No.TickerCompany NameIndustryRemarksCurrentPriceDCFValueBenGrahamFormulaMultiplesValuation

AXP

American Express CoAmerican Express Company (American Express) is a global payments and travel company.The Company

s principal products and services are charge and credit payment card

products, and travel-related services offered to consumers and businesses around theworld. The Company

s Global Consumer Group offers a range of products and services,

including charge and lending (credit) card products for consumers and small businessesworldwide; consumer travel services, and stored value products, such as Travelers Chequesand pre-paid products. The Global Business-to-Business Group provides, among other(Financials are outside my circle of competence)$34.092

BAC

Bank of America CorpBank of America Corporation (Bank of America) is a bank holding company and a financialholding company. Through its banking subsidiaries and various non-banking subsidiariesthroughout the United States and in selected international markets, it provides a diversifiedrange of banking and non-banking financial services and products through three businesssegments: Global Consumer and Small Business Banking, Global Corporate and InvestmentBanking and Global Wealth and Investment Management. Bank of America operates in 50(Financials are outside my circle of competence)$17.043

BDX

Becton Dickinson & CoBecton, Dickinson and Company (BD) is a medical technology company engaged in themanufacture and sale of a range of medical supplies, devices, laboratory equipment anddiagnostic products used by healthcare institutions, life science researchers, clinicallaboratories, industry and the general public. The segments in which the Company operatesinclude BD Medical, BD Diagnostics and BD Biosciences. On May 12, 2008, the Companyacquired Cytopeia Inc.* Gross, operating and net margins steadily increasingeven in recessionary environment* FCF positive for more than 10 years* Inventory turnover consistent but margins haveincreased. Leads to higher efficiency and profit.* ROA and ROE increasing steadily* Reduced debt* Has plenty of FCF to pay down debt rather than issuestock or seek loans* CROIC is very steady at 17%. Company makes 17c off every $1 of cash invested* FCF/sales = 12%. Converts 12c of every dollar in salesto FCF.$70.35$87.00$110.00$76.004

BNI

Burlington NorthernSanta Fe CorpBurlington Northern Santa Fe Corporation (BNSF) is a holding company. The Company,through its subsidiaries, is engaged primarily in the freight rail transportation business. BNSFRailway Company (BNSF Railway) is the Company

s principal operating subsidiary. BNSF

Railway operates various facilities and equipment to support its transportation system,including its infrastructure and locomotives and freight cars. It also owns or leases otherequipment to support rail operations, including containers, chassis and vehicles. Supportfacilities for rail operations include yards and terminals throughout its rail network, systemlocomotive shops to perform locomotive servicing and maintenance, a centralized networkoperations center for train dispatching and network operations monitoring andmanagement in Fort Worth, Texas, regional dispatching centers, computers,telecommunications equipment, signal systems and other support systems.* Impressive FCF growth previous 4 years and especiallylast year* High capex but latest annual result was extraordinary* lower sales and margins but improved efficiency inreturns and turnover* CROIC is on the low side at 3%* Top line growth is also above average at 14%

* Debt to equity ratio is above 200% which isn’t

uncommon for capex heavy companies$83.67$87.00$145.00$76.005

KMX

Carmax IncCarMax, Inc. is a holding company and its operations are conducted through its subsidiaries.The Company is a retailer of used cars, which retailed 345,465 used vehicles during the fiscalyear ended February 28, 2009 (fiscal 2009). As of February 28, 2009, it operated 100 usedcar superstores in 46 metropolitan markets. In addition, it sold 194,081 wholesale vehicles,during fiscal 2009, through on-site auctions. The Company purchases, reconditions and sellsused vehicles. Approximately 85% of the used vehicles it retails are 1 to 6 years old withfewer than 60,000 miles. It also offers a selection of used vehicles at each superstore thatare more than 6 years old or have more than 60,000 miles, if they meet similar qualitystandards.* Increase in gross margins but decline in operating andnet margin* Increased cash levels but a huge amount* Highest accounts receivables to date. Check whether itis due to non paying customers or more lenient terms.* No intangibles (as it should be with low to no moatcompanies)* No long term debt* Capex a little lower than the upper range* Latest year cash from operations included higheramount of interest from securities and cash fromreduction inventory* Inventory turnover at the upper range* FCF and CROIC close to 0%$17.89NA$11-15NA6

Coca-Cola CoThe Coca-Cola Company is a manufacturer, distributor and marketer of nonalcoholicbeverage concentrates and syrups in the world. Finished beverage products bearing itstrademarks are sold in more than 200 countries. The Company markets nonalcoholicsparkling brands, which include Diet Coke, Fanta and Sprite. The Company manufacturesbeverage concentrates and syrups, which it sells to bottling and canning operations,fountain wholesalers and some fountain retailers, as well as finished beverages, which itsells primarily to distributors. The Company owns or licenses approximately 500 brands,including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas,* Price and value have been consistent* Numbers throughout the past 10 years are excellent* Previous business spider graph, fair value estimate andautomated KO dcf valuation$50.63$38.00$61.00Fair7

CMCSA

Comcast CorpComcast Corporation is a provider of cable services, offering a variety of entertainment,information and communications services to residential and commercial customers. As of December 31, 2008, its cable systems served approximately 24.2 million video customers,14.9 million high-speed Internet customers and 6.5 million phone customers, and passedover 50.6 million homes in 39 states and the District of Columbia. It operates in twosegments: Cable and Programming. The Cable segment, which generates approximately95% of the Company

s consolidated revenue, manages and operates cable systems in the

United States. The Cable segment also includes the operations of its regional sportsnetworks. The Programming segment consists of its national programming networks,including E!, Golf Channel, VERSUS, G4 and Style. In June 2009, the Company acquired fromHearst its 50% interest in New England Cable News (NECN). Comcast owns 100% of NECN.* FCF and CROIC are close. 10.9% and 9.4% respectively.This scenario occurs when a company has maturedwithout much growth to be expected.* Excellent margins and very stable returns in both the2001 and 2008 recession* Not over leveraged* Plenty of FCF to cover debt* Big decrease in tangible shareholders equity since 2005* Intangibles more than double in 2007$16.85NA$22.00$12.488

CDCO

Comdisco HoldingsCompany IncComdisco Holding Company, Inc. (Comdisco Holding) was formed for the purpose of selling,collecting or otherwise reducing to money in an orderly manner the remaining assets of theCompany and all of its direct and indirect subsidiaries, including Comdisco, Inc. TheCompany's business purpose is limited to the orderly sale or run-off of all its remainingassets. Comdisco Holding Company, Inc., as the successor company to Comdisco, Inc.,emerged from bankruptcy effective August 12, 2002. Pursuant to the Company

s first

amended joint plan of reorganization, Comdisco, Inc. emerged as a wholly owned subsidiaryof Comdisco Holding. Since emerging from bankruptcy proceedings, the Company hasfocused on the monetization of its remaining assets. Prior to the bankruptcy, Comdisco, Inc.provided technology services worldwide to help its customers maximize technologyfunctionality, predictability and availability.Using Ben Graham Net Net Spreadsheet, the liquidationvalue looks to be worth

$8.38

while the current price is at$7.50. With most of the assets in cash, this would havebeen a pretty good liquidation play had the spread beenwider.Since the company emerged from bankruptcy in 2002, it

doesn’t seem like CDCO is in a hurry to sell the remaining

assets.$7.55NANANA9

COP

ConocoPhillipsConocoPhillips (ConocoPhillips) is an international, integrated energy company. TheCompany

s business is organized into six segments. Exploration and Production (E&P)

segment explores for, produces and markets crude oil, natural gas and natural gas liquids.Midstream segment gathers, processes and markets natural gas produced by ConocoPhillipsand others, and fractionates and markets natural gas liquids. Midstream segment consistsof its 50% equity investment in DCP Midstream, LLC. Refining and Marketing (R&M) segmentpurchases, refines, markets and transports crude oil and petroleum products. LUKOILInvestment segment consists of its equity investment in the ordinary shares of OAO LUKOIL.Chemicals segment manufactures and markets petrochemicals and plastics and consists of its 50% equity investment in Chevron Phillips Chemical Company LLC (CPChem). EmergingBusinesses segment includes the Company

s investment in new technologies or businesses

outside its scope of operations.* First time looking at the financials but now see fromthe rear view mirror why Buffett announced it was a bigmistake* COP lost a HUGE amount of money in 2008* Increased debt to $27 billion* Large impairments seem to be showing up eachquarter wiping out shareholders equity* Good FCF numbers except for 2008. Will normalize fordcf value below$45.83$64.00NAFair10

COST

Costco Wholesale CorpCostco Wholesale Corporation (Costco) operates membership warehouses-based offeringits members products in a range of merchandise categories. It buys the majority of itsmerchandise directly from manufacturers and route it to a cross-docking consolidationpoint (depot) or directly to its warehouses. The Company

s depots receive container-based

shipments from manufacturers and reallocate these goods for shipment to its individualwarehouses, generally in less than 24 hours. The Company

s warehouse format averages

approximately 140,000 square feet. Its warehouses operate on a seven-day, 69-hour week.It carries an average of approximately 4,000 active stockkeeping units (SKUs) per warehouse

* FCF isn’t as high as it used to be

* Rock solid margins - proves management is on top of their game* Inventory continues to churn at a faster rate* Average CROIC but somewhat consistent$57.06$39.00$47.00$37.00

http://www.oldschoolvalue.com

Warren Buffett Stock Portfolio Analysis - 2009 Q2 13-F

ETN

Eaton CorpEaton Corporation (Eaton) is a diversified power management company. The Company isengaged in the manufacturing of electrical components and systems for power quality,distribution and control; hydraulics components, systems and services for industrial andmobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial andmilitary use, and truck and automotive drivetrain and powertrain systems for performance,fuel economy and safety. In July 2009, the Company announced that Eaton's Automotiveand Truck Groups are being consolidated into one operating unit. The combinedorganization will be known as the Vehicle Group. On July 31, 2008, the Company acquired PKElectronics. On July 31, 2008, the Company completed the acquisition of the engine valvesbusiness of Kirloskar Oil Engines Limited. On October 2, 2008, the Company acquired IntegHolding Limited. In September 2009, Eaton acquired an additional 50% of the outstandingshares of Micro Innovation Holding AG.* Looking back at my previous ETN stock analysis, lookslike my assumptions were over conservative.* CROIC has been amazing past 10 years. Management isdoing a great job of using its cash.* Plenty of FCF* Debt level has been the same past few years* 8c from every dollar of sales converts down to thebottom line* Good margins prove the business can make moneyduring a hard recession* Regression of earnings compared over multipletimeframes is flat meaning that growth is coming fromother than organic business. Shown by the goodwillbalance which I also discussed in the previous ETN stockvaluation.$56.43$76.42$134.53Fair12

GCI

Gannett Co IncGannett Co., Inc. is an international news and information company. In the United States,the Company publishes 85 daily newspapers, including USA TODAY, and nearly 850 non-daily publications. Along with each of its daily newspapers, the Company operates Websitesoffering news, information and advertising that is customized for the market served andintegrated with its publishing operations. Newspaper publishing operations in the UnitedKingdom, operating as Newsquest, include 17 paid-for daily newspapers, almost 200 non-daily publications, locally integrated Websites and classified business Websites with nationalreach. The company has three principal business segments: publishing, digital andbroadcasting.* Horrific year in 2008* Huge impairments of goodwill and PP&E* Printing equipment would also be of little value if resold* Totally contrarian investment* Declining sales since 2006 and so has earnings* Amazing CROIC despite performance. Excellentmanagement* Business operations can generate FCF* Declining capex$8.11$30.47$33.21NA13

General Electric CoGeneral Electric Company (GE) is a diversified technology, media and financial servicescompany. Its products and services include aircraft engines, power generation, waterprocessing, security technology, medical imaging, business and consumer financing, mediacontent and industrial products. As of December 31, 2008, GE operated in five segments:Energy Infrastructure, Technology Infrastructure, NBC Universal, Capital Finance andConsumer & Industrial. In January 2009, the Company acquired Interbanca S.p.A., an Italiancorporate bank. In April 2008, Oil & Gas completed the acquisition of the Hydril PressureControls business from Tenaris. In September 2008, the Company announced the sale of its* Plenty of cash from all of its operations* High debt ratio and increasing past 2-3 years* Average CROIC of 3%* FCF/Sales is pretty good at 8%* Stable inventory turnover in line with past 10 years* Maybe a good company but not great$14.87$15.64$43.89$18.7514

GSK

GlaxosmithklineadrADR rep 2 ord shsGlaxoSmithKline plc (GSK) is a global healthcare group, which is engaged in the creation anddiscovery, development, manufacture and marketing of pharmaceutical products, includingvaccines, over-the-counter (OTC) medicines and health-related consumer products. GSK

principal pharmaceutical products include medicines in the therapeutic areas, such asrespiratory, central nervous system, anti-virals, anti-bacterials, metabolic, vaccines,cardiovascular and urogenital, oncology and emesis. It has operations in some 114 countriesand products sold in over 150 countries. The Company operates in two segments:Pharmaceuticals (prescription pharmaceuticals and vaccines) and Consumer Healthcare. OnOctober 14, 2008, it acquired the Egyptian mature products business of Bristol MyersSquibb Company (BMS). In July 2009, BMS' branded generics business, which comprises aportfolio of 13 branded pharmaceuticals was acquired by the Company. In July 2009, GSKacquired Stiefel Laboratories, Inc.* Lots of FCF but slow growth* Excellent CROIC above 30%. Able to make returns of over 30% from their use of cash.* Pharma companies also are able to drop the salesfigures directly to the FCF line* High margins and returns as expected from drugcompanies* Big drop is tangible shareholders equity due togoodwill fr0m acquisition activity$39.22$43.79NA$32.0015

Home Depot IncThe Home Depot, Inc.is a home improvement retailer. The Home Depot stores sell anassortment of building materials, home improvement and lawn and garden products, andprovide a number of services. The Home Depot stores average approximately 105,000square feet of enclosed space, with approximately 24,000 additional square feet of outsidegarden area. During the fiscal year ended February 1, 2009 (fiscal 2008), the Company had2,233 The Home Depot stores located throughout the United States, including theCommonwealth of Puerto Rico and the territories of the United States Virgin Islands andGuam, Canada, China and Mexico. On January 26, 2009, the Company announced the closingof its EXPO, THD Design Center and Yardbirds stores.* Struggled with the housing bust* Low growth* Slowed down opening new stores dramatically if youlook at capex further* Plenty of FCF* Average CROIC, FCF/Sales, Revenue growth, earninggrowth$27.38$27.23$26.39$25.0016

Ingersoll-Rand plcIngersoll-Rand plc, formerly Ingersoll-Rand Company Limited, along with its subsidiaries, is adiversified, global company that provides products, services and solutions to enhance thequality of air in homes and buildings, transport and protect food and perishables, securehomes and commercial properties, and enhance industrial productivity. The Company hasfour segments: Air Conditioning Systems and Services, Climate Control Technologies,Industrial Technologies and Security Technologies. The Company generates revenueprimarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include brand names, such as Club Car, Hussmann,Ingersoll-Rand, Schlage, Thermo King and Trane. On June 5, 2008, the Company completedthe acquisition of Trane Inc.* Big increase in goodwill in 2008* FCF positive yet erratic at times. Median of 11% FCFgrowth* Excellent CROIC. Buffett sure does a good job of picking effective management at the helm* Consistency in ROA and ROE when looking at multipletimeframes* Revenue growth on the low side$31.78$20.00$51.30Fair17

IRM

Iron Mountain IncIron Mountain Incorporated (IMI) provides information protection and storage services.These services can be divided into three service categories: records management services,data protection and recovery services, and information destruction services. The Companyoffers both physical services and technology solutions in each of these categories. Mediaformats can be divided into physical and electronic records. Physical records include paperdocuments, as well as all other non-electronic media such as microfilm and microfiche,master audio and videotapes, film, X-rays and blueprints. Electronic records include emailand various forms of magnetic media such as computer tapes and hard drives and optical-* Lost more FCF than it made throughout the past 10years* None or very low FCF growth, CROIC, returns

* Steady increase in sales but can’t convert it to FCF* Doesn’t look like a Buffett pick at all

$28.10NA$20.79$13.4018

JNJ

Johnson & JohnsonJohnson & Johnson is engaged in the research and development, manufacture and sale of arange of products in the healthcare field. Johnson & Johnson has more than 250 operatingcompanies. The Company operates in three segments. The Consumer segment includes arange of products used in the baby care, skin care, oral care, wound care and women

healthcare fields, as well as nutritional and over-the-counter pharmaceutical products. ThePharmaceutical segment includes products in the therapeutic areas, such as anti-infective,antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology,immunology, neurology, oncology, pain management, urology and virology. The MedicalGood to excellent everything as I mentioned in the JNJanalysis.$60.92$70.27$109.84Fair19

KFT

Kraft Foods IncKraft Foods Inc. (Kraft) is engaged in manufacturing and marketing packaged food products,including snacks, beverages, cheese, convenient meals and various packaged groceryproducts. During the year ended December 31, 2008, the Company have operations in morethan 70 countries and sell the products in approximately 150 countries. The Companymanages and operates, through two commercial units: Kraft North America and KraftInternational. Kraft North America operates in the United States and Canada. On August 4,2008, the Company completed the spin-off of its post cereals business. The brands of theCompany span five consumer sectors: snacks, beverages, cheese, grocery and convenientmeals.* Margins decreasing for more than 7 years straight* Inventory turnover has been improving* No FCF growth* Makes 22c of every $1 invested (CROIC=22%)* Growth is minimal* Increasing debt$26.85NA$19.96$24.0020

LOW

Lowe's Companies IncLowe

s Companies, Inc. is a home improvement retailer. As of January 30, 2009, the

Company operated 1,638 stores across 50 states and 11 stores in Canada. Its 1,649 storesrepresent approximately 187 million square feet of retail selling space. The Company serveshomeowners, renters and commercial business customers. Homeowners and rentersprimarily consist of do-it-yourself (DIY) customers and do-it-for-me (DIFM) customers whoutilize the Company

s installed sales programs, as well as others buying for personal and

family use. Commercial business customers include those who work in the construction,repair/remodel, commercial and residential property management, and businessmaintenance professions. The Company offers a line of products and services for homedecorating, maintenance, repair, remodeling and property maintenance.* Better growth opportunity that Home Depot* Good FCF growth but CROIC is very low at 2%. Betterthan nothing but not effective with utilizing capital.* Good revenue and earnings growth* Gross margins increasing to date* Debt down to average levels* Tangible book value increasing* ROE and ROA declining past 2 years* Sales flat since 2007* The macro idea that people will continue to repair and

improve houses still doesn’t work well in a recession.

* If I had to choose LOW or HD, I would go for LOW. Orbe like Buffett and get both.$21.72$18.91$52.66$22.00

MTB

M&T Bank CorpM&T Bank Corporation (M&T) is a bank holding company. As of December 31, 2008, theCompany had two wholly owned bank subsidiaries: M&T Bank and M&T Bank, NationalAssociation (M&T Bank, N.A.). The Banks offer a range of commercial banking, trust andinvestment services to its customers. M&T Bank operates branch offices in New York,Maryland, Pennsylvania, Delaware, New Jersey, Virginia, West Virginia and the District of Columbia. M&T operates in six segments: Business Banking, Commercial Banking,(Financials are outside my circle of competence)$59.0022

MCO

Moody's CorpMoody

s Corporation (Moodys) is a provider of credit ratings and related research, data

and analytical tools, quantitative credit risk measures, risk scoring software, and creditportfolio management solutions and securities pricing software and valuation models. TheCompany operates in two segments: Moody

s Investors Service (MIS) and Moodys

Analytics (MA). The MIS segment publishes credit ratings on a range of debt obligations andthe entities that issue such obligations in markets worldwide, including various corporate(Financials are outside my circle of competence)$24.5523

NRG

NRG Energy IncNRG Energy, Inc. (NRG) is a wholesale power generation company. NRG is engaged in theownership, development, construction and operation of power generation facilities, thetransacting in and trading of fuel and transportation services, and the trading of energy,capacity and related products in the United States and select international markets. As of December 31, 2008, NRG had a total portfolio of 189 active operating generation units at 48power generation plants, with an aggregate generation capacity of approximately 24,005megawatt, and approximately 550 megawatt under construction, which includes partners

interests of 275 megawatt. In addition, NRG has ownership interests in two wind farmsrepresenting an aggregate generation capacity of 270 megawatt, which includes partnerinterests of 75 megawatt. On April 28, 2008, NRG completed the sale of its 100% interest inTosli Acquisition B.V. In May 2009, Reliant Energy, Inc. completed the sale of its Texas retailbusiness to NRG.* Had a big year in 2008* Big margins increase in 2008 and since 2005* Increase in short term and long term debt* Company is able to make money but its returns are onthe low side.* Mean ROA and CROIC of 2.7% and 5% respectively.Lower than competition

* FCF isn’t consistent.

* Huge increase in capex in 2008* Large amount of taxes deferred.* Still converts 12% of sales into FCF$26.70$37.11$34.00$58.0024

NLC

Nalco Holding CoNalco Holding Company (Nalco) is the provider of integrated water treatment applicationsto prevent corrosion, contamination and the buildup of harmful deposits. The Company hasa sales and service team of 7,000 technically trained professionals serving more than 70,000customers in a range of end markets, including aerospace, chemical, pharmaceutical,petroleum, steel, power, food and beverage, medium and light manufacturing, marine andpulp and papermaking industries as well as institutions such as hospitals, universities andhotels. Nalco operates in three business segments: industrial and institutional services,energy services and paper services.* Needs to improve efficiency. 40+% margins but

negative net income or low single digits at best isn’t good

* Decrease in intangibles suggests bad acquisitions andmistakes by management* Long term debt is steady* Been buying back stock

* FCF isn’t reliable. Lots of cash come from “other”

income* Low returns, cash and earnings growth

* Doesn’t look like something Buffett would buy

$17.83NANA$22.0025

NKE

NIKE IncNIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing of footwear, apparel, equipment, and accessory products. NIKE sells athletic footwear andathletic apparel. It sells its products to retail accounts, through NIKE-owned retail, includingstores and Internet sales, and through a mix of independent distributors and licensees, inover 170 countries around the world. Running, training, basketball, soccer, sport-inspiredcasual shoes, and Kid

s shoes are its footwear categories. It also markets shoes designed

for aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities,skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreationaluses. It sells a line of performance equipment under the NIKE brand name, including bags,socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protectiveequipment, golf clubs, and other equipment designed for sports activities.* Great company, leader, innovator, huge moat* Drop in margins in 2008 but increased inventoryturnover* Low debt with plenty of cash* Can pay off debt with FCF easily

* Don’t have to go in detail with numbers. They are just

too good.$55.35$65.00$77.00$56.0026

NSC

Norfolk Southern CorpNorfolk Southern Corporation (Norfolk Southern) controls a freight railroad, NorfolkSouthern Railway Company. Norfolk Southern Railway Company is primarily engaged in therail transportation of raw materials, intermediate products and finished goods primarily inthe southeast, east and Midwest and, via interchange with rail carriers, to and from the restof the United States. Norfolk Southern also transports overseas freight through severalAtlantic and Gulf Coast ports. The Company provides logistics services and offers anintermodal network in the eastern half of the United States. Norfolk Southern and CSXCorporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary isConsolidated Rail Corporation (CRC).* Looks to be a better company than BNI* Good top line growth* Decrease in gross profit but managed to increase netmargins* Lots of FCF and excellent FCF growth* Low end for CROIC at 4%* Debt can be handled with FCF rather than taking onadditional debt$48.39$61.00$120.00$54.0027

Procter & Gamble CoThe Procter & Gamble Company (P&G) is focused on providing branded consumer packagedgoods. The Company

s products are sold in over 180 countries worldwide primarily through

mass merchandisers, grocery stores, membership club stores, drug stores and in high-frequency stores, the neighborhood stores, which serve consumers in developing markets.As of June 30, 2009, the Company was organized into three Global Business Units: Beauty;Health and Well-Being, and Household Care. The Company had six business segments underUnited States Generally Accepted Accounting Principles (GAAP): Beauty; Grooming; HealthCare; Snacks and Pet Care; Fabric Care and Home Care, and Baby Care and Family Care. InAugust 2009, AnimalScan, LLC announced that it has acquired Iams Pet Imaging, LLC fromThe Procter & Gamble Company and ProScan Imaging. In November 2008, the Companycompleted the divestiture of its Coffee business through the merger of its Folgers coffeesubsidiary into The J.M. Smucker Company.* Wrote about PG briefly in the Best Stocks to retire list* FCF growth above 18%* CROIC at 60%! Mindblowing.* Only negative is big drops in tangible shareholdersequity* Stable margins. Net margins even increased in 2008* Good stable dividend$53.76$76.00$97.00$67.0028

SNY

Sanofi Aventis ADREach Representing OneHalf Of One Ord ShsSanofi-Aventis is a pharmaceutical group engaged in the research, development,manufacture and marketing of healthcare products. The Company's business includes twomain activities: pharmaceuticals and human vaccines through sanofi pasteur. In itspharmaceutical activity, Sanofi-Aventis specializes in six therapeutic areas: thrombosis,cardiovascular, metabolic disorders, oncology, central nervous system (CNS) and internalmedicine. The Company offers vaccines in five areas: pediatric combination vaccines,influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and traveland endemic vaccines. On September 1, 2008, Sanofi-Aventis acquired the Australiancompany, Symbion CP Holdings Pty Ltd (Symbion Consumer). On September 25, 2008, itacquired Acambis plc. In January 2009, the Company sold its French plant of Colomiers toFrench pharmaceutical company Unither. In April 2009, the Company acquired Mexicangeneric company, Laboratorios Kendrick.# Stats look good but some metrics are quite erratic# FCF growth is up and down

# Top line isn’t so consistent

# FCF and earnings growth is relatively low# Has outstanding returns and converts it to plenty of FCF# Debt is not an issue$34.58$47.00$18.00$36.0029

STI

SunTrust Banks IncSunTrust Banks, Inc. is a diversified financial services holding company whose businessesprovide a range of financial services to consumer and corporate clients. The Companyoperates in four business segments: retail and commercial, wholesale banking, mortgage,and wealth and investment management. On May 1, 2008, the Company completed theacquisition of GB&T Bancshares, Inc. (GB&T). On May 30, 2008, the Company sold itsinterests in First Mercantile Trust Company (First Mercantile), a retirement plan services(Financials are outside my circle of competence)$21.1330

TMK

Torchmark CorpTorchmark Corporation (Torchmark) is an insurance holding company. Torchmark throughits subsidiaries provides a variety of life and health insurance products and annuities to abroad base of customers. Torchmark is the holding company for a group of insurancecompanies, which market primarily individual life and supplemental health insurance, and toa limited extent annuities, to middle income households throughout the United States. Itsprimary subsidiaries are American Income Life Insurance Company (American Income),(Financials are outside my circle of competence)$42.33