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U.S. Research at A Glance: Ratings Revisions
U.S. Research at A Glance: Ratings Revisions
U.S. Research at A Glance: Ratings Revisions
RESEARCH AT A GLANCE
JANUARY 13, 2010
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Ratings Revisions
! American Ecology Corporation Summary Challenges to Continue into 2010; Moving to Sector Perform
! United Parcel Service, Inc. Summary Preannounces Q4'09 Earnings; We Would Be Buyers Here
! EXFO Electro-Optical Summary FQ1/10 Results In-line; Strong Outlook For FQ2
! Methanex Corp. Summary Starting 2010 with Higher Methanol Prices; Target Increased to $31.00
! Biogen Idec Inc. Summary Tysabri Patient Growth Decelerated in Q4:09 but Sales Were In-line
! Corrections Corp. of America Summary Loses Part of Recompeted Bureau of Prisons Procurement
! Health Management Associates Summary Pre-Announces Slight Upside to 4Q09; FY10 Guidance In Line
Earnings Preview
! EMC Corporation Summary 4Q09 Earnings Preview
Company Comments
! Amgen Inc. Summary Takeaway Thoughts on Guidance and Dmab Timelines; No Changes to LT Thinking
! Apollo Group, Inc. Summary Reducing FY10 Estimates and Reiterating Underperform Rating
Industry Comments
! Ag Connect Expo Highlights Summary Cautious Optimism at Ag Connect Expo
! Bakken Shale Weekly: January Summary Progress Report on the North Dakota Bakken
! - Action-Oriented Research
Priced as of prior day's market close, EST (unless otherwise noted).
For Required Non-U.S. Analyst and Conflicts Disclosures, see Page 20.
12, 2010
! East Coast Banks 4Q09 Earnings Summary Will "Kitchen Sinks" Dominate the Headlines?
Outlook; "On the Cusp of Change"
! Global Clean Energy Directions Summary RBC's Daily Snapshot
! RBC Construction Contractor Summary Small Bump in Sentiment; Stimulus Expectations Waning
Survey, Vol. 2
! Real Estate Investment Trusts Summary Q1-2010 REIT Quarterly (Summary)
In-Depth Reports
! Global Mining Trends & Values Summary January 12, 2010
2
January 13, 2010 U.S. RESEARCH AT A GLANCE
Ratings Revisions
Jamie Sullivan, CFA (Analyst) American Ecology Corporation (NASDAQ: ECOL; 16.99)
(212) 428-6465; jamie.sullivan@rbccm.com
Michael Shlisky (Associate) Rating: Sector Perform (prev: Outperform)
(212) 428-6690; michael.shlisky@rbccm.com Risk Qualifier: Average Risk
Price Target: 18.00 ▼ 19.00
125 WEEKS 31AUG07 - 12JAN10
Challenges to Continue into 2010; Moving to Sector Perform
Rel. S&P 500 HI-10OCT08 192.95
180.00 LO/HI DIFF 95.55% • ECOL provided qualitative guidance for 2010, including a slow recovery in the
160.00
140.00
120.00
CLOSE 110.26
Base (i.e., recurring) business (~50% of '09 total), few Event clean-up projects,
100.00
2007 2008 2009
LO-19OCT07 98.67 and improvement in Army Corps business (specific, stimulus).
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-25JUL08 33.83
32.00
HI/LO DIFF -59.92% • Fewer Event projects in the pipeline to replace Honeywell project (~40% of '09
28.00 revenues) completed in 3Q09 will cause 2010 revenues to lag the recovery that
24.00
CLOSE 16.99
many industrials are expected to experience.
20.00
• Our Outperform thesis was predicated on potential upside from stimulus and
16.00
some event project work while the industrial recovery takes hold. As upside
LO-03APR09 13.56
2000
appears limited from these factors in 2010, we are lowering are our rating to
1500
1000
PEAK VOL. 2621.6 Sector Perform from Outperform.
VOLUME 88.2
500
• High ROIC (~20%), solid assets, strong balance sheet and dividend yield of
4% protect downside, but upside catalysts are few at this time.
Revenue (MM) Prev.
2008A 175.8
2009E 127.9
2010E 83.7↓ 109.9
2011E 94.7
All values in USD unless otherwise noted.
John Barnes (Analyst) Atlas Air Worldwide Holdings (NASDAQ: AAWW; 39.35)
(804) 782-4020; john.barnes@rbccm.com
Mike Fountaine (Associate) Rating: Outperform (prev: Sector Perform)
(804) 782-4013; mike.fountaine@rbccm.com Risk Qualifier: Above Average Risk
Todd Maiden (Associate) Price Target: 50.00 ▲ 28.00
(804) 782-4014; todd.maiden@rbccm.com All In On The Airfreight Sector
We are upgrading AAWW to Outperform from Sector Perform and raising our 12-month
125 WEEKS
Rel. S&P 500
31AUG07 - 12JAN10
HI-16MAY08 132.27
price target to $50 from$28 based on the following: (1) increased likelihood of favorable
100.00
HI/LO DIFF -72.80% ACMI contract renewals during 2010; (2) the potential for market share gains in the AMC
80.00
60.00
CLOSE 100.61
charter market on top of the benefit from the recently announced troop surge in
40.00
2007 2008 2009
LO-21NOV08 35.98 Afghanistan; and (3) elimination of the financing risks associated with the delivery of the
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-23MAY08 66.45 first 747-800s following the recent stock offering. Lastly, we believe further deals similar
HI/LO DIFF -86.47%
56.00
48.00
to the recently announced SonAir agreement are in the works, which could provide an
40.00 additional boost to earnings. We are also introducing 2011 and 2012 EPS estimates of
32.00
24.00
CLOSE 39.35 $3.81 and $5.38, respectively, which are well above Street expectations. As these events
16.00
unfold over the coming months, we believe AAWW shares will materially outperform its
peer group.
LO-21NOV08 8.99
7500
6000
4500 PEAK VOL. 8963.8
3000 VOLUME 402.2
1500
3
January 13, 2010 U.S. RESEARCH AT A GLANCE
John Barnes (Analyst) United Parcel Service, Inc. (NYSE: UPS; 62.40)
(804) 782-4020; john.barnes@rbccm.com
Mike Fountaine (Associate) Rating: Outperform (prev: Sector Perform)
(804) 782-4013; mike.fountaine@rbccm.com Risk Qualifier: Average Risk
Todd Maiden (Associate) Price Target: 72.00 ▲ 60.00
(804) 782-4014; todd.maiden@rbccm.com Preannounces Q4'09 Earnings; We Would Be Buyers Here
• UPS announced that it expects 4Q'09 earnings to be in the range of
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-05DEC08 128.26 $0.73-$0.75/sh, better than our estimate and the consensus of $0.63. The upside
LO/HI DIFF 41.09%
120.00
110.00 CLOSE 106.71
to prior guidance is due to strength throughout the network, both domestic and
100.00 international, as well as the result of various cost-savings measures previously
LO-11JUL08 90.91
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J implemented. UPS also announced that it plans to further streamline its
HI-05OCT07 78.60
78.00
72.00
HI/LO DIFF -51.67% operations and reduce ~1,800 positions, and another ~1,100 employees will be
66.00 offered a voluntary separation package. We believe that the stock will continue
60.00
54.00
CLOSE 62.40
to benefit from any positive commentary surrounding the airfreight space.
48.00
Additionally, we believe that UPS has some built-in downside earnings
42.00
protection given that it still has a material amount of cost it can remove from
LO-13MAR09 37.99 its network. With that said, we are raising our rating to Outperform, Average
40000
PEAK VOL. 58105.0
Risk and increasing our 12-month price target to $72 from $60.
20000 VOLUME 19389.4
4
January 13, 2010 U.S. RESEARCH AT A GLANCE
Robert Breza (Analyst) Check Point Software (NASDAQ: CHKP; 33.75)
(612) 313-1207; robert.breza@rbccm.com
Matthew Hedberg (Associate) Rating: Outperform
(612) 313-1293; matthew.hedberg@rbccm.com Risk Qualifier: Speculative Risk
Dan Bergstrom (Associate) Price Target: 40.00 ▲ 35.00
(612) 313-1254; dan.bergstrom@rbccm.com Increasing Estimates and Introducing 2011
• Our industry analysis compiled from conversations with C-level executives and
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-06MAR09 193.44 channel contacts indicate a fairly robust spending environment as the
180.00 LO/HI DIFF 111.49%
150.00
CLOSE 186.63
confidence to spend on IT appears to have returned. We believe most
120.00 companies in our universe are executing towards the higher end of their
LO-14DEC07 91.47
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J guidance range with a positive, yet conservative outlook expected for the
HI-01JAN10 34.57
34.00
32.00
LO/HI DIFF 105.77% 1H'2010, and aided by easier year-over-year comparisons. Based on our
30.00
28.00
checks, we expect Q4'09 revenue/EPS for Check Point near the high end of
26.00
24.00
CLOSE 33.75
guidance or $260.0M$0.58, vs. consensus of $257.6M/$0.57 and guidance of
22.00 $245M-$268M/$0.53-$0.60, driven by strong year-end renewals, a Nokia
20.00
18.00
product refresh /conversion cycle and better close rates.
LO-17OCT08 16.80
20000 • We believe the pipeline is building for the March quarter and expect
15000
10000 PEAK VOL. 22298.5
VOLUME 4127.4
management to offer a positive, yet conservative outlook. As such, we are
5000
increasing our 2010 revenue/EPS estimates to $1,016.5B/$2.26 vs. consensus
of $1,011.1M/$2.24 and are introducing 2011 revenue/EPS of
EPS (Op) Prev. P/E $1,099.5M/$2.49 vs. consensus of $1,083.9M/$2.48.
2008A 1.78 19.0x
2009E 2.02↑ 2.01 16.7x
2010E 2.26↑ 2.21 14.9x
2011E 2.49 13.6x
All values in USD unless otherwise noted.
Steve Arthur, CFA (Analyst) EXFO Electro-Optical (NASDAQ: EXFO; 4.58; TSX: EXF)
(416) 842-7844; steve.arthur@rbccm.com
Albert Maierovits (Associate) Rating: Outperform
(416) 842-5338; albert.maierovits@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 6.25 ▲ 4.50
125 WEEKS 31AUG07 - 12JAN10
FQ1/10 Results In-line; Strong Outlook For FQ2
Rel. S&P 500 HI-29MAY09 113.89
105.00 LO/HI DIFF 114.17% • FQ1/10 Results In-line With Pre-Announcement: EXFO reported sales of
90.00
75.00
CLOSE 89.21
$45.6MM, in-line with their positive pre-announcement on November 30th.
60.00
2007 2008 2009
LO-17OCT08 53.18 GM was 63.9% for the quarter (vs. our 60% expectation). Adj. EPS was $0.03
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
7.00
HI-21SEP07 7.36
HI/LO DIFF -72.96%
- inline with EXFO's pre-announcement.
6.00
• Forecast Revisions - Significant Increases On Higher Revenue and GM
5.00
5
January 13, 2010 U.S. RESEARCH AT A GLANCE
Amit Daryanani, CFA (Analyst) Isilon Systems, Inc. (NASDAQ: ISLN; 6.90)
(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Outperform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Speculative Risk
Ryan Jones (Associate) Price Target: 10.00 ▲ 9.00
(415) 633-8533; ryan.jones@rbccm.com 4Q09 Earnings Preview
• What's New? We increased our estimates for 4Q09 and beyond, as we believe
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-07SEP07 100.30 Isilon realized strong 4Q09 order patterns through year-end, and the pricing
90.00 HI/LO DIFF -61.83%
75.00
CLOSE 89.07
environment for enterprise storage systems, while still aggressive, remained at
60.00
45.00
minimum consistent with 3Q09. On a 12-month basis, we increased our price
LO-17APR09 38.29
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J target to $10 (was $9) and maintained our Outperform, Speculative Risk rating.
HI-07SEP07 10.65
10.00 HI/LO DIFF -82.54% Even with the recent share price increase, Isilon still trades at discounts of
8.00
~30% and ~5% on an enterprise value-to-CY10 revenue basis versus
6.00
CLOSE 6.90
Compellent and 3PAR. We expect the Compellent-related discrepancy to
4.00
diminish over the near term, as we expect Isilon to report breakeven
non-GAAP EPS in 4Q09 that should reduce some of the going-concern risk.
2.00 LO-13MAR09 1.86
6000 • Sentiment. Currently, Isilon trades at ~2.7x our new, higher FTM revenue
4500
3000 PEAK VOL. 6907.5
VOLUME 290.2
estimate, suggesting negative execution sentiment.
1500
6
January 13, 2010 U.S. RESEARCH AT A GLANCE
Fai Lee, CGA, CFA (Analyst) Methanex Corp. (NASDAQ: MEOH; 22.92; TSX: MX)
(604) 257-7662; fai.lee@rbccm.com
Owen Martin (Associate) Rating: Outperform
(604) 257-7145; owen.martin@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 31.00 ▲ 23.00
125 WEEKS 31AUG07 - 12JAN10
Starting 2010 with Higher Methanol Prices; Target Increased to $31.00
Rel. S&P 500 HI-20JUN08 151.97
150.00
120.00
HI/LO DIFF -69.64% • Target Price Increased from $23.00 to $31.00. The increase to our target
90.00 CLOSE 131.86
price reflects an upward revision to our methanol pricing assumptions.
60.00
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
LO-06FEB09 46.13
• Upward Revision to Methanol Price Forecast. Consistent with the new
HI-20JUN08 33.20
30.00 HI/LO DIFF -82.80% European contract price, we increased our Q1/10 methanol price assumption
25.00
20.00
from $288/tonne to $340/tonne. For the remainder of our forecast period, we
15.00 CLOSE 22.92
increased our methanol price assumption from $260/tonne to $300/tonne.
10.00 • EPS Estimates Increased. We increased our 2010 and 2011 EPS estimates
from $1.32 and $2.68, respectively, to $2.09 and $3.38. The changes reflect the
LO-06MAR09 5.71
4500
upward revision to our methanol pricing assumptions, partially offset by a
3000 PEAK VOL. 5512.5 more conservative ramp-up of production in Chile. We have assumed an
VOLUME 1046.9
1500
overall operating rate of 40% for Chile by 2011 (previously 50%). In addition,
we decreased our Q4/09 EPS estimate by $0.03 as the start-up of the second
EPS (Op) Prev. P/E production unit was slightly later than our forecast.
2008A 1.48 15.5x
2009E 0.07↓ 0.10 NM
2010E 2.09↑ 1.32 11.0x
2011E 3.38↑ 2.68 6.8x
All values in USD unless otherwise noted.
105.00
non-GAAP EPS estimate increases from $2.06 to $2.14, which could be
LO-05OCT07 93.88
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J conservative.
HI-15AUG08 53.71
HI/LO DIFF -49.71%
50.00
45.00
• We had expected increasing growth for Tarceva, but the magnitude of the
40.00
CLOSE 33.61
growth (10% sequentially) was a surprise and remains relatively unexplained.
35.00 We have therefore been conservative in our new 2010 forecasts pending more
30.00
details from Roche on February 3. If the Q4 sales figures represent a true run
14000
LO-03JUL09 27.01 rate for 2010, then our forecasts would need to be increased.
10000
PEAK VOL. 14866.1
6000 VOLUME 2266.8 • We believe the risk benefit is favorable for OSIP going into its January 18th
2000
PDUFA date for the first-line maintenance indication. Expectations are very
low following the 12-1 negative ODAC vote, and a surprise positive FDA
EPS (Op) Prev. P/E
2009E 1.71↑ 1.65 19.7x
decision could take shares up 10%, in our view.
2010E 2.14↑ 2.06 15.7x
2011E 2.14↑ 2.00 15.7x
All values in USD unless otherwise noted.
7
January 13, 2010 U.S. RESEARCH AT A GLANCE
Amit Daryanani, CFA (Analyst) QLogic Corporation (NASDAQ: QLGC; 20.66)
(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Outperform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Above Average Risk
Ryan Jones (Associate) Price Target: 25.00 ▲ 23.00
(415) 633-8533; ryan.jones@rbccm.com Raising The Bar Again
• What's New? Citing particular strength in the Host Products division, QLogic
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-15JAN10 201.52 pre-announced positive results versus our recently increased estimates and
LO/HI DIFF 117.93%
180.00
150.00
CLOSE 201.52
Street expectations. QLogic expects revenue of $147.0-$149.0 million and
120.00 non-GAAP EPS of $0.29-$0.30 (Street: $138.3 million and $0.24). On a
LO-21SEP07 92.47
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J 12-month basis, we increased our price target to $25 (was $23) and maintained
HI-15JAN10 21.28
20.00
LO/HI DIFF 144.88% our Outperform, Above Average Risk rating. We continue to believe QLogic
18.00
16.00
has a multitude of tailwinds working in its favor (easier year-over-year
14.00 CLOSE 20.66
comparables for HBA and switch businesses, continued Intel's Nehalem server
12.00 refresh cycle, volume leverage on margins, and broad portfolio targeted at
10.00 unified fabrics).
LO-21NOV08 8.69
30000
20000
• Sentiment. Currently, the stock trades at ~18x our FTM non-GAAP EPS
PEAK VOL. 34577.9
10000 VOLUME 8496.9 estimate, suggesting neutral execution, which is in line with the average level
across our coverage list. We believe a positive bias is warranted given the
EPS (Op) Prev. P/E
catalysts that QLogic has working in its favor over the next several quarters.
2008A 0.99 20.9x
2009A 1.20 17.2x
2010E 0.96↑ 0.89 21.5x
2011E 1.18↑ 1.10 17.5x
All values in USD unless otherwise noted.
8
January 13, 2010 U.S. RESEARCH AT A GLANCE
Daniel R. Perlin, CFA (Analyst) VeriFone Holdings, Inc. (NYSE: PAY; 17.28)
(410) 625-6130; daniel.perlin@rbccm.com
Matthew V. Roswell, CFA (Associate) Rating: Sector Perform
(410) 625-6131; matt.roswell@rbccm.com Risk Qualifier: Speculative Risk
Price Target: 19.00 ▲ 17.00
125 WEEKS 31AUG07 - 12JAN10
Thoughts from Management Meetings
Rel. S&P 500 HI-30NOV07 129.32
90.00
HI/LO DIFF -87.68% We recently hosted meetings with Robert Dykes, SVP and CFO and William Nettles, VP
60.00
CLOSE 60.65 of IR and came away believing new growth initiatives, albeit small today, could become
30.00
LO-05DEC08 15.93
more meaningful as we exit 2010 and into 2011. Key growth opportunities include 1)
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-02NOV07 50.00
payment enabled media, 2) end-to-end encryption (VeriShield Protect), and 3) expansion
42.00 HI/LO DIFF -95.38%
into Level V merchants through PAYware Mobile.
30.00
24.00
18.00
12.00 CLOSE 17.28
6.00
LO-21NOV08 2.31
100000
80000
60000 PEAK VOL.114270.2
40000 VOLUME 2192.0
20000
9
January 13, 2010 U.S. RESEARCH AT A GLANCE
First Glance Notes
Stephen Ju (Analyst) Baidu, Inc. (NASDAQ: BIDU; 386.49)
(212) 428-2365; stephen.ju@rbccm.com
David Bank (Analyst) Rating: Outperform
(212) 858-7333; david.bank@rbccm.com Risk Qualifier: Speculative Risk
Ross Sandler (Analyst) One Search Platform To Rule The Middle Kingdom?
(212) 428-6227; ross.sandler@rbccm.com
Sun-Il (Sean) Kim (Associate)
Google issued a blog post suggesting it may have to re-evaluate its operations in China as
(212) 428-2363; sean.kim@rbccm.com it approaches the government with a bid to unfilter search results on Google.cn. We
Ryan Vineyard (Associate) remind investors that media in China is State-controlled and the government has next to
(212) 428-6489; ryan.vineyard@rbccm.com no incentive to accede to Google's wishes. Hence, in our view the most likely conclusion
Whitney Goldstein (Associate) is that if Google were to insist on the ability to unfilter search results, it may eventually be
(212) 428-6412; whitney.goldstein@rbccm.com banned in China. The financial implications for Google are minimal, as we believe
revenue from China accounts for around 1% of total. The implications for BIDU are more
125 WEEKS 31AUG07 - 12JAN10 profound should Google withdraw from the Chinese market: 1) opportunity for BIDU to
270.00
Rel. S&P 500 HI-23OCT09 285.46
LO/HI DIFF 223.78% pick up Google's wallet share; 2) increased urgency among advertisers in the Phoenix Nest
225.00
180.00 CLOSE 240.82 transition; 3) increased urgency among larger portals to invest in search; and 4) improved
135.00
LO-05DEC08 88.17
investor sentiment.
90.00
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-27NOV09 443.25
440.00 LO/HI DIFF 341.04%
360.00
320.00
280.00
240.00
CLOSE 386.49
200.00
160.00
120.00
LO-12DEC08 100.50
40000
PEAK VOL. 53370.0
20000 VOLUME 4206.3
Jason Kantor, PhD (Analyst) Biogen Idec Inc. (NASDAQ: BIIB; 53.25)
(415) 633-8565; jason.kantor@rbccm.com
Michael Yee (Analyst) Rating: Sector Perform
(415) 633-8522; michael.yee@rbccm.com Risk Qualifier: Above Average Risk
Adnan Butt (Associate) Tysabri Patient Growth Decelerated in Q4:09 but Sales Were In-line
(415) 633-8588; adnan.butt@rbccm.com
• Biogen preannounced year-end 2009 Tysabri patient numbers totaling 48,200
125 WEEKS 31AUG07 - 12JAN10
(commercial), which were below our forecast of 48,750. This is the second
150.00
Rel. S&P 500 HI-20FEB09 152.30
LO/HI DIFF 71.31%
quarter of sequential declines in net new patients after a big jump in Q2:09.
135.00
120.00 CLOSE 108.24 • Reported worldwide Tysabri sales were $297.8M, in line with our Q4 forecast
105.00
90.00 LO-08AUG08 88.90 of $298.3M. US sales of $136.5M were $2.4M below our estimate; ex-US sales
2007 2008 2009
84.00
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-19OCT07 84.75 of $161.3M were $1.9M higher than forecast (likely helped by Fx)
HI/LO DIFF -56.09%
78.00
72.00 • Another metric we watch closely is revenue per patient which had improved
66.00
60.00
over the past few quarters after declining. Revenue per patient was flat over
CLOSE 53.25
54.00 Q3:09.
48.00
42.00
LO-21NOV08 37.21
40000
PEAK VOL. 63742.5
20000 VOLUME 5055.1
10
January 13, 2010 U.S. RESEARCH AT A GLANCE
Jamie Sullivan, CFA (Analyst) Cornell Companies, Inc. (NYSE: CRN; 22.96)
(212) 428-6465; jamie.sullivan@rbccm.com
Michael Shlisky (Associate) Rating: Sector Perform
(212) 428-6690; michael.shlisky@rbccm.com Risk Qualifier: Above Average Risk
Announces Bureau of Prisons Contract Award
125 WEEKS 31AUG07 - 12JAN10 • After the close on Tuesday, CRN won a recompeted CXW contract from BOP
160.00 Rel. S&P 500 HI-28NOV08 161.12
140.00
LO/HI DIFF 95.51%
for 2,180 beds (potentially 2,507). The inmates will be housed in CRN's D.
120.00 CLOSE 123.64
100.00
Ray James facility in Georgia.
LO-07MAR08 82.41
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J • Our view is that per-diems were likely lower in Georgia ($54-$64) than at one
HI-19SEP08 28.45
28.00
26.00
HI/LO DIFF -52.83% of the existing CXW faclities in California.
24.00
22.00
• This is positive for CRN, in our view, as the 700 incremental inmates (net of
20.00 CLOSE 22.96 State of Georgia transfers out of the facility) could add an annualized
18.00
16.00
$0.10-$0.15 of EPS.
14.00
LO-13MAR09 13.42
900
600 PEAK VOL. 1225.0
VOLUME 73.5
300
Jamie Sullivan, CFA (Analyst) Corrections Corp. of America (NYSE: CXW; 23.88)
(212) 428-6465; jamie.sullivan@rbccm.com
Michael Shlisky (Associate) Rating: Outperform
(212) 428-6690; michael.shlisky@rbccm.com Risk Qualifier: Average Risk
Loses Part of Recompeted Bureau of Prisons Procurement
125 WEEKS 31AUG07 - 12JAN10 • After the close on Tuesday, CRN won a recompeted CXW contract from BOP
Rel. S&P 500 HI-06NOV09 138.65
135.00
120.00
LO/HI DIFF 84.79%
for 2,180 beds (potentially 2,507). Expectations were that CXW would retain
105.00 CLOSE 120.73
90.00
the contract.
LO-13FEB09 75.03
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J • The inmates involved could come from CXW's California City facility in CA
HI-14DEC07 31.58
28.00
HI/LO DIFF -69.92% (2,304 design capacity), although this is not yet confirmed.
24.00
• Our view would be that per-diems were likely lower in Georgia ($54-$64) than
20.00
16.00
CLOSE 23.88 in the higher-cost region of California.
12.00
• Financial impact (est. $0.07-$0.09 to 2011) is somewhat minor for CXW,
LO-06MAR09 9.50 though it increases available inventory.
25000
20000
15000
• That said, the California City facility may be attractive to the State of
PEAK VOL. 26916.5
10000
5000
VOLUME 1572.0
California in 2011 as the State continues to try to alleviate prison
overcrowding.
All values in USD unless otherwise noted.
Frank G. Morgan, CFA (Analyst) Health Management Associates (NYSE: HMA; 7.51)
(615) 372-1331; frank.morgan@rbccm.com
Anton Hie (Associate) Rating: Sector Perform
(615) 372-1321; anton.hie@rbccm.com Risk Qualifier: Speculative Risk
Pre-Announces Slight Upside to 4Q09; FY10 Guidance In Line
125 WEEKS 31AUG07 - 12JAN10 • HMA previewed 4Q09 and FY09 results that were slightly better than expected
Rel. S&P 500 HI-09OCT09 170.29
160.00
120.00
LO/HI DIFF 499.45%
and issued initial FY10 guidance that was essentially in-line.
80.00 CLOSE 143.06
40.00
• We view this announcement as a positive data point for hospitals going into the
LO-21NOV08 28.41
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-16OCT09 8.58
4Q09 earnings season.
8.00 LO/HI DIFF 986.08%
6.00
4.00
CLOSE 7.51
2.00
LO-28NOV08 0.79
40000
11
January 13, 2010 U.S. RESEARCH AT A GLANCE
Edward Aaron, CFA (Analyst) Kraft Foods Inc. (NYSE: KFT; 29.29)
(303) 595-1127; edward.aaron@rbccm.com
Rating: Sector Perform
Risk Qualifier: Average Risk
125 WEEKS 31AUG07 - 12JAN10
150.00
Rel. S&P 500 HI-23JAN09 158.44
LO/HI DIFF 63.45%
Kraft Raises FY09 EPS Guidance
135.00
120.00
CLOSE 118.52 After the close tonight, Kraft (KFT) raised FY09 guidance to "at least $2.00" compared to
105.00
LO-01FEB08 96.93
prior guidance of "at least $1.97." We view the news as mostly a non-event in the larger
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-07DEC07 35.29
scope of the pending Kraft/Cadbury merger.
HI/LO DIFF -41.03%
34.00
32.00
30.00
28.00 CLOSE 29.29
26.00
24.00
22.00
LO-06MAR09 20.81
300000
200000
PEAK VOL.329193.9
100000 VOLUME 31366.7
Earnings Preview
Amit Daryanani, CFA (Analyst) EMC Corporation (NYSE: EMC; 17.47)
(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Sector Perform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Average Risk
Ryan Jones (Associate) Price Target: 21.00
(415) 633-8533; ryan.jones@rbccm.com 4Q09 Earnings Preview
• What's New? We increased our revenue and non-GAAP EPS estimates for
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-09OCT09 127.00 4Q09 and beyond, as we believe EMC realized strong 4Q09 order patterns
120.00 LO/HI DIFF 69.89%
105.00
CLOSE 115.28
through year end, and the pricing environment for enterprise storage systems,
90.00 while still aggressive, remained at minimum consistent with 3Q09. On a
LO-18JUL08 74.76
75.00
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J 12-month basis, we maintained our $21 price target, Sector Perform rating, and
HI-02NOV07 25.47
24.00 HI/LO DIFF -67.61% Average risk assessment. On a relative basis, we prefer NetApp and HP as our
22.00
20.00
18.00
mid and large cap investment vehicles in the current recovery cycle of IT
16.00
CLOSE 17.47
spending.
14.00
12.00 • Sentiment. EMC trades at ~16x our assessment of the Street consensus FTM
10.00
non-GAAP EPS estimate, suggesting negative execution sentiment which is
LO-21NOV08 8.25
300000 below the current neutral sentiment level across our coverage list. We believe
200000 PEAK VOL.371118.8
VOLUME 44181.0
EMC's sentiment level is likely warranted given VMware's high valuation and
100000
the difficulty for EMC to provide FY10 guidance that meets some investors'
extended expectations.
EPS (Op) Prev. P/E
2007A 0.91 19.2x
2008A 1.03 17.0x
2009E 0.88↑ 0.87 19.9x
2010E 1.10↑ 1.05 15.9x
All values in USD unless otherwise noted.
12
January 13, 2010 U.S. RESEARCH AT A GLANCE
Company Comments
Michael Yee (Analyst) Amgen Inc. (NASDAQ: AMGN; 56.03)
(415) 633-8522; michael.yee@rbccm.com
Jason Kantor, PhD (Analyst) Rating: Outperform
(415) 633-8565; jason.kantor@rbccm.com Risk Qualifier: Average Risk
Adnan Butt (Associate) Price Target: 72.00
(415) 633-8588; adnan.butt@rbccm.com Takeaway Thoughts on Guidance and Dmab Timelines; No Changes to LT Thinking
• FY09 will come in "close to the low end" of EPS guidance of $4.90-5.05 partly
125 WEEKS 31AUG07 - 12JAN10
210.00
Rel. S&P 500 HI-20FEB09 216.55 due to the ARRY deal. Revenues will be "just above the midpoint" of guidance
LO/HI DIFF 149.66%
175.00
CLOSE 145.05
of $14.4-14.8B. We adjusted our FY EPS to $4.93.
140.00
105.00
LO-16MAY08 86.74
• Prolia re-filing hasn't occurred yet. This is not completely surprising to us and
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-19SEP08 66.51
is partly due to the fact that the final post-marketing surveillance
LO/HI DIFF 69.84%
65.00
recommendations by FDA did not get to AMGN until mid-December. We
60.00
55.00
hypothesize it is possible that management is waiting on the prostate SRE data
50.00
CLOSE 56.03 expected to come very soon in Q1 — to include this, too, as part of the
45.00
resubmission so that FDA has all three SRE studies in hand as part of the
40.00
requested "safety update."
LO-21MAR08 39.16
100000 • Fundamentals still intact. We believe an important catalyst is the prevention of
80000
60000
40000
PEAK VOL.131237.7
VOLUME 15312.0 bone mets, not in Street estimates. This study is a wild-card but provides good
20000
risk/reward, in our view.
Revenue (MM)
2008A 15,003.0
2009E 14,612.0
2010E 14,941.5
2011E 15,832.7
All values in USD unless otherwise noted.
Robert C. Wetenhall, Jr. (Analyst) Apollo Group, Inc. (NASDAQ: APOL; 59.65)
(212) 618-3251; robert.wetenhall@rbccm.com
Rating: Underperform
Risk Qualifier: Average Risk
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-16JAN09 263.67
Price Target: 66.00
225.00 LO/HI DIFF 234.95%
180.00
CLOSE 131.90
Reducing FY10 Estimates and Reiterating Underperform Rating
135.00
13
January 13, 2010 U.S. RESEARCH AT A GLANCE
Mark Sue (Analyst) LM Ericsson Telephone Company (NASDAQ: ERIC; 9.67)
(212) 428-6491; mark.sue@rbccm.com
Joseph Longobardi (Associate) Rating: Sector Perform
(212) 618-3330; joseph.longobardi@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 12.00
125 WEEKS 31AUG07 - 12JAN10
Digesting Canadian Bacon
Rel. S&P 500 HI-05OCT07 105.11
105.00
90.00
HI/LO DIFF -49.03% • Ericsson's 4Q09 may benefit from year-end seasonality and a contribution
75.00 CLOSE 67.43
from the Sprint managed services. Nortel's CDMA/LTE assets may
60.00
2007 2008 2009
LO-21MAR08 53.57 contribute approximately half of a quarter as well. Overall, our view is that
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
20.00
HI-12OCT07 20.98
HI/LO DIFF -73.83%
wireless infrastructure is a late-stage recovery segment and we remain neutral
18.00
16.00
on the shares as the outlook in developed regions remains limited and we
14.00
12.00
believe new 3G wins in India may come at major price concessions. The new
CLOSE 9.67
10.00 year may bring top-line improvements at ST Ericsson and Sony Ericsson, yet
8.00 the near-term metrics may be more bottom-line centric as both companies work
6.00
LO-21NOV08 5.49 to reduce their operating loss.
120000
100000
80000
60000
PEAK VOL.140641.1
40000 VOLUME 8626.5
20000
14
January 13, 2010 U.S. RESEARCH AT A GLANCE
Jonathan Atkin (Analyst) Verizon Communications (NYSE: VZ; 31.88)
(415) 633-8589; jonathan.atkin@rbccm.com
Jonathan Allen, CFA (Analyst) Rating: Outperform
(416) 842-3806; jonathan.allen@rbccm.com Risk Qualifier: Above Average Risk
Brian Hyun (Associate) Price Target: 33.00
(415) 633-8581; brian.hyun@rbccm.com Fine-Tuning Estimates
David Coleman (Analyst)
(415) 633-8579; david.g.coleman@rbccm.com
• Updating estimates to reflect margin impacts on EPS and wireline and Alltel
trust divesture impact on 2010 EPS.
125 WEEKS 31AUG07 - 12JAN10
140.00 Rel. S&P 500 HI-06MAR09 141.13
LO/HI DIFF 54.04%
130.00
120.00
CLOSE 99.29
110.00
100.00
LO-18APR08 91.62
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-12OCT07 46.03
45.00 HI/LO DIFF -49.88%
40.00
35.00
CLOSE 31.91
30.00
25.00
LO-10OCT08 23.07
150000
100000
PEAK VOL.173608.5
50000 VOLUME 34121.1
Industry Comments
Seth Weber (Analyst) Ag Connect Expo Highlights
(212) 618-7545; seth.weber@rbccm.com
Cautious Optimism at Ag Connect Expo
Vlad Bystricky (Associate)
(212) 618-3280; vlad.bystricky@rbccm.com • We attended the inaugural AG Connect Expo in Orlando, FL on Jan 12
(event ongoing), which included meetings with representatives from AGCO,
All values in USD unless otherwise noted.
Deere, CNH and other industry participants.
• We would characterize the tone of most of our discussions as cautiously
optimistic, which is consistent with good recent equipment sales reports out of
N. America and Brazil (we believe Europe remains relatively weaker),
including some positive commentary regarding order trends for some larger N.
American equipment. Favorable crop fundamentals, lower farmer input costs, a
somewhat better/less bad dairy/livestock environment, and the extension of
Brazil financing programs were all cited as positive factors.
• It remains to be seen whether fallout from the surprising January 12
WASD report tempers farmer sentiment going forward, as significantly
stronger-than-expected corn production and yield projections contributed to
broad weakness in key crop prices.
Scott Hanold, CPA (Analyst) Bakken Shale Weekly: January 12, 2010
(512) 708-6354; scott.hanold@rbccm.com
Progress Report on the North Dakota Bakken
Chad Potter, CFA (Associate)
(512) 708-6349; chad.potter@rbccm.com • Completion Activity. Results from 12 Bakken wells were released from
confidential status with the state with reported IPs averaging 677 boe/d. No
All values in USD unless otherwise noted.
new Three Forks-Sanish (TFS) well results were released this week.
• CLR reported five TFS well IPs that averaged 1,260 boe/d and one Bakken test
rate of 694 boe/d.
• NFX reported a Bakken IP of 1,300 boe/d.
• Early 4Q09 Bakken IP rates are up 90% sequentially and up 96%
year-over-year. 4Q09 TFS well IP rates are up 30% sequentially and up 82%
15
January 13, 2010 U.S. RESEARCH AT A GLANCE
year-over-year.
• Permit Activity. The NDIC issued 15 permits for wells located in the greater
Mountrail County area and 14 wells outside the area.
• Rig Activity. The North Dakota rig count increased by 3 to 78 rigs.
Gerard Cassidy (Analyst) East Coast Banks 4Q09 Earnings Outlook; "On the Cusp of
(207) 780-1554; gerard.cassidy@rbccm.com Change"
Jake Civiello (Associate)
Will "Kitchen Sinks" Dominate the Headlines?
(207) 780-1554; jake.civiello@rbccm.com
We anticipate the commercial banks in our universe will report net interest margin (NIM)
expansion due to a steeper yield curve, widening asset/liability spreads and less
All values in USD unless otherwise noted.
competition from the shadow banking system.
In our view, "Kitchen Sink" strategies will drive net charge-offs to elevated levels that will
necessitate higher levels of loan loss provisions, which will lead some banks in our
coverage universe to report losses and others to report lower than normal profitability.
Partially offsetting positive margin implications will likely be the continued rise in
nonperforming assets leading to the reversal of interest accruals.
The rate of growth in NPAs will be the Achilles' heel for 4Q09 results, in our view. We
would not be surprised if some banks announce that NPAs have peaked in the quarter.
16
January 13, 2010 U.S. RESEARCH AT A GLANCE
All values in CAD unless otherwise noted. • Fundamentals: Looking Over The Valley - Encapsulating the 2010 outlook
for each major property sector in a "sound bite": office - deteriorating; retail -
stable/soft; industrial - soft; multi-res - stable; and lodging - improving, yet at a
potentially disappointing rate versus the severe downturn of 2009.
• Canada Performs Admirably - The S&P/TSX Capped REIT Index generated
a 2009 total return of +55%, widely outpacing the TSX Index (+35%), U.S.
REITs (+29%), Global REITs (+38%) and 10-year Canada's (-4%).
• Valuation: Multiples Climb Through The Average; Yield Spreads Still
Modestly Favourable To History - In short, we believe the sector is now a
"yield play". The 7.3% AFFO yield is now 80bps below the long-term average.
17
January 13, 2010 U.S. RESEARCH AT A GLANCE
In-Depth Reports
H. Fraser Phillips (Analyst) Global Mining Trends & Values
(416) 842-7859; fraser.phillips@rbccm.com
January 12, 2010
Adam Schatzker (Analyst)
(416) 842-7850; adam.schatzker@rbccm.com Commodity Price Performance:
Metal prices were mixed last week, on average up 2.4%. Silver was the best performer up
Robin Kozar (Analyst) 9.5%, followed by lead up 5.4%, gold up 3.7%, aluminium up 2.4%, copper up 1.4%, and
(416) 842-7861; robin.kozar@rbccm.com uranium flat 0.0%. Nickel was the worst performer down 1.9%, followed by zinc down
Lasan Johong (Analyst) 1.6%.
(212) 428-6462; lasan.johong@rbccm.com
Mining Share Price Performance:
Geoff Breen (Analyst) Mining shares were up on average 11.0%. The best performing group was molybdenum
(+61) 2 9033-3022; geoff.breen@rbccm.com up 30.0%, followed by zinc up 25.9%, iron ore up 13.7%, copper up 11.7%, mineral sands
Chris Drew, CFA (Analyst) up 9.6%, coal up 9.4%, the diversified group up 8.2%, uranium up 7.5%, nickel up 6.8%,
+61 2 9033 3060; chris.drew@rbccm.com and aluminium up 5.6%.
David Haddad (Analyst) Valuation:
(+61) 2 9033-3071; david.haddad@rbccm.com Mining shares are now trading at a 4.9% premium to NAV at forward curve prices, versus
a 15.2% premium one week ago.
Cailey Barker (Analyst)
(+44) 207 653-4603; cailey.barker@rbccm.com Long/Short Metal Positions:
Leon Esterhuizen (Analyst) RBC CM's proprietary data for the LME shows that the net long positions in copper,
(+44) 207 653-4154; leon.esterhuizen@rbccm.com aluminium, zinc, nickel, and lead all increased last week.
Des Kilalea (Analyst) Exchange Inventories:
(+44) 207 653-4538; des.kilalea@rbccm.com Total exchange inventories of aluminium decreased last week, while total inventories of
copper, nickel, and zinc increased last week.
Patrick Morton (Analyst)
(+44) 207 002-2111; patrick.morton@rbccm.com
18
January 13, 2010 U.S. RESEARCH AT A GLANCE
UPCOMING EVENTS
Jan 13-Jan 19, 2010
MARKETING / CONFERENCES / EVENTS
Wednesday Thursday Friday Monday Tuesday
January 13 January 14 January 15 January 18 January 19
New York/Mid-Atlantic
■ Dan Perlin ■ Dan Perlin ■ Seth Weber ■ Canadian Energy
■ Pembina Pipeline ■ Mahesh Sanganeria Services
Income Fund ■ Daniel Meron
■ Mahesh Sanganeria
■ CEVA Inc.
■ Novellus Systems,
Inc.
Boston
■ Seth Weber ■ Gluskin Sheff &
Associates
Mid-West
■ Ed Aaron
West Coast
■ Jon Atkin/Dave
Coleman
South East
■ Mark Dwelle ■ Mark Dwelle ■ Mark Dwelle
Toronto/Montreal
■ New Year Preview ■ RBC Canadian Bank ■ New Year Preview ■ New Year Preview
2010 CEO Conference 2010 2010
■ Canadian Bank CEO ■ New Year Preview ■ Mike Harvey & ■ Fai Lee
Pre Conference Dinner 2010 Fergal Kelly
■ Mike Harvey & ■ Mike Harvey & ■ Glenn Novarro
Fergal Kelly Fergal Kelly ■ Jason Kantor
■ Robert Sluymer ■ Glenn Novarro ■ Stuart Bush
■ Jason Gere ■ Scot Circcarelli ■ Robert Kwan
■ Pembina Pipeline ■ Robert Sluymer ■ Al Stanton
Income Fund ■ Amit Daryanani ■ Irene Nattel
■ Robert Breza ■ Jason Gere ■ Brian Jackson
■ Lasan Johong ■ Robert Breza ■ Premier Gold Mines
■ Goldminex ■ Irene Nattel ■ Fraser Phillips
Resources Ltd ■ Premier Gold Mines ■ Stephen Walker
■ Greg Pardy ■ Michael Curran
■ Al Stanton ■ Adam Schatzker
■ Scott Hanold
■ Robert Kwan
■ Kurt Hallead
Europe/Asia
■ REITS ■ REITS
■ UIC ■ UIC
■ Uranium Investment ■ Uranium Investment
Corp Corp
■ Extract
Please contact your Sales Representative for additional information on the events listed above.
19
January 13, 2010 U.S. RESEARCH AT A GLANCE
Required Disclosures
Non-U.S. Analyst Disclosure
Albert Maierovits (i) is not registered/qualified as a research analyst with the NYSE and/or FINRA and (ii) may not be associated
persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule 472
restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Geoff Breen, Adam Schatzker, David Haddad, Des Kilalea, Cailey Barker, Leon Esterhuizen, and Chris Drew, CFA (i) are not
registered/qualified as research analysts with the NYSE and/or FINRA and (ii) may not be associated persons of the RBC Capital
Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule 472 restrictions on communications with
a subject company, public appearances and trading securities held by a research analyst account.
Nick Hyslop and Andrew Dunn (i) are not registered/qualified as research analysts with the NYSE and/or FINRA and (ii) may not be
associated persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule
472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst
account.
Owen Martin (i) is not registered/qualified as a research analyst with the NYSE and/or FINRA and (ii) may not be associated persons
of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule 472 restrictions on
communications with a subject company, public appearances and trading securities held by a research analyst account.
Tyler Bos and Michael Markidis, CFA (i) are not registered/qualified as research analysts with the NYSE and/or FINRA and (ii) may
not be associated persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE
Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst
account.
Yuen Low, Leon Esterhuizen, and Arnold van Graan (i) are not registered/qualified as research analysts with the NYSE and/or FINRA
and (ii) may not be associated persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711
and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a
research analyst account.
Conflicts Disclosures
This product constitutes a compendium report (covers six or more subject companies). As such, RBC Capital Markets chooses to
provide specific disclosures for the subject companies by reference. To access current disclosures for the subject companies, clients
should refer to http://www7.rbccm.com/GLDisclosure/PublicWeb/DisclosureLookup.aspx?EntityID=1 or send a request to RBC CM
Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total
revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by
investment banking activities of the member companies of RBC Capital Markets and its affiliates.
Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy,
Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick/Outperform,
Sector Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
because our ratings are determined on a relative basis (as described above).
Distribution of Ratings
RBC Capital Markets, Equity Research
Investment Banking
Serv./Past 12 Mos.
Rating Count Percent Count Percent
20
January 13, 2010 U.S. RESEARCH AT A GLANCE
Conflicts Policy
RBC Capital Markets Policy for Managing Conflicts of Interest in Relation to Investment Research is available from us on request. To
access our current policy, clients should refer to
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or send a request to RBC CM Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower,
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RBC Capital Markets is the business name used by certain subsidiaries of Royal Bank of Canada, including RBC Dominion Securities Inc., RBC Capital Markets
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Capital Markets from sources believed to be reliable, but no representation or warranty, express or implied, is made by Royal Bank of Canada, RBC Capital Markets, its
affiliates or any other person as to its accuracy, completeness or correctness. All opinions and estimates contained in this report constitute RBC Capital Markets'
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To Canadian Residents:
This publication has been approved by RBC Dominion Securities Inc.(member IIROC). Any Canadian recipient of this report that is not a Designated Institution in
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21
January 13, 2010 U.S. RESEARCH AT A GLANCE
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To Singapore Residents:
This publication is distributed in Singapore by RBC (Singapore Branch) and RBC (Asia) Limited, registered entities granted offshore bank status by the Monetary
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