Thrivent Investment Management, Inc.

Thrivent Investment Management, Inc. Appleton, Wisconsin Historical Ownership 12/31/2008 0

9/30/2008 0

6/30/2008 982,311

3/31/2008 1,997,083

CONTACT


John Groton - A senior equity analyst at Thrivent Investment Management. Previously, he worked at Black River Asset Management. Phone: (312) 555-0566

12/31/2007 3,604,165

9/30/2007 2,284,407

Investment Style : Growth Equity Assets : $8,904.90 % Change : -26.28%

6/30/2007 1,839,302

3/31/2007 1,279,050

Turnover : Energy Assets : % Change :

High $855.90 -7.44%

METHODOLOGY

Peer Peer 1

Q4 08 Position 900,478


Thrivent uses a combination of fundamental and technical investment research techniques to determine what stocks to buy and sell.

Peer 2

1,685,179

26.06%

1,336,857

1,002,854

Peer 3

3,936,853

16.33%

3,384,163

2,154,365

Peer 4

1,930,836

23.76%

1,560,168

1,401,236

Peer 5

390,759

-37.02%

620,473

998,798


They focus on companies that have a strong record of earnings growth or show good prospects for growth in sales and earnings.
The firm seeks to invest in companies with strong management teams that will develop business strategies that lead to sales and earnings growth.

Q4/Q3 % Chg -23.98%

Q3 08 Position 1,184,568

Q4 07 Position 2,145,214

2009 Estimates EPS

P/E

Price/Book

EV/EBITDA

XYZ

3.40

4.68

1.03

4.60

Peer 1

2.60

9.34

0.51

3.91

Thrivent will take a reasonable position in XYZ stock, which may result in holding close to 4.0 million shares.

Peer 2

1.59

8.80

0.60

3.81

Peer 3

2.83

6.37

0.83

3.61


Target Grade A - What makes Thrivent an excellent target is their current holdings in the sector and XYZ’s peers. The continued demand for energy products and services represents a appropriate risk/return tradeoff for Thrivent to include XYZ in their portfolio.

Peer 4

1.71

7.85

1.17

3.39

Peer 5

2.35

7.90

0.85

4.00

TARGET ANALYSIS
Purchasing Power - Based on our research and experience,


Thrivent has a high turnover rate and will churn its stake to capture any profits. The firm will build a sizable position and hold for three to four quarters, but may exit just as quickly.

QUALITATIVE


The average Price/Book ratio in their portfolio holdings is very much in-line with XYZ’s Price/Book ratio. This suggests a good fit for a key fundamental variable for inclusion in their portfolios.
Given, XYZ’s higher EPS ratio compared to the peer group, they should find XYZ’s current share price attractive in the current Energy market environment.
Other fundamentals Thrivent keys on: Price Earnings Ratio (P/E) in the bottom 20% of its sector; PEG of less than one and a Enterprise Multiple consistent with the peer group.

Activities:

 7/8/08 – Conversation - John Groton – on 2Q08 follow-up on inventory/payables levels and margins vs. beginning.  9/15/07 – Analyst Conference – Matthew Finn – Lehman Energy Conference - 1-on-1.  7/03/07 – Meeting (Group) – Bear Sterns Global Oil & Gas Conference.

Meeting Notes: _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________