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ValuEngine Detailed Valuation Report for RHT

ValuEngine Detailed Valuation Report for RHT

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Published by ValuEngine.com
Advanced academic research that brings you superior investment strategies in an actionable format. The most comprehensive and useful report available. ValuEngine's three models: Valuation Model, Forecast Model and Ratings Model are incorporated to give you a well-rounded analysis from three different perspectives. Consensus EPS trend and Earnings Surprise statistics provide additional insights. Also, detailed Company Profile, ValuEngine Fair Valuation; 1-3-6 month and 1-2-3 yr forecasts, ValuEngine 1-5 Engine Rating, Multi-stock comparison, Financials, Earnings Estimates, Risk Assessment, Data Summary and much more.
Advanced academic research that brings you superior investment strategies in an actionable format. The most comprehensive and useful report available. ValuEngine's three models: Valuation Model, Forecast Model and Ratings Model are incorporated to give you a well-rounded analysis from three different perspectives. Consensus EPS trend and Earnings Surprise statistics provide additional insights. Also, detailed Company Profile, ValuEngine Fair Valuation; 1-3-6 month and 1-2-3 yr forecasts, ValuEngine 1-5 Engine Rating, Multi-stock comparison, Financials, Earnings Estimates, Risk Assessment, Data Summary and much more.

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52 4.80% -4. For RHT.84 38. and Long-term price reversals. Our forecasting models capture. We use a distinct forecasting model for each time horizon and for every industry.01 37. (800) 381-5576 (T) support@ValuEngine.ValuEngine.16 $24.73. The ratings are the result of the cumulative of the above factors. 2009.84 164.S. with average annualized returns from Jan. 2009 RED HAT INC(RHT) VALUENGINE RECOMMENDATION & BASIC INFORMATION RECOMMENDATION negative SELL neutral HOLD positive BUY 3 0 ©ValuEngine. 2000 through Jan.16 30. The company exhibits ATTRACTIVE company size and momentum.79 n/a 7. among other things.35% FORECASTED TARGET PRICES The predictive variables used in Valuengine's forecast target price models include both proprietary and well-established forecasting variables derived from credible financial research studies and publications. Market capitalization Only two percent of the over 4. 2nd Floor Princeton. we base this on actual earnings per share (EPS) for the previous four quarters of $0.A.VgluEngine TM DETAILED RESEARCH REPORT Dec. BASIC INFORMATION Last Trade Trade Date Market Cap(bil) Trailing P/E Forward P/E PEG Ratio P/S Ratio M/B Ratio Sharpe Ratio 5-Y Avg Ann Return Volatility EPS Growth Annual Dividend Dividend Yield LT Debt/Equity Beta VALUATION ANALYSIS RHT Industry Sector Today's Fair value: $21.22 10. There are an additional 10 firm specific and interest rate related parameters.2009 ValuEngine Inc 1 . Fair market valuation 2. we believe that RHT should be trading at $21. We then apply the most advanced statistical/econometric techniques to ensure that our stock return forecasts are as reliable as possible. 100 Overlook Center.00 1.19 Rank btm 47% btm 14% btm 36% btm 47% top 12% top 11% 5 0 2005 2006 2007 Model Price 2008 Volume 2009 Sell Hold 5 2010 Buy Close Price VALUENGINE RECOMMENDATION ValuEngine has issued a HOLD recommendation for RED HAT INC on Dec.62 12/03/09 $5.52% overvalued Software And Edp Services 6.97 Exp. Price/Earnings ratio 4. NJ 08540.com www. we feel that RED HAT INC has the probability to ROUGHLY MATCH average market performance for the next year. 2009.73 0.12 $26. 1 year forecasted returns 3. FAIR MARKET VALUATION PRICE Based on available data as of Dec. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. stocks with relatively poor results for any one of the five variables can still be attractive if the other four factors are strong enough.12% -2.25% undervalued $27. This makes RHT 30. As such. U. each playing a role in the valuation analysis.16.33%. and correlations to the 30year Treasury bond yield of 4. It combines the following five factors: 1. Based on the information we have gathered and our resulting research.30 $24.47% n/a n/a 0.91% 49. Inc.com Copyright © 1998 . 04.18637 37. forecasted EPS for the next four quarters of $0.93% -8.01 $25.4 RATING OVERVIEW The ValuEngine Rating is an overall assessment of a stock's attractiveness. Momentum 5. 04. several important tendencies that stock prices consistently exhibit: Short-term price reversals.26 $25.000 stocks that we cover receive the highest 5 rating. 04. 2006 of over 30% per year. but UNATTRACTIVE market/book ratio and market valuation. Return -1. Contact ValuEngine: ValuEngine.39% -13.71.45 $26.com 2009 25 40 35 30 25 20 15 10 Volume (million) VALUENGINE RATING Price 20 15 10 RECOMMENDATION FACTORS Value Overall Rank Fair Value 1Yr Target Price P/E Ratio Last 1-Y Return Market Cap(bil) $21. Intermediate-term momentum continuation. FORECAST ANALYSIS 1-Month 3-Month 6-Month 1-Year 2-Year 3-Year Target Price $27.84% -2.06% -7.52% overvalued. Top 5 rated stocks can be expected to outperform the overall market by 15% or more.05% $5.99% undervalued Technology 10.

RHT's current price sales ratio is 7.73 per share in its recent 4 quarters. Each of these quantitative measurements is ranked on a scale of 1 to 100.05% 10. divided by the consensus analyst forecasted next year EPS growth). we present such a valuation based on one of three market ratios: PEG (price to trailing 4 quarter earnings ratio. and (ii) the average market ratio today of five comparable stocks in the same sector and from companies of similar size. ERTS. The analyst consensus estimate is $0.8 15.54 39.84 22.52.84 Rank 14 89 87 56 16 90 84 16 11 47 EVALUATION & RANKINGS SUMMARY Just as important as the percentages shown for our ten predictive variables for each stock is the way they are ranked against the 7000 plus stocks in our database. P/E (price to forward 4 quarter earnings ratio). RHT earned $0. the best time to buy would be below $2.73 per share in its recent 4 quarters. For each given stock.71 for its 4-quarterforward EPS. On this page. The best time to sell would be above $32.52 4.52% 164. If its forecasted EPS growth is negative but its forward 4 quarter EPS is positive. RHT's current price sales ratio is 7.38 Fair Value Comparable Stocks' Avg PE Comparable PE-Based Fair Value 21. Based solely on the Historical Mispricing of RHT. In other words a high rank is always better. we resort to the P/S to assess its fair value. Among the three. Generally the higher the ranking.22 7.VgluEngine OPTIMAL BUY-SELL TM DETAILED RESEARCH REPORT RED HAT INC(RHT) DATA SUMMARY & MARKET RATIO BASED VALUATION MARKET RATIO BASED VALUATION Portfolio managers and professionals traditionally rely on market ratios to gauge whether a stock is fair valued or overvalued.71 for its 4 quarter forward EPS. Comparables' PE Comparables ACS ERTS IRM MFE VMW Current PE 12.9 $67.9.12% -2. These two alternative perspectives should give you a good idea about where this stock's valuation stands today. RHT's average PE is 94. the more positive the influence each measurement has on the overall attractiveness of the stock. The following assessment is based on multiplying the historical PE with next 4 quarter EPS for RHT.00%).57 2. while P/E is better than P/S. we apply the PEG to give a fair value assessment if both its trailing 4 quarter EPS and forecasted EPS growth rate are positive. Let's take them one by one: • Valuation rank 14: 86% of stocks are more undervalued • Momentum rank 89: 11% of stocks have higher momentum • Sharpe Ratio rank 84: 16% of stocks have a higher Sharpe Ratio • 5-Year Average Annual Return 87: 13% of stocks have higher average annual return • Volatility rank 56: 44% of stocks have less volatility • EPS growth rank 16: 84% of stocks have greater projected EPS growth • Size rank 90: 10% of companies have higher market capitalization • P/E rank 47: 53% of stocks have lower P/E ratios • Price/Sales rank 16: 84% of stocks have lower price/sales ratios • Market/Book rank 11: 89% of stocks have lower market/book value ratios 1. RHT earned $0.00%). we apply the P/E to give a fair value for the stock as of today.91% 49.16 (or valuation above 52. PEG is the most informative as it reflects both the price/earnings ratio and expected future EPS growth.2009 ValuEngine Inc 2 . The current PE average of these comparables is 21. MFE and VMW. This is sometimes confusing to newcomers to ValuEngine. The analyst consensus estimate is $0.52.47% 5.33 (or valuation below 89.00 Copyright © 1998 . Valuation Based on RHT's Past PE Over the past 10 years. Fair Value Historical Average PE PE-Based Fair Value 94. Valuation Based on Comparables' PE RHT's comparables are ACS. we use both (i) the average historical market ratio of the stock over the past 10 years (or however long there is data available for the stock). Otherwise.07. and P/S ratio (price to trailing 4 quarter sales).19 0. The following assessment is based on multiplying comparable stocks' average PE today with RHT's next 4 quarter EPS. EVALUATION & RANKINGS Valuation 12-Month Return 5-Y Avg Ann Rtn Volatility EPS Growth Market Cap(bill) Sharpe Ratio P/S Ratio M/B Ratio P/E Ratio Value 30.07 $15.73 37.8 14. To establish a valuation standard. IRM.

JBoss Enterprise Middleware JBoss Enterprise Middleware provides a suite of products for developing.. JBoss Enterprise Portal Platform—provides a Java-based platform for deploying standards-based portals. Red Hat Global File System—is an enterprise-strength clustered file system for Linux. and Sun Microsystems. JBoss Enterprise SOA Platform—provides the environment for deploying and integrating SOAs and business processes. (CA). and Red Hat Enterprise Linux Desktop—a next generation open source desktop offering. Red Hat Enterprise Linux. including the Linux kernel. . provides open source software solutions to the enterprise. Inc. one-hour response. Red Hat Global File System and Red Hat Cluster Suite. including: support for a range of ISV applications from vendors. Red Hat Cluster Suite—features clustering and uses application fail-over technology. SAP AG (SAP). JBoss Enterprise Middleware. Hewlett-Packard Company (HP). improving resource management and flexibility through live migration. high availability and clustering. as well as directory server services. available both from Red Hat and selected independent software vendor (ISV)/ original equipment manufacturer (OEM) partners. CA. and virtualization capability incorporated into the core operating system. including Dell Inc.2009 ValuEngine Inc 3 deployed on various operating systems and support a distributed. service offerings. Certification on multiple architectures and OEM platforms. (Sun). its virtualization solutions. Red Hat Enterprise Linux is generally offered in three configurations: Red Hat Enterprise Linux—a base product server with virtualization support. Inc. reusable and open standards-based ‘Service Oriented Architecture (SOA)’ deployment for applications and data. atability based upon 18-24 month version upgrade cycles on a when and if available basis and multiyear support lifecycle. (Sybase) and Symantec Corporation (Symantec). jBPM. JBoss Developer Studio—provides an Eclipse-based application development environment for developing Java applications and development tools for building Web-based applications. Sybase. and directory services. Red Hat Enterprise Linux and Red Hat Desktop technologies Red Hat Enterprise Linux is an operating system built from various open source software packages. JBoss Rules and its JBoss Enterprise Application Platform technologies. professional consulting services. including virtualization. Ltd (Hitachi). a realtime kernel with predictable performance and grid management tools for distributed computing solutions. The company offers a choice of operating systems and virtualization options for servers. Red Hat Messaging. Inc. clusters of Linux systems and storage. including: JBoss Enterprise Application Platform—provides the environment for building. IBM. HP. work stations and desktops that support multiple application areas. a suite of products based on open standards that enables interoperation of systems from the technical/developer workstation to the data center. The company also provides enterprise-ready open source operating system platforms. The company also provides other infrastructure enterprise technologies. JBoss products are based on the Java programming language. Hibernate. such as BMC Software. Additional Red Hat enterprise technologies Red Hat enterprise technologies also include other technology infrastructure. International Business Machines Corporation (IBM). It includes JBoss Application Server. JBoss Messaging and JBoss Web services. ERP and Web servers). authentication of users. training. clustering of systems and services. Fujitsu Limited (Fujitsu). Realtime and Grid—integrates open and scalable messaging. including software development tools. and other Red Hat enterprise technologies. edge-of-the-network applications. Fujitsu Siemens Computers (Holding) BV (Fujitsu Siemens). Red Hat Enterprise Linux delivers the features required for commercial deployments. corporate desktop and technical/developer workstation. its enterprise middleware platform. cloud computing and bare-metal mission-critical applications. are Copyright © 1998 . dynamic resource allocation. The company’s services offerings. JBoss Cache. Red Hat Enterprise Linux Advanced Platform—a solution bundle that includes Red Hat Enterprise Linux. Hitachi. which is designed to enable high-availability application environments. . deploying. principally directed toward its medium and large enterprise customers and hardware providers. including software for software development. Inc. designed for commercial and technical computing applications requiring access to shared data. information technology infrastructure (applications. (BMC). with up to 24x7. MetaMatrix Data Services Platform—provides an environment integrating distributed data sources and provides for data federation. These applications include: Red Hat’s Enterprise Virtualization Products—allow customers to use one common infrastructure to run multiple operating systems and applications. include technical support and maintenance. composite and Web-based applications and services. Products and Services The company's software solutions include its core enterprise operating system platform. Inc. and is designed expressly for enterprise computing. engineering services and hardware certification. Seam. NEC Corporation (NEC). integrating and managing distributed. It includes JBoss Enterprise Service Bus.VgluEngine COMPANY ANALYSIS TM DETAILED RESEARCH REPORT RED HAT INC(RHT) Red Hat. data abstraction. more description. JBoss Enterprise Middleware offerings consist of various deployment platforms and development frameworks. hosting and deploying Java-based applications and services. JBoss Transactions.. (Dell). Red Hat Developer Subscriptions—provide integrated development environments for application developers. including the data center. such as database. data transformation and metadata management. Oracle Corporation (Oracle).

Sector 71.01 25. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Valuation Rank The ValuEngine Valuation Rank measures the relationship between a RHT 30. RHT is significantly higher than the industry. On a scale of 1 to Industry 63. S&P 500 n/a n/a -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Market Cap(bill) Rank The ValuEngine Size rank signifies the company's size in terms of RHT 5.99% 52 rank.52 16 company based on its P/S ratio. A higher Volatility Rank indicates a lower volatile percentile of Industry 65.2009 ValuEngine Inc . sector. The higher the Valuation Industry -6. Sector -10.13 52 (over the last five years) divided by its annualized volatility over the Sector -0.12 21. which S&P 500 -1. Stocks with the lowest P/S ratio are Industry 3. RHT has a Volatility Rank of 56. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5-Y Avg Ann Rtn Rank The ValuEngine 5-Years Average Return Rank reflects a stock's RHT 10. RHT has a Market/Book rank of 11. A higher rank corresponds to a lower Industry 3. which is in line with the Sector 66. At a Price/Sales rank of 16.06% 44 industry Rank of 47. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 12-Month Return Rank The ValuEngine 12-Month Return Rank reflects the relative stock RHT 164. RHT is significantly higher than the industry. With a Size rank of Sector 2.25% 56 RHT is substantially lower than the average of its industry group.84% 60 has a rank of 53.11 50 ranked 1. RHT is significantly higher than the S&P 500 -0. With a rank of 84. S&P 500 n/a n/a -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P/E Ratio RHT Industry Sector S&P 500 37. which has a rank of S&P 500 n/a n/a 45.47% 16 growth rate. In other words a high rank is always better. Each of these quantitative measurements is ranked on a scale of 1 to 100. A higher rank indicates a better return performance. the more positive the influence each measurement has on the overall attractiveness of the stock.79% 53 100.22 84 offered by a stock.35% 47 With a rank of 87.1 55 industry. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Volatility Rank The ValuEngine Volatility Rank reflects the volatility associated with the RHT 49.This is substantially lower than the Sector 67.21 47 same 5 years. A higher rank denotes a larger market Industry 3. Stocks in the top P/E percentile are each assigned a rank of 1(highest P/E stocks) while those in the bottom P/E percentile are assigned a rank of 100 (traditional value stocks).88 41 moderately lower than the industry rank of 35.15 35 market book value.84 23.05% 89 performance of a stock over the recent 12 months. A high rank indicates a high growth rate expectation. Sharpe ratio is the stock's average annual return Industry -0. The below data points show how the rank for each data point for RHT relates to the overall industry.36% 48 has an EPS Growth Rank of 16. and S&P 500 averages.57% 47 stocks. RHT is moderately lower than the S&P 500 n/a n/a industry rank of 46. which S&P 500 n/a n/a carries a Valuation Rank of 52.VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) VALUENGINE RANKINGS Just as important as the percentages shown for our ten predictive variables for each stock is the way they are ranked against the 7000 plus stocks in our database. 4 Copyright © 1998 .73 11 relative to the stock universe. RHT is the same as the industry P/E rank of 47.19 90 market capitalization. in comparison with the Industry -8. relative to the universe. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- M/B Ratio Rank The Market/Book Rank is a measure of a stock's market to book ratio RHT 4. RHT is significantly higher than S&P 500 26. S&P 500 19.71 45 90.01% 55 With a 12-Month Return Rank of 89.52% 14 company's stock price and its Fair Value. Sector -12.05% 98 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- EPS Growth Rank The ValuEngine EPS Growth Rank indicates a stock's expected EPS RHT -2.69% 57 industry rank of 48.32% 42 the industry's rank score of 53.02 45 capitalization within ValuEngine's stock universe. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P/S Ratio Rank The ValuEngine Price/Sales rank signifies the relative position of the RHT 7. With a Valuation Rank of 14.91% 87 average annual return over the last 5 years. a higher 12-Month Return rank indicates a stronger performance.74 Rank 47 47 44 58 The ValuEngine P/E Rank signifies the relative standing of a company on its P/E ratio.46 46 assigned a rank of 100 while stocks with the highest P/S ratio are Sector 3. RHT Industry 48.12% 56 stock. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Sharpe Ratio Rank The ValuEngine Sharpe Ratio Rank measures the risk return tradeoff RHT 0. Generally the higher the ranking. the more undervalued the stock. which has a rank of 52. which is Sector 2.06% 53 coverage universe. With a P/E rank of 47.

45% 39.86% 46.79% -7.31% IRM 46.97% 39.01 42.14% 53.18% 41.69% ERTS -0.77 1.99% 56.90% VMW 47.42% 87 62 24 73 38 One-Month Three-Month Six-Month One-Year Two-Year Three-Year ACS 46.18% ERTS 52. Sharpe Ratio RHT ACS ERTS IRM VMW 0.81% -1.88 Rank 47 74 43 53 46 Copyright © 1998 .20% 56.22 -0.82% RHT -1.23% 52.29 Rank 90 90 90 90 89 * Comparables are companies in the same Sector and Industry and of approximately similar market capitalization value.03% 60.14 0.23% -1.25% -47.98% -25.48% 51.67% RHT 55.77% -6.05% 40.68% -3.10% VMW 52.35 63.22% Rank 56 93 69 82 25 RISK ASSESSMENT: CHANCE OF LOSS ACS One-Month Three-Month Six-Month One-Year Two-Year Three-Year 53.02 0.84 14.27% 54.75% 12-Month Return Rank RHT ACS ERTS IRM VMW 164.26% 46.34% IRM -0.67% 41.52% 45.79% 53.07 5.23% -13.69% IRM 53.80% -4.01% 51.01% 49.88 2.65 26.69% 56.06% -7.52% 8.99% 48.73 1.26% 59.80% 43.22 Rank 16 64 47 42 35 M/B Ratio RHT ACS ERTS IRM VMW 4.55% 60.62 0.04% 57.75% -1.48% 54.59% 46.82% ERTS 47.69% 55.74% 53.95% 59.44% -19.35% -13.09% 44.74% 40.05% TM DETAILED RESEARCH REPORT RED HAT INC(RHT) COMPARISON OF SIMILAR STOCKS* & RISk ASSESSMENT Rank 14 31 89 70 51 One-Month Three-Month Six-Month One-Year Two-Year Three-Year FORECAST COMPARISONS RETURN FORECAST: EXPECTED RETURN ACS -0.73% 45.83 4.31% 23.91% -0.65% 60.33% 58.21% 46.02 0.18 Rank 84 61 14 75 47 P/S Ratio RHT ACS ERTS IRM VMW 7.24% 4.91% 45.50% 48.01% -8.31% 43.09% 54.84% -2.05% 35.03 2.37 1.77% Volatility RHT ACS ERTS IRM VMW 49.50% 51.04 -0.70% -4.19 5.1 -0.2009 ValuEngine Inc 5 .33% RHT 44.72% 11.04% 33.80% -6.39 4.99% 50.96% 42.36 1.71% -1.58% 3.91% 55.96% -11.56% 41.31% 44.39% -13.52% -9.09% 89 49 18 40 77 RISK ASSESSMENT: CHANCE OF GAIN 5-Y Avg Ann Rtn Rank RHT ACS ERTS IRM VMW 10.01% 43.51% 48.96% -3.68 Rank 11 34 31 26 38 P/E Ratio RHT ACS ERTS IRM VMW 37.52 0.12 3.71% -7.41% 53.09 Rank 16 35 93 38 30 Market Cap(bill) RHT ACS ERTS IRM VMW 5.23% EPS Growth RHT ACS ERTS IRM VMW -0.12% 24.62 2.30% 75.82% 58.35% 39.69% -6.VgluEngine Valuation RHT ACS ERTS IRM VMW 30.96% -3.97% -0.52% -3.93% -8.61% 93.77% 47.35% VMW -1.05% 2.

2 600 0.7 -42.1 -5.1 -0.2 964.2 662.6 5.6 16.4 21.2 837.5 40. PLANT AND EQUIP.7 1.4 15.6 42.9 0.5 -236.8 -290.7 ---133.3 303 328.4 54.5 0 763.8 -86.9 13.3 5.6 0 1040.9 73.7 --4.4 140.1 361.2 2005-02 140.2 350.4 190.3 -28.6 0 1281.9 2 951.9 Copyright © 1998 .4 600 0.3 -35.1 969.8 6 --660 57.6 365.8 -19.BALANCE SHEET (millions) 2009-02 Cash and Equivalents Short Term Investments TOTAL CASH & SHORT TERM INVEST Accounts Receivable Other Receivables TOTAL RECEIVABLES INVENTORIES Prepaid Expenses Deferred Tax Assets.6 2.7 45.9 0 714.8 25.9 2.8 0 1170.8 878.2 52 -52 -12.6 -35.8 60.5 2080 31.1 1134 2004-02 544. Long-term Investments Goodwill Other Intangibles Deferred Tax Assets.6 24.2 -37.6 -283.5 131.8 75.VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) ANNUAL FINANCIALS .5 327. of Capital Lease Current Income Taxes Payable Unearned Revenue.8 -47.9 21.9 5.6 35.4 35.4 -3 408 408 1111.6 27.3 1.2 951.6 1134 8.1 0.6 -18. LT Other Long Term Assets TOTAL ASSETS Accounts Payable Accrued Expenses Short-term Borrowings Current Port.8 13.2 2080 2007-02 527.3 93.1 -1.8 821.3 1314.1 -125.4 0.8 -59.7 --120.7 2.8 -1.6 0.7 7.6 15 1.1 67.3 804.3 162.6 0.8 4.8 65.3 2002-02 55.7 -72.2 -7.8 -107.4 -24.2 127 -127 -27.8 -15.1 --385.2 45.3 -5.1 122.1 -124.3 70.5 537.3 -109.3 11 10 1 -8.7 --5.2 1128.3 336.1 1753.9 -92.3 390. LT Deferred Charges.6 2008-02 677.3 1106. Accumulated Depreciation NET PROPERTY.9 6.2 340.1 88 -88 -41 --1007.9 46.6 --118.4 0 626.4 990.5 50.5 369.4 --2.8 26.9 647.4 3.7 2.3 42.3 339.9 -152.2 15.8 2006-02 267.8 1314.5 438.4 -139.7 -277.8 476.6 1.4 890.1 1753.7 128.2 300.7 -12.8 -16.1 -3.3 390.2 -192.9 0.2 90.9 40.9 63.1 68.3 361.1 0.8 297.4 -7.6 -231.4 54 0 630.4 18.6 -0.4 570 --89 5.1 -91.6 3.4 200.1 96 -50.7 2003-02 45.3 -14.5 -28 29.2009 ValuEngine Inc 6 .4 10.4 1192.3 249.1 -10.2 821.7 -8.6 -37 -1.9 59.9 -62.9 20.9 96.4 0. Curr Other Current Assets TOTAL CURRENT ASSETS Gross Property Plant and Equip.2 71.9 3.4 703.1 4.9 5.8 42.2 772.9 204.6 --881.4 332.8 94.2 1785.2 28.6 33.8 159.2 26 -4.6 1111.2 382 1.2 0.2 14.7 611.2 181 321.3 10.6 0.8 1785.5 32.6 ---161 39.2 -17.1 --1.1 446.5 0.4 -14.6 0 695.5 24.4 13.5 -8.7 28.5 147.1 0. Current Other Current Liabilities TOTAL CURRENT LIABILITIES Long Term Debt Capital Leases Minority Interest Unearned Revenue Non-Current Other Non-Current Liabilities TOTAL LIABILITIES Common Stock Additional Paid In Capital Retained Earnings Treasury Stock Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 515.8 -6.8 --7.3 336.5 --4.9 476.9 369.7 608.7 327.7 312.1 1106.9 570 -0.8 23 201.5 7.

2 -0.5 Copyright © 1998 .6 26.1 16.1 546.2 0.6 29.8 21.VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) ANNUAL FINANCIALS .7 ----13.4 45.1 88.1 --6. Diluted EPS Diluted EPS Excl Extra Items Weighted Avg.7 79.4 3.2 2002-02 78.6 78.7 ---119.5 229.3 1.1 0.5 -0.4 0.9 ----44.8 --4.8 124.2 57.6 62.5 45.INCOME STATEMENT (millions) 2009-02 Revenues TOTAL REVENUES Cost Of Goods Sold GROSS PROFIT Selling General and Admin Exp.4 --74.8 25.5 -4.9 ---1.1 -13.4 221.9 30 48.3 2007-02 400.7 -76.1 121.2 15. Currency Exch.6 93 4.7 124.2 181.5 42.9 -0.1 189.3 189.3 278.2 -0.3 --6.8 -0.2 -0.1 182.7 44 89.5 37.6 4.3 --6.8 2006-02 278.9 -59.3 218.4 --58.9 90.2 3.4 0.9 78. of Goodwill and Intangibles OPERATING INCOME Interest Expense Interest and Invest.2 34.2 215.4 178. Stock-Based Compensation R & D Expense Amort.4 211.2 3.3 2008-02 523 523 80.8 130.4 190.6 400.3 -6 --6 -0.9 10.8 -0.5 12.5 -10.4 207.4 0.1 0.4 --6.9 59.7 -79.7 -78.8 58.2 48.1 -15.6 ----89.5 -0.7 -13.7 169.5 ---6.2 0. NET INCOME NI TO COMMON INCL EXTRA ITEMS Basic EPS Basic EPS Excl.8 2005-02 196. Other Unusual Items EBT INCL.3 38.3 117. Inc.2 2.5 0.7 -56.7 169.3 --6.5 45.2 116. Gains (Loss) Other Non-Oper.3 0.9 46.6 0.1 1.7 442.4 0.4 302.7 78.9 -0.2 -0 -0 170.2 44.6 652.9 -10.3 0.3 48.9 -6.9 31.4 -1.7 0.6 -0 -0 170.2 -140.4 -0.7 33. UNUSUAL ITEMS Income Tax Expense EARNINGS FROM CONTINUING Earnings Of Discontinued Oper.8 -0.8 -124.3 -2.5 32.9 2003-02 90.1 -6.8 0.9 -40.8 78.5 196.8 --4.7 -70.9 25.1 0.4 249.5 47.2 11.9 2004-02 124.7 -13.2 28.4 0.2009 ValuEngine Inc 7 . Basic Shares Out.1 -0.1 82 2.9 0.9 76.1 0.7 0.9 10.) EBT EXCL.4 63.4 0.2 -82.1 -4.9 -58.9 158.8 -52. Charges Gain (Loss) On Sale Of Invest. 652.5 --4.4 -45.4 0. Extra Items Weighted Avg.4 -140.4 --1.7 -0. Income NET INTEREST EXP. UNUSUAL ITEMS Restructuring Charges Merger and Related Restruct.4 -6.5 338.1 174 0.9 32.6 0.7 13.3 15.3 79. (Exp.7 59.7 0.7 0. Diluted Shares Out.7 76.6 106.6 -6.7 59.4 193.9 90.3 0.5 --119.

7 127.1 -1 ---1.4 -16 1.4 203.7 22.3 97.5 -0.7 -0.4 --150.8 -6.2 -2.5 -668 668 --84.5 -6.3 --7.2 7.2 5.9 -64.8 -0.9 -189.3 5.6 5.3 2.7 -0.9 14.4 259.9 322.1 1.1 2007-02 59.2 -83.4 23.8 ----33.7 -2 0.5 186.5 -10.3 --16.1 40.1 3.8 --2.3 499.5 2.4 -539.7 -4.1 --324.VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) ANNUAL FINANCIALS .1 10.1 1.5 2002-02 -140.2 6.1 41.1 -1.4 61.7 113.4 --64.2 1.7 20 13 33 3 0.4 -0.CASH FLOW STATEMENT (millions) 2009-02 Net Income Depreciation and Amortization Amortization Of Goodwill DEPRECIATION AND AMORT.5 -7.8 15.6 2008-02 76.7 -321.4 3 3.9 --0.4 201.8 -11. Of Deferred Charges (Gain) Loss From Sale Of Asset (Gain) Loss On Sale Of Invest.3 -17.6 -22.1 -0.7 0.6 6.2 ----565.5 -148.9 3 -0 --32.9 36 -36 -28.3 1.2 --8. NET CHANGE IN CASH Cash Interest Paid Cash Taxes Paid Net Debt Issued 78.3 -26.6 -0.9 -29.4 9.8 122.6 -16.8 Copyright © 1998 .6 40. Oper.2 -16. Asset Writedown and Restruct.9 -5.3 -0.3 -4.5 -61.8 -146.2 -5.4 236.2 -8.7 11..7 0.4 ---3.9 2.8 -48.5 ---1.8 2003-02 -6.8 150.6 3.7 -2.2 11.8 --42.8 9.3 1.2 59.3 -583.9 -1 2004-02 13.2 0.1 -3.7 17.1 ----3 -2.9 -2006-02 79.1 --23.8 -1.7 --160.4 3.2 -68.7 --360.9 3 ---4.8 -5.2 -0 -18.8 -1.1 -41.2 1.5 53.7 -1.9 0.2 -84.9 39 -2.7 2.3 1.1 -565.9 2.5 0.4 12.2 3.3 -0 -1 8.1 -3.4 0.4 -29.8 -36. TOTAL Amort.6 91. in Marketable and Eqty Securties Other Investing Activities CASH FLOW FROM INVESTING Short-Term Debt Issued Long-Term Debt Issued TOTAL DEBT ISSUED Short-Term Debt Repaid Long-Term Debt Repaid TOTAL DEBT REPAID Other Financing Activities CASH FROM FINANCING Foreign Exchange Rate Adj.3 -4.8 -1 --16. and Write-off of Bad debts Minority Interestin Earnings Net Cash From Disc.6 -0.6 3.7 6.2 2.9 3.3 --4.3 597.3 -----26.4 -24.9 -565.3 -2.9 -3.9 -21.8 6.4 68.1 ---0.9 2.8 1 -10.3 2005-02 45.7 5.3 0 9.2 -0. Other Operating Activities Change In Accounts Receivable Change In Inventories Change In Accounts Payable Change in Unearned Revenues Change In Deferred Taxes Change In Other Working Capital CASH FROM OPERATIONS Capital Expenditure Cash Acquisitions Sale (Purchase) of Intangible assets Invest.8 61.6 0.7 0.6 -13.6 -149.5 1 6.5 -1.1 -6.2 -14.1 7.1 0 -0.7 ------17. Costs Stock-Based Compensation Tax Benefit from Stock Options Prov.1 -3.2 -15.5 54.5 9.8 -2.1 -62.3 --3.2 -6.2009 ValuEngine Inc 8 .5 4.7 -162.8 90.2 50.6 -----1 -1 -0.6 10.3 -51.9 4.5 --7.6 50.6 -11 --70.1 -9.9 --7.7 -26.5 -2.3 -1 61 -3.2 0.

8 0 1170.9 978.5 896.3 51.2 0.4 13.9 -301.8 -106.1 446.9 0.5 438.4 439 115.2 -78.3 -0 919.1 17.6 2008-11 519.5 2080 31.6 113.BALANCE SHEET (millions) 2009-08 Cash and Equivalents Short Term Investments TOTAL CASH & SHORT TERM INVEST Accounts Receivable Other Receivables TOTAL RECEIVABLES INVENTORIES Prepaid Expenses Deferred Tax Assets.4 9.8 -150 24.2 991.4 -86.2 -140.2 2080 2007-11 587 454.8 --43 2137.1 288.6 --51.2 981.8 0 1243.4 339.4 24 884.7 128. Curr Other Current Assets TOTAL CURRENT ASSETS Gross Property Plant and Equip.9 717.4 -78.8 758.5 -236.1 115 -115 -85.9 1079.4 1062.1 --949.8 -351.8 159.2 951.6 0 1267.6 24.9 69.4 2137.2 340.2 1146 0 1208.2 -113.7 0.5 106.8 -112.9 0.3 0 1295.8 1097.1 52.1 358.1 2009-05 510.1 68.9 647. LT Other Long Term Assets TOTAL ASSETS Accounts Payable Accrued Expenses Current Income Taxes Payable Unearned Revenue.4 28.7 Copyright © 1998 .4 2008-05 610.8 13.3 453.1 228.1 1106. Current Other Current Liabilities TOTAL CURRENT LIABILITIES Long Term Debt Unearned Revenue Non-Current Other Non-Current Liabilities TOTAL LIABILITIES Common Stock Additional Paid In Capital Retained Earnings Treasury Stock Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 493.2 -152.7 1.1 -352.7 110.1 1.3 93.5 1793.6 1062.8 0.9 28.3 339.8 58.6 24.9 -69.5 2037.8 173.7 2.6 --64 2215.6 33.1 1753.9 119.5 0.2 1093.9 1964.4 11.8 368.5 1097.8 58.2 1.6 167 438.4 112.4 54.2 28.4 1041.9 468.9 204.5 0 1320 98 -330.9 -110.3 70.3 -74.2 -202.8 -164.1 12.6 2215.3 69 -283.5 10.9 57 -419.2 360 110.4 -0.9 46.1 -4.5 285.6 -106.6 2.4 721. Accumulated Depreciation NET PROPERTY.1 --1223.6 206.9 0 1135 -50.7 5.5 -0 940.4 1192.2 --1241.8 25.1 969.8 2009-02 515.6 38.9 495.1 1152.4 570 120.4 -161.8 2037.3 10.8 -3.5 -96.3 10.3 --64.4 890.3 112.8 437.5 1964.2 1128.6 3.4 990.8 695.2 -192.7 28.8 957.3 10.9 154. LT Deferred Charges.1 0.2 -126.6 957.2 662.7 126.6 365.3 -108.9 46.5 -103.6 0 1281.3 11.2 127 -127 -27.7 -133.4 140.1 1753.2009 ValuEngine Inc 9 .3 -28.5 274.3 1061.1 -83.VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) QUARTERLY FINANCIALS .2 317.1 1765.4 38.2 26 -4.1 67.3 190.6 -95.3 70.6 -161 39.5 -232.4 360.5 50.8 13.8 151.5 2008-08 787.5 1093. Long-term Investments Goodwill Other Intangibles Deferred Tax Assets.1 -402.2 9.6 -10.7 --1096.5 131.2 68.4 47.9 -202.7 312.5 1765.4 34.7 -72.9 672.2 1079.5 166.9 2 951.1 73.2 382 1.8 238.6 1079.1 122.3 1106.1 -91.6 --37 1793.8 154.1 708.7 10.3 108.8 123.4 2008-02 677.9 -65.7 95.7 -346.4 991. PLANT AND EQUIP.5 147.

VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) QUARTERLY FINANCIALS .2 21.2 25 --25 9 16 16 16 0.2 24.1 0.6 -0.1 18. UNUSUAL ITEMS Income Tax Expense EARNINGS FROM CONTINUING NET INCOME NI TO COMMON INCL EXTRA ITEMS Basic EPS Basic EPS Excl.5 10.1 0.4 27.5 Copyright © 1998 . Diluted Shares Out.1 -0.5 21.2 25.5 -0.1 10.9 12.5 10.3 24.8 32.1 33.8 0.5 138.5 18. Stock-Based Compensation R & D Expense OPERATING INCOME Interest Expense NET INTEREST EXP.2009 ValuEngine Inc 10 .6 -1. Inc.3 20.5 --28.2 192.5 9.1 0.1 0.9 0.1 68.5 -1.4 9.1 220.5 10 18.1 0.9 31.5 21.1 0.4 164. Basic Shares Out.7 20.2 166.2 9.3 26.6 156. (Exp.6 183.5 -33.3 27.4 -0.3 3.6 76 13.5 11.3 0.1 188. Diluted EPS Diluted EPS Excl Extra Items Weighted Avg.4 130.5 62. UNUSUAL ITEMS Gain (Loss) On Sale Of Invest.9 2008-02 141.5 -1.4 26.2 -1.1 194.1 0. Gains (Loss) Other Non-Oper.2 187.1 0.4 8.1 197.1 193.INCOME STATEMENT (millions) 2009-08 Revenues TOTAL REVENUES Cost Of Goods Sold GROSS PROFIT Selling General and Admin Exp.1 0.4 2007-11 135.1 190.6 -18. Extra Items Weighted Avg.5 141.4 120.5 136.1 0.8 25.3 17.9 77.7 0. Currency Exch.2 74 9.9 28.3 --32.3 28.2 0.4 135.4 155.1 -3.9 26.2 -0.4 20.5 28.4 -4.9 0.5 147.1 190.) EBT EXCL.2 84.7 13.3 12 20.1 -0.3 24.1 21.6 26.1 0.4 2008-08 164.1 220 2008-05 156.2 0.4 19.1 221.4 -5.1 0.4 174.9 22 22 22 0.9 -1. Other Unusual Items EBT INCL.9 114.4 2009-02 166.5 0.1 17.1 0.7 5 -34.7 19.1 218.1 0.3 2 33.3 --28.9 28.1 208.9 23.2 28.1 0.6 28.1 0.3 4.8 21 -1.9 81.1 194 0.1 190. 183.7 2009-05 174.1 10.4 -1.8 75.2 0.5 9.6 -1.3 29.3 11.3 33.5 0.6 -1.5 30.3 20.3 17.3 0.4 34.6 30.9 --34.5 28.3 165.3 34.2 -1.2 0.8 2008-11 165.1 191.5 -0 -0 0.4 15.4 24.3 0.1 21.5 18.1 0.6 -1.7 140.

8 221.8 104.5 -16 --0.6 0.1 -144 0.1 5.4 6.8 10.1 -0..9 -0.1 39.9 -16 -1.8 0 2007-11 20.5 -43. NET CHANGE IN CASH Net Debt Issued 28.8 27.6 -11.9 9.8 ---10.1 --0 -0 11 13.5 -17. and Write-off of Bad debts Other Operating Activities Change In Accounts Receivable Change In Accounts Payable Change in Unearned Revenues Change In Deferred Taxes Change In Other Working Capital CASH FROM OPERATIONS Capital Expenditure Cash Acquisitions Sale (Purchase) of Intangible assets Invest.1 90.1 -0.VgluEngine TM DETAILED RESEARCH REPORT RED HAT INC(RHT) QUARTERLY FINANCIALS .2 -67.8 77.6 -2009-05 18.4 -30.5 5.8 0.1 0.5 0 0 -285.9 12.1 10.6 -11 --0.9 2 -17.1 -4.5 -28.9 9.9 2009-02 16 5.1 -43.2 -101.2 -0.6 214.1 0.9 6.8 -1.1 0.7 4.9 -1.8 10.4 0.2 -6 --1 -34.8 5 10.3 5.8 -296. TOTAL Amort.9 6.4 ---3.6 11.3 -14.4 ----0.9 2.3 8.2 -276. Stock-Based Compensation Tax Benefit from Stock Options Prov.6 --1.1 2008-08 21.2 9.3 -0.9 -0.4 -2.8 --5 10.3 8.3 5.5 2008-11 24.2 0 2008-02 22 5.1 -0 -280.3 11.5 61.7 112.7 -11.3 -- Copyright © 1998 .5 5.3 59.7 -----3.9 54.1 -4.3 -285.3 -5.7 44 12.9 -15.2 -0 19.3 3 2.1 14.1 2008-05 17.1 -1.9 82 0 0 ---17 -47.1 14.7 1.1 -29.7 -6.9 3.5 7 1.6 -89.4 -10.8 ---280.1 15.5 5.6 -----17.6 --12.9 -0.6 15.8 --9.2 -21.5 9.3 --0.4 62 -6.1 35.5 0 -17 0.9 10.6 --0.2 63.1 59.8 --10.9 3.1 0.3 0.1 3.4 5 11.CASH FLOW STATEMENT (millions) 2009-08 Net Income Depreciation and Amortization Amortization Of Goodwill DEPRECIATION AND AMORT.3 -4.8 -7.9 -0.4 15.5 -2.1 -5.4 -9.7 -6.9 -51.8 0.3 59.3 -4.2009 ValuEngine Inc 11 .6 ----0.8 10 -17 -0 -0.9 -267.6 -9 -0.5 --285.5 176. in Marketable and Eqty Securties CASH FLOW FROM INVESTING Long-Term Debt Issued TOTAL DEBT ISSUED Short-Term Debt Repaid Long-Term Debt Repaid TOTAL DEBT REPAID Other Financing Activities CASH FROM FINANCING Foreign Exchange Rate Adj.5 8.2 --0.8 0.4 3.4 -41.2 -17 6.1 22 2.1 2 -2.8 -3. Of Deferred Charges (Gain) Loss From Sale Of Asset (Gain) Loss On Sale Of Invest.5 -0.7 9.6 -280.8 --3.8 54.1 26.5 20.2 -1.9 4.5 -4.5 11 -3.4 -3.3 62.3 5.8 98.7 -14.

VgluEngine

TM

DETAILED RESEARCH REPORT

RED HAT INC(RHT)
VALUENGINE SERVICE DESCRIPTIONS
Thank you for your interest in ValuEngine! ValuEngine Detailed Valuation Report: Advanced academic research that brings you superior investment strategies in an actionable format. The most comprehensive and useful report available. ValuEngine's three models: Valuation Model, Forecast Model and Ratings Model are incorporated to give you a well-rounded analysis from three different perspectives. Consensus EPS trend and Earnings Surprise statistics provide additional insights. Also, detailed Company Profile, ValuEngine Fair Valuation; 1-3-6 month and 1-2-3 yr forecasts, ValuEngine 1-5 Engine Rating, Multi-stock comparison, Financials, Earnings Estimates, Risk Assessment, Data Summary and much more. More report information: http://www.valuengine.com/rep/mainrep To find out more about ValuEngine's many independent and objective investment products and services, please visit our website at www.ValuEngine.com, call us at 1-800-381-5576, or send us an email at support@ValuEngine.com. Below is a brief description of some of our additional products and services. ValuEngine Premium Web Site Stock Analysis Service: A subscription to our website allows access to ValuEngine's proprietary real-time quantitative analysis tools for more than 5,500 U.S., foreign, and ADR stocks which trade on U.S. Markets. You can sign up for a free 14 day no-risk trial period: http://www.valuengine.com/pub/main?p=33 The ValuEngine Weekly Newsletter: The ValuEngine Weekly Newsletter features market research, analysis, and commentary from ValuEngine Chief Market Strategist Richard Suttmeier and Senior Analyst Steve Hach. The Weekly includes quantitative market and sector overviews of the entire ValuEngine U.S. stock universe as well as VE data points for hot stocks and industries. Chief Market Strategist Suttmeier provides technical levels for key commodities, indices, and U.S. Treasuries. The ValuEngine Weekly Newsletter also includes tips and tricks for getting the most out of VE's quant-based investment tools. To receive this free newsletter every Friday, sign up here: http://www.valuengine.com/nl/WeeklyNewsletter ValuEngine Premium Newsletters: ValuEngine offers a variety of premium newsletter products designed to meet every style of investment. Active traders should consider Chief Market Strategist Richard Suttmeier's ValuEngine Morning Briefing while those looking for a diversified portfolio of both long and short ideas should check out the ValuEngine Forecast 22 Market Neutral Strategy Newsletter. VE also offers long-only portfolio newsletter products as well as specialized industry and sector reports. To view sample issues of our many newsletters or to subscribe, go to the Newsletter portion of our website: http://www.valuengine.com/nl/mainnl ValuEngine Institutional (VEI): VEI is a software package designed to meet the demanding requirements of Finance Professionals. VEI deploys the power of ValuEngine's quant-based valuation, forecast, portfolio creation/optimization, customization, and database capabilities to your desktop. The software provides access to our proprietary market neutral portfolio strategies and the ability to extract the entire universe database of ValuEngine model outputs each day. Full access to more than 4,000 individual stock reports--like this one--is included with every VEI subscription. VEI provides the finance professional with a fast, objective, accurate, and consistent computerized research department whenever and wherever needed. Whether you are a Fund Manager, a Research House, an Independent Financial Advisor, or an Independent Broker/Dealer with hundreds of financial advisors, VEI will dramatically increase your productivity. To download a free demo, please go to our website at http://www.valuengine.com/pub/main?i=0 Consultancy Services: With ValuEngine's 10 years of experience to help you maximize your professional investment strategy, you can differentiate your firm from the competition by offering of time-proven, high-performance research to your clients. ValuEngine private-label products can be customized for funds managers, brokers, financial advisors, newsletter publishers, and web-site owners. Tell us your financial objectives and specify your universe constraints and ValuEngine can provide everything from back testing and strategy development to front and back-end automation services. ValuEngine has the research, IT, and mathematical brainpower on staff to provide Funds and Institutions with complete solutions to their research, development, and strategy-implementation needs. Please call (800) 381-5576 to speak with a sales representative or email support@valuEngine.com.

Copyright © 1998 - 2009 ValuEngine Inc

12

VgluEngine

TM

DETAILED RESEARCH REPORT

RED HAT INC(RHT)
VALUENGINE'S METHODOLOGY
ValuEngine's research combines the most advanced academic concepts with real world Wall Street practice. The result is state-of-the-art fair market valuation and price forecasting technologies. ValuEngine's stock valuation employs a sophisticated, three-factor approach. Fundamental variables, such as a company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's future 12-month EPS, and the 30-year Treasury yield, are all used to create a more accurate reflection of a company's fair value. Together with eleven additional variables, ValuEngine paints a detailed picture of a company's fair value, represented by the model price. ValuEngine's stock forecasts examine, among other things, shortterm price reversals, intermediate-term momentum continuation, and long-term price reversals over six time horizons for every industry to ensure forecasts are established relative to a stock's proper peer groups. Advanced statistical/econometric techniques are used to run thousands of simulations estimating the probability of a double in stock price, as well as the probability of meeting and exceeding any given portfolio or stock investment target. The stock's engine rating is an assessment of its overall attractiveness. It combines valuation, risk-return trade-off, momentum, market capitalization and forecasted future returns. Only two percent of the stock universe receives the highest 5-engine rating. The lowest rating is a single engine. For more information on ValuEngine, its models and performance, go to www.ValuEngine.com

Engine Rating and Average Annual Return
(Jan 1990 - Nov 2009)

Avg Return (%)

20 15 10 5 0 -5 1 2 3 4 5

Engine Rating

DISCLOSURES
ValuEngine offers equity recommendations and related return estimates to investors and their advisors. It uses a three-class Buy-Hold-Sell rating system. This is a consolidated version of the firm's five class rating system: most favorable and favorable ratings are buys; neutral ratings are holds and the categories unfavorable and most unfavorable are sells. STOCK RATINGS: The terms below are used to rate a stock's 12-month performance: 1. Buy: Expected to outperform the SP500 producing above average returns. 2. Hold: Expected to perform in line with the SP500 with average returns. 3. Sell: Expected to underperform the SP500 producing below-average returns. ValuEngine does not offer brokerage or investment banking services. ValuEngine adheres to professional standards and abides by formal codes of ethics that put the interests of clients ahead of their own. The following are specific disclosures made by ValuEngine with regards to this research report: 1. ValuEngine, Inc. does not make a market in this security. 2. ValuEngine, Inc. has not received compensation from the companies discussed above in the last 12 months. 3. ValuEngine has not managed or co-managed a public offering for any companies in the above report in the past twelve months. 4. None of ValuEngine's management, the analysts involved, nor a member of the research analyst's household serves as an officer, director or advisory board member of the companies discussed in this report. 5. The research analyst over this company or members of his/her household do not have a financial interest in these companies discussed in this report. 6. ValuEngine, Inc. or its affiliates do not beneficially own 1% or more of any class of common equity securities of the subject companies. 7. Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: a). all of the views expressed accurately reflect his or her personal views about those securities or issuers; and b). no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report.

DISCLAIMERS
This report is intended for informational purposes only and does not constitute a recommendation, or an offer, to buy or sell any securities or related financial instruments. The report has no regard to the specific investment objectives, financial situation, or particular needs of any specific recipient. The information contained herein accurately reflects the opinion of ValuEngine at the time the report was released. The opinions of ValuEngine are subject to change at any time without notice and without obligation of notification. ValuEngine does not provide investment banking or consulting services to the companies mentioned in this report. ValuEngine does not receive any compensation from companies mentioned in this report. The author, officers, or affiliates of ValuEngine do not hold positions in the securities of the companies mentioned in this report. No warranty is made as to the accuracy of the information contained herein. This information is intended for the sole use of clients of ValuEngine, Inc. Any other use, distribution, or reproduction is strictly prohibited. Quotes provided by Data Transmission Network, Inc.(www.dtn.com)

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