Magic Formula Screen Results, September 19, 2009 (excerpted From 10x45 Bargain Hunter)

10X45 BARGAIN HUNTER

Presented by the Research Team of

“Confronted with the challenge to distill the secret of sound investment into three words, we venture the motto: Margin of Safety.” —Ben Graham

Presented by the



September 19, 2009

Top Three Screen Results, by Category

Manual of Ideas Research Team

Company

Ticker

Price

Market Value

Enterprise Value

Dear Fellow Idea Seekers,

"Magic Formula," based on Trailing Financials 1 KHD Humboldt Wedag KHD $12.15

$368mn

$18mn

Trailing EBIT / EV 101%

We are pleased to bring you this latest issue of 10x45 Bargain Hunter, our bi-weekly stock screening report. This report is based on market prices as of September 18th.

2

ePlus

PLUS

$15.23

$125mn

$97mn

25%

3

GT Solar

SOLR

$5.86

$840mn

$679mn

22%

"Magic Formula," based on This Year's EPS Estimates 1 EarthLink ELNK $8.69

$923mn

$548mn

EPS Yield FY0 12%

Sincerely, Your Manual of Ideas Team

2

Pre-Paid Legal

PPD

$50.53

$554mn

$563mn

13%

3

Endo Pharma

ENDP

$22.49

$2,635mn

$2,550mn

12%

"Magic Formula," based on Next Year's EPS Estimates 1 PRG-Schultz PRGX $5.35

$124mn

$112mn

EPS Yield FY1 13%

2

GigaMedia

GIGM

$5.38

$293mn

$211mn

12%

3

MIPS Technologies

MIPS

$3.72

$168mn

$136mn

12%

$486mn

n/m

Insider Buys $5,255mn $2,513mn

Special Offer Get 10x45 Bargain Hunter FREE with your subscription to the acclaimed monthly newsletter, Downside Protection Report.

Contrarian: Shunned by the market, but not by insiders 1 GHL Acquisition GHQ $10.01



Contrarian: Biggest Losers (deleveraged & profitable) 1 Cardionet BEAT $7.52

Start your 30-day FREE trial of Downside Protection Report!  www.manualofideas.com

About This Publication

2

Ideation Acquisition

3

CoBiz Financial

IDI

$7.83

$98mn

n/m

COBZ

$4.50

$163mn

n/m

$1,085mn

$179mn

$134mn

∆ Price YTD -69%

2

Rostelecom

ROS

$29.20

$3,547mn

$3,058mn

-47%

3

Celera

CRA

$6.18

$506mn

$186mn

-44%

$235mn

$100mn

∆ Shares Q-Q -11%

MKTAY

$33.18

$4,571mn

$3,856mn

-7%

BMA

$22.94

$1,396mn

n/m

-7%

Profitable Dividend Payors with Decent Balance Sheets 1 Am. Capital Agency AGNC $28.46

$427mn

$368mn

Div. Yield 21%

Value with Catalyst: Cheap Repurchasers of Stock 1 QLT QLTI $4.30 2

Makita

3

Banco Macro

2

TICC Capital

TICC

$5.12

$137mn

n/m

12%

10x45 Bargain Hunter is a bi-weekly screening service for investors looking to uncover hidden value in the stock market. Bargain Hunter is brought to you by the acclaimed Manual of Ideas research team.

3

Pioneer Southwest

PSE

$20.01

$601mn

$537mn

10%

Deep Value: Lots of Revenue, Low Enterprise Value 1 Ingram Micro IM $17.17

$2,799mn

$1,818mn

EV/Revenue .06x

2

Tech Data

TECD

$42.34

$2,129mn

$1,439mn

.07x

3

Winn-Dixie Stores

WINN

$14.49

$793mn

$645mn

.09x

Inspired by the Zeiss 10x45 Victory Rangefinding Binocular ("essential equipment for long range hunting and a reliable shot"), the 10x45 Bargain Hunter is designed as an essential tool for every value investor’s arsenal. Whether you run your own screens or not, we hope you'll find 10x45 Bargain Hunter a valuable ally as you seek out undervalued companies trading in U.S. markets.

Deep Value: Neglected Gross Profiteers 1 WellCare Health WCG

$26.61

$1,123mn

$183mn

EV/GP .18x

2

Kindred Healthcare

KND

$16.84

$657mn

$736mn

.19x

3

Molina Healthcare

MOH

$21.10

$539mn

$97mn

.19x

Activist Targets: Potential Sales, Liquidations or Recaps 1 Insmed INSM $0.86 $111mn 2

Imation

3

Ascent Media

-$11mn

NCAV / MV 107%

IMN

$9.27

$353mn

$264mn

104%

ASCMA

$25.50

$359mn

$50mn

94%

10X45 BARGAIN HUNTER is published bi-weekly by BeyondProxy LLC, P.O. Box 1375, New York, NY 10150. Website: www.manualofideas.com. Email: [email protected]. Please email or call if you have any subscription questions. Managing Editor: John Mihaljevic. Subscription $99 per year. © Copyright 2009 by BeyondProxy LLC. All rights reserved. Photocopying, reproduction, quotation, or redistribution of any kind is strictly prohibited without written permission from the publisher. This newsletter bases screening results on techniques and sources believed to be reliable in the past and cannot guarantee future accuracy and results. The stocks listed in this newsletter should not be construed as investment recommendations. BeyondProxy’s officers, directors, employees and/or principals (collectively “Related Persons”) may have positions in and may, from time to time, make purchases or sales of the securities or other investments listed or discussed in this newsletter. John Mihaljevic, Chairman of BeyondProxy, is also a principal of Mihaljevic Capital Management LLC (“MCM”), which serves as the general partner of a private investment partnership. MCM may purchase or sell securities and financial instruments discussed in this newsletter at any time on behalf of the investment partnership or other accounts it manages. Use of this newsletter and its content is governed by the Terms of Use described in detail at www.manualofideas.com/terms.html. Pictured in the top left corner is the Zeiss 10x45 Victory Binocular with built-in laser rangefinder.

"Magic Formula," based on Trailing Financials

Click on company name, ticker or stock price for more information!

Companies with high returns on capital employed, trading at high trailing EBIT-to-enterprise value yield

Move To Price

52-Week

MV

EV

EV/

▼ Trailing

▼ EBIT/

EBIT/

Capital

Tax

Tangible

%

Buys/

Price/

Insiders

Company

Ticker

($)

Low

High

($mn)

($mn)

Sales

EV

Employed

Rate

Book

Own.

Sells

1 2 3 4 5

KHD Humboldt Wedag ePlus GT Solar PRG-Schultz PDL BioPharma

KHD PLUS SOLR PRGX PDLI

12.15 15.23 5.86 5.35 8.42

-47% -48% -85% -54% -38%

93% 11% 177% 113% 11%

368 125 840 124 1,006

18 97 679 112 1,269

.0x .1x 1.2x .6x 3.9x

101% 25% 22% 22% 23%

infinite infinite infinite 6971% 768%

n/m 42% 38% 17% 22%

1.4x .8x >9.9x >9.9x n/m

22% 44% 78% 20% 1%

-/- / 25 - / 12 3/2/-

6 7 8 9 10

Cass Information EarthLink Centene Chicago Bridge Argan

CASS ELNK CNC CBI AGX

30.66 8.69 19.11 17.98 12.80

-24% -36% -22% -74% -35%

28% 1% 29% 44% 25%

283 923 867 1,755 174

204 548 712 1,799 125

4.7x .7x .2x .3x .6x

19% 27% 18% 17% 16%

infinite 417% infinite infinite infinite

27% n/m 38% 45% 39%

2.6x 2.2x 2.8x n/m 2.7x

7% 9% 2% 2% 29%

-/6 - / 12 -/-/2 / 42

11 12 13 14 15

Maxygen GigaMedia MIPS Technologies USA Mobility Primoris Services

MAXY GIGM MIPS USMO PRIM

6.68 5.38 3.72 12.20 7.08

-56% -51% -73% -35% -55%

42% 67% 10% 16% 14%

256 293 168 276 230

54 211 136 196 188

.5x 1.1x 1.9x .6x .3x

116% 15% 15% 32% 20%

162% infinite infinite 151% 195%

n/m 3% 41% n/m 29%

1.3x 2.5x 6.5x 1.8x 3.5x

21% 21% 1% 1% 66%

-/1 -/4 -/1 - / 12 9/-

16 17 18 19 20

Pre-Paid Legal Virgin Mobile USA H&R Block Gentiva Health * Accenture

PPD VM HRB GTIV ACN

50.53 5.11 17.58 26.54 35.84

-48% -88% -22% -51% -31%

4% 4% 59% 13% 20%

554 344 5,895 773 25,582

563 574 6,027 906 21,571

1.2x .4x 1.5x .7x .9x

18% 14% 14% 24% 14%

227% infinite infinite 156% infinite

38% 4% 39% 17% 29%

>9.9x n/m n/m n/m >9.9x

33% 4% 4% 10% 2%

-/-/3 1/- / 11 -/-

21 22 23 24 25

EMCOR Group Terra Nitrogen * Lihua International KBR Georgia Power

EME TNH LIWA KBR GPW

26.04 109.00 6.92 23.07 25.06

-57% -40% -34% -58% -28%

15% 34% 8% 7% 2%

1,716 2,037 165 3,701 232

1,391 1,958 154 2,624 8,564

.2x 2.5x 1.3x .2x 1.1x

23% 16% 18% 22% 18%

158% 283% 205% 158% 198%

39% n/m 15% 38% 35%

6.6x >9.9x 3.8x 2.6x .0x

2% 73% 90% 1% 2%

1/3 -/-/-/3 -/-

26 27 28 29 30

UGI Corp. Hawaiian Holdings Metropolitan Health * McGraw-Hill AmSurg

UGI HA MDF MHP AMSG

25.78 8.43 2.31 26.81 22.42

-28% -74% -57% -36% -45%

6% 23% 8% 60% 29%

2,795 435 105 8,440 687

4,863 418 76 9,171 919

.8x .3x .2x 1.5x 1.4x

15% 32% 30% 14% 24%

331% 134% 134% 555% 130%

30% 47% 39% 37% 23%

n/m n/m 2.5x n/m n/m

1% 5% 13% 2% 2%

1 / 12 3/1 - / 25 -/-/5

31 32 33 34 35

ICO Global Comms Energen i2 Technologies Foster Wheeler Lorillard

ICOG EGN ITWO FWLT LO

0.75 44.85 16.13 34.26 75.22

-84% -49% -66% -63% -30%

399% 16% 5% 40% 4%

156 3,216 362 4,332 12,423

163 3,848 295 3,693 11,615

n/m 2.6x 1.2x .6x 2.5x

137% 13% 13% 13% 13%

113% infinite infinite infinite 5072%

2% 37% 16% 12% 38%

n/m 1.6x >9.9x 8.6x >9.9x

45% 1% 26% 0% 1%

-/-/8 -/2 1/1 -/2

36 37 38 39 40

CF Industries Wright Express China Sky One Lockheed Martin * Endo Pharma

CF WXS CSKI LMT ENDP

90.19 30.67 14.04 80.08 22.49

-58% -73% -55% -28% -38%

40% 6% 36% 47% 16%

4,370 1,170 234 30,779 2,635

3,453 1,348 186 31,912 2,550

.9x 4.0x 1.6x .7x 1.9x

28% 21% 23% 15% 14%

118% 133% 114% 200% 247%

38% 36% 21% 31% 39%

2.7x >9.9x 2.4x n/m >9.9x

1% 1% 37% 0% 2%

-/- / 14 -/-/1/-

41 42 43 44 45

Questcor Pharma Mirant * Weight Watchers Net1 UEPS * Sabine Royalty Trust

QCOR MIR WTW UEPS SBR

6.71 16.53 25.88 22.15 40.85

-54% -45% -37% -63% -34%

46% 63% 60% 24% 53%

430 2,399 1,993 1,003 596

361 3,121 3,524 787 591

3.6x .7x 2.4x 3.2x 8.4x

16% 92% 12% 12% 12%

151% 93% infinite 8895% infinite

30% n/m 39% 33% n/m

6.0x .6x n/m 5.5x >9.9x

7% 0% 57% 16% 1%

-/4 -/-/1 - / 10 -/-

* New additions are highlighted. Screening criteria: ► Market value > $100 million ► ADRs and banks excluded New additions are highlighted. MV = market value. EV = enterprise value. Number of insider transactions relates to most recent six-month period.

© BeyondProxy LLC

10x45 Bargain Hunter™

www.manualofideas.com

September 19, 2009

Page 2

WE’VE BEEN CALLED MANY THINGS. BUT WE’RE NOT COMPLAINING. “INVALUABLE.” “IMPRESSIVE.” “INCREDIBLE.” “TREASURE TROVE.” “WINNER.”

“The Manual of Ideas is a tremendous effort and very well put together.” —MOHNISH PABRAI, MANAGING PARTNER, PABRAI INVESTMENT FUNDS “Invaluable tool for the serious investor.” —TIM DAVIS, MANAGING DIRECTOR, BLUESTEM ASSET MANAGEMENT “We do similar work ourselves.” —GLENN GREENBERG, MANAGING DIRECTOR, CHIEFTAIN CAPITAL MANAGEMENT “Outstanding.” —JONATHAN HELLER, EDITOR, CHEAP STOCKS “The best institutional-quality equity research to come along in a long time.” —PAVEL SAVOR, ASSISTANT PROFESSOR OF FINANCE, THE WHARTON SCHOOL “One of my must-read sources.” —CORY JANSSEN, FOUNDER, INVESTOPEDIA.COM “Wonderful.” —TOM GAYNER, CHIEF INVESTMENT OFFICER, MARKEL CORPORATION

FIND OUT WHAT THE BUZZ IS ABOUT.

WWW.MANUALOFIDEAS.COM