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Americas Morning Summary
October 13, 2009
For further product information,contact:
New York Investment Research
(212) 902-1000Analysts employed by non-USaffiliates are not registered/qualifiedas research analysts with FINRA inthe U.S.
Global Investment Research
The Goldman Sachs Group, Inc. does and seeks to do business with companies covered in its researchreports. As a result, investors should be aware that the firm may have a conflict of interest that couldaffect the objectivity of this report. Investors should consider this report as only a single factor in makingtheir investment decision. For Reg AC certification, see the end of the text. Other important disclosuresfollow the Reg AC certification, or go to www.gs.com/research/hedge.html.
The Goldman Sachs Group, Inc.
This document contains commentsrelated to the following stocks:Amazon.com Inc. (AMZN)Baidu.com, Inc. (BIDU)BWAY Holding Co. (BWY)Citrix Systems Inc. (CTXS)EarthLink, Inc. (ELNK)eBay Inc. (EBAY)Expedia Inc. (EXPE)Google Inc. (GOOG)GSI Commerce, Inc. (GSIC)Healthways, Inc. (HWAY)IAC/InterActiveCorp (IACI)Impax Laboratories, Inc. (IPXL)Jarden Corp. (JAH)Medicis Pharmaceutical Corp.(MRX)Monster Worldwide, Inc. (MWW)NuVasive, Inc. (NUVA)1-800-FLOWERS.COM, Inc.(FLWS)Onyx Pharmaceuticals, Inc. (ONXX)Oracle Corp. (ORCL)Orbitz Worldwide, Inc. (OWW)PETsMART, Inc. (PETM)Priceline.com Incorporated (PCLN)Quest Software, Inc. (QSFT)RealNetworks, Inc. (RNWK)salesforce.com, Inc. (CRM)VistaPrint N.V. (VPRT)VMware, Inc. (VMW)Wal-Mart de Mexico(WALMEXV.MX)Wal-Mart de Mexico (WMMVY)WebMD Health Corp. (WBMD)Yahoo! Inc. (YHOO)
Focus Items
Americas Research Roundtable: A perfect storm for M&A
1
United States: Specialty Finance: Consumer Finance: UDAPtation
2
Americas: Healthcare: Top small cap healthcare ideas: Buy NUVA, MRX, IPXL
3
Americas: Technology: Internet: 3Q2009 Outlook: Positive on sequentialimprovements since June
4
eBay Inc. (EBAY): Raising estimates on better selling prices and less negative FX
5
Key Data Changes
Investment List Removals
Company Ticker Investment List Removals
VistaPrint N.V.VPRT Americas Buy List
Rating and price target changes
Rating/Coverage viewPrice Target EstimatesCompany Ticker New Old New Old % chg Current YearNext YearFiscal y/e
Amazon.com Inc.AMZN B/A unch
↑
$106.00$103.00 2.9% $2.47 $3.07 DeceBay Inc.EBAY N/A unch
↑
$25.00 $20.50 22.0% $1.54 $1.59 DecExpedia Inc.EXPE N/N unch
↑
$26.00 $22.00 18.2% $1.29 $1.57 DecIAC/InterActiveCorpIACI N/N unch
↑
$20.00 $19.00 5.3% $0.34 $0.62 Dec1-800-FLOWERS.COM, Inc.FLWS S/N unch
↑
$3.00 $2.05 46.3% $0.19 $0.21 JunOnyx Pharmaceuticals, Inc.ONXX N/N unch
↓
$33.00 $36.00 (8.3%) $0.60 $0.70 DecPriceline.com IncorporatedPCLN B/N unch
↑
$210.00$176.00 19.3% $7.72 $9.18 DecVistaPrint N.V.VPRT
↓
N/N B/N
↑
$52.00 $47.00 10.6% $1.95 $2.33 JunWal-Mart de MexicoWALMEXV.MXN/A unch
↑
P$50.75P$48.50 4.6% P$2.00 P$2.42 DecWal-Mart de MexicoWMMVY N/A unch
↑
$39.50 $37.60 5.1% P$20.02 P$24.24 Dec
Estimate changes
Current Year Next Year Company Ticker Rating/CoverageviewNew Old % chg New Old % chgFiscaly/e
Amazon.com Inc.AMZN B/A
↑
$2.47 $2.46 0.5%
↑
$3.07 $3.05 0.6% DeceBay Inc.EBAY N/A
↑
$1.54 $1.53 0.5%
↑
$1.59 $1.56 2.0% DecExpedia Inc.EXPE N/N
↑
$1.29 $1.25 3.6%
↑
$1.57 $1.45 7.6% DecGSI Commerce, Inc.GSIC N/N $0.44 unch --
↓
$0.58 $0.59 (2.7%) DecOnyx Pharmaceuticals,ONXX N/N
↓
$0.60 $0.78 (23.6%)
↓
$0.70 $1.44 (51.0%)Dec
 
 
Inc.Wal-Mart de MexicoWALMEXV.MXN/A
↑
P$2.00 P$1.97 1.7%
↑
P$2.42 P$2.36 2.7% DecWal-Mart de MexicoWMMVY N/A
↑
P$20.02P$19.691.7%
↑
P$24.24 P$23.592.7% Dec
Other Headlines
Consumer Cyclicals
PETsMART, Inc. (PETM): PETM analyst day preview: worst of the dog days likely behind us 6Wal-Mart de Mexico (WALMEXV.MX): Steady build-out of market leadership reflected invaluation7
Consumer Staples
Jarden Corp. (JAH): Learnings from Earnings: 4 positive early-October JAH data points 8
Healthcare
Onyx Pharmaceuticals, Inc. (ONXX): Proteolix acquisition could boost pipeline. Reduce TP by $3to $339Healthways, Inc. (HWAY): Terminating coverage 10
Industrials
BWAY Holding Co. (BWY): FY2009 FCF to exceed prior guidance; acquires plastic pail facility 11
Technology
Americas: Technology: Internet: Internet Notables 12Americas: Technology: Software: OpenWorld Day 1: Focus on integrated stack; demandimproving13
 
Americas Morning Summary October 13, 2009Goldman Sachs Global Investment Research
Focus Items
Americas Research Roundtable: A perfect storm for M&A 1
 
Anthony Carpet
(New York): anthony.carpet@gs.com, (212) 902-6758Goldman, Sachs & Co.
Laura Conigliaro
(New York): laura.conigliaro@gs.com, (212) 902-5926Goldman, Sachs & Co.
Robert D. Boroujerdi
(New York): robert.boroujerdi@gs.com, (212) 902-9158Goldman, Sachs & Co.
Daniel Harris, CFA
(New York): daniel.harris@gs.com, (212) 357-7512Goldman, Sachs & Co.
Marc Irizarry
(New York): marc.irizarry@gs.com, (212) 902-4175Goldman, Sachs & Co.
Deep Mehta
(Bangalore): deep.mehta@gs.com, (212) 934-6322Goldman Sachs India SPL
Monetizing the M&A revival
 In this report we take a deep dive into M&A in light of the current environment. In addition to identifying abasket of the highest probability M&A targets within our coverage (GSRHACQN) we have selected a set of names that either facilitate, benefit or have the highest potential value as targets. Included are CL-Buy-ratedBlackstone, Citrix, Lazard and WellCare as well as Buy-rated Devon Energy, Health Net and Red Hat.
Capital markets increasingly open
 More benign and accommodative capital markets should provide a solid underpinning for M&A activity givenstrong correlations to the price of credit. We see tightening spreads and increased issuance as the keycornerstones for M&A, private equity and LBO activity.
Drivers are in place
 While 2008 and 2009 YTD have been weak periods for M&A activity, we believe that a combination of risingglobal GDP, improving equity sentiment and CEO confidence augur a significant pickup in M&A into 2010.
Valuation inexpensive, IRRs compelling
 Despite the rally off March lows, stocks look inexpensive relative to historical deal multiples. Over 40% of our covered universe (excluding financials) has 2010 P/E values in the bottom quintile relative to their 10-year history, with close to 25% in the bottom decile historically.
Cash-rich balance sheets ripe for use
 Companies accumulated historically high cash balances over the past twelve months as they sought stabilityin the face of an uncertain macroeconomic environment. For our covered universe, ex-financials, totalcash/EV has gone from 5.7% in 4Q07 to 9.0% as of 2Q09.
Private equity likely to thaw
 While capital formation for new private equity funds remains challenged, we are encouraged by an estimated$0.5 trillion in "dry powder" available during a period of historically strong returns (IRRs of P/E vintagesformed around market disruptions average 1,000-bp-higher returns) and an expected uptick in harvestingactivity and LP distributions (sponsor backed IPOs filings highest since 2Q08).
United States: Specialty Finance: Consumer Finance: UDAPtation 2
 
Brian Foran
(New York): brian.foran@gs.com, (212) 855-9908Goldman, Sachs & Co.
Richard Ramsden
(New York): richard.ramsden@gs.com, (212) 357-9981Goldman, Sachs & Co.
Adriana Kalova
(New York): adriana.kalova@gs.com, (212) 902-1913Goldman, Sachs & Co.
Quan Mai
(New York): quan.mai@gs.com, (212) 357-4371Goldman, Sachs & Co.
Cards—adapting to the new world order 
 The card industry is undergoing UDAPtation—i.e., adapting to a new environment where fees are regulated(UDAP) and legislated (CARD Act). The outlook may be more positive than investors appreciate, given
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