rep_sample 12345 5432 Sample Securities Sample Eric J. Eric J. Sample Analyst eric.sample@sample.com 1 (212) 555-1001 Sample Greg T. Greg T. Sample Analyst greg.sample@sample.com 1 (212) 555-1002 Sample Matthew J. Matthew J. Sample Analyst matthew.sample@sample.com 1 (212) 555-1003 Sample William William Sample Analyst william.sample@sample.com 1 (212) 555-1004 We initiate coverage with a Buy rating. We believe the stock is deeply undervalued (0.9x F2011e adjusted P/BV, 0.4x P/EV and 5.4x adjusted P/E) for its fundamentals.Adjusted net profit was solid. The top-line growth was driven by continued strong product demand. Sales growth of 11% YoY was better than our expectation of 14% decline with lower margin products accounting for 46% of unit sales. This might be a concern for investors; however, we believe margins will remain stable as the company says that YTD unit sales favor higher margin products. Expense ratio remains stable at 20.9% (-0.6% MoM and -3.5% YoY) on the back of stable channel contribution. Management is considering price hikes in early 2010 to improve its profitability further. We initiate coverage with a Buy rating. We believe the stock is deeply undervalued and adjusted net profit was solid. The top-line growth was driven by continued strong product demand. 5 application/pdf sample.pdf USD 129000000 148000000 177000000 Nasdaq USD Sample Securities 2.35 2.85 3.25 5.25 400 GOOGLE INC CL A Google, Inc. Nasdaq MICROSOFT CORP COM Microsoft Corp. Nasdaq YAHOO INC COM Yahoo!, Inc. 1 BLOOMBERG_CLASS=52 BLOOMBERG_MENU_CODE=333444 Information Technology Software & Services Internet Software & Services Internet Software & Services Copyright 2009 Sample Securities