuities are tax-deferred investments structured to convert a sum of money into a series of payments over time. Variable annuity policies have limitations and are not viewed as short-term liquid investments. An insurance company's fulfillment of a commitment to pay a minimum death benefit, a schedule of payments, a fixed investment guaranteed by the insurance company, or another form of guarantee depends on the claims-paying ability of the issuing insurance company. Any such guarantee does not affect or apply to the investment return or principal value of the separate and its sub. The financial ratings quoted for an insurance company do not apply to the separate and its sub. If the variable annuity sub is invested in a money-market fund, it seeks to preserve a stable per share value (i.e. $1.00 per share), but it is possible to lose money by investment in the fund. Variable life insurance is a cash-value life insurance that has a variable cash value and/or death benefit depending on the investment performance of the sub into which payments are invested. Unlike traditional life insurance, variable life insurance has inherent risks associated with it, including market volatility, and is not viewed as a short-term liquid investment. For more information on a variable life product, including each sub, please read the current prospectus. Please note, the financial ratings noted on the report are quoted for an insurance company and do not apply to the separate and its sub. If the variable life sub is invested in a money-market fund, it seeks to preserve a stable per share value (i.e. $1.00 per share), but it is possible to lose money by investment in the fund. Pre-inception Returns The analysis in this report may be based, in part, on adjusted historical returns for periods prior to the fund's actual inception. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect the fees and expenses of this share class. These fees and expenses are referenced in the report's list of holdings and again on the standardized returns page. When pre-inception data are presented in the report, the header at the top of the report will indicate this and the affected data elements will be displayed in italics.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Page 22 of 31
Portfolio Snapshot Report Disclosure Statement (continued)
While the inclusion of pre-inception data provides valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Scheduled Portfolio Trailing Returns Scheduled Portfolios are customized by the to for loads, taxes, cash flows, and specific investment dates. Scheduled portfolios use the portfolio's investment history to calculate final market values and returns. For scheduled portfolios, both individual holding and portfolio returns are internal-rate-of-return calculations that reflect the timing and dollar size of all purchases and sales. For stocks and mutual funds, sales charges and tax rates are taken into as specified by the (except in the pre-tax returns, which reflect the impact of sales charges but not taxes). Note that in some scheduled portfolio illustrations, dividends and capital gains distributions, if applicable, are reinvested at the end of the month in which they are made at the month-end closing price. This can cause discrepancies between calculated returns and actual investor experience. Scheduled Portfolio Returns-Based Performance Data For scheduled portfolios, the monthly returns used to calculate alphas, betas, R-squareds, standard deviations, Sharpe ratios, and best/worst time-period data are internal rates of return. Important VA Disclosure for Scheduled Portfolios For variable annuity products, policy level charges (other than front-end loads, if input by the advisor) are not factored into returns. When withdrawals and liquidations are made, increases in value over the purchase price are taxed at the capital gains rate that currently is in effect. This is not reflective of the actual tax treatment for these products, which requires the entire withdrawal to be taxed at the income tax rate. If adjusted for sales charges and the effects of taxation, the sub returns would be reduced. Scheduled Portfolio Investment Activity Graph The historic portfolio values that are graphed are those used to track the portfolio when calculating returns. Unscheduled Portfolio Returns Monthly total returns for unscheduled portfolios are calculated by applying the ending period holding weightings supplied by the to an individual holding's monthly returns. When monthly returns are unavailable for a holding (i.e. due to it not being in existence during the historical period being reported), the remaining portfolio holdings are re-weighted to maintain consistent proportions. Inception dates are listed in the Disclosure for Standardized and Tax Adjusted Returns. Trailing returns are calculated by geometrically linking these weighted-average monthly returns. Unscheduled portfolio returns thus assume monthly rebalancing. Returns for individual holdings are simple time-weighted trailing returns. Neither portfolio returns nor holding returns are adjusted for loads or taxes, and if they were, the returns stated would be reduced. The returns stated assume the reinvestment of dividends and capital gains. Mutual fund returns include all ongoing fund expenses. VA/VL returns reflect sub level fund expenses, including M&E expenses, istration fees, and actual ongoing fund level expenses.
Unscheduled Portfolio Investment Activity Graph The historic performance data graphed is extrapolated from the ending portfolio value based on the monthly returns. Benchmark Returns Benchmark returns may or may not be adjusted to reflect ongoing expenses such as sales charges. An investment's portfolio may differ significantly from the securities in the benchmark. Returns for custom benchmarks are calculated by applying -supplied weightings to each benchmark's returns every month. Trailing returns are calculated by geometrically linking these weighted-average monthly returns. Custom benchmark returns thus assume monthly rebalancing. Standardized Returns For mutual funds, standardized return is total return adjusted for sales charges, and reflects all ongoing fund expenses. Following this disclosure statement, standardized returns for each portfolio holding are shown. For money-market mutual funds, standardized return is total return adjusted for sales charges and reflects all ongoing fund expenses. Current 7-day yield more closely reflects the current earnings of the money-market fund than the total return quotation. For VA subs, standardized return is total return based on the inception date within the separate and is adjusted to reflect recurring and non-recurring charges such as surrender fees, contract charges, maximum frontend load, maximum deferred load, maximum M&E risk charge, istration fees, and actual ongoing fund-level expenses. For ETFs, the standardized returns reflect performance, both at market price and NAV price, without adjusting for the effects of taxation or brokerage commissions. These returns are adjusted to reflect all ongoing ETF expenses and assume reinvestment of dividends and capital gains. If adjusted, the effects of taxation would reduce the performance quoted. For HOLDRs, the standardized returns reflect performance at market price, without adjusting for the effects of taxation or brokerage commissions. These returns are adjusted to reflect all ongoing expenses and assume reinvestment of dividends and capital gains. If adjusted, the effects of taxation would reduce the performance quoted. The charges and expenses used in the standardized returns are obtained from the most recent prospectus and/or shareholder report available to Morningstar. For mutual funds and VAs, all dividends and capital gains are assumed to be reinvested. For stocks, stock acquired via divestitures is assumed to be liquidated and reinvested in the original holding. Non-Standardized Returns For mutual funds, total return is not adjusted for sales charges and reflects all ongoing fund expenses for various time periods. These returns assume reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the mutual fund returns would be reduced. Please note these returns can include pre-inception data and if included, this data will be represented in italics. For money-market funds, total return is not adjusted for sales charges and reflects all ongoing fund expenses for various time periods. These returns assume reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the money-market returns would be reduced. For VA and VL subs, non-standardized returns illustrate performance that is adjusted to reflect recurring and non-recurring charges such as surrender fees, contract charges, maximum front-end load, maximum deferred load, maximum
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Page 23 of 31
Portfolio Snapshot Report Disclosure Statement (continued)
exceeding 100% cash. Investment Style The Morningstar Style Box reveals a fund's investment style as of the date noted on this report.
M&E risk charge, istrative fees and underlying fund-level expenses for various time periods. Non-Standardized performance returns assume reinvestment of dividends and capital gains. If adjusted for the effects of taxation, the sub returns would be significantly reduced. Please note these returns can include pre-inception data and if included, this data will be represented in italics. Investment Advisory Fees The investment(s) returns do not necessarily reflect the deduction of all investment advisory fees. Client investment returns will be reduced if additional advisory fees are incurred such as deferred loads, redemption fees, wrap fees, or other charges. Asset Allocation The weighting of the portfolio in various asset classes, including "Other," is shown in this graph and table. "Other" includes security types that are not neatly classified in the other asset classes, such as convertible bonds and preferred stocks. "Not classified" represents the portion of the portfolio that Morningstar could not classify at all, due to missing data. In the graph and table, allocation to the classes is shown for long positions, short positions, and net (long positions net of short) positions. These new portfolio statistics help investors look "under the hood" of a portfolio. These statistics summarize what the managers are buying and how they are positioning the portfolio. When short positions are captured in these portfolio statistics, investors get a more robust description of the funds’ exposure and risk. Most managed product portfolios hold fairly conventional securities, such as long positions in stocks and bonds. Other portfolios use other investment strategies or securities, such as short positions or derivatives, to reduce transaction costs, enhance returns, or reduce risk. Some of these securities and strategies behave like conventional securities, while others have unique return and risk characteristics. Most portfolios take long positions in securities. Long positions involve buying the security outright and then selling it later, with the hope that the security price rises over time. In contrast, short positions are taken to benefit from anticipated price declines. In this type of transaction, the investor borrows the security from another investor, sells it and receives cash, and then is obligated to buy it back at some point in the future. If the price falls after the short sale, the investor will have sold high and can now buy low to close the short position and lock in a profit. However, if the price of the security increases after the short sale, the investor will experience losses by buying it at a higher price than the sale price. The strategy of selling securities short is prevalent in specialized portfolios, such as long-short, market-neutral, bear-market, and hedge funds. Most conventional portfolios do not typically short securities, although they may reserve the right to do so under special circumstances. Funds may also short derivatives, and this is sometimes more efficient than shorting individual securities. Short positions produce negative exposure to the security that is being shorted. This means that when the security rises in value, the short position will fall in value and vice versa. Morningstar’s portfolio statistics will capture this negative exposure. For example, if a fund has many short stock positions, the percent of assets in stocks in the asset allocation breakdown may be negative. Funds must provide their broker with cash collateral for the short position, so funds that short often have a large cash position, sometimes even
For equity funds the vertical axis shows the market capitalization of the long stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. Stock Sectors This section provides a comparison of exposure to various industry sectors between the long stock positions in the portfolio and a benchmark.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Portfolio Snapshot Report Disclosure Statement (continued)
a given year. The calculation is net income divided by end-of-year total assets, multiplied by 100. The Return on Equity (ROE) is the percentage a company earns on its shareholders' equity in a given year. The calculation is net income divided by end-of-year net worth, multiplied by 100.
Stock Regions This section provides the allocation of the portfolio’s long stock positions to the world regions, in comparison with a benchmark. Risk and Return Standard deviation is a statistical measure of the volatility of a portfolio's returns around its mean. Mean represents the annualized geometric return for the period shown. Sharpe ratio uses a portfolio's standard deviation and total return to determine reward per unit of risk. Alpha measures the difference between a portfolio's actual returns and its expected performance, given its beta and the actual returns of the benchmark index. Alpha is often seen as a measurement of the value added or subtracted by a portfolio's manager. Beta is a measure of the degree of change in value one can expect in a portfolio given a change in value in a benchmark index. A portfolio with a beta greater than one is generally more volatile than its benchmark index, and a portfolio with a beta of less than one is generally less volatile than its benchmark index. R-squared reflects the percentage of a portfolio's movements that is explained by movements in its benchmark index, showing the degree of correlation between the portfolio and a benchmark. This figure is also helpful in assessing how likely it is that alpha and beta are statistically significant. Portfolio Yield The dividend yield produced for the most recent 12 months is presented. Fundamental Analysis The below referenced data elements are a weighted average of the long equity holdings in the portfolio. The median market capitalization of a sub's equity portfolio gives you a measure of the size of the companies in which the sub invests. The Price/Cash Flow ratio is a weighted average of the price/cash-flow ratios of the stocks in a sub’s portfolio. Price/cash-flow shows the ability of a business to generate cash and acts as a gauge of liquidity and solvency. The Price/Book ratio is a weighted average of the price/book ratios of all the stocks in the underlying fund's portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company's per-share book value. Stocks with negative book values are excluded from this calculation.
Market Maturity shows the percentage of a holding's long common stocks that are domiciled in developed and emerging markets. The below referenced data elements listed below are a weighted average of the long fixed income holdings in the portfolio. Average maturity is used for holdings in the taxable fixed-income category. This is a weighted average of all the maturities of the bonds in a portfolio, computed by weighting each maturity date by the market value of the security. Credit quality breakdowns are shown for corporate-bond holdings and depict the quality of bonds in the underlying portfolio. The report shows the percentage of fixed-income securities that fall within each credit quality rating as assigned by an NRSRO. Bonds not rated by an NRSRO are included in the not rated (NR) category. Debt as a percentage of capital is calculated by dividing long-term debt by total capitalization (the sum of common equity plus preferred equity plus long-term debt). This figure is not provided for financial companies. Duration is a time measure of a bond’s interest-rate sensitivity. Net Margin is a measure of profitability. It is equal to annual net income divided by revenues from the same period for the past five fiscal years, multiplied by 100. Type Weightings divide the stocks in a given holding's portfolio into eight type designations each of which defines a broad category of investment characteristics. Not all stocks in a given holding's portfolio are assigned a type. These stocks are grouped under NA. The below referenced data elements listed below are a weighted average of the total holdings in the portfolio. The average expense ratio is the percentage of assets deducted each year for operating expenses, management fees, and all other asset-based costs incurred by the fund, excluding brokerage fees. Please note for mutual funds, variable annuities/life, ETFs and closed-end funds we use the gross prospectus ratio as provided in the prospectus. Separate s and stocks are excluded from the average expense ratio. Potential capital gains exposure is the percentage of a holding’s total assets that represent capital appreciation.
Investment Risks Market Price Risk: The market price of ETF’s and HOLDRs traded on the secondary market is subject to the forces of supply and demand and thus The Price/Earnings ratio is calculated by dividing the market value of the equity independent of the NAV. This can result in the market price trading at assets by the trailing 12 month earnings. The 12 month earnings value comes from a or discount to the NAV which will affect an investor's value. multiplying the number of shares and the adjusted trailing 12 months' earnings per share for each equity asset and summing the results. Market Risk: The market prices of ETF’s and HOLDRs can fluctuate as to the result of several factors such as security-specific factors or general investor The Price/Sales ratio is a weighted average of the price/sales ratios of the sentiment. Therefore, investors should be aware of the prospect of market stocks in the underlying fund's portfolio. The P/S ratio of a stock is calculated fluctuations and the impact it may have on the market price. by dividing the current price of the stock by its trailing 12 months' revenues per share. In computing the average, Morningstar weights each portfolio holding by International Emerging Market Funds/Subs: The investor should note the percentage of equity assets it represents. that funds and subs that invest in international securities take on special additional risks. These risks include, but are not limited to, The return on assets (ROA) is the percentage a company earns on its assets in currency risk, political risk, and risk associated with varying ing ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Portfolio Snapshot Report Disclosure Statement (continued)
standards. Investing in emerging markets normally accentuates these risks.
Long-Short Funds: Due to the strategies used by long-short funds, which may include but are not limited to leverage, short selling, short-term trading, and investing in derivatives, these funds may have greater risk, volatility, and expenses than those focusing on traditional investment strategies. High double- and triple-digit returns were the result of extremely favorable market conditions, which may not continue to be the case. High returns for short time periods must not be a major factor when making investment decisions.
Sector Funds/Subs: The investor should note that funds and subs that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks. Non-Diversified Funds/Subs: The investor should note that funds or subs that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments. Small-Cap Funds/Subs: The investor should note that funds and subs that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of price volatility than the overall market average. Mid-Cap Funds/Subs: The investor should note that funds and subs that invest in companies with market capitalizations below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies. High-Yield Bond Funds/Subs: The investor should note that funds and subs that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility and increased risk of default. Bond Funds: Investors should note that bond funds are subject to interest rate risk. As the prevailing level of bond interest rates rise, the value of bonds already held in a portfolio decline. Funds and subs that hold bonds are subject to declines and increases in value due to general changes in interest rates. Tax-Free Municipal Bond Funds: The investor should note that the income from tax-free municipal bond funds may be subject to state and local taxation and the Alternative Minimum Tax. HOLDRs: The investor should note that HOLDRs are narrow industry focused products. If the industry is hit by hard times they will lack diversification and possible loss of investment would be likely. HOLDRs can trade at a discount to market price, ownership is of a fractional share interest, and the underlying investments of a HOLDR may not be representative of the particular industry. If the number of underlying companies in the HOLDR drops below nine, it might be delisted from the AMEX, which may cause the investor to experience trading halts. Bank loan/senior debt funds: Funds that contain bank loans and senior loans are impacted by risks associated with fixed income in general, including interest rate risk and default risk. Because they often invest in non-investment grade issues, the risk of default is high. These securities are also relatively illiquid. Funds that invest in bank loans/senior debt are often highly leveraged, producing a high level of volatility. Short Positions: The investor should note that when a short position moves in an unfavorable way, the losses are theoretically unlimited. The broker will demand more collateral and the manager might have to close out that short position at an inopportune time to limit any further losses. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Stock Detail Report Disclosure Statement
Please read this information carefully. In all cases, this disclosure statement should accompany the Stock Detail report. Morningstar is not itself a FINRA-member firm. All data presented is based on the most recent information available to Morningstar. Morningstar gathers data from many sources including third party providers such as Comstock and Reuters. Unless otherwise stated, all data and statistics presented in the report are as of the release date noted within the Detail Report and constitute "as originally reported" information. Last Close $ Stock price shown represents the market price of the stock as of the close of trading on the release date noted at the top of the investment detail page. Market Capitalization $ mil Value of a company as determined by the market price of its outstanding common stock. It is calculated by multiplying the market price as of the close of trading as of the last day of the most recent month-end by the number of shares outstanding as of the most recently completed fiscal quarter. It may be used as an indicator of how investors value a company's future prospects. Morningstar Rating The Morningstar Rating for stocks is calculated by comparing Morningstar's assessment of a stock's fair value with the stock's current market price. The rating is assigned a five star rating if fair value is 30% or more above the current market price, four star rating if it is 10% to 30% above the current market price, three star rating if fair value is 10% above or below the current market price, two star rating if fair value is 10% to 30% below the current market price, and a one star rating for a fair value of 30% or more below the current market price. Fair Value Uncertainty Fair Value Uncertainty is meant to give investors an idea of how tightly we feel we can bound our fair value estimate for any given company. To generate Morningstar Fair Value Uncertainty, analysts consider the following factors: - Sales predictability - Operating leverage - Financial leverage - A firm`s exposure to contingent events Based on these factors, analysts classify the stock into one of several uncertainty levels: Low, Medium, High, Very High, or Extreme. The greater the level of uncertainty, the greater the discount to fair value required before a stock can earn 5 stars, and the greater the to fair value before a stock earns a 1 star rating. Fair Value Each stock's fair value is estimated by utilizing a proprietary discounted cash flow model (DCF). This model assumes that the stock's value is equal to the total of the free cash flows of the company is expected to generate in the future, discounted back to the present at the rate commensurate with the riskiness of the cash flows. As with any DCF model, the ending value is highly sensitive to Morningstar's projections of future growth. Economic Moat Economic Moat measures the strength and sustainability of a firm's compet-
itive advantage. Many factors are considered when asg this rating, including the firm's historical performance, the source of the company's excess economic profits, market share, ability to produce products at lower costs than competitors, governmental protection via patents/copyrights, high customer switching costs, and other various considerations as determined by our Editorial staff. The rating value assigned will be either none, narrow, or wide. Style The Morningstar Style consists of nine categories that provide an overview of the investment strategy. The style is comprised of a combination of market capitalization of the security and the investment style (value, blend, or growth). Stock Grades The grading system is a letter-based system from A through F, with A being the highest. The Growth Grade shows how well the company's growth compares with the Morningstar universe. Growth is measured by revenue per share. The Profitability Grade shows how well a company's profitability, as measured by return on equity, compares with the Morningstar universe. The Financial Health Grade compares a company's enterprise value with the book value of its liabilities, rewarding those firms that have a low probability of enterprise value falling below the value of liabilities. Stock Performance Total Return represents shareholders' gains from a stock over a given period of time (YTD, one month, three month, one-, three-, and five year). Total return includes both capital gains and losses and dividend payments. It is calculated by taking the change in the stock's price as of the close of trading of the respective period, assuming the reinvestment of all dividends, then dividing by the initial stock price, and expressing the result as a percentage. Returns for periods longer than one year are annualized. Returns do not include brokerage commission or the effects of taxation. Financials Earnings per share $ (EPS), diluted EPS, is calculated by dividing net income net of preferred dividends by a weighted average of total shares outstanding plus additional common shares that would have been outstanding if the dilutive common share would have been issued for the trailing 12 months (TTM). Dividend per share $ is the dollar amount of dividends paid out by the company in a particular period to its common shareholders, as reported by the company. Profitability Return on Assets (ROA) is the percentage a company earns on its assets in a given year. (Year 1, 2, etc.). The calculation is net income divided by end-of-year total assets, then multiplied by 100. Return on Equity (ROE) is the percentage a company earns on its total equity in a given year (Year 1, 2, etc.). The calculation is net income divided by end-of-year net worth, multiplied by 100. Net Margin is a measure of profitability. It is equal to annual net income divided by revenues from the same period for the past five fiscal years, multiplied by 100. Asset Turnover represents how many dollars in revenue a company has generated per each dollar of assets. It is calculated by dividing total revenues for the period by total assets for the same period. Financial leverage is calculated by dividing total assets by total shareholders' equity.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Valuation Price/Earnings (PE) is the current price divided by the company's trailing 12-month earnings per share.
Price/Free Cash Flow is the free cash flow divided by its "enterprise value", or market capitalization plus net debt. This number tells you what cash return you would get if you bought the entire company, including its debt. Dividend Yield % is a percentage calculated by dividing total dividends by the current market price and multiplying by 100.
Price/Book (PB) is the most recent stock price divided by the most recent book value per share. Price/Book is the stock price divided by the book value per share. Price/Sales (PS) is the current price divided by the company's sales per share over the trailing 12 months. Price/Cash Flow (PC) is the most recent price divided by the cash flow per share of the latest fiscal year. Growth Rates All the figures in the Growth section represent the compounded or annualized growth rate. These figures are collected for revenue, net income, EPS, equity per share, and dividends. Profitability Analysis The below referenced items are reported as both a current value and a 5-year average figure.
Price/Sales is the stock's price divided by the company's sales per share. PEG Ratio is Forward P/E ratio divided by the company's EPS Growth % Five-Year Mean Estimate. The Forward P/E ratio used in the numerator of this ratio is calculated by taking the current share price and dividing by the mean EPS estimate for the current fiscal year. The denominator is the average estimate of long-term EPS growth, derived from all polled analysts' estimates from Reuters Estimates. Market Standard & Poor's 500: A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market.
Return on Equity % is the percentage a company earns on its total equity in a given year. The calculation is net income divided by end-of-year net worth. Return on Assets % is the percentage a company earns on its assets in a given year. The calculation is net income divided by end-of-year total assets. Revenue/Employee $K looks at a company's sales in relation to the number of employees they have. This ratio is most useful when compared against other companies in the same industry. Ideally, a company wants the highest revenue per employee possible, as it denotes higher productivity. Operating Margin % is used to measure pricing strategy and operating efficiency. It is calculated by dividing operating income by net sales. Also known as operating profit margin or net profit margin. Net Margin % is equal to annual net income divided by revenues. Free Cash Flow/Rev % is free cash flow divided by sales for the same time period. Free cash flow is calculated by subtracting capital spending from cash flow from operations for the same time period. It is the money left over after investment, and it can be used to pay dividends, buy back stock, or pay down debt. Valuation Analysis The below referenced items are reported as both a current value and a 5-year average figure. Price/Earnings is the stock's price divided by the company's earnings per share. Forward P/E ratio is the most-recent stock price divided by the mean EPS estimate for the current fiscal year. This number gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the forward P/E, the cheaper the stock. Reuters Estimates data is used in the denominator of this calculation. Price/Cash Flow is the stock's price divided by the cash-flow per share of the latest fiscal year.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Graph Disclosure Statement
The Graph Disclosure Statement is to be used with the Investment Growth, Total Annual Return, Rolling Period Return, and/or Correlation Matrix graphs (each a "Graph Page"). The statement may accompany one, some, or all of the above mentioned graphs. The Graph Page is supplemental sales literature and therefore must be preceded or accompanied by the noted fund/sub's current prospectus, or equivalent, and a disclosure statement. In all cases, this disclosure statement should accompany the graph reports.
When pre-inception data are presented in the report, the header at the top of the report will indicate this. While the inclusion of pre-inception data provides valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures between a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Items to Note Regarding Certain Underlying Securities The underlying holdings of the portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Investment in securities involve investment risks including possible loss of principal and fluctuation in value.
A closed-end fund is an investment company, which typically makes one public offering of a fixed number of shares. Thereafter, shares are traded on a secondary market such as the New York Stock Exchange. As a result, the secondary market price may be higher or lower than the closed-end fund's net asset value (NAV). Total Annual Return, Rolling Period Return, and Investment Growth Graphs If these shares trade at a price above their NAV, they are said to be trading at The above graphs allow open-end mutual funds, money-market mutual funds, a . Conversely, if they are trading at a price below their NAV, they are closed-end funds, exchange-traded funds, variable annuity/life subs, said to be trading at a discount. stocks, separate s, indices, and Morningstar categories to be graphed over customized time periods. For exchange-traded funds and closed-end funds, An exchange-traded fund (ETF) is an investment company that typically has an market returns are used. investment objective of striving to achieve a similar return as a particular market index. The ETF will invest in either all or a representative sample of the The values or returns noted for a security are derived from its total return, securities included in the index it is seeking to imitate. Like closed-end funds, which does not include any applicable sales charges, brokerage ETFs can be traded on a secondary market and thus have a market price that may be commission or the effects of taxation during the selected time period higher or lower than its net asset value. If these shares trade at a price above and assumes dividends and distributions are reinvested. If such their NAV, they are said to be trading at a . Conversely, if they are trading adjustments were included, the total returns would be lower than those at a price below their NAV, they are said to be trading at a discount. indicated on the Graph Page. A holding company depository receipt (HOLDR) is similar to an ETF, but it focus The index is an unmanaged portfolio of specified securities, and does not reflect on narrow industry groups and initially owns 20 stocks which are unmanaged. A any initial or ongoing expenses. A fund and/or sub's portfolio may differ HOLDR can become more concentrated due to mergers, or the disparate significantly from the securities in the index. The index is chosen by Morningstar. performance of its holdings. HOLDRs can only be bought in 100-share increments. Morningstar categories represent an average of all the funds or subs in Investors may exchange shares of a HOLDR for its underlying stocks at any time. the corresponding group. The Morningstar category identifies funds or subs based on their actual investment styles as measured by their underlying portfolio A money-market fund is an investment company that invests in commercial paper, holdings (portfolio statistics and market capitalizations over the past three banker's acceptances, repurchase agreements, government securities, certificates years). of deposit and other highly liquid securities, and pays money market rates of interest. Although the money market seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible to lose money by investment in the fund. Correlation Matrix Graph The Correlation Matrix is based on the correlation coefficient, a number between A separate is a professionally managed portfolio of individual securities -1.0 and 1.0. If there is perfect positive linear relationship between two funds that can be customized for individual investor preferences and managed to control or subs, the correlation will be 1.0. If there is a perfect negative linear taxable events. Assets are held in a segregated instead of placing in them relationship between two funds or subs the correlation coefficient is -1.0. in a pool with those of other investors, as is the case with a mutual fund. A correlation coefficient of zero means that there is no linear relationship Reporting is different because managers disclose each holding and all transactions between the funds or subs. separately, rather than as an integrated portfolio. In appearance, separate s look like just a collection of individual stocks. Security Types The following security types are represented in the various graphs: closed-end fund (CE), exchange-traded fund (ETF), HOLDRs (HLD), index (IDX), money market mutual A variable annuity sub is a tax-deferred investment structured to convert a sum of money into a series of payments over time. Variable annuity policies have fund (MM), open-end mutual fund (MF), separate (SA), stock (ST), and limitations and are not viewed as short-term liquid investments. An insurance variable annuity/life (VA/L). company's fulfillment of a commitment to pay a minimum death benefit, a schedule of payments, a fixed investment guaranteed by the insurance company, or Pre-inception Returns for Mutual Funds another form of guarantee depends on the claims-paying ability of the issuing The analysis in these graphs may be based, in part, on adjusted historical returns insurance company. Any such guarantee does not affect or apply to the investment for periods prior to the fund's actual inception. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect return or principal value of the separate and its sub. The financial the fees and expenses of this share class. Morningstar is not itself a FINRA-member firm. All data is based on the most recent information available to Morningstar.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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All separate performance data is reported as a "composite" of similarly managed portfolios. As such, investors in the same separate may have ratings quoted for an insurance company do not apply to the separate slightly different portfolio holdings because each investor has customized and its sub. needs, tax considerations and security preferences. The method for calculating composite returns can vary. Gross returns are collected on a monthly A variable life insurance policy is a cash-value life insurance policy that has a and quarterly basis for separate s and commingled pools. This information variable cash value and/or death benefit depending on the investment performance is collected directly from the asset management firm running the product(s). of the sub into which payments are invested. Unlike traditional Morningstar calculates total returns, using the raw data (gross monthly and life insurance, variable life insurance has inherent risks associated with it, quarterly returns), collected from these asset management firms. including market volatility, and is not viewed as a short-term liquid investment. For more information on a particular variable life product, including each Variable Annuity/Life Subs: Total Return reflects the investment sub, please read the current prospectus or equivalent. Please note, the experience of the sub since the inception date of the underlying fund. financial ratings noted on the report are quoted for an insurance company and do The total returns assume reinvestment of dividends and capital gains and are not apply to the separate and its sub. adjusted to reflect fees and expenses such as M&E risk charges, Performance The performance data given represents past performance and is not indicative of future results. Principal value and investment return will fluctuate, so that an investor's units, when redeemed, may be worth more or less than the original investment. Fund and sub portfolio statistics may change over time.
Open-end Mutual Funds: Total Return reflects performance without adjusting for sales charges or the effects of taxation, but is adjusted to reflect all actual ongoing fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced. Pre-inception returns will be calculated for the fund. These adjusted historical returns are based on the inception date of the oldest share class. These returns will be adjusted to reflect the same fees and expenses as referenced under the Total Return section above. Standardized Total Return is reflected as of month- and quarter-end time periods. It depicts performance without adjusting for the effects of taxation, but is adjusted for sales charges, all ongoing fund expenses, and assumes reinvestment of dividends and capital gains. If adjusted for the effects of taxation, the performance quoted would be reduced. The sales charge used in the calculation was obtained from the fund's most recent prospectus available to Morningstar. Standardized returns never include pre-inception history. Money-Market Mutual Funds: Total Return reflects performance without adjusting for sales charges or the effects of taxation, but is adjusted to reflect all actual ongoing fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced. Current 7-day yield more closely reflects the current earnings of the money market fund than the total return quotation. Exchange Traded-Funds/Closed-End Funds/Stocks: Exchange-traded funds and closed-end funds trading on a secondary market may trade at, above, or below their net asset value (NAV). If these shares trade at a price above their NAV, they are said to be trading at a . Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. Total Return reflects performance without adjusting for sales charges, brokerage commissions or the effects of taxation and is based on Market Price. The total return is adjusted to reflect all actual ongoing ETF fund expenses and assumes reinvestment of dividends and capital gains. If adjusted, the effects of taxation and brokerage commissions would reduce the performance quoted. An exchange-traded or closed-end fund is not FDIC-insured, may lose value, and is not guaranteed by a bank or other financial institution.
istration fees, sales charges (including surrender charges), contract fees, and fund-level expenses such as management fees and operating fees. They are not adjusted to reflect the effects of taxation if redeemed early. Adjusting for the effects of taxation would reduce the performance quoted. Pre-inception returns will be calculated for the sub. These adjusted historical returns are based on the inception date of the oldest share class of the underlying fund. These returns will be adjusted to reflect the same fees and expenses as referenced under the Total Return section above. Both monthly and quarterly standardized returns for variable annuity/life subs assume reinvestment of dividends and capital gains. They are adjusted to reflect expenses, including M&E risk charges, istration fees, fund-level expenses such as management fees and operating fees, and policy-level charges such as surrender, contract and sales charges. Standardized Returns are calculated in accordance with the rules outlined in SEC Rule 482, Forms N-3 and N-4, and reflect the investment experience from the inception date of the sub within the separate . Please refer to the hypothetical illustration in the prospectus, which among other things, shows the effect that fees and charges have on performance. We urge investors to obtain a personalized illustration that reflects the costs of insurance protection. Investment Risk High-Yield Bond Funds/subs: The investor should note that funds/ subs that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility and increased risk of default. HOLDRs: The investor should note that HOLDRs are narrow industry focused products. If the industry is hit by hard times they will lack diversification and possible loss of investment would be likely. HOLDRs can trade at a discount to market price, ownership is of a fractional share interest, and the underlying investments of a HOLDR may not be representative of the particular industry. If the number of underlying companies in the HOLDR drops below nine, it might be delisted from the AMEX, which may cause the investor to experience trading halts. International/Emerging Market Funds/Subs: The investor should note that funds/subs that invest in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying ing standards. Investing in emerging markets may accentuate these risks. Market Price Risk: The market price of ETFs and HOLDRs traded on the secondary market is subject to the forces of supply and demand and thus independent of the NAV. This can result in the market price trading at a or discount to the NAV which will affect an investor's value.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Market Risk: The market prices of ETFs and HOLDRs can fluctuate as to the result of several factors such as security-specific factors or general investor sentiment. Therefore, investors should be aware of the prospect of market fluctuations and the impact it may have on the market price. Mid-Cap Funds/subs: The investor should note that funds/subs that invest in companies with smaller market capitalizations involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies. Non-Diversified Funds/Subs: The investor should note that funds/subs that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments. Sector Funds/Subs: The investor should note that funds/subs that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks. Small-Cap Fund/Subs: The investor should note that funds/subs that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
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Custom Benchmark Disclosure Benchmark: Custom
Custom Benchmark: TobackFamily Morningstar Gbl Ex US GR USD BarCap US Agg Bond TR USD S&P 500 TR
Ticker FOUSA08NNM XIUSA000MC SPYZ
Security type IDX IDX IDX
USTREAS T-Bill Auction Ave 3 Mon Three-month T-bills are government-backed short-term investments considered to be risk-free and as good as cash because the maturity is only three months. Morningstar collects yields on the T-bill on a weekly basis from the Wall Street Journal. BarCap US Agg Bond TR USD This index is composed of the BarCap Government/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The returns we publish for the index are total returns, which include reinvestment of dividends. MSCI EAFE NR USD This Europe, Australasia, and Far East index is a market-capitalization-weighted index of 21 non-U.S., industrialized country indexes. Please note that although most asset allocation data produced by Morningstar for indexes are based on quantitative analysis of constituents, including the country of origin for each equity among the constituents, any asset allocation displayed for this index was qualitatively determined. S&P 500 TR A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. TR (Total Return) indexes include daily reinvestment of dividends.
©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent,and disclosure statement.
Allocation % 10.00 60.00 30.00