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Ascendere Associates LLC Innovative Long/Short Equity Research

Analyst Revisions: June 3, 2011


In this report, we provide an overview of analyst estimate revisions for all stocks and ADRs that trade on major U.S. exchanges with a market cap above $750m.

We track changes in analyst revision estimates to aid in our stock selection and quantify already existing trends likely already reflected in stock prices. Investors typically use
analyst revisions in two ways.
 Assume that current trends are likely to continue and select stocks with strong analyst revision momentum.
 Assume that analyst revision trends may at some point reach an inflection point and turn the other way.

The systematic momentum strategies that we often refer to assume current trends are likely to persist, but contrarian or value investors would do well to be aware of these
trends as well. For example, Fossil, Inc. (FOSL) is one example of a stock that has performed in line with increasing analyst revisions in recent months, while Micron
Technology (MU) is a great example of a stock that experienced a surge in stock price after negative analyst revisions bottomed in November 2010. As Micron could
indicate, companies that may have overly embedded negative fundamental information can experience strong price appreciation if there is only a slightly incremental
positive change in expected fundamentals. In contrast, Research In Motion (RIMM) is an example of a stock which demonstrated strong analyst revision trends at the end of
October 2010 but has since decline more than -32%.

In our opinion, analyst revisions in aggregate are by far a better economic indicator than leading or lagging indicators since they reflect changes in expectations at the micro
level. We would increasingly weight their relevance if analyst revisions confirm the implied direction of economic indicators.

Analyst Revision Trends as of June 3, 2011


Over the last week, we continue to see on average higher revenue estimate forecasts and lower EBIT and EPS forecasts. While the average FQ+1, FY+1 and FY+2 revenue
estimate revisions continues to be positive, FQ+1 revenue forecasts have moved down by -0.03%. This is a data point that bears watching.

If quarterly revenue forecasts increasingly turn negative, annual revenue estimate cuts may follow. This would put into jeopardy our view for continued aggregate
improvements in operating leverage, which in turn could drive market multiples higher or offset macro storms of negativity such as employment levels or sovereign debt
defaults.
Industrials, Materials and Energy sectors continue to see higher revisions to FQ+1 consensus revenue estimates while the other seven sectors all saw negative revisions with
Healthcare leading on the negative side. Interestingly FY+1 revenue estimates were raised for the Healthcare sector.

The stock with the overall best positive analyst revisions this past week was Darling International, Inc. (DAR) in the Consumer Staples sector and a company that provides
rendering, recycling, and recovery solutions to the food industry The stock with the worst overall negative analyst revisions this past week was Frontline Ltd. (FRO) in the
Energy Sector that owns and operates oil tankers and oil/bulk/ore carriers.

What do to with this information? Certainly buying stocks outright based on analyst revisions could backfire. For our fundamental momentum strategies, analyst revisions is
simply one metric out of scores that we use to help narrow our list of stocks for our systematic model portfolio strategies. We suggest investors study these two stocks in
further detail and see if these data points confirm or are contrarian to their prevailing analysis. For our clients, we can provide a longer list of potential stock ideas as they
relate to analyst revision momentum as well as provide customized analysis for their proprietary lists or existing stock portfolios.

Darling International Inc. Frontline Ltd.


NYSE:DAR NYSE:FRO

Data as of June 3, 2011 Data as of June 3, 2011


Next Quarter 06/30/11 Next Quarter 06/30/11

FQ22011 Current -1 Month -3 Month FQ22011 Current -1 Month -3 Month


Revenue $ 445 $ 388 $ 388 Revenue $ 145 $ 178 $ 181
EBIT $ 89 $ 64 $ 64 EBIT $ 14 $ 31 $ 33
EPS $ 0.42 $ 0.29 $ 0.29 EPS $ (0.18) $ (0.14) $ (0.12)

FY2011 FY2011
Revenue $ 1,763 $ 1,547 $ 1,534 Revenue $ 693 $ 737 $ 757
EBIT $ 326 $ 241 $ 245 EBIT $ 135 $ 161 $ 178
EPS $ 1.57 $ 1.14 $ 1.13 EPS $ (0.11) $ 0.30 $ 0.63

FY2012 FY2012
Revenue $ 1,787 $ 1,564 $ 1,553 Revenue $ 755 $ 801 $ 800
EBIT $ 336 $ 253 $ 258 EBIT $ 183 $ 197 $ 215
EPS $ 1.56 $ 1.20 $ 1.19 EPS $ 0.65 $ 1.04 $ 1.29

Source: Capital IQ consensus estimates. Source: Capital IQ consensus estimates.


Changes in Consensus Estimates as of June 3, 2011

1.50%

1.00%

0.50%

0.00%

-0.50%

-1.00%

-1.50%

-2.00%

-2.50%
FQ+1 FY+1 FY+2 Al stocks on major U.S. exchanges with a market cap above $750m.
Source: Capital IQ consensus estimates and Ascendere Associates models.
Changes in Consensus Estimates
As of June 3, 2011
All stocks on major U.S. exchanges > $750m market cap
Range of Avg Changes
FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.03% 0.02% 0.38% 100% -100%
EBIT -0.10% -1.29% -2.23% 100% -100%
EPS -0.03% -0.78% -1.13% 100% -100%

FY+1
Revenue 0.01% 0.09% 0.63% 100% -100%
EBIT -0.03% -0.78% -1.13% 100% -100%
EPS -0.06% -0.99% -1.74% 100% -100%

FY+2
Revenue 0.04% 0.19% 0.89% 100% -100%
EBIT 0.02% -0.25% 0.11% 100% -100%
EPS -0.02% -0.73% -0.88% 100% -100%

Rating Changes 0.05% 0.34% 0.93% 100% -100%


Source: Capital IQ consensus estimates and Ascendere Associates models.
Change in Consensus Forecasts
as of June 3, 2011
-1 Week
0.20%

0.15%

0.10%

0.05%

0.00%

-0.05%

-0.10%

-0.15%
Average change in revenue, EBIT and EPS estimates for the the curent quarter, current fiscal year and next fiscal year of
all stocks that trade on major U.S. stock exchanges with a market cap above $750m.
-0.20%
Source: Ascendere Associates models, Capital IQ consensus data.
Change in Consensus Forecasts
as of June 3, 2011
-1 Month
0.80%

0.60%

0.40%

0.20%

0.00%

-0.20%

-0.40%

-0.60%

-0.80%

-1.00%
Average change in revenue, EBIT and EPS estimates for the the curent quarter, current fiscal year and next fiscal year of
all stocks that trade on major U.S. stock exchanges with a market cap above $750m.
-1.20%
Source: Ascendere Associates models, Capital IQ consensus data.
Change in Consensus Forecasts
as of June 3, 2011
-3 Month
1.50%

1.00%

0.50%

0.00%

-0.50%

-1.00%

Average change in revenue, EBIT and EPS estimates for the the curent quarter, current fiscal year and next
fiscal year of all stocks that trade on major U.S. stock exchanges with a market cap above $750m.
-1.50%
Source: Ascendere Associates models, Capital IQ consensus data.
+1Q
Revenue -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary -0.04% -0.21% -0.42% -0.51% -0.25% 9


Consumer Staples -0.04% 0.90% 1.52% 2.18% 0.91% 3
Energy 0.01% 0.48% 2.50% 2.28% 1.12% 1
Financials -0.03% 0.25% 0.70% 1.19% 0.40% 5
Healthcare -0.13% -1.53% -1.83% -2.63% -1.24% 10
Industrials 0.07% 0.10% 0.63% 0.76% 0.31% 7
Information Technology -0.09% 0.18% 0.24% 0.24% 0.08% 8
Materials 0.04% 0.60% 2.20% 2.64% 1.11% 2
Telecommunication Services-0.01% 0.39% 0.44% 1.00% 0.39% 6
Utilities -0.02% 0.68% 1.33% 0.86% 0.57% 4

+1Q
EBIT -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary -0.32% -2.67% -4.21% -6.18% -2.93% 10


Consumer Staples 0.58% -0.05% -0.66% -1.23% -0.30% 3
Energy -0.49% -0.72% 3.13% 3.53% 1.07% 1
Financials 0.04% -1.72% -2.16% -1.86% -1.19% 6
Healthcare 0.11% -1.82% -4.98% -4.81% -2.41% 8
Industrials -0.14% -1.35% -2.37% -3.16% -1.40% 7
Information Technology -0.37% -2.34% -4.53% -5.18% -2.69% 9
Materials -0.20% -1.29% -0.75% -0.75% -0.70% 4
Telecommunication Services-0.07% -0.75% -1.95% -2.71% -1.14% 5
Utilities 0.27% -0.82% 0.42% -0.10% -0.06% 2

+1Q
EPS -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary 0.10% -1.21% -1.74% -2.33% -1.13% 7


Consumer Staples -0.18% 0.64% 0.34% -0.68% -0.03% 3
Energy 0.26% -1.37% 1.31% 2.48% 0.57% 1
Financials -0.08% -1.78% -2.15% -2.26% -1.29% 10
Healthcare 0.12% -0.89% -1.71% -3.16% -1.17% 8
Industrials -0.17% -0.04% -0.42% -0.92% -0.32% 4
Information Technology -0.26% -0.98% -1.92% -2.65% -1.28% 9
Materials 0.06% -0.93% 0.68% 1.57% 0.26% 2
Telecommunication Services-0.13% -1.39% -1.68% -1.33% -0.92% 6
Utilities 0.02% -1.37% -1.04% -1.37% -0.80% 5

+1Q
Average All -1 Week -1 Month -2 Month -3 Month Average Rank
+1FY
Revenue -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary 0.04% 0.16% 0.27% 0.33% 0.18% 8


Consumer Staples -0.06% 0.58% 1.23% 1.23% 0.60% 5
Energy 0.12% -0.09% 1.91% 2.45% 0.90% 2
Financials -0.04% 0.25% 0.82% 1.35% 0.46% 6
Healthcare 0.11% -0.63% -1.09% -2.41% -0.85% 10
Industrials 0.03% 0.35% 1.20% 1.55% 0.63% 4
Information Technology -0.06% 0.02% 0.47% 0.52% 0.17% 9
Materials -0.01% 0.90% 2.11% 2.67% 1.18% 1
Telecommunication Services-0.08% 0.20% 1.07% 2.09% 0.68% 3
Utilities -0.05% -0.40% 0.51% 0.67% 0.21% 7

+1FY
EBIT -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary 0.10% -1.21% -1.74% -2.33% -1.13% 7


Consumer Staples -0.18% 0.64% 0.34% -0.68% -0.03% 3
Energy 0.26% -1.37% 1.31% 2.48% 0.57% 1
Financials -0.08% -1.78% -2.15% -2.26% -1.29% 10
Healthcare 0.12% -0.89% -1.71% -3.16% -1.17% 8
Industrials -0.17% -0.04% -0.42% -0.92% -0.32% 4
Information Technology -0.26% -0.98% -1.92% -2.65% -1.28% 9
Materials 0.06% -0.93% 0.68% 1.57% 0.26% 2
Telecommunication Services-0.13% -1.39% -1.68% -1.33% -0.92% 6
Utilities 0.02% -1.37% -1.04% -1.37% -0.80% 5

+1FY
EPS -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary 0.06% -1.16% -0.95% -2.66% -0.98% 7


Consumer Staples 0.18% -0.35% -0.67% -1.23% -0.39% 3
Energy -0.04% -4.30% -0.87% -0.22% -1.27% 8
Financials -0.33% -1.78% -3.44% -3.43% -1.94% 10
Healthcare 0.04% 0.21% 0.08% -0.81% -0.11% 2
Industrials -0.11% -0.63% -1.23% -2.21% -0.86% 6
Information Technology -0.23% -1.64% -2.40% -3.77% -1.75% 9
Materials 0.11% -1.06% 0.77% -0.29% -0.08% 1
Telecommunication Services 0.96% 1.18% -1.62% -3.53% -0.46% 4
Utilities -0.05% -0.65% -1.08% -2.05% -0.80% 5

+1FY
Average All -1 Week -1 Month -2 Month -3 Month Average Rank
+2FY
Revenue -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary 0.00% 0.20% 0.36% 0.38% 0.20% 8


Consumer Staples -0.02% 0.67% 1.40% 1.61% 0.77% 3
Energy 0.26% 0.69% 3.34% 4.31% 1.80% 1
Financials 0.01% 0.39% 1.02% 1.34% 0.56% 6
Healthcare 0.12% -0.47% -0.80% -2.23% -0.70% 10
Industrials 0.11% 0.30% 1.44% 1.90% 0.76% 4
Information Technology -0.02% 0.26% 0.73% 1.12% 0.42% 7
Materials 0.05% 0.42% 2.10% 2.59% 1.11% 2
Telecommunication Services 0.02% 0.15% 0.86% 2.21% 0.67% 5
Utilities -0.02% -0.22% 0.13% 0.33% 0.08% 9

+2FY
EBIT -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary 0.15% -0.17% -0.75% -0.45% -0.28% 7


Consumer Staples 0.37% 1.48% 2.09% 1.35% 1.11% 2
Energy 0.29% 0.63% 5.87% 5.96% 2.67% 1
Financials -0.24% -1.02% -0.83% -1.27% -0.72% 9
Healthcare 0.39% -0.20% -0.99% -3.46% -0.86% 10
Industrials -0.11% -0.41% 0.65% 1.12% 0.24% 4
Information Technology -0.06% -0.33% -0.16% -0.20% -0.17% 6
Materials -0.15% -0.33% 0.89% 1.99% 0.43% 3
Telecommunication Services-0.26% -1.85% -0.36% 0.85% -0.36% 8
Utilities 0.05% -0.75% 0.59% 0.29% 0.04% 5

+2FY
EPS -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary -0.42% -0.76% -0.74% -1.59% -0.85% 7


Consumer Staples 0.06% 0.47% 0.55% 0.18% 0.21% 3
Energy 0.81% -0.49% 4.04% 3.90% 1.77% 1
Financials -0.56% -1.66% -2.02% -2.47% -1.45% 10
Healthcare 0.37% -1.06% -0.63% -3.78% -1.01% 9
Industrials -0.02% -0.77% -0.36% -0.09% -0.36% 6
Information Technology -0.06% -1.26% -1.37% -2.05% -0.98% 8
Materials 0.14% -1.18% 0.44% 0.57% -0.02% 4
Telecommunication Services 1.14% 1.15% 0.56% -1.12% 0.38% 2
Utilities -0.03% -0.14% -0.29% 0.05% -0.16% 5

+2FY
Average All -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary -0.09% -0.25% -0.38% -0.55% -0.31% 8


+1Q, +1FY, +2FY
Average All -1 Week -1 Month -2 Month -3 Month Average Rank

Consumer Discretionary -0.04% -0.78% -1.10% -1.70% -0.80% 8


Consumer Staples 0.08% 0.55% 0.68% 0.30% 0.32% 3
Energy 0.17% -0.72% 2.50% 3.02% 1.02% 1
Financials -0.15% -0.98% -1.14% -1.07% -0.72% 7
Healthcare 0.14% -0.81% -1.52% -2.94% -1.06% 10
Industrials -0.06% -0.28% -0.09% -0.22% -0.14% 4
Information Technology -0.16% -0.78% -1.21% -1.62% -0.83% 9
Materials 0.01% -0.42% 1.01% 1.39% 0.39% 2
Telecommunication Services 0.16% -0.26% -0.48% -0.43% -0.19% 5
Utilities 0.02% -0.56% -0.05% -0.30% -0.19% 6
All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.
Consumer Discretionary Range of Averages
FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.04% -0.21% -0.51% 100% -100%
EBIT -0.32% -2.67% -6.18% 100% -100%
EPS 0.10% -1.21% -2.33% 100% -100%

FY+1
Revenue 0.04% 0.16% 0.33% 100% -100%
EBIT 0.10% -1.21% -2.33% 100% -100%
EPS 0.06% -1.16% -2.66% 100% -100%

FY+2
Revenue 0.00% 0.20% 0.38% 100% -100%
EBIT 0.15% -0.17% -0.45% 100% -100%
EPS -0.42% -0.76% -1.59% 100% -100%

Rating Changes 0.01% -0.12% 0.29% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.

Consumer Staples Range of Averages


FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.04% 0.90% 2.18% 100% -100%
EBIT 0.58% -0.05% -1.23% 100% -100%
EPS -0.18% 0.64% -0.68% 100% -100%

FY+1
Revenue -0.06% 0.58% 1.23% 100% -100%
EBIT -0.18% 0.64% -0.68% 100% -100%
EPS 0.18% -0.35% -1.23% 100% -100%

FY+2
Revenue -0.02% 0.67% 1.61% 100% -100%
EBIT 0.37% 1.48% 1.35% 100% -100%
EPS 0.06% 0.47% 0.18% 100% -100%

Rating Changes -0.40% 0.13% 0.78% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.
Energy Range of Averages
FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue 0.01% 0.48% 2.28% 100% -100%
EBIT -0.49% -0.72% 3.53% 100% -100%
EPS 0.26% -1.37% 2.48% 100% -100%

FY+1
Revenue 0.12% -0.09% 2.45% 100% -100%
EBIT 0.26% -1.37% 2.48% 100% -100%
EPS -0.04% -4.30% -0.22% 100% -100%

FY+2
Revenue 0.26% 0.69% 4.31% 100% -100%
EBIT 0.29% 0.63% 5.96% 100% -100%
EPS 0.81% -0.49% 3.90% 100% -100%

Rating Changes 0.34% 1.27% 2.51% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.

Financials Range of Averages


FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.03% 0.25% 1.19% 100% -100%
EBIT 0.04% -1.72% -1.86% 100% -100%
EPS -0.08% -1.78% -2.26% 100% -100%

FY+1
Revenue -0.04% 0.25% 1.35% 100% -100%
EBIT -0.08% -1.78% -2.26% 100% -100%
EPS -0.33% -1.78% -3.43% 100% -100%

FY+2
Revenue 0.01% 0.39% 1.34% 100% -100%
EBIT -0.24% -1.02% -1.27% 100% -100%
EPS -0.56% -1.66% -2.47% 100% -100%

Rating Changes 0.01% 0.42% 1.33% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.
Healthcare Range of Averages
FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.13% -1.53% -2.63% 100% -100%
EBIT 0.11% -1.82% -4.81% 100% -100%
EPS 0.12% -0.89% -3.16% 100% -100%

FY+1
Revenue 0.11% -0.63% -2.41% 100% -100%
EBIT 0.12% -0.89% -3.16% 100% -100%
EPS 0.04% 0.21% -0.81% 100% -100%

FY+2
Revenue 0.12% -0.47% -2.23% 100% -100%
EBIT 0.39% -0.20% -3.46% 100% -100%
EPS 0.37% -1.06% -3.78% 100% -100%

Rating Changes 0.10% 0.57% 1.81% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.

Industrials Range of Averages


FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue 0.07% 0.10% 0.76% 100% -100%
EBIT -0.14% -1.35% -3.16% 100% -100%
EPS -0.17% -0.04% -0.92% 100% -100%

FY+1
Revenue 0.03% 0.35% 1.55% 100% -100%
EBIT -0.17% -0.04% -0.92% 100% -100%
EPS -0.11% -0.63% -2.21% 100% -100%

FY+2
Revenue 0.11% 0.30% 1.90% 100% -100%
EBIT -0.11% -0.41% 1.12% 100% -100%
EPS -0.02% -0.77% -0.09% 100% -100%

Rating Changes -0.05% 0.35% 0.64% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.
Information Technology Range of Averages
FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.09% 0.18% 0.24% 100% -100%
EBIT -0.37% -2.34% -5.18% 100% -100%
EPS -0.26% -0.98% -2.65% 100% -100%

FY+1
Revenue -0.06% 0.02% 0.52% 100% -100%
EBIT -0.26% -0.98% -2.65% 100% -100%
EPS -0.23% -1.64% -3.77% 100% -100%

FY+2
Revenue -0.02% 0.26% 1.12% 100% -100%
EBIT -0.06% -0.33% -0.20% 100% -100%
EPS -0.06% -1.26% -2.05% 100% -100%

Rating Changes 0.23% 0.73% 1.26% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.

Materials Range of Averages


FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue 0.04% 0.60% 2.64% 100% -100%
EBIT -0.20% -1.29% -0.75% 100% -100%
EPS 0.06% -0.93% 1.57% 100% -100%

FY+1
Revenue -0.01% 0.90% 2.67% 100% -100%
EBIT 0.06% -0.93% 1.57% 100% -100%
EPS 0.11% -1.06% -0.29% 100% -100%

FY+2
Revenue 0.05% 0.42% 2.59% 100% -100%
EBIT -0.15% -0.33% 1.99% 100% -100%
EPS 0.14% -1.18% 0.57% 100% -100%

Rating Changes 0.06% 0.65% 1.57% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.
Telecommunication Services Range of Averages
FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.01% 0.39% 1.00% 100% -100%
EBIT -0.07% -0.75% -2.71% 100% -100%
EPS -0.13% -1.39% -1.33% 100% -100%

FY+1
Revenue -0.08% 0.20% 2.09% 100% -100%
EBIT -0.13% -1.39% -1.33% 100% -100%
EPS 0.96% 1.18% -3.53% 100% -100%

FY+2
Revenue 0.02% 0.15% 2.21% 100% -100%
EBIT -0.26% -1.85% 0.85% 100% -100%
EPS 1.14% 1.15% -1.12% 100% -100%

Rating Changes -0.04% 0.21% 0.67% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.

Utilities Range of Averages


FQ+1 -1 Week -1 Month -3 Month Below Above
Revenue -0.02% 0.68% 0.86% 100% -100%
EBIT 0.27% -0.82% -0.10% 100% -100%
EPS 0.02% -1.37% -1.37% 100% -100%

FY+1
Revenue -0.05% -0.40% 0.67% 100% -100%
EBIT 0.02% -1.37% -1.37% 100% -100%
EPS -0.05% -0.65% -2.05% 100% -100%

FY+2
Revenue -0.02% -0.22% 0.33% 100% -100%
EBIT 0.05% -0.75% 0.29% 100% -100%
EPS -0.03% -0.14% 0.05% 100% -100%

Rating Changes -0.03% -0.80% 0.35% 100% -100%


All stocks on major U.S. exchanges w ith a market cap above $750m
Source: Capital IQ consensus estimates and Ascendere Associates models.
DISCLOSURES
There are limitations inherent in our backtested theoretical model results, particularly with the fact that such results do not represent actual trading and they may not reflect
the impact material economic and market factors might have had on our decision making if we were actually managing client money. Please see additional disclosures and
disclaimers at the back of this report.

Ascendere is in the business of providing equity research and related consulting services to investors and their advisors. The equity research it provides includes basic
quantitative model portfolios and more detailed fundamental research with respect to individual stocks. In addition, the firm manages stock portfolios for itself and clients.

Ascendere does not rate stocks on any scale, but does offer individual stock commentary and valuation opinions. With regard to Ascendere's portfolio strategies, "long" or
"high-quality" baskets should generally be considered buys, unless otherwise noted. Stocks in our "short" or "low-quality" baskets should generally be considered sells,
unless otherwise noted. While exceptions may occasionally occur, typically stocks in the high-quality basket are expected to outperform the S&P 500 over a month's time
and stocks in the low-quality basket are expected to underperform. A more relevant benchmark would comprise of all stocks and ADRs that trade on major U.S. stock
exchanges with a market cap above $2 billion.

Ascendere adheres to professional standards and abides by codes of ethics that put the interests of clients ahead of its own. The following are specific disclosures made by
Ascendere:

1) Ascendere may have a financial interest in the companies referred to in this report ("the Companies"). The research analyst covering the Companies and members
of the analyst's immediate family have a financial interest in one or more of the Companies.

2) Ascendere generates revenue from research subscription revenue and portfolio management fees. At any given time it may be long or short any of the Companies.

3) Ascendere does not make a market in the securities of any of the Companies.

4) Ascendere has not received compensation from the Companies.

5) Ascendere has not managed or co-managed a public offering for any of the Companies.

6) Neither Ascendere nor any of its officers or any family member of the covering analyst serve as an officer, director or advisory board member of any of the
Companies.

7) Neither Ascendere nor any of its officers or any family member of the covering analyst beneficially own 1% or more of any class of securities of any of the
Companies.
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 is not intended to be in furtherance of the specific investment objectives, financial situation, or particular needs of any individual recipient. Investment decisions
should be based on an individual's own goals, time horizon and tolerance for risk. The information contained herein accurately reflects the opinion of Ascendere at the time
the report was released. The opinions of Ascendere are subject to change at any time without notice and without obligation or notification. The officers, affiliates or family
members of Ascendere Associates may hold positions in the securities of the Companies. No warranty is made as to the accuracy of the information contained herein. The
views and opinions expressed in the market commentary reflect the opinions of the author and may be based upon information obtained from third-party sources believed
to be reliable but not guaranteed. These opinions are subject to change at any time based upon market or other conditions. Ascendere disclaims any responsibility to
update such views. This information is intended for the sole use of clients of Ascendere. Any other use, distribution or reproduction is strictly prohibited. Investing in stocks
includes a high degree of risk, including the risk of total loss. This is for informational purposes only and is not intended to constitute a current or past recommendation,
investment advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. All information, opinions and estimates are current as of
original distribution by author and are subject to change at any time without notice. Any companies, securities and/or markets referenced are solely for illustrative purposes.
Past performance is not indicative of future performance, and no representation or warranty, express or implied, is made regarding future performance.

For Investment Professional use only. NOT FOR FURTHER DISTRIBUTION. Any dissemination or copying of this commentary is strictly prohibited.
Investing in stocks includes a high degree of risk, including the risk of total loss.