S&P PowerPicks Mid-Year
2005 Portfolio
July 2005
Equity Research / North America
Stephen Biggar
Equity Research
Robert Gold
Equity Research
HIGHLIGHTS
S&P STARS:
****
S&P EARNS / DIV RANKING:

The S&P PowerPicks Mid-Year 2005 Portfolio represents the current collective “best
ideas” of Standard & Poor’s U.S. equity research staff.

Each of the 40 contributing industry analysts on S&P’s U.S. equity research staff
considers the following stocks to be those best positioned for superior growth from each
of the analyst’s coverage universe.

The S&P PowerPicks Mid-Year 2005 Portfolio is diversified across all the 10 S&P
economic sectors comprising the S&P 500 Index.

The portfolio will be a “frozen” one, meaning that it will undergo no changes throughout
the entire year.

The objective of the portfolio is to exceed the total return (capital appreciation plus
dividends paid) generated by the S&P 500 during the year.
B
S&P ISSUER CREDIT RATING:
A-
GICS
SECTOR:
55 Water Street
Information Technology
New York, NY 10041
INDUSTRY:
Semiconductor Equipment
This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither Standard & Poor’s nor any other party guarantees
its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 2005.
All required disclosures appear on page 16 of this report. Additional information is available upon request.
PEER GROUP:
Equity Research / North America
INVESTMENT OUTLOOK: 2005 MID-YEAR UPDATE
Following a dismal first quarter, in which the S&P 500 dipped by more than 2.5%, investors may feel a bit
apprehensive about the second quarter coming to a close. Since March 31, the S&P 500 has recovered some of the
loss experienced in the first quarter when six of its 10 sectors were in the red. The S&P 500’s 0.9% advance in Q2
was supported by increases for six sectors, led by gains in financials, health care and utilities.
S&P 500 Sectors
% Chgs. As of 6/30/05
Q1
Q2
YTD
Energy
Utilities
Health Care
Consumer Staples
S&P 500
17.1
4.4
(1.0)
0.2
(2.6)
1.5
8.3
3.7
(1.2)
0.9
18.8
13.2
2.7
(1.0)
(1.7)
Financials
Industrials
Information Technology
Telecommunication Services
Consumer Discretionary
Materials
(7.0)
(2.0)
(7.5)
(8.6)
(5.9)
1.3
3.6
(3.8)
1.6
2.6
(1.2)
(10.0)
(3.6)
(5.7)
(6.0)
(6.2)
(7.0)
(8.8)
S&P’s Investment Policy Committee believes that the muted first half performance for stocks was the
result of a projected slowdown in corporate earnings growth, the impact of record energy prices on consumer
spending and the sustainability of the Fed’s rate-tightening program.
S&P equity analysts project the S&P 500 to post an 11% year-over-year increase in operating earnings in
2005, which is less than half of the gain seen for 2004. Energy prices – after having set a record of more than $60
per barrel – have recently eased, yet S&P’s Investment Policy Committee thinks elevated oil prices will remain a
challenge to consumers and investors as prices for West Texas Intermediate oil are projected to average nearly
$52/bbl. this year, while moderating to around $48/bbl. in 2006.
Now that the Federal Reserve has raised short-term interest rates nine times, from a 1.00% Fed funds rate
seen a year ago to the current 3.25%, prognosticators are divided on the Fed’s future course of action. S&P believes
the Fed will continue to raise rates throughout the year – despite a possible pause at the August FOMC meeting.
S&P projects a 4.0% Fed funds rate, and 4.75% yield on the 10-year Treasury note, by the end of 2005. Even
though the yield curve -- the difference between the yield on short and long-term instruments -- will likely narrow
to 75 basis points (approximately 35 basis points below its 35-year average), S&P does not believe it portends an
impending recession. We think it is more a reflection of the global nature of financial markets reflecting the
attractiveness the U.S. offers global investors in the form of economic and governmental stability.
Even though the dog days of summer may prove challenging to investors this year as they usually do –
since 1990, the S&P 500 and its 10 sectors have posted declines on average during June through August – S&P’s
Investment Policy Committee believes the S&P 500 will close out 2005 at the 1255 level for a 3.6% full-year gain.
We believe the combination of still-healthy economy growth, an attractive market valuation and the eventual end to
the Fed’s rate-tightening efforts will lead to an end-of-year rally in stocks. The IPC’s recommended allocation for a
traditional “balanced” investors is 45% U.S. stocks, 15% foreign equities, 25% short-to-intermediate term bonds
and 15% cash. We continue to believe that equities offer a superior risk-adjusted return.
S&P suggests that investors overweight their exposure to the consumer staples, health care and utilities
sectors, while underweighting the consumer discretionary, financials, industrials, information technology and
materials sectors.
July 2005
2
Equity Research / North America
S&P POWERPICKS 2005 MID-YEAR PORTFOLIO
The S&P PowerPicks 2005 Mid-Year Portfolio represents the current collective “best ideas” by the Standard &
Poor’s U.S. equity research staff. Each of the 40 contributing industry analysts on S&P’s U.S. equity research staff considers
the following stocks to be those best positioned for superior growth from each of the analyst’s industry coverage universe.
The S&P PowerPicks 2005 Mid-Year Portfolio is diversified across all the 10 S&P economic sectors comprising the S&P
500 Index.
The Portfolio will be “frozen”, meaning that it will undergo no changes during its one-year lifespan. The objective
of the Portfolio is to exceed the total return (capital appreciation plus dividends paid) generated by the S&P 500 Index over
the coming 12-months.
The median capitalization of the S&P PowerPicks 2005 Mid-Year Portfolio is approximately $7.9 billion, ranging
from a high of $388 billion for Exxon Mobil Corp. to a low of $300 million for Renovis Inc.. By contrast, the median market
capitalization of the S&P 500 Index at May 31, 2005 was approximately $10.3 billion, ranging from a high of $387 billion
for General Electric Co. to a low of $538 million for Delta Air Lines Inc.. The S&P PowerPicks 2005 Mid-Year Portfolio is
comprised of 25 stocks considered to be large capitalization issues (market cap at or above $5 billion), 16 mid-cap issues ($1
billion to $4.99 billion), and one small-cap issue (below $1 billion).
The sector representations within the S&P PowerPicks 2005 Mid-Year Portfolio are broadly representative of those
within the S&P 500. On an equally weighted basis, the most significant sector weightings in the Portfolio are in the
Financial, Information Technology and Health Care sectors, which collectively account for roughly 48% of the Portfolio. On
a market capitalization-weighted basis, the collective weightings of these sectors within the S&P 500 Index also
approximates 48%.
July 2005
3
Equity Research / North America
THE S&P POWERPICKS MID-YEAR 2005 PORTFOLIO
S&P
Ticker
Company
Mkt. Cap
($ Mln)
Earns &
S&P Index
STARS
Divd Rank
Dividend Sub Industry
Yield (%)
Consumer Discretionary
ISCA
International Speedway
3,000
A-
400
5
0.1
LQI
La Quinta Corp.
1,700
C
None
5
-
Leisure Facilities
MCD
McDonald’s Corp.
37,000
A
500
5
1.9
Restaurants
MDC
M.D.C. Holdings
3,500
A+
600
5
0.8
Homebuilding
NWS
News Corp. 'A'
56,000
NR
None
5
-
Hotels, Resorts & Cruise Lines
Movies & Entertainment
Consumer Staples
CVS
CVS Corp,
24,000
B
500
5
0.4
SPC
Spectrum Brands Inc.
1,800
NR
600
5
-
Drug Retail
Household Products
STZ
Constellation Brands Inc.
6,200
B+
500
5
-
Distillers & Vintners
WWY
Wrigley, (Wm) Jr.
15,600
A+
500
5
1.6
Packaged Foods & Meats
Energy
SII
Smith International, Inc.
VLO
Valero Energy Corp.
XOM
ExxonMobil Corp.
6,800
B
400
5
0.7
Oil & Gas Equipment & Services
21,000
B+
500
5
0.4
Oil & Gas Refining, Marketing & Transportation
388,000
A-
500
5
1.9
Integrated Oil & Gas
Financials
ALL
Allstate Corp
40,000
B+
500
5
2.0
Property & Casualty Insurance
C
Citigroup Inc.
247,000
A+
500
5
3.7
Other Diversified Financial Services
CBH
Commerce Bancorp Inc.
4,900
A+
400
5
1.4
Regional Banks
GS
Goldman Sachs Group
50,000
NR
500
5
0.9
Investment Banking & Brokerage
NDE
IndyMac Bancorp Inc.
2,700
B+
400
5
3.6
Thrifts & Mortgage Finance
PFG
Principal Financial Group
12,100
NR
500
5
1.2
Other Diversifed Financial Services
SPG
Simon Property Group
16,200
B+
500
5
4.2
Real Estate Investment Trusts
Health Care
AMLN
Amylin Pharmaceuticals Inc.
HCA
HCA Inc.
1,700
C
None
5
-
24,000
B
500
5
1.0
IVX
IVAX Corp.
5,500
B-
400
5
-
Pharmaceuticals
PHS
PacifiCare Health Systems
5,600
B
400
5
-
Managed Health Care
RNVS
Renovis Inc.
NR
None
5
-
Biotechnology
STJ
St. Jude Medical Inc.
14,300
B
500
5
-
Health Care Equipment
300
Biotechnology
Health Care Facilities
Industrials
ASD
American Standard Inc.
BNI
Burlington Northern Santa Fe
GWW
Grainger W.W. Inc.
IR
Ingersoll-Rand 'A'
MTW
Manitowoc Co.
8,900
B-
500
5
1.4
Building Products
19,000
A-
500
5
1.4
Railroads
5,000
A-
500
5
1.7
Trading Companies & Distributors
13,000
A
500
5
1.3
Industrial Machinery
1,300
B
600
5
0.6
Construction & Farm Machinery & Heavy Trucks
Information Technology
CSCO
Cisco Systems Inc.
123,000
B+
500
5
-
Communications Equipment
CTXS
Citrix Systems Inc,
3,600
B+
500
5
-
Application Software
EMC
EMC Corp.
35,000
B
500
5
-
Computer Storage & Peripherals
MFE
McAfee Inc.
4,300
B-
400
5
-
Systems Software
MXIM
Maxim Integrated Products Inc.
13,000
B+
500
5
1.0
NVLS
Novellus Systems Inc.
3,700
B-
500
5
-
ATI
Allegheny Technologies Inc.
2,200
B-
500
5
1.0
FMC
FMC Corp.
2,200
B-
400
5
-
4,600
A
500
5
0.6
10,300
C
500
5
-
Semiconductors
Semiconductor Equipment
Materials
Steel
Diversified Chemicals
Telecommunications Services
CTL
CenturyTel Inc.
Integrated Telecommunication Services
Utilities
AES
AES Corp.
Independent Power Producers
*Data as of June 30, 2005
July 2005
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Equity Research / North America
S&P POWERPICKS MID-YEAR 2005 PORTFOLIO SECTOR BREAKDOWN
Information
Technology
15%
Materials
5%
Telecommunication
Services
3%
Utilities
3% Consumer
Consumer Discretionary
Consumer Staples
Energy
Discretionary
13%
Financials
Consumer Staples
10%
Industrials
Industrials
12%
Health Care
Information Technology
Health Care
15%
Financials
17%
Energy
7%
Materials
Telecommunication Services
Utilities
July 2005
5
Equity Research / North America
STANDARD & POOR’S POWERPICKS MID-YEAR 2005 PORTFOLIO
CONSUMER DISCRETIONARY
International Speedway (ISCA): ISCA promotes motor sports activities in the U.S., sponsoring more than 100
events annually. The company owns and/or operates 11 major motorsports facilities, including Daytona
International Speedway; Talladega Superspeedway in Alabama; Michigan International Speedway; and California
Speedway.
La Quinta Corp. (LQI): La Quinta operates a limited-service lodging company. The company owns and franchises
590 hotels in 39 states mainly under the names La Quinta Inns and La Quinta Inn & Suites, with approximately
65,000 rooms in 35 states. Other brands the company operates under include Baymont Inn & Suites, Woodfield
Suites and Budgetel.
McDonald’s Corp. (MCD): McDonald's is a global foodservice retailer with more than 30,000 local restaurants in
more than 100 countries, serving a value-priced menu. Approximately 70% of McDonald's restaurants worldwide
are owned and operated by independent, local businessmen and women. The company also operates Boston Market
and Chipotle Mexican Grill, and has a minority interest in Pret A Manger.
M.D.C. Holdings (MDC): MDC, whose subsidiaries build homes under the name Richmond American Homes, is a
regional homebuilder with a presence in multiple states including Arizona, California, Colorado, Florida, Maryland,
Utah, and Virginia. The Company also provides mortgage financing, primarily for its homebuyers, through a wholly
owned subsidiary, HomeAmerican Mortgage Corporation.
News Corp. ‘A’ (NWS.A): News Corp is a diversified international media and entertainment company with
operations in eight industry segments: filmed entertainment; television; cable network programming; direct
broadcast satellite television; magazines and inserts; newspapers; book publishing; and other. U.S.-based assets
include Fox TV, FOX Film, HarperCollins Publishers, and an equity interest in Gemstar-TV Guide.
July 2005
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Equity Research / North America
CONSUMER STAPLES
CVS Corp. (CVS): CVS operates approximately 5,400 retail and specialty pharmacy stores in 36 states and the
District of Columbia. The majority of CVS’ sales come from its pharmacy operations, predominantly derived from
third-party managed care providers under prescription drug plans. The company also runs an online pharmacy at
CVS.com.
Spectrum Brands, Inc. (SPC): Spectrum Brands, formerly known as Rayovac, is a supplier of batteries, lawn and
garden care products, specialty pet supplies, shaving and grooming products, household insecticides, personal care
products and portable lighting. The company sells its products under the Rayovac, Remington, and VARTA brands.
Constellation Brands, Inc. (STZ): Constellation Brands is an international producer and marketer of beverage
alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Brands in Constellation's
portfolio include Corona, Negra Modelo, St. Pauli Girl, Grande Amber Brandy, Effen Vodka and Robert Mondavi
Winery brands.
Wrigley, (Wm) Jr. (WWY): This company manufactures and markets quality confectionery products, primarily
chewing gum. WWY’s primary brands include Juicy Fruit, Doublemint, Big Red, Wrigley's Spearmint, Airwaves,
Alpine, Eclipse, Extra, Freedent, P.K and Winterfresh.
ENERGY
Smith International, Inc. (SII): The company is a worldwide supplier of premium products and services to the oil
and gas exploration and production industry, the petrochemical industry and other industrial markets. Among the
products and services provided by the company include drilling and completion fluid systems, solids control
equipment and waste management services.
Valero Energy Corp. (VLO): VLO owns and operates 14 refineries throughout the U.S., Canada and the Caribbean
with a combined throughput capacity of approximately 2.4 million barrels per day. Valero is also one of the nation's
largest retail operators with approximately 4,700 retail and wholesale branded outlets under Diamond Shamrock,
Shamrock, Ultramar, Valero and Beacon brands.
ExxonMobil Corp. (XOM): ExxonMobil explores for, produces, transports and sells crude oil, natural gas and
petroleum products in the U.S. and about 200 other countries and territories. In addition the company makes and
sells petrochemicals and owns interests in electric power generation facilities.
July 2005
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Equity Research / North America
FINANCIALS
Allstate Corp. (ALL): ALL provides insurance products to more than 16 million households through its exclusive
agents and financial specialists. The company writes property-liability insurance, primarily private passenger
automobile and homeowners’ policies, as well as offering life insurance, annuity and group pension products.
Citigroup, Inc. (C): This global financial services company has some 200 million customer accounts and does
business in more than 100 countries, supporting consumers, corporations, governments and institutions. The
company’s range of financial products and services include consumer banking and credit, corporate and investment
banking, insurance, securities brokerage, and asset management.
Commerce Bancorp Inc. (CBH): Commerce has approximately 330 branches throughout New Jersey, New York,
Pennsylvania, Delaware, and newer markets Washington, D.C., and Virginia. In addition, the company acts as an
insurance broker, offering employee benefit programs as well as traditional insurance and risk management
services.
Goldman Sachs Group (GS): Goldman Sachs conducts global investment banking and securities business that
provides services worldwide to a diversified client base that includes corporations, financial institutions,
governments and high-net-worth individuals. The majority of the company’s revenues are derived from the trading
and principal investments in equities, fixed income products, currencies and commodities.
IndyMac Bancorp Inc. (NDE): NDE owns and operates IndyMac Bank F.S.B., a savings and loan association.
IndyMac Bank is the largest savings and loan headquartered in Los Angeles County, CA and the 10th largest
nationwide, based on assets as of December 2004. Through its hybrid thrift/mortgage banking business model,
IndyMac handles financing related to single-family homes.
Principal Financial Group (PFG): The Principal Financial Group is a provider of retirement savings, investment
and insurance products and services, with about 15 million customers The company offers its products and services
to small and medium sized businesses, individuals, and institutional clients in the United States and internationally.
Simon Property Group (SPG): Simon Property Group, a real estate investment trust (REIT), engages in the
ownership, operation, leasing, management, acquisition, expansion, and development of real estate properties. The
majority of SPG’s income producing properties are regional malls and community shopping centers.
July 2005
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Equity Research / North America
HEALTH CARE
Amylin Pharmaceuticals, Inc. (AMLN): Amylin Pharmaceuticals engages in the discovery, development, and
commercialization of drug candidates for the treatment of diabetes, obesity, and cardiovascular disease. Its primary
drug candidates include exenatide and SYMLIN, which have completed phase III clinical trials for the treatment of
diabetes.
HCA, Inc. (HCA): HCA, Inc. engages in the ownership, management, or operation of hospitals, freestanding surgery
centers, diagnostic and imaging centers, radiation and oncology therapy centers, rehabilitation and physical therapy
centers. The facilities are located in 23 U.S. states, England, and Switzerland.
IVAX Corp. (IVX): IVAX Corp. is a mid-sized developer, manufacturer and marketer of a wide range of generic and
proprietary prescription pharmaceuticals. In the U.S., the company produces about 73 generic prescription drugs, in
168 dosage strengths, primarily under the trade names Zenith Goldline and Goldline.
PacifiCare Health Systems (PHS): PacifiCare Health Systems, with total health plan enrollment of about more
than 3.3 million members, is the largest Medicare HMO in the U.S., with more than 704,000 Medicare members.
The majority of its members are located in Arizona, California, Colorado and Texas. In early July, PHS agreed to be
acquired by UnitedHealth Group, pending necessary approvals.
Renovis, Inc. (RNVS): Renovis is developing biopharmaceuticals to treat pain or trauma caused by
neurodegenerative diseases and disorders, such as sciatica and strokes. As of early 2005, the company had three
products in clinical development and numerous others in its research program
St. Jude Medical Inc. (STJ): The company develops, manufactures and distributes cardiovascular medical devices
for the global cardiac rhythm management, cardiac surgery and cardiology and vascular access therapy areas. STJ
offers a range of products, such as pacemaker systems, defibrillator systems, and mechanical and tissue heart
valves.
July 2005
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Equity Research / North America
INDUSTRIALS
American Standard, Inc. (ASD): The company manufactures air conditioning systems, fixtures and fittings for
bathrooms and kitchens, and vehicle control systems including pneumatic breaking control systems for trucks,
trailers and buses. The various products the company offers are sold under the brand names such as Trane,
American Standard, Ideal Standard, Porcher, and Wabco.
Burlington Northern Santa Fe (BNI): Burlington Northern Santa Fe, through its subsidiaries, operates a rail system
of over 32,000 miles that spans 28 states and two Canadian provinces. The company transports various products and
commodities throughout North America, including industrial products, coal, agricultural, and consumer products.
Grainger W.W. (GWW): Grainger supplies facilities maintenance and other related products to organizations and
institutions in North America. The company’s operations include the distribution of safety and security supplies,
pumps and plumbing supplies, cleaning and painting supplies, as well as offering outsourced solutions for process
re-engineering, inventory and, purchase management.
Ingersoll-Rand ‘A’ (IR): Ingersoll-Rand designs manufactures, sells, and services climate control products, such as
transport temperature control units, refrigerated display merchandisers, beverage coolers, and walk-in storage
coolers and freezers, as well as heating, ventilation, and air conditioning systems. In addition, IR offers its
customers a variety of infrastructure products such as skid-steer loaders and road construction equipment.
Manitowoc Co. (MTW): The company makes crawler cranes, tower cranes and boom trucks for the global
construction industry; commercial refrigeration equipment for the foodservice industry; and provides ship building,
repair and maintenance services in the Great Lakes region.
July 2005
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Equity Research / North America
INFORMATION TECHNOLOGY
Cisco Systems, Inc. (CSCO): Cisco Systems manufactures and sells networking and communications products
worldwide. The company provides a line of products for transporting data, voice, and video within buildings and
across campuses. Its offerings include routers, which interconnect computer networks by moving data, voice, and
video from one network to another, and switching systems that are used to build local area networks.
Citrix Systems, Inc. (CTXS): Citrix Solutions designs, develops, markets and supports access infrastructure
software and services for enterprise applications. The company’s broad suite of offerings enable corporate
information technology (IT) staffs to support enterprise resources on demand and manage and protect access to their
business information across their public networks.
EMC Corp. (EMC): EMC designs, manufactures, markets, and supports a range of storage-related hardware,
software and service products used to store and manage information over its lifecycle. The company’s products and
services are used in transaction processing, enterprise resource planning, customer relationship management, data
warehousing, electronic commerce, email, and Web hosting.
McAfee, Inc. (MFE): McAfee supplies computer security solutions to prevent intrusions on networks and protect
computer systems from various threats and attacks worldwide. The company’s software offerings include anti-virus,
anti-spyware, managed services, application firewalls, and security products to protect systems, such as desktops
and servers.
Maxim Integrated Products, Inc. (MXIM): Maxim Integrated Products designs, develops, manufactures, and
markets a range of linear and mixed-signal integrated circuits. The company’s products include data converters,
interface circuits, microprocessor supervisors, power supplies, battery chargers, fiber optic transceivers, sensors,
and voltage references.
Novellus Systems, Inc. (NVLS): Novellus Systems develops manufactures, sells, and services semiconductor
equipment used in the fabrication of integrated circuits. Customers for these products are manufacturers of
semiconductor integrated circuits, who either incorporates the chips they manufacture in their own products or sell
them to other companies.
July 2005
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Equity Research / North America
MATERIALS
Allegheny Technologies, Inc. (ATI): Allegheny Technologies produces, converts, and distributes stainless steel,
nickel-based alloys, and titanium and titanium-based alloys, in various product forms, including plate, sheet, strip,
engineered strip, and precision rolled strip products. The company serves the aerospace, oil and gas, transportation,
food, chemical processing and medical industries.
FMC Corp. (FMC): FMC is a chemical company that serves the agricultural, industrial, and consumer markets
worldwide. The company manufactures and sells proprietary insecticides and herbicides used for the protection of
cotton, corn, rice, cereals, vegetables and other crops. In addition, FMC manufactures and sells products that add
texture, structure, and physical stability to beverage, dairy, meat and bakery products.
TELECOMMUNICATIONS SERVICES
CenturyTel Inc. (CTL): CenturyTel provides traditional local exchange telephone service mainly in rural areas and
small to mid-size cities in 22 states, including Louisiana, Michigan, Ohio and Wisconsin. The company also
provides long distance, Internet access, and, fiber transport and other communications services.
UTILITIES
AES Corp. (AES): AES provides electricity through its large utilities, contract generation, competitive supply, and
growth distribution businesses. The company's generating assets include interests in 120 facilities in 25 countries
totaling approximately 44 gigawatts of capacity.
July 2005
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Equity Research / North America
Standard & Poor’s Global Equity Research
55 Water Street, 44th Floor
New York, NY 10041, USA
Sharon Shawn
212-438-9505
Equity Liaison Officer
Brian McGovern 212-438-4654
Institutional Sales
EQUITY RESEARCH POLICY
Kenneth Shea
Managing Director, Global Equity Research
INVESTMENT POLICY
Mark Arbeter, CMT
Chief Technical Analyst
Sam Stovall
Chief Investment Strategist
David Wyss, Ph.D.
Chief Economist
CONSUMER STAPLES & ENERGY
Richard Joy, Group Head
Beverages, Packaged Foods
Joseph Agnese
Agribusiness, Drug Retail, Food Retail
Howard Choe
Household Products, Personal Care
Anishka Clarke
Diversified Consumer Staples
Stewart Glickman
Oilfield Services & Drilling
Charles LaPorta, CFA
Oil & Gas Exploration & Production
Royal Shepard, CFA
NORTH AMERICAN EQUITY RESEARCH
55 Water Street
New York, NY 10041
Oil & Gas Transportation
Tina Vital
Global Integrated Oil & Gas
Stephen Biggar
Director of Research - North America
CONSUMER DISCRETIONARY- Cyclical
Thomas Graves, CFA, Group Head
HEALTH CARE
Robert Gold, Group Head
Health Care Equipment
Frank DiLorenzo, CFA
Biotechnology
Markos Kaminis
Emerging Growth
Cameron Lavey
Healthcare Facilities & Services
Jeffrey Loo, CFA
Diversified Health Care
Lodging & Gaming
Tuna N. Amobi, CFA, CPA
Media & Entertainment
Efraim Levy, CFA
Auto Mfrs. & Auto Parts
William Mack, CFA
Homebuilding & Consumer Discretionary
Gary McDaniel
Media
James Peters
Publishing, Advertising
Herman Saftlas
Pharmaceuticals
Phillip Seligman
Managed Health Care
CONSUMER DISCRETIONARY- Retail
Marie Driscoll, CFA, Group Head
Apparel Retailers & Mfrs.
Jason Asaeda
FINANCIALS- Insurers & Banks
Catherine Seifert, Group Head
Property Casualty Insurance
Mark Hebeka, CFA
Diversified Financial Services
Christopher Muir
Regional Banks
General Merchandise Stores
Amy Glynn, CFA
Household Durables, Consumer Electronics
Dennis Milton
Restaurants
Michael Souers
Specialty Retail
Jason Seo, CFA
Thrifts & Mortgage Finance
Gregory Simcik, CFA
Life Insurance
FINANCIALS- Asset Managers & Brokers
Robert Hansen, CFA, Group Head
Asset Managers & Securities Brokers
Raymond Mathis
Real Estate Investment Trusts
Robert McMillan
Real Estate Investment Trusts
July 2005
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Equity Research / North America
EMERGING GROWTH
Mark Basham
INDUSTRIALS & MATERIALS
Michael Jaffe, Group Head
Building Products & Diversified Commercial Services
Emerging Growth
Richard Tortoriello
Emerging Growth
James Corridore
Airlines & Air Freight
Anthony Fiore, CFA
Industrial Machinery
Robert Friedman, CPA
Aerospace & Defense
SUPERVISORY ANALYSTS
Barry King
Jeff Perlmutter
Pamela Schultz
John Hingher
Diversified Materials
Leo Larkin
Diversified Metals & Mining
Richard O’Reilly, CFA
Chemicals
Stewart Scharf
Environmental Services, Water Utilities & Packaging
EDITORS
Charles Baumann
Diane Cappadona
Art Epstein
Mike Fink
Peter Willson
Andrew West, CFA
Railroads & Trucking
EUROPEAN EQUITY RESEARCH
INFORMATION TECHNOLOGY
Scott Kessler, Group Head
Internet Software & Services; Internet Retail
Zaineb Bokhari
Applications Software
Stephanie Crane
IT Services
Megan Graham-Hackett
Computer Hardware
Colin McArdle
Semiconductor Equipment
Jonathan Rudy, CFA
Software
Richard Stice, CFA
Computer Storage; Electronic Manufacturing Services
Amrit Tewary
Semiconductors
20 Canada Square
Canary Wharf, London
United Kingdom
Subhajit Gupta, CFA
Director of Research – Europe
Telecommunications & Information Technology
Derek Chambers
Financials
Alessandra Coppola
Consumer Discretionary
Jelena Karafotias, CFA
Consumer Staples
Sreedhar Mahamkali
Consumer Staples
Yannick Mathieu, CFA
Consumer Discretionary
Sho Matsubara
Health Care
TELECOM SERVICES & UTILITIES
Kenneth Leon, CPA, Group Head
Wireless Telecom Services
Ari Bensinger
Telecommunications Equipment
Justin McCann
Electric Utilities
Todd Rosenbluth
Integrated Telecom Services
Yogeesh Wagle
Gas Utilities
Habib Nasrallah, CFA
Industrials
Cristina Perea
Telecommunications
David Seemungal
Pharmaceuticals
Rahul Shah
Financials
Dave Thomas
Energy
David Wilson
Utilities
Clive McDonnell
European Strategist
Charles Dautresme
Assistant Strategist
July 2005
14
Equity Research / North America
NORDIC EQUITY RESEARCH
Mäster Samuelsgatan 6
Box 1753
111 87 Stockholm, Sweden
Tom Smith, CFA
Head of Equities – Nordic Region
Mats Anderson
Financials
Stefan Andersson, CEFA
Commercial Services
Hans Derninger
Construction
Lars Glemstedt
Automobiles & Parts, Industrials
Morten Larsen
Biotechnology
Stefan Nelson
Media
Claes Rasmuson
Paper & Forest Products
Daniel Schmidt
Consumer Goods Analyst
Joakim Ström
Diversified Financials
Inger Söderbom
Communications Equipment
Johan Wettergren
Industrial Machinery
ASIAN EQUITY RESEARCH
30 Cecil Street, Singapore
049712
Singapore
Lorraine Tan, CFA
Director of Research – Asia
Energy, Materials & Utilities
Sharon Wong, CFA
Deputy Head – Asia
Consumer Staples & Discretionary
Christopher K. Lee
Deputy Head – Asia
Industrials, Electronics & Technology
Winston Siay, CFA
Financials
Yeu Huan Lai, CFA
Real Estate & REITs
Belinda Chan, CPA
Industrials
Alexander Chia, ACA
Malaysia Telecommunications & Industrials
Lee Leng Hoe, CPA
Malaysia Consumer Discretionary & Staples
Donovan Huang
China Energy, Materials & Utilities
Chan Pheng Lee, CFA
Malaysia Property & Technology
Joy Lee
Telecommunications & Media
Vincent Ng
Transportation
Geraldine Seah
Real Estate & REITs
Alison Seng
Consumer Staples
David So
Telecommunications, Tech & Media
Bradley Way
China Energy, Materials & Utilities
John S. Yang
Japan Technology
Dean Khor
Technical Analyst
Shukor Yusof
Supervisory Editor
July 2005
15
Equity Research / North America
Required Disclosures
In the U.S.
As of June 30, 2005, research analysts at Standard & Poor’s Equity
Research Services U.S. have recommended 30.2% of issuers with
buy recommendations, 57.5% with hold recommendations and
12.3% with sell recommendations.
In Europe
As of June 30, 2005, research analysts at Standard & Poor’s Equity
Research Services Europe have recommended 34.4% of issuers
with buy recommendations, 46.8% with hold recommendations
and 18.8% with sell recommendations.
In Asia
As of June 30, 2005, research analysts at Standard & Poor’s Equity
Research Services Asia have recommended 33.3% of issuers with
buy recommendations, 47.2% with hold recommendations and
19.5% with sell recommendations.
Globally
As of June 30, 2005, research analysts at Standard & Poor’s Equity
Research Services globally have recommended 31.0% of issuers
with buy recommendations, 55.4% with hold recommendations
and 13.6% with sell recommendations.
5-STARS (Strong Buy): Total return is expected to outperform the
total return of a relevant benchmark, by a wide margin over the coming
12 months, with shares rising in price on an absolute basis.
4-STARS (Buy): Total return is expected to outperform the total return
of a relevant benchmark over the coming 12 months, with shares rising
in price on an absolute basis.
3-STARS (Hold): Total return is expected to closely approximate the
total return of a relevant benchmark over the coming 12 months, with
shares generally rising in price on an absolute basis.
2-STARS (Sell): Total return is expected to underperform the total
return of a relevant benchmark over the coming 12 months, and the
share price is not anticipated to show a gain.
1-STARS (Strong Sell): Total return is expected to underperform the
total return of a relevant benchmark by a wide margin over the coming
12 months, with shares falling in price on an absolute basis.
Relevant benchmarks: in the U.S. the relevant benchmark is the S&P
500 Index, in Europe the S&P Europe 350 Index, in Asia the S&P Asia
50 Index, and in Malaysia the KLCI or KL Emas Index.
For All Regions:
All of the views expressed in this research report accurately reflect
the research analyst's personal views regarding any and all of the
subject securities or issuers. No part of analyst compensation was,
is, or will be, directly or indirectly, related to the specific
recommendations or views expressed in this research report.
Additional information is available upon request.
Other Disclosures
This report has been prepared and issued by Standard & Poor’s and/or
one of its affiliates. In the United States, research reports are prepared
by Standard & Poor’s Investment Advisory Services LLC (“SPIAS”).
In the United States, research reports are issued by Standard & Poor’s
(“S&P”), in the United Kingdom by Standard & Poor’s LLC (“S&P
LLC”), which is authorized and regulated by the Financial Services
Authority; in Hong Kong by Standard & Poor’s LLC which is
regulated by the Hong Kong Securities Futures Commission, in
Singapore by Standard & Poor’s LLC, which is regulated by the
Monetary Authority of Singapore; in Japan by Standard & Poor’s LLC,
which is regulated by the Kanto Financial Bureau; in Sweden by
Standard & Poor’s AB (“S&P AB”), in Malaysia by Standard & Poor’s
Malaysia Sdn Bhd (“S&PM”) which is regulated by the Securities
Commission and in Australia by Standard & Poor’s Information
Services (Australia) Pty Ltd (“SPIS”) which is regulated by the
Australian Securities & Investments Commission.
The research and analytical services performed by SPIAS, S&P LLC,
S&P AB, S&PM and SPIS are each conducted separately from any
other analytical activity of Standard & Poor’s.
One of the following sentences should also be included, where
applicable:
S&P and/or one of its affiliates has performed services for and received
compensation from this company during the past twelve months. OR
This company is not a customer of S&P or its affiliates.
Disclaimers
This material is based upon information that we consider to be reliable,
but neither S&P nor its affiliates warrant its completeness, accuracy or
adequacy and it should not be relied upon as such. With respect to
reports issued by S&P LLC-Japan and in the case of inconsistencies
between the English and Japanese version of a report, the English
version prevails. Neither S&P LLC nor S&P guarantees the accuracy of
the translation. Assumptions, opinions and estimates constitute our
judgment as of the date of this material and are subject to change
without notice. Neither S&P nor its affiliates are responsible for any
errors or omissions or for results obtained from the use of this
information. Past performance is not necessarily indicative of future
results.
This material is not intended as an offer or solicitation for the
purchase or sale of any security or other financial instrument.
Securities, financial instruments or strategies mentioned herein
may not be suitable for all investors. Any opinions expressed
herein are given in good faith, are subject to change without notice,
and are only correct as of the stated date of their issue. Prices,
values, or income from any securities or investments mentioned in
this report may fall against the interests of the investor and the
investor may get back less than the amount invested. Where an
investment is described as being likely to yield income, please note
that the amount of income that the investor will receive from such
an investment may fluctuate. Where an investment or security is
denominated in a different currency to the investor’s currency of
reference, changes in rates of exchange may have an adverse effect
on the value, price or income of or from that investment to the
investor. The information contained in this report does not
constitute advice on the tax consequences of making any particular
investment decision. This material does not take into account your
particular investment objectives, financial situations or needs and is
not intended as a recommendation of particular securities, financial
instruments or strategies to you. Before acting on any
recommendation in this material, you should consider whether it is
suitable for your particular circumstances and, if necessary, seek
professional advice.
For residents of the U.K. –this report is only directed at and should
only be relied on by persons outside of the United Kingdom or
persons who are inside the United Kingdom and who have
professional experience in matters relating to investments or who
are high net worth persons, as defined in Article 19(5) or Article
49(2) (a) to (d) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2001, respectively.
July 2005
16