CORECARD

DOWNSIDE PROTECTION REPORT

— July 13, 2009 Edited by the Research Team of

The Manual of Ideas

www.manualofideas.com8

Performance of Past Monthly Picks versus S&P 500

On this page, we provide a quick update on past recommendations and let you know if it’s time to sell.

Recommended Latest Price Price S&P 500Price Date as of 7/13/09 Change ChangeGreenlight Capital Re / GLRE

HOLD

Valuation gap has narrowed, but we continue to like David Einhorn's investment strategy and portfolio.

$10.85 12/5/08 $17.30

+59.4%

+2.5%

EchoStar / SATS

HOLD

Tivo ruling increases downside risk, but company remains cheap.

$14.84 1/16/09 $15.64

+5.4%

+5.9%

Microsoft / MSFT

BUY

Trades at discount to sum-of-parts valuation of business units.

$19.71 1/16/09 $23.23

+17.9%

+5.9%

Capital Southwest / CSWC

BUY

Trades at wide discount to fair value of investment portfolio.

$87.69 2/9/09 $73.63

-16.0%

+3.6%

K-Swiss / KSWS

BUY

Trades close to tangible book value, despite good normalized economics and excellent management.

$7.80 3/20/09 $9.66

+23.8%

+17.5%

Sierra Wireless / SWIR

HOLD

Gap to fair value has narrowed. While the upside remains large, the downside risk has increased.

$2.89 3/20/09 $5.55

+92.0%

+17.5%

Harvest Natural Resources / HNR

BUY

Shares trade at steep discount to estimated fair value.

$3.51 4/14/09 $4.36

+24.2%

+6.8%

Gravity Co. / GRVY

BUY

Shares trade below net cash despite major profitability inflection point.

$0.95 4/14/09 $1.45

+52.6%

+6.8%

MI Developments / MIM

BUY

Shares trade at steep discount to fair value of real estate holdings.

$8.64 5/21/09 $8.62

-0.2%

+1.0%

WellCare Health Plans / WCG

BUY

Shares trade below net cash despite profitable operations.

$19.04 5/21/09 $17.29

-9.2%

+1.0%

Kenneth Cole Productions / KCP

BUY

Shares trade at discount to estimated fair value.

$7.00 6/26/09 $6.60

-5.7%

-1.9%

KHD Humboldt Wedag / KHD

BUY

Shares trade in line with adjusted net cash; business value is “free.”

$8.28 6/26/09 $8.30

+0.2%

-1.9%

Closed Out Positions:Recommended Closed Out Price Change S&P 500 ChangePrice Date Price Date Absolute Annualized Abs. Ann.Crawford (CRD-A, CRD-B)

(pair trade)

$2.89** 2/9/09 $1.02** 6/28/09 65% 271% 6% 15%

* We measure the performance of the S&P 500 Index by the price changes of the S&P Depositary Receipts (SPY), which is an investable vehicle for the S&P 500.** Represents spread rather than market price. Percentage return represents percentage narrowing of arbitrage spread.