U.S.
RESEARCH AT A GLANCE
Ratings Revisions
! American Ecology Corporation
! Atlas Air Worldwide Holdings
! United Parcel Service, Inc.
Price Target Revisions
! Celgene
! Check Point Software
! EXFO Electro-Optical
! Isilon Systems, Inc.
! Legacy Reserves LP
! Methanex Corp.
! OSI Pharmaceuticals
! QLogic Corporation
! Seagate Technology
! VeriFone Holdings, Inc.
! Xyratex Group
First Glance Notes
! Baidu, Inc.
! Biogen Idec Inc.
! Cornell Companies, Inc.
! Corrections Corp. of America
! Health Management Associates
! Kraft Foods Inc.
Earnings Preview
! EMC Corporation
Company Comments
! Amgen Inc.
! Apollo Group, Inc.
! LM Ericsson Telephone Company Summary
! Nokia Corporation
! Verizon Communications
Industry Comments
! Ag Connect Expo Highlights
! Bakken Shale Weekly: January
JANUARY 13, 2010
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To find out more, please contact your RBC Capital Markets' sales representative.
Summary Challenges to Continue into 2010; Moving to Sector Perform
Summary All In On The Airfreight Sector
Summary Preannounces Q4'09 Earnings; We Would Be Buyers Here
Summary More Positive Data, Solid Q4, and Strong 2010 Sales - Raising Target to $68
Summary Increasing Estimates and Introducing 2011
Summary FQ1/10 Results In-line; Strong Outlook For FQ2
Summary 4Q09 Earnings Preview
Summary Equity Offering Helps Fund Acquisition; Raising PT By 5%
Summary Starting 2010 with Higher Methanol Prices; Target Increased to $31.00
Summary Q4 Upside; Modestly Increasing 2010 Forecasts
Summary Raising The Bar Again
Summary Fiscal 2Q10 Earnings Preview
Summary Thoughts from Management Meetings
Summary Hang On
Summary One Search Platform To Rule The Middle Kingdom?
Summary Tysabri Patient Growth Decelerated in Q4:09 but Sales Were In-line
Summary Announces Bureau of Prisons Contract Award
Summary Loses Part of Recompeted Bureau of Prisons Procurement
Summary Pre-Announces Slight Upside to 4Q09; FY10 Guidance In Line
Summary Kraft Raises FY09 EPS Guidance
Summary 4Q09 Earnings Preview
Summary Takeaway Thoughts on Guidance and Dmab Timelines; No Changes to LT Thinking
Summary Reducing FY10 Estimates and Reiterating Underperform Rating
Digesting Canadian Bacon
Summary Choppy in the Middle
Summary Fine-Tuning Estimates
Summary Cautious Optimism at Ag Connect Expo
Summary Progress Report on the North Dakota Bakken
! - Action-Oriented Research
Priced as of prior day's market close, EST (unless otherwise noted).
For Required Non-U.S. Analyst and Conflicts Disclosures, see Page 20.
 12, 2010
! East Coast Banks 4Q09 Earnings Summary Will "Kitchen Sinks" Dominate the Headlines?
Outlook; "On the Cusp of Change"
! Global Clean Energy Directions Summary RBC's Daily Snapshot

! RBC Construction Contractor Summary Small Bump in Sentiment; Stimulus Expectations Waning
Survey, Vol. 2
! Real Estate Investment Trusts Summary Q1-2010 REIT Quarterly (Summary)

! South African Gold Majors Summary Q4 CY2009 Earnings Outlook

Investment Strategy Research

! RBC Investment Strategy Weekly Summary Excess Capacity, Policy Settings & Earnings

In-Depth Reports
! Global Mining Trends & Values Summary January 12, 2010

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2
January 13, 2010 U.S. RESEARCH AT A GLANCE
Ratings Revisions
Jamie Sullivan, CFA (Analyst) American Ecology Corporation (NASDAQ: ECOL; 16.99)
(212) 428-6465; jamie.sullivan@rbccm.com
Michael Shlisky (Associate) Rating: Sector Perform (prev: Outperform)
(212) 428-6690; michael.shlisky@rbccm.com Risk Qualifier: Average Risk
Price Target: 18.00 ▼ 19.00
125 WEEKS 31AUG07 - 12JAN10
Challenges to Continue into 2010; Moving to Sector Perform
Rel. S&P 500 HI-10OCT08 192.95
180.00 LO/HI DIFF 95.55% • ECOL provided qualitative guidance for 2010, including a slow recovery in the
160.00
140.00
120.00
CLOSE 110.26
Base (i.e., recurring) business (~50% of '09 total), few Event clean-up projects,
100.00
2007 2008 2009
LO-19OCT07 98.67 and improvement in Army Corps business (specific, stimulus).
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-25JUL08 33.83
32.00
HI/LO DIFF -59.92% • Fewer Event projects in the pipeline to replace Honeywell project (~40% of '09
28.00 revenues) completed in 3Q09 will cause 2010 revenues to lag the recovery that
24.00
CLOSE 16.99
many industrials are expected to experience.
20.00
• Our Outperform thesis was predicated on potential upside from stimulus and
16.00
some event project work while the industrial recovery takes hold. As upside
LO-03APR09 13.56
2000
appears limited from these factors in 2010, we are lowering are our rating to
1500
1000
PEAK VOL. 2621.6 Sector Perform from Outperform.
VOLUME 88.2
500
• High ROIC (~20%), solid assets, strong balance sheet and dividend yield of
4% protect downside, but upside catalysts are few at this time.
Revenue (MM) Prev.
2008A 175.8
2009E 127.9
2010E 83.7↓ 109.9
2011E 94.7
All values in USD unless otherwise noted.

John Barnes (Analyst) Atlas Air Worldwide Holdings (NASDAQ: AAWW; 39.35)
(804) 782-4020; john.barnes@rbccm.com
Mike Fountaine (Associate) Rating: Outperform (prev: Sector Perform)
(804) 782-4013; mike.fountaine@rbccm.com Risk Qualifier: Above Average Risk
Todd Maiden (Associate) Price Target: 50.00 ▲ 28.00
(804) 782-4014; todd.maiden@rbccm.com All In On The Airfreight Sector
We are upgrading AAWW to Outperform from Sector Perform and raising our 12-month
125 WEEKS
Rel. S&P 500
31AUG07 - 12JAN10
HI-16MAY08 132.27
price target to $50 from$28 based on the following: (1) increased likelihood of favorable
100.00
HI/LO DIFF -72.80% ACMI contract renewals during 2010; (2) the potential for market share gains in the AMC
80.00
60.00
CLOSE 100.61
charter market on top of the benefit from the recently announced troop surge in
40.00
2007 2008 2009
LO-21NOV08 35.98 Afghanistan; and (3) elimination of the financing risks associated with the delivery of the
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-23MAY08 66.45 first 747-800s following the recent stock offering. Lastly, we believe further deals similar
HI/LO DIFF -86.47%
56.00
48.00
to the recently announced SonAir agreement are in the works, which could provide an
40.00 additional boost to earnings. We are also introducing 2011 and 2012 EPS estimates of
32.00
24.00
CLOSE 39.35 $3.81 and $5.38, respectively, which are well above Street expectations. As these events
16.00
unfold over the coming months, we believe AAWW shares will materially outperform its
peer group.
LO-21NOV08 8.99
7500
6000
4500 PEAK VOL. 8963.8
3000 VOLUME 402.2
1500

Revenue (MM) Prev.

2008A 1,607.5
2009E 986.6↑ 984.1
2010E 1,106.6↑ 1,044.6
2011E 1,317.0
All values in USD unless otherwise noted.

3
January 13, 2010 U.S. RESEARCH AT A GLANCE
John Barnes (Analyst) United Parcel Service, Inc. (NYSE: UPS; 62.40)
(804) 782-4020; john.barnes@rbccm.com
Mike Fountaine (Associate) Rating: Outperform (prev: Sector Perform)
(804) 782-4013; mike.fountaine@rbccm.com Risk Qualifier: Average Risk
Todd Maiden (Associate) Price Target: 72.00 ▲ 60.00
(804) 782-4014; todd.maiden@rbccm.com Preannounces Q4'09 Earnings; We Would Be Buyers Here
• UPS announced that it expects 4Q'09 earnings to be in the range of
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-05DEC08 128.26 $0.73-$0.75/sh, better than our estimate and the consensus of $0.63. The upside
LO/HI DIFF 41.09%
120.00
110.00 CLOSE 106.71
to prior guidance is due to strength throughout the network, both domestic and
100.00 international, as well as the result of various cost-savings measures previously
LO-11JUL08 90.91
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J implemented. UPS also announced that it plans to further streamline its
HI-05OCT07 78.60
78.00
72.00
HI/LO DIFF -51.67% operations and reduce ~1,800 positions, and another ~1,100 employees will be
66.00 offered a voluntary separation package. We believe that the stock will continue
60.00

54.00
CLOSE 62.40
to benefit from any positive commentary surrounding the airfreight space.
48.00
Additionally, we believe that UPS has some built-in downside earnings
42.00
protection given that it still has a material amount of cost it can remove from
LO-13MAR09 37.99 its network. With that said, we are raising our rating to Outperform, Average
40000
PEAK VOL. 58105.0
Risk and increasing our 12-month price target to $72 from $60.
20000 VOLUME 19389.4

Revenue (MM) Prev.

2008A 51,486.0
2009E 45,254.0↑ 45,000.0
2010E 47,556.0↓ 48,163.0
2011E 50,718.0
All values in USD unless otherwise noted.

Price Target Revisions

Jason Kantor, PhD (Analyst) Celgene (NASDAQ: CELG; 56.99)
(415) 633-8565; jason.kantor@rbccm.com
Michael Yee (Analyst) Rating: Outperform
(415) 633-8522; michael.yee@rbccm.com Risk Qualifier: Above Average Risk
Adnan Butt (Associate) Price Target: 68.00 ▲ 60.00
(415) 633-8588; adnan.butt@rbccm.com More Positive Data, Solid Q4, and Strong 2010 Sales - Raising Target to $68
• We are increasing our price target to $68 following new positive data for
125 WEEKS 31AUG07 - 12JAN10
160.00 Rel. S&P 500 HI-20FEB09 160.95 Revlimid, better than expected Q4 results, and bullish top-line guidance for
LO/HI DIFF 120.55%
140.00
120.00
CLOSE 115.14
2010. Celgene is our No.1 large cap pick for 2010, based on projected
100.00
Revlimid growth and upcoming data releases. New sales guidance provides a
80.00 LO-28DEC07 72.97
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J bullish outlook for 2010 growth, but we believe EPS guidance for 2010
HI-15AUG08 77.39
72.00
HI/LO DIFF -52.32% ($2.55-2.60) is overly conservative and we remain above guidance ($2.73), on
66.00 expectations of better operating leverage.
60.00
54.00 CLOSE 56.99 • Another major trial of Revlimid was stopped early due to efficacy. This is the
48.00 fifth trial of Revlimid in a first-line setting to stop early for efficacy. We expect
42.00
data from three major studies to be presented at ASCO or EHA in June and
LO-03APR09 36.90
60000
drive increased duration of therapy. The average duration in the US is 11.4
40000 PEAK VOL. 80264.7
VOLUME 14406.9
months and 7+ months in the EU; both are growing.
20000

Rpt EPS Prev. P/Rpt EPS

2008A 1.56 36.5x
2009E 2.08↑ 2.07 27.4x
2010E 2.73↓ 2.76 20.9x
All values in USD unless otherwise noted.

4
January 13, 2010 U.S. RESEARCH AT A GLANCE
Robert Breza (Analyst) Check Point Software (NASDAQ: CHKP; 33.75)
(612) 313-1207; robert.breza@rbccm.com
Matthew Hedberg (Associate) Rating: Outperform
(612) 313-1293; matthew.hedberg@rbccm.com Risk Qualifier: Speculative Risk
Dan Bergstrom (Associate) Price Target: 40.00 ▲ 35.00
(612) 313-1254; dan.bergstrom@rbccm.com Increasing Estimates and Introducing 2011
• Our industry analysis compiled from conversations with C-level executives and
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-06MAR09 193.44 channel contacts indicate a fairly robust spending environment as the
180.00 LO/HI DIFF 111.49%
150.00
CLOSE 186.63
confidence to spend on IT appears to have returned. We believe most
120.00 companies in our universe are executing towards the higher end of their
LO-14DEC07 91.47
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J guidance range with a positive, yet conservative outlook expected for the
HI-01JAN10 34.57
34.00
32.00
LO/HI DIFF 105.77% 1H'2010, and aided by easier year-over-year comparisons. Based on our
30.00
28.00
checks, we expect Q4'09 revenue/EPS for Check Point near the high end of
26.00
24.00
CLOSE 33.75
guidance or $260.0M$0.58, vs. consensus of $257.6M/$0.57 and guidance of
22.00 $245M-$268M/$0.53-$0.60, driven by strong year-end renewals, a Nokia
20.00

18.00
product refresh /conversion cycle and better close rates.
LO-17OCT08 16.80
20000 • We believe the pipeline is building for the March quarter and expect
15000
10000 PEAK VOL. 22298.5
VOLUME 4127.4
management to offer a positive, yet conservative outlook. As such, we are
5000
increasing our 2010 revenue/EPS estimates to $1,016.5B/$2.26 vs. consensus
of $1,011.1M/$2.24 and are introducing 2011 revenue/EPS of
EPS (Op) Prev. P/E $1,099.5M/$2.49 vs. consensus of $1,083.9M/$2.48.
2008A 1.78 19.0x
2009E 2.02↑ 2.01 16.7x
2010E 2.26↑ 2.21 14.9x
2011E 2.49 13.6x
All values in USD unless otherwise noted.

Steve Arthur, CFA (Analyst) EXFO Electro-Optical (NASDAQ: EXFO; 4.58; TSX: EXF)
(416) 842-7844; steve.arthur@rbccm.com
Albert Maierovits (Associate) Rating: Outperform
(416) 842-5338; albert.maierovits@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 6.25 ▲ 4.50
125 WEEKS 31AUG07 - 12JAN10
FQ1/10 Results In-line; Strong Outlook For FQ2
Rel. S&P 500 HI-29MAY09 113.89
105.00 LO/HI DIFF 114.17% • FQ1/10 Results In-line With Pre-Announcement: EXFO reported sales of
90.00
75.00
CLOSE 89.21
$45.6MM, in-line with their positive pre-announcement on November 30th.
60.00
2007 2008 2009
LO-17OCT08 53.18 GM was 63.9% for the quarter (vs. our 60% expectation). Adj. EPS was $0.03
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J

7.00
HI-21SEP07 7.36
HI/LO DIFF -72.96%
- inline with EXFO's pre-announcement.
6.00
• Forecast Revisions - Significant Increases On Higher Revenue and GM
5.00

4.00 CLOSE 4.58

Outlook: EXFO's guidance range for FQ2/10 was well ahead of
3.00
RBC/consensus expectations. We now forecast F2010E sales of $208.6MM
(from $184.6MM previously) generating EPS of $0.24 ($0.12 previously).
LO-21NOV08 1.99
2.00
3000
• Target To $6.25 (From $4.50): On higher earnings forecast, our target
2000
PEAK VOL. 3538.7 increases to $6.25 from $4.50. EXFO shares have performed well in recent
VOLUME 143.7
1000
weeks, but still trade at attractive valuation metrics relative to improved
earnings outlook and execution. With ~ 37% return to our revised target, we
Revenue (MM) Prev. remain buyers of the shares. We maintain our Outperform, AAR rating,
2008A 183.8 with a revised target of $6.25.
2009A 172.9
2010E 208.6↑ 184.6
2011E 249.5↑ 234.2
All values in USD unless otherwise noted.

5
January 13, 2010 U.S. RESEARCH AT A GLANCE
Amit Daryanani, CFA (Analyst) Isilon Systems, Inc. (NASDAQ: ISLN; 6.90)
(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Outperform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Speculative Risk
Ryan Jones (Associate) Price Target: 10.00 ▲ 9.00
(415) 633-8533; ryan.jones@rbccm.com 4Q09 Earnings Preview
• What's New? We increased our estimates for 4Q09 and beyond, as we believe
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-07SEP07 100.30 Isilon realized strong 4Q09 order patterns through year-end, and the pricing
90.00 HI/LO DIFF -61.83%
75.00
CLOSE 89.07
environment for enterprise storage systems, while still aggressive, remained at
60.00

45.00
minimum consistent with 3Q09. On a 12-month basis, we increased our price
LO-17APR09 38.29
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J target to $10 (was $9) and maintained our Outperform, Speculative Risk rating.
HI-07SEP07 10.65
10.00 HI/LO DIFF -82.54% Even with the recent share price increase, Isilon still trades at discounts of
8.00
~30% and ~5% on an enterprise value-to-CY10 revenue basis versus
6.00
CLOSE 6.90
Compellent and 3PAR. We expect the Compellent-related discrepancy to
4.00
diminish over the near term, as we expect Isilon to report breakeven
non-GAAP EPS in 4Q09 that should reduce some of the going-concern risk.
2.00 LO-13MAR09 1.86
6000 • Sentiment. Currently, Isilon trades at ~2.7x our new, higher FTM revenue
4500
3000 PEAK VOL. 6907.5
VOLUME 290.2
estimate, suggesting negative execution sentiment.
1500

Revenue (MM) Prev.

2007A 89.0
2008A 114.4
2009E 121.4↑ 119.9
2010E 148.5↑ 144.7
All values in USD unless otherwise noted.

Leo Mariani, CFA (Analyst) Legacy Reserves LP (NASDAQ: LGCY; 20.70)

(512) 708-6381; leo.mariani@rbccm.com
TJ Schultz, CFA (Associate) Rating: Outperform
(512) 708-6385; tj.schultz@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 20.00 ▲ 19.00
125 WEEKS 31AUG07 - 12JAN10
Equity Offering Helps Fund Acquisition; Raising PT By 5%
Rel. S&P 500 HI-11JUL08 126.55
120.00
105.00
HI/LO DIFF -57.90% • LGCY Raised ~$83 Million In A Follow-On Equity Offering. The
90.00
75.00
CLOSE 115.70
Company's primary use of proceeds is to help fund the $130 million acquisition
60.00
2007 2008 2009
LO-05DEC08 53.28 in Wyoming (which is scheduled to close by February 17, 2010).
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-04JUL08 25.76
24.00 HI/LO DIFF -74.77% • Following The Offering & Acquisition, LGCY Should Have About $70
20.00 Million Available On Its $340 Million Revolver. We believe LGCY will be
16.00
CLOSE 20.70
able to maintain adequate liquidity through 2011.
12.00
• The Equity Raise Is About 5% Dilutive To Our Estimates. We estimate
8.00 distribution coverage tightens from 1.06x to 1.01x in 2010 and from 1.05x to
LO-21NOV08 6.50
2500 1.00x in 2011.
2000
1500
1000
PEAK VOL. 2887.2
VOLUME 2495.1
• We Have Increased Our Price Target By 5% To $20/Unit. LGCY trades at
500
a 5% discount to the Group. LGCY is trading at an expected annual yield of
about 10.0%. Our $20/unit price target implies a 9% discount to the group and
DCF Prev. P/DCF 7% all-in 12-month upside potential.
2008A 2.29 9.0x
2009E 2.44↓ 2.45 8.5x
2010E 2.11↓ 2.21 9.8x
2011E 2.07↓ 2.18 10.0x
All values in USD unless otherwise noted.

6
January 13, 2010 U.S. RESEARCH AT A GLANCE
Fai Lee, CGA, CFA (Analyst) Methanex Corp. (NASDAQ: MEOH; 22.92; TSX: MX)
(604) 257-7662; fai.lee@rbccm.com
Owen Martin (Associate) Rating: Outperform
(604) 257-7145; owen.martin@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 31.00 ▲ 23.00
125 WEEKS 31AUG07 - 12JAN10
Starting 2010 with Higher Methanol Prices; Target Increased to $31.00
Rel. S&P 500 HI-20JUN08 151.97
150.00
120.00
HI/LO DIFF -69.64% • Target Price Increased from $23.00 to $31.00. The increase to our target
90.00 CLOSE 131.86
price reflects an upward revision to our methanol pricing assumptions.
60.00
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
LO-06FEB09 46.13
• Upward Revision to Methanol Price Forecast. Consistent with the new
HI-20JUN08 33.20
30.00 HI/LO DIFF -82.80% European contract price, we increased our Q1/10 methanol price assumption
25.00
20.00
from $288/tonne to $340/tonne. For the remainder of our forecast period, we
15.00 CLOSE 22.92
increased our methanol price assumption from $260/tonne to $300/tonne.
10.00 • EPS Estimates Increased. We increased our 2010 and 2011 EPS estimates
from $1.32 and $2.68, respectively, to $2.09 and $3.38. The changes reflect the
LO-06MAR09 5.71
4500
upward revision to our methanol pricing assumptions, partially offset by a
3000 PEAK VOL. 5512.5 more conservative ramp-up of production in Chile. We have assumed an
VOLUME 1046.9
1500
overall operating rate of 40% for Chile by 2011 (previously 50%). In addition,
we decreased our Q4/09 EPS estimate by $0.03 as the start-up of the second
EPS (Op) Prev. P/E production unit was slightly later than our forecast.
2008A 1.48 15.5x
2009E 0.07↓ 0.10 NM
2010E 2.09↑ 1.32 11.0x
2011E 3.38↑ 2.68 6.8x
All values in USD unless otherwise noted.

Jason Kantor, PhD (Analyst) OSI Pharmaceuticals (NASDAQ: OSIP; 33.61)

(415) 633-8565; jason.kantor@rbccm.com
Michael Yee (Analyst) Rating: Outperform
(415) 633-8522; michael.yee@rbccm.com Risk Qualifier: Above Average Risk
Adnan Butt (Associate) Price Target: 37.00 ▲ 36.00
(415) 633-8588; adnan.butt@rbccm.com Q4 Upside; Modestly Increasing 2010 Forecasts
• We are increasing our 2009 and 2010 EPS estimates and raising our price
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-20FEB09 221.38 target to $37 from $36 following OSIP's surprising pre-announcement of better
210.00 LO/HI DIFF 135.80%
175.00
CLOSE 127.83
than expected Tarceva sales in the US and ex-US. Our fully-taxed 2010
140.00

105.00
non-GAAP EPS estimate increases from $2.06 to $2.14, which could be
LO-05OCT07 93.88
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J conservative.
HI-15AUG08 53.71
HI/LO DIFF -49.71%
50.00

45.00
• We had expected increasing growth for Tarceva, but the magnitude of the
40.00
CLOSE 33.61
growth (10% sequentially) was a surprise and remains relatively unexplained.
35.00 We have therefore been conservative in our new 2010 forecasts pending more
30.00
details from Roche on February 3. If the Q4 sales figures represent a true run
14000
LO-03JUL09 27.01 rate for 2010, then our forecasts would need to be increased.
10000
PEAK VOL. 14866.1
6000 VOLUME 2266.8 • We believe the risk benefit is favorable for OSIP going into its January 18th
2000
PDUFA date for the first-line maintenance indication. Expectations are very
low following the 12-1 negative ODAC vote, and a surprise positive FDA
EPS (Op) Prev. P/E
2009E 1.71↑ 1.65 19.7x
decision could take shares up 10%, in our view.
2010E 2.14↑ 2.06 15.7x
2011E 2.14↑ 2.00 15.7x
All values in USD unless otherwise noted.

7
January 13, 2010 U.S. RESEARCH AT A GLANCE
Amit Daryanani, CFA (Analyst) QLogic Corporation (NASDAQ: QLGC; 20.66)
(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Outperform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Above Average Risk
Ryan Jones (Associate) Price Target: 25.00 ▲ 23.00
(415) 633-8533; ryan.jones@rbccm.com Raising The Bar Again
• What's New? Citing particular strength in the Host Products division, QLogic
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-15JAN10 201.52 pre-announced positive results versus our recently increased estimates and
LO/HI DIFF 117.93%
180.00
150.00
CLOSE 201.52
Street expectations. QLogic expects revenue of $147.0-$149.0 million and
120.00 non-GAAP EPS of $0.29-$0.30 (Street: $138.3 million and $0.24). On a
LO-21SEP07 92.47
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J 12-month basis, we increased our price target to $25 (was $23) and maintained
HI-15JAN10 21.28
20.00
LO/HI DIFF 144.88% our Outperform, Above Average Risk rating. We continue to believe QLogic
18.00
16.00
has a multitude of tailwinds working in its favor (easier year-over-year
14.00 CLOSE 20.66
comparables for HBA and switch businesses, continued Intel's Nehalem server
12.00 refresh cycle, volume leverage on margins, and broad portfolio targeted at
10.00 unified fabrics).
LO-21NOV08 8.69
30000

20000
• Sentiment. Currently, the stock trades at ~18x our FTM non-GAAP EPS
PEAK VOL. 34577.9
10000 VOLUME 8496.9 estimate, suggesting neutral execution, which is in line with the average level
across our coverage list. We believe a positive bias is warranted given the
EPS (Op) Prev. P/E
catalysts that QLogic has working in its favor over the next several quarters.
2008A 0.99 20.9x
2009A 1.20 17.2x
2010E 0.96↑ 0.89 21.5x
2011E 1.18↑ 1.10 17.5x
All values in USD unless otherwise noted.

Amit Daryanani, CFA (Analyst) Seagate Technology (NYSE: STX; 17.72)

(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Sector Perform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Above Average Risk
Ryan Jones (Associate) Price Target: 22.00 ▲ 19.00
(415) 633-8533; ryan.jones@rbccm.com Fiscal 2Q10 Earnings Preview
• What's New? We increased our estimates for the December quarter and
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-02NOV07 108.15 beyond, as we believe Seagate realized strong order patterns through calendar
HI/LO DIFF -80.27%
80.00
60.00
CLOSE 89.03
year end, and the pricing environment remains tame, as supply remains tight
40.00
due to industry consolidation and yield issues at a major competitor. For the
LO-23JAN09 21.34
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J March quarter, we expect the industry TAM to be roughly flat sequentially due
HI-02NOV07 28.91
25.00
HI/LO DIFF -89.69% to continued OEM inventory restocking and healthy consumer PC demand
20.00
15.00
(helped by Windows 7 adoption). On a 12-month basis, we increased our price
10.00 CLOSE 17.72
target to $22 (was $19) to reflect our higher estimates but maintained our
Sector Perform rating and Average risk assessment.
5.00
• Sentiment. Currently, the stock trades at ~8x our assessment of the Street
LO-23JAN09 2.98
80000
consensus FTM non-GAAP EPS estimate, suggesting negative execution
60000
40000
PEAK VOL.105544.6
VOLUME 23019.7
which is below the average level of our coverage list but is likely warranted
20000 due to near peak profitability metrics.

Revenue (MM) Prev.

2008A 12.7
2009A 9.8
2010E 11.1↑ 10.8
2011E 12.7↑ 11.1
All values in USD unless otherwise noted.

8
January 13, 2010 U.S. RESEARCH AT A GLANCE
Daniel R. Perlin, CFA (Analyst) VeriFone Holdings, Inc. (NYSE: PAY; 17.28)
(410) 625-6130; daniel.perlin@rbccm.com
Matthew V. Roswell, CFA (Associate) Rating: Sector Perform
(410) 625-6131; matt.roswell@rbccm.com Risk Qualifier: Speculative Risk
Price Target: 19.00 ▲ 17.00
125 WEEKS 31AUG07 - 12JAN10
Thoughts from Management Meetings
Rel. S&P 500 HI-30NOV07 129.32
90.00
HI/LO DIFF -87.68% We recently hosted meetings with Robert Dykes, SVP and CFO and William Nettles, VP
60.00
CLOSE 60.65 of IR and came away believing new growth initiatives, albeit small today, could become
30.00
LO-05DEC08 15.93
more meaningful as we exit 2010 and into 2011. Key growth opportunities include 1)
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-02NOV07 50.00
payment enabled media, 2) end-to-end encryption (VeriShield Protect), and 3) expansion
42.00 HI/LO DIFF -95.38%
into Level V merchants through PAYware Mobile.
30.00
24.00
18.00
12.00 CLOSE 17.28

6.00

LO-21NOV08 2.31
100000
80000
60000 PEAK VOL.114270.2
40000 VOLUME 2192.0
20000

Cash EPS P/CEPS

2009A 0.85 20.3x
2010E 1.05 16.5x
2011E 1.22 14.2x
All values in USD unless otherwise noted.

Amit Daryanani, CFA (Analyst) Xyratex Group (NASDAQ: XRTX; 15.25)

(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Outperform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Speculative Risk
Ryan Jones (Associate) Price Target: 21.00 ▲ 13.00
(415) 633-8533; ryan.jones@rbccm.com Hang On
• What's New? Xyratex reported revenue ($243.0 million) and non-GAAP EPS
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-20JUN08 117.59 ($0.26) below the Street estimates ($262.8 million and $0.38), as unexpected
90.00 HI/LO DIFF -87.41%
60.00
CLOSE 95.02
semiconductor constraints negatively impacted shippable NSS orders. Without
30.00 this impact, Xyratex stated that it would at least have met Street expectations.
LO-12DEC08 14.81
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J Xyratex provided fiscal 1Q10 and FY10 revenue and non-GAAP EPS targets
HI-20JUN08 22.97
20.00 HI/LO DIFF -93.25% well ahead of Street expectations, as Seagate and Western Digital have
16.00
12.00 returned to more normalized order patterns. On a 12-month basis, we
8.00
CLOSE 15.25
substantially increased our price target to $21 (from $13) to reflect our
4.00 significant increase in profits and reiterated our Outperform, Speculative Risk
rating.
LO-06FEB09 1.55
6000 • Sentiment. As of Tuesday's close, Xyratex traded at ~8x our FTM non-GAAP
4500
3000 PEAK VOL. 6558.4
VOLUME 1749.6
EPS estimate, suggesting severe, negative execution sentiment that is below the
1500
average level (neutral) across our coverage list. With the substantial increase in
EPS, we expect the shares to materially increase over the near term.
EPS (Op) Prev. P/E
2008A 0.56 27.2x
2009A 0.04↓ 0.17 NM
2010E 2.00↑ 0.94 7.6x
2011E 2.13 7.2x
All values in USD unless otherwise noted.

9
January 13, 2010 U.S. RESEARCH AT A GLANCE
First Glance Notes
Stephen Ju (Analyst) Baidu, Inc. (NASDAQ: BIDU; 386.49)
(212) 428-2365; stephen.ju@rbccm.com
David Bank (Analyst) Rating: Outperform
(212) 858-7333; david.bank@rbccm.com Risk Qualifier: Speculative Risk
Ross Sandler (Analyst) One Search Platform To Rule The Middle Kingdom?
(212) 428-6227; ross.sandler@rbccm.com
Sun-Il (Sean) Kim (Associate)
Google issued a blog post suggesting it may have to re-evaluate its operations in China as
(212) 428-2363; sean.kim@rbccm.com it approaches the government with a bid to unfilter search results on Google.cn. We
Ryan Vineyard (Associate) remind investors that media in China is State-controlled and the government has next to
(212) 428-6489; ryan.vineyard@rbccm.com no incentive to accede to Google's wishes. Hence, in our view the most likely conclusion
Whitney Goldstein (Associate) is that if Google were to insist on the ability to unfilter search results, it may eventually be
(212) 428-6412; whitney.goldstein@rbccm.com banned in China. The financial implications for Google are minimal, as we believe
revenue from China accounts for around 1% of total. The implications for BIDU are more
125 WEEKS 31AUG07 - 12JAN10 profound should Google withdraw from the Chinese market: 1) opportunity for BIDU to
270.00
Rel. S&P 500 HI-23OCT09 285.46
LO/HI DIFF 223.78% pick up Google's wallet share; 2) increased urgency among advertisers in the Phoenix Nest
225.00
180.00 CLOSE 240.82 transition; 3) increased urgency among larger portals to invest in search; and 4) improved
135.00

LO-05DEC08 88.17
investor sentiment.
90.00
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-27NOV09 443.25
440.00 LO/HI DIFF 341.04%
360.00
320.00
280.00
240.00
CLOSE 386.49
200.00

160.00

120.00
LO-12DEC08 100.50
40000
PEAK VOL. 53370.0
20000 VOLUME 4206.3

All values in USD unless otherwise noted.

Jason Kantor, PhD (Analyst) Biogen Idec Inc. (NASDAQ: BIIB; 53.25)
(415) 633-8565; jason.kantor@rbccm.com
Michael Yee (Analyst) Rating: Sector Perform
(415) 633-8522; michael.yee@rbccm.com Risk Qualifier: Above Average Risk
Adnan Butt (Associate) Tysabri Patient Growth Decelerated in Q4:09 but Sales Were In-line
(415) 633-8588; adnan.butt@rbccm.com
• Biogen preannounced year-end 2009 Tysabri patient numbers totaling 48,200
125 WEEKS 31AUG07 - 12JAN10
(commercial), which were below our forecast of 48,750. This is the second
150.00
Rel. S&P 500 HI-20FEB09 152.30
LO/HI DIFF 71.31%
quarter of sequential declines in net new patients after a big jump in Q2:09.
135.00
120.00 CLOSE 108.24 • Reported worldwide Tysabri sales were $297.8M, in line with our Q4 forecast
105.00
90.00 LO-08AUG08 88.90 of $298.3M. US sales of $136.5M were $2.4M below our estimate; ex-US sales
2007 2008 2009

84.00
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-19OCT07 84.75 of $161.3M were $1.9M higher than forecast (likely helped by Fx)
HI/LO DIFF -56.09%
78.00
72.00 • Another metric we watch closely is revenue per patient which had improved
66.00
60.00
over the past few quarters after declining. Revenue per patient was flat over
CLOSE 53.25
54.00 Q3:09.
48.00

42.00
LO-21NOV08 37.21

40000
PEAK VOL. 63742.5
20000 VOLUME 5055.1

All values in USD unless otherwise noted.

10
January 13, 2010 U.S. RESEARCH AT A GLANCE
Jamie Sullivan, CFA (Analyst) Cornell Companies, Inc. (NYSE: CRN; 22.96)
(212) 428-6465; jamie.sullivan@rbccm.com
Michael Shlisky (Associate) Rating: Sector Perform
(212) 428-6690; michael.shlisky@rbccm.com Risk Qualifier: Above Average Risk
Announces Bureau of Prisons Contract Award
125 WEEKS 31AUG07 - 12JAN10 • After the close on Tuesday, CRN won a recompeted CXW contract from BOP
160.00 Rel. S&P 500 HI-28NOV08 161.12
140.00
LO/HI DIFF 95.51%
for 2,180 beds (potentially 2,507). The inmates will be housed in CRN's D.
120.00 CLOSE 123.64
100.00
Ray James facility in Georgia.
LO-07MAR08 82.41
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J • Our view is that per-diems were likely lower in Georgia ($54-$64) than at one
HI-19SEP08 28.45
28.00
26.00
HI/LO DIFF -52.83% of the existing CXW faclities in California.
24.00
22.00
• This is positive for CRN, in our view, as the 700 incremental inmates (net of
20.00 CLOSE 22.96 State of Georgia transfers out of the facility) could add an annualized
18.00

16.00
$0.10-$0.15 of EPS.
14.00
LO-13MAR09 13.42

900
600 PEAK VOL. 1225.0
VOLUME 73.5
300

All values in USD unless otherwise noted.

Jamie Sullivan, CFA (Analyst) Corrections Corp. of America (NYSE: CXW; 23.88)
(212) 428-6465; jamie.sullivan@rbccm.com
Michael Shlisky (Associate) Rating: Outperform
(212) 428-6690; michael.shlisky@rbccm.com Risk Qualifier: Average Risk
Loses Part of Recompeted Bureau of Prisons Procurement
125 WEEKS 31AUG07 - 12JAN10 • After the close on Tuesday, CRN won a recompeted CXW contract from BOP
Rel. S&P 500 HI-06NOV09 138.65
135.00
120.00
LO/HI DIFF 84.79%
for 2,180 beds (potentially 2,507). Expectations were that CXW would retain
105.00 CLOSE 120.73
90.00
the contract.
LO-13FEB09 75.03
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J • The inmates involved could come from CXW's California City facility in CA
HI-14DEC07 31.58
28.00
HI/LO DIFF -69.92% (2,304 design capacity), although this is not yet confirmed.
24.00
• Our view would be that per-diems were likely lower in Georgia ($54-$64) than
20.00

16.00
CLOSE 23.88 in the higher-cost region of California.
12.00
• Financial impact (est. $0.07-$0.09 to 2011) is somewhat minor for CXW,
LO-06MAR09 9.50 though it increases available inventory.
25000
20000
15000
• That said, the California City facility may be attractive to the State of
PEAK VOL. 26916.5
10000
5000
VOLUME 1572.0
California in 2011 as the State continues to try to alleviate prison
overcrowding.
All values in USD unless otherwise noted.

Frank G. Morgan, CFA (Analyst) Health Management Associates (NYSE: HMA; 7.51)
(615) 372-1331; frank.morgan@rbccm.com
Anton Hie (Associate) Rating: Sector Perform
(615) 372-1321; anton.hie@rbccm.com Risk Qualifier: Speculative Risk
Pre-Announces Slight Upside to 4Q09; FY10 Guidance In Line
125 WEEKS 31AUG07 - 12JAN10 • HMA previewed 4Q09 and FY09 results that were slightly better than expected
Rel. S&P 500 HI-09OCT09 170.29
160.00
120.00
LO/HI DIFF 499.45%
and issued initial FY10 guidance that was essentially in-line.
80.00 CLOSE 143.06

40.00
• We view this announcement as a positive data point for hospitals going into the
LO-21NOV08 28.41
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-16OCT09 8.58
4Q09 earnings season.
8.00 LO/HI DIFF 986.08%
6.00

4.00

CLOSE 7.51
2.00

LO-28NOV08 0.79
40000

PEAK VOL. 52195.3

20000 VOLUME 6928.2

All values in USD unless otherwise noted.

11
January 13, 2010 U.S. RESEARCH AT A GLANCE
Edward Aaron, CFA (Analyst) Kraft Foods Inc. (NYSE: KFT; 29.29)
(303) 595-1127; edward.aaron@rbccm.com
Rating: Sector Perform
Risk Qualifier: Average Risk
125 WEEKS 31AUG07 - 12JAN10

150.00
Rel. S&P 500 HI-23JAN09 158.44
LO/HI DIFF 63.45%
Kraft Raises FY09 EPS Guidance
135.00
120.00
CLOSE 118.52 After the close tonight, Kraft (KFT) raised FY09 guidance to "at least $2.00" compared to
105.00
LO-01FEB08 96.93
prior guidance of "at least $1.97." We view the news as mostly a non-event in the larger
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-07DEC07 35.29
scope of the pending Kraft/Cadbury merger.
HI/LO DIFF -41.03%
34.00
32.00
30.00
28.00 CLOSE 29.29
26.00

24.00

22.00
LO-06MAR09 20.81
300000

200000
PEAK VOL.329193.9
100000 VOLUME 31366.7

All values in USD unless otherwise noted.

Earnings Preview
Amit Daryanani, CFA (Analyst) EMC Corporation (NYSE: EMC; 17.47)
(415) 633-8659; amit.daryanani@rbccm.com
Jared Rinderer, CFA (Associate) Rating: Sector Perform
(503) 833-5264; jared.rinderer@rbccm.com Risk Qualifier: Average Risk
Ryan Jones (Associate) Price Target: 21.00
(415) 633-8533; ryan.jones@rbccm.com 4Q09 Earnings Preview
• What's New? We increased our revenue and non-GAAP EPS estimates for
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-09OCT09 127.00 4Q09 and beyond, as we believe EMC realized strong 4Q09 order patterns
120.00 LO/HI DIFF 69.89%
105.00
CLOSE 115.28
through year end, and the pricing environment for enterprise storage systems,
90.00 while still aggressive, remained at minimum consistent with 3Q09. On a
LO-18JUL08 74.76
75.00
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J 12-month basis, we maintained our $21 price target, Sector Perform rating, and
HI-02NOV07 25.47
24.00 HI/LO DIFF -67.61% Average risk assessment. On a relative basis, we prefer NetApp and HP as our
22.00
20.00
18.00
mid and large cap investment vehicles in the current recovery cycle of IT
16.00
CLOSE 17.47
spending.
14.00
12.00 • Sentiment. EMC trades at ~16x our assessment of the Street consensus FTM
10.00
non-GAAP EPS estimate, suggesting negative execution sentiment which is
LO-21NOV08 8.25
300000 below the current neutral sentiment level across our coverage list. We believe
200000 PEAK VOL.371118.8
VOLUME 44181.0
EMC's sentiment level is likely warranted given VMware's high valuation and
100000
the difficulty for EMC to provide FY10 guidance that meets some investors'
extended expectations.
EPS (Op) Prev. P/E
2007A 0.91 19.2x
2008A 1.03 17.0x
2009E 0.88↑ 0.87 19.9x
2010E 1.10↑ 1.05 15.9x
All values in USD unless otherwise noted.

12
January 13, 2010 U.S. RESEARCH AT A GLANCE
Company Comments
Michael Yee (Analyst) Amgen Inc. (NASDAQ: AMGN; 56.03)
(415) 633-8522; michael.yee@rbccm.com
Jason Kantor, PhD (Analyst) Rating: Outperform
(415) 633-8565; jason.kantor@rbccm.com Risk Qualifier: Average Risk
Adnan Butt (Associate) Price Target: 72.00
(415) 633-8588; adnan.butt@rbccm.com Takeaway Thoughts on Guidance and Dmab Timelines; No Changes to LT Thinking
• FY09 will come in "close to the low end" of EPS guidance of $4.90-5.05 partly
125 WEEKS 31AUG07 - 12JAN10
210.00
Rel. S&P 500 HI-20FEB09 216.55 due to the ARRY deal. Revenues will be "just above the midpoint" of guidance
LO/HI DIFF 149.66%
175.00
CLOSE 145.05
of $14.4-14.8B. We adjusted our FY EPS to $4.93.
140.00

105.00
LO-16MAY08 86.74
• Prolia re-filing hasn't occurred yet. This is not completely surprising to us and
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-19SEP08 66.51
is partly due to the fact that the final post-marketing surveillance
LO/HI DIFF 69.84%
65.00
recommendations by FDA did not get to AMGN until mid-December. We
60.00

55.00
hypothesize it is possible that management is waiting on the prostate SRE data
50.00
CLOSE 56.03 expected to come very soon in Q1 — to include this, too, as part of the
45.00
resubmission so that FDA has all three SRE studies in hand as part of the
40.00
requested "safety update."
LO-21MAR08 39.16
100000 • Fundamentals still intact. We believe an important catalyst is the prevention of
80000
60000
40000
PEAK VOL.131237.7
VOLUME 15312.0 bone mets, not in Street estimates. This study is a wild-card but provides good
20000
risk/reward, in our view.
Revenue (MM)
2008A 15,003.0
2009E 14,612.0
2010E 14,941.5
2011E 15,832.7
All values in USD unless otherwise noted.

Robert C. Wetenhall, Jr. (Analyst) Apollo Group, Inc. (NASDAQ: APOL; 59.65)
(212) 618-3251; robert.wetenhall@rbccm.com
Rating: Underperform
Risk Qualifier: Average Risk
125 WEEKS 31AUG07 - 12JAN10
Rel. S&P 500 HI-16JAN09 263.67
Price Target: 66.00
225.00 LO/HI DIFF 234.95%
180.00
CLOSE 131.90
Reducing FY10 Estimates and Reiterating Underperform Rating
135.00

90.00 LO-28MAR08 78.72

• We are reducing our FY10E EPS estimate to $5.15 vs. consensus of $5.25.
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-23JAN09 90.00 • Good Company Faces Multiple Issues: Our Underperform recommendation
88.00 LO/HI DIFF 137.34%
80.00 reflects concerns about slower enrollment growth and the persistence of
72.00
64.00
regulatory issues. The latter includes an ongoing and open-ended informal
CLOSE 59.65
56.00 inquiry by the SEC into APOL's revenue recognition practices and the
48.00 Department of Education's discovery of minor infractions related to the timing
40.00
LO-04APR08 37.92
of Title IV refunds owed to the government.
40000
• Intriguing Valuation Offset by Enrollment Concerns and Regulatory
PEAK VOL. 51495.3
20000 VOLUME 9030.9 Overhang: Our CY10E EPS estimate of $5.47 implies a forward P/E of 10.9x
compared with a peer group average multiple of 15.5x. We believe that the
Adj EPS Prev. P/AEPS
~30% discount is appropriate because it captures both regulatory concerns and
2009A 4.22↑ 3.75 14.1x fears of slower enrollment growth. For these reasons, we believe that other
2010E 5.15↓ 5.52 11.6x stocks in the sector currently have better risk/reward characteristics than
All values in USD unless otherwise noted. APOL.

13
January 13, 2010 U.S. RESEARCH AT A GLANCE
Mark Sue (Analyst) LM Ericsson Telephone Company (NASDAQ: ERIC; 9.67)
(212) 428-6491; mark.sue@rbccm.com
Joseph Longobardi (Associate) Rating: Sector Perform
(212) 618-3330; joseph.longobardi@rbccm.com Risk Qualifier: Above Average Risk
Price Target: 12.00
125 WEEKS 31AUG07 - 12JAN10
Digesting Canadian Bacon
Rel. S&P 500 HI-05OCT07 105.11
105.00
90.00
HI/LO DIFF -49.03% • Ericsson's 4Q09 may benefit from year-end seasonality and a contribution
75.00 CLOSE 67.43
from the Sprint managed services. Nortel's CDMA/LTE assets may
60.00
2007 2008 2009
LO-21MAR08 53.57 contribute approximately half of a quarter as well. Overall, our view is that
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J

20.00
HI-12OCT07 20.98
HI/LO DIFF -73.83%
wireless infrastructure is a late-stage recovery segment and we remain neutral
18.00
16.00
on the shares as the outlook in developed regions remains limited and we
14.00
12.00
believe new 3G wins in India may come at major price concessions. The new
CLOSE 9.67
10.00 year may bring top-line improvements at ST Ericsson and Sony Ericsson, yet
8.00 the near-term metrics may be more bottom-line centric as both companies work
6.00
LO-21NOV08 5.49 to reduce their operating loss.
120000
100000
80000
60000
PEAK VOL.140641.1
40000 VOLUME 8626.5
20000

EPS (Op) Prev. P/E

2008A 5.02 13.6x
2009E 4.43↑ 4.15 15.4x
2010E 4.97↑ 4.91 13.7x
2011E 6.41 10.6x
All market data in USD; all financial data in SEK.

Mark Sue (Analyst) Nokia Corporation (NYSE: NOK; 12.92)

(212) 428-6491; mark.sue@rbccm.com
Joseph Longobardi (Associate) Rating: Outperform
(212) 618-3330; joseph.longobardi@rbccm.com Risk Qualifier: Above Average Risk
Mike Abramsky (Analyst) Price Target: 16.00
(416) 842-7840; mike.abramsky@rbccm.com Choppy in the Middle
• We're reducing our forward unit expectations for Nokia as the company works
125 WEEKS 31AUG07 - 12JAN10
120.00 Rel. S&P 500 HI-22FEB08 122.05 to reinvigorate its product portfolio. Nokia is making a big bet on Symbian and
HI/LO DIFF -58.52%
105.00
90.00
CLOSE 50.98
plans to launch a slew of new devices this year; we believe development is
75.00
60.00
taking some time with full availability of new smartphones expected later in
LO-18DEC09 50.63
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J 2010. For 1Q10, our unit expectation is 105M (-14% QoQ), while our
HI-09NOV07 42.22
40.00
35.00
HI/LO DIFF -79.94% consensus 2Q10 units decline from 110M to 108M (+3% QoQ). Full-year
30.00 2010E units are 470M (+10% YoY). Stock is now trading at 13x our CY10E
25.00
20.00 CLOSE 12.92
EPS. Nokia may lose incremental share in 1Q10 and 2Q10 before reversing
15.00 this trend.
10.00
LO-13MAR09 8.47
200000
150000
100000 PEAK VOL.223515.3
VOLUME 50220.9
50000

EPS (Op) Prev. P/E

2008A 1.33 6.7x
2009E 0.58 15.4x
2010E 0.70↑ 0.69 12.7x
2011E 0.85 10.5x
All market data in USD; all financial data in EUR.

14
January 13, 2010 U.S. RESEARCH AT A GLANCE
Jonathan Atkin (Analyst) Verizon Communications (NYSE: VZ; 31.88)
(415) 633-8589; jonathan.atkin@rbccm.com
Jonathan Allen, CFA (Analyst) Rating: Outperform
(416) 842-3806; jonathan.allen@rbccm.com Risk Qualifier: Above Average Risk
Brian Hyun (Associate) Price Target: 33.00
(415) 633-8581; brian.hyun@rbccm.com Fine-Tuning Estimates
David Coleman (Analyst)
(415) 633-8579; david.g.coleman@rbccm.com
• Updating estimates to reflect margin impacts on EPS and wireline and Alltel
trust divesture impact on 2010 EPS.
125 WEEKS 31AUG07 - 12JAN10
140.00 Rel. S&P 500 HI-06MAR09 141.13
LO/HI DIFF 54.04%
130.00
120.00
CLOSE 99.29
110.00
100.00
LO-18APR08 91.62
2007 2008 2009
AS O N D J F M A M J J A S O N D J F M A M J J A S O N D J
HI-12OCT07 46.03
45.00 HI/LO DIFF -49.88%

40.00

35.00
CLOSE 31.91
30.00

25.00
LO-10OCT08 23.07
150000

100000
PEAK VOL.173608.5
50000 VOLUME 34121.1

EPS (Op) Prev. P/E

2007A 2.39 13.3x
2008A 2.54 12.6x
2009E 2.40↓ 2.44 13.3x
2010E 2.30↓ 2.48 13.9x
All values in USD unless otherwise noted.

Industry Comments
Seth Weber (Analyst) Ag Connect Expo Highlights
(212) 618-7545; seth.weber@rbccm.com
Cautious Optimism at Ag Connect Expo
Vlad Bystricky (Associate)
(212) 618-3280; vlad.bystricky@rbccm.com • We attended the inaugural AG Connect Expo in Orlando, FL on Jan 12
(event ongoing), which included meetings with representatives from AGCO,
All values in USD unless otherwise noted.
Deere, CNH and other industry participants.
• We would characterize the tone of most of our discussions as cautiously
optimistic, which is consistent with good recent equipment sales reports out of
N. America and Brazil (we believe Europe remains relatively weaker),
including some positive commentary regarding order trends for some larger N.
American equipment. Favorable crop fundamentals, lower farmer input costs, a
somewhat better/less bad dairy/livestock environment, and the extension of
Brazil financing programs were all cited as positive factors.
• It remains to be seen whether fallout from the surprising January 12
WASD report tempers farmer sentiment going forward, as significantly
stronger-than-expected corn production and yield projections contributed to
broad weakness in key crop prices.

Scott Hanold, CPA (Analyst) Bakken Shale Weekly: January 12, 2010
(512) 708-6354; scott.hanold@rbccm.com
Progress Report on the North Dakota Bakken
Chad Potter, CFA (Associate)
(512) 708-6349; chad.potter@rbccm.com • Completion Activity. Results from 12 Bakken wells were released from
confidential status with the state with reported IPs averaging 677 boe/d. No
All values in USD unless otherwise noted.
new Three Forks-Sanish (TFS) well results were released this week.
• CLR reported five TFS well IPs that averaged 1,260 boe/d and one Bakken test
rate of 694 boe/d.
• NFX reported a Bakken IP of 1,300 boe/d.
• Early 4Q09 Bakken IP rates are up 90% sequentially and up 96%
year-over-year. 4Q09 TFS well IP rates are up 30% sequentially and up 82%

15
January 13, 2010
Gerard Cassidy (Analyst)
(207) 780-1554; gerard.cassidy@rbccm.com
Jake Civiello (Associate)
(207) 780-1554; jake.civiello@rbccm.com
All values in USD unless otherwise noted.
Stuart Bush (Analyst)
(512) 708-6384; stuart.bush@rbccm.com
Sandeep Ayyappan (Associate)
(512) 708-6386; sandeep.ayyappan@rbccm.com
Nick Hyslop (Analyst)
020-7653-4600; nick.hyslop@rbccm.com
Andrew Dunn (Associate)
020-7029-7877; andrew.dunn@rbccm.com
All values in USD unless otherwise noted.
Seth Weber (Analyst)
(212) 618-7545; seth.weber@rbccm.com
Vlad Bystricky (Associate)
(212) 618-3280; vlad.bystricky@rbccm.com
All values in USD unless otherwise noted.
Neil Downey, CA, CFA (Analyst)
(416) 842.7835; neil.downey@rbccm.com
Tyler Bos (Associate)
(416) 842-4123; tyler.bos@rbccm.com
Michael Markidis, CFA (Associate)
(416) 842-7897; michael.markidis@rbccm.com
U.S. RESEARCH AT A GLANCE
year-over-year.
• Permit Activity. The NDIC issued 15 permits for wells located in the greater
Mountrail County area and 14 wells outside the area.
• Rig Activity. The North Dakota rig count increased by 3 to 78 rigs.
• Other Bakken News. CLR's Mercer County well was unsuccessful.
East Coast Banks 4Q09 Earnings Outlook; "On the Cusp of
Change"
Will "Kitchen Sinks" Dominate the Headlines?
We anticipate the commercial banks in our universe will report net interest margin (NIM)
expansion due to a steeper yield curve, widening asset/liability spreads and less
competition from the shadow banking system.
In our view, "Kitchen Sink" strategies will drive net charge-offs to elevated levels that will
necessitate higher levels of loan loss provisions, which will lead some banks in our
coverage universe to report losses and others to report lower than normal profitability.
Partially offsetting positive margin implications will likely be the continued rise in
nonperforming assets leading to the reversal of interest accruals.
The rate of growth in NPAs will be the Achilles' heel for 4Q09 results, in our view. We
would not be surprised if some banks announce that NPAs have peaked in the quarter.
Global Clean Energy Directions
RBC's Daily Snapshot
The S&P Global Clean Energy Index declined 2.4% on a weak day for the equity
markets. Solar stocks sold off with Evergreen Solar -6.7% and JA Solar -5.5%
experiencing the sharpest losses. Ballard Power +3.2% continued rising on heavy
volume.
RBC Construction Contractor Survey, Vol. 2
Small Bump in Sentiment; Stimulus Expectations Waning
• Key takeaways: 1) We observed a small uptick in sentiment relative to our
previous survey; 2) the majority of respondents that plan to supplement their
equipment fleets as conditions improve will do so via the rental channel; 3)
optimism for the stimulus is waning.
• Bottom line: Survey results are consistent with our view that U.S. construction
trends are likely to improve slowly; we look toward the back part of 2010 for
some improvement in activity and machinery demand, supported by a
bottoming of residential construction, some stimulus spending, stabilizing used
equipment prices, aging rental fleets, and low channel inventories. We expect
operators with earth-moving and infrastructure exposure to be among the
earlier beneficiaries, and maintain Outperform ratings on Caterpillar and Terex,
as well as RSC and United Rentals (although rental results are likely to remain
tough near-term). Separately, Mueller Water should benefit from an increase in
water spending.
Real Estate Investment Trusts
Q1-2010 REIT Quarterly (Summary)
• Liquidity Is Back - REITs and REOCs raised $3.6B of equity and related
capital in 2009. $3.2B was issued in H2/09 alone. This activity has boosted
aggregate liquidity to $4.4B (~12% of total debt).
16
January 13, 2010
All values in CAD unless otherwise noted.
Leon Esterhuizen (Analyst)
(+44) 207 653-4154; leon.esterhuizen@rbccm.com
Arnold van Graan (Associate)
(+44) 207 653-4639; arnold.vangraan@rbccm.com
Yuen Low (Associate)
(+44) 207 653-4647; yuen.low@rbccm.com
All values in ZAR unless otherwise noted.
Investment Strategy Research
Myles Zyblock, CFA (Analyst) (Analyst)
(416) 842-7805; myles.zyblock@rbccm.com
Kien Lim (Associate)
(416) 842-8745; kien.lim@rbccm.com
U.S. RESEARCH AT A GLANCE
• Fundamentals: Looking Over The Valley - Encapsulating the 2010 outlook
for each major property sector in a "sound bite": office - deteriorating; retail -
stable/soft; industrial - soft; multi-res - stable; and lodging - improving, yet at a
potentially disappointing rate versus the severe downturn of 2009.
• Canada Performs Admirably - The S&P/TSX Capped REIT Index generated
a 2009 total return of +55%, widely outpacing the TSX Index (+35%), U.S.
REITs (+29%), Global REITs (+38%) and 10-year Canada's (-4%).
• Valuation: Multiples Climb Through The Average; Yield Spreads Still
Modestly Favourable To History - In short, we believe the sector is now a
"yield play". The 7.3% AFFO yield is now 80bps below the long-term average.
South African Gold Majors
Q4 CY2009 Earnings Outlook
We expect better results than seen in Q3 and these would likely indicate the South African
Gold producers have become relatively attractive in terms of valuation. Gold Fields seems
to be the cheapest, or most discounted of the South African Majors and may well offer a
good opportunity for a long-short trade going into the results (long GFI, short ANG).We
are looking for ANG to deliver ZAR 270cps (Q3 loss of ZAR 1319cps), GFI to give ZAR
146cps (Q3 ZAR 89cps), Harmony around ZAR 56cps (from Q3 loss of ZAR 12cps) and
DRDGOLD coming it at a loss of some ZAR 12cps (Q3 loss of ZAR 13cps) for Q4
CY2009.
RBC Investment Strategy Weekly
Excess Capacity, Policy Settings & Earnings
Highlights from today's report:
• The economy is still operating under conditions of significant excess
capacity.
• A Fed rate hike might still be a long way off.
• An initial rate hike is usually associated with the onset of curve flattening
and a modest equity market correction spanning the subsequent quarter.
• Consumer and Financial stocks generally lag the benchmark when the US
10-year yield rises.
• An upturn in global activity, firming domestic demand and high operating
leverage will combine to generate noticeable earnings improvement this
quarter.
• We see some pretty decent earnings gains beyond the current quarter.
17
January 13, 2010
In-Depth Reports
H. Fraser Phillips (Analyst)
(416) 842-7859; fraser.phillips@rbccm.com
Adam Schatzker (Analyst)
(416) 842-7850; adam.schatzker@rbccm.com
Robin Kozar (Analyst)
(416) 842-7861; robin.kozar@rbccm.com
Lasan Johong (Analyst)
(212) 428-6462; lasan.johong@rbccm.com
Geoff Breen (Analyst)
(+61) 2 9033-3022; geoff.breen@rbccm.com
Chris Drew, CFA (Analyst)
+61 2 9033 3060; chris.drew@rbccm.com
David Haddad (Analyst)
(+61) 2 9033-3071; david.haddad@rbccm.com
Cailey Barker (Analyst)
(+44) 207 653-4603; cailey.barker@rbccm.com
Leon Esterhuizen (Analyst)
(+44) 207 653-4154; leon.esterhuizen@rbccm.com
Des Kilalea (Analyst)
(+44) 207 653-4538; des.kilalea@rbccm.com
Patrick Morton (Analyst)
(+44) 207 002-2111; patrick.morton@rbccm.com
U.S. RESEARCH AT A GLANCE
Global Mining Trends & Values
January 12, 2010
Commodity Price Performance:
Metal prices were mixed last week, on average up 2.4%. Silver was the best performer up
9.5%, followed by lead up 5.4%, gold up 3.7%, aluminium up 2.4%, copper up 1.4%, and
uranium flat 0.0%. Nickel was the worst performer down 1.9%, followed by zinc down
1.6%.
Mining Share Price Performance:
Mining shares were up on average 11.0%. The best performing group was molybdenum
up 30.0%, followed by zinc up 25.9%, iron ore up 13.7%, copper up 11.7%, mineral sands
up 9.6%, coal up 9.4%, the diversified group up 8.2%, uranium up 7.5%, nickel up 6.8%,
and aluminium up 5.6%.
Valuation:
Mining shares are now trading at a 4.9% premium to NAV at forward curve prices, versus
a 15.2% premium one week ago.
Long/Short Metal Positions:
RBC CM's proprietary data for the LME shows that the net long positions in copper,
aluminium, zinc, nickel, and lead all increased last week.
Exchange Inventories:
Total exchange inventories of aluminium decreased last week, while total inventories of
copper, nickel, and zinc increased last week.
18
January 13, 2010 U.S. RESEARCH AT A GLANCE
UPCOMING EVENTS
Jan 13-Jan 19, 2010
MARKETING / CONFERENCES / EVENTS
Wednesday Thursday Friday Monday Tuesday
January 13 January 14 January 15 January 18 January 19
New York/Mid-Atlantic
■ Dan Perlin ■ Dan Perlin ■ Seth Weber ■ Canadian Energy
■ Pembina Pipeline ■ Mahesh Sanganeria Services
Income Fund ■ Daniel Meron
■ Mahesh Sanganeria
■ CEVA Inc.
■ Novellus Systems,
Inc.
Boston
■ Seth Weber ■ Gluskin Sheff &
Associates
Mid-West
■ Ed Aaron
West Coast
■ Jon Atkin/Dave
Coleman
South East
■ Mark Dwelle ■ Mark Dwelle ■ Mark Dwelle
Toronto/Montreal
■ New Year Preview ■ RBC Canadian Bank ■ New Year Preview ■ New Year Preview
2010 CEO Conference 2010 2010
■ Canadian Bank CEO ■ New Year Preview ■ Mike Harvey & ■ Fai Lee
Pre Conference Dinner 2010 Fergal Kelly
■ Mike Harvey & ■ Mike Harvey & ■ Glenn Novarro
Fergal Kelly Fergal Kelly ■ Jason Kantor
■ Robert Sluymer ■ Glenn Novarro ■ Stuart Bush
■ Jason Gere ■ Scot Circcarelli ■ Robert Kwan
■ Pembina Pipeline ■ Robert Sluymer ■ Al Stanton
Income Fund ■ Amit Daryanani ■ Irene Nattel
■ Robert Breza ■ Jason Gere ■ Brian Jackson
■ Lasan Johong ■ Robert Breza ■ Premier Gold Mines
■ Goldminex ■ Irene Nattel ■ Fraser Phillips
Resources Ltd ■ Premier Gold Mines ■ Stephen Walker
■ Greg Pardy ■ Michael Curran
■ Al Stanton ■ Adam Schatzker
■ Scott Hanold
■ Robert Kwan
■ Kurt Hallead
Europe/Asia
■ REITS ■ REITS
■ UIC ■ UIC
■ Uranium Investment ■ Uranium Investment
Corp Corp
■ Extract

Please contact your Sales Representative for additional information on the events listed above.

19
January 13, 2010 U.S. RESEARCH AT A GLANCE

Required Disclosures
Non-U.S. Analyst Disclosure
Albert Maierovits (i) is not registered/qualified as a research analyst with the NYSE and/or FINRA and (ii) may not be associated
persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule 472
restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Geoff Breen, Adam Schatzker, David Haddad, Des Kilalea, Cailey Barker, Leon Esterhuizen, and Chris Drew, CFA (i) are not
registered/qualified as research analysts with the NYSE and/or FINRA and (ii) may not be associated persons of the RBC Capital
Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule 472 restrictions on communications with
a subject company, public appearances and trading securities held by a research analyst account.

Nick Hyslop and Andrew Dunn (i) are not registered/qualified as research analysts with the NYSE and/or FINRA and (ii) may not be
associated persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule
472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst
account.

Owen Martin (i) is not registered/qualified as a research analyst with the NYSE and/or FINRA and (ii) may not be associated persons
of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE Rule 472 restrictions on
communications with a subject company, public appearances and trading securities held by a research analyst account.

Tyler Bos and Michael Markidis, CFA (i) are not registered/qualified as research analysts with the NYSE and/or FINRA and (ii) may
not be associated persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711 and NYSE
Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst
account.

Yuen Low, Leon Esterhuizen, and Arnold van Graan (i) are not registered/qualified as research analysts with the NYSE and/or FINRA
and (ii) may not be associated persons of the RBC Capital Markets Corporation and therefore may not be subject to FINRA Rule 2711
and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a
research analyst account.

Conflicts Disclosures

This product constitutes a compendium report (covers six or more subject companies). As such, RBC Capital Markets chooses to
provide specific disclosures for the subject companies by reference. To access current disclosures for the subject companies, clients
should refer to http://www7.rbccm.com/GLDisclosure/PublicWeb/DisclosureLookup.aspx?EntityID=1 or send a request to RBC CM
Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.

The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total
revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by
investment banking activities of the member companies of RBC Capital Markets and its affiliates.

Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy,
Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick/Outperform,
Sector Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
because our ratings are determined on a relative basis (as described above).

Distribution of Ratings
RBC Capital Markets, Equity Research
Investment Banking
Serv./Past 12 Mos.
Rating Count Percent Count Percent

BUY[TP/O] 584 49.30 180 30.82

HOLD[SP] 531 44.80 121 22.79
SELL[U] 71 6.00 4 5.63

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January 13, 2010 U.S. RESEARCH AT A GLANCE

Conflicts Policy
RBC Capital Markets Policy for Managing Conflicts of Interest in Relation to Investment Research is available from us on request. To
access our current policy, clients should refer to
https://www.rbccm.com/global/file-414164.pdf
or send a request to RBC CM Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower,
Toronto, Ontario M5J 2W7. We reserve the right to amend or supplement this policy at any time.

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regard to local time zones in overseas jurisdictions. RBC Capital Markets' research is posted to our proprietary websites to ensure
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RBC Capital Markets also provides eligible clients with access to a database which may contain Short-Term trading calls on certain of
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hyperlink https://www2.rbccm.com/cmonline/index.html. The information regarding Short-Term trading calls accessible through the
database does not constitute a research report. These Short-Term trading calls are not formal ratings and reflect the research analyst's
views with respect to market and trading events in the coming days or weeks and, as such, may differ from the price targets and
recommendations in our published research reports reflecting the research analyst's views of the longer-term (one year) prospects of
the subject company. Thus, it is possible that a subject company's common equity that is considered a long-term 'sector perform' or
even an 'underperform' might be a Short-Term buying opportunity as a result of temporary selling pressure in the market; conversely,
a subject company's common equity rated a long-term 'outperform' could be considered susceptible to a Short-Term downward price
correction.
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All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the
subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or
indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report.

Disclaimer
RBC Capital Markets is the business name used by certain subsidiaries of Royal Bank of Canada, including RBC Dominion Securities Inc., RBC Capital Markets
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This publication has been approved by RBC Dominion Securities Inc.(member IIROC). Any Canadian recipient of this report that is not a Designated Institution in
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dissemination in the United Kingdom.

21
January 13, 2010 U.S. RESEARCH AT A GLANCE
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®Registered trademark of Royal Bank of Canada. RBC Capital Markets is a trademark of Royal Bank of Canada. Used under license.
Copyright © RBC Capital Markets Corporation 2010 - Member SIPC
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Copyright © Royal Bank of Canada 2010
All rights reserved

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