Financials Associate: Nate Bard Analysts: Steve Belsterling, Carlos Padilla, Sang Lee, Jackie Carney, Ryan Conner, Sean Colleran, Lydia Coleman

Holdings

LTM Performance

American International Group Provides a variety of insurance and insurance-related services in the United States and overseas. The Company writes property and casualty and life insurance, as well as provides financial services.

Current Price: $ week high/low: $77.36-$56.16 One year return: 19.24% Earnings (past 12 months): 4.23 Year est. EPS: 4.55 P/E (trailing): Est. P/E: Shares Outstanding: M Market Cap: 186, M ROE: Quick Facts

SWOT Strengths #1 in the industry Outstanding management Weaknesses How much is left on the upside? CEO Hank Greenberg is 78 Opportunities Continued Asian expansion Financial services Threats Increased competition Proper hedging for baby boom

The Company has three operating segments: Travel Related Services (TRS), American Express Financial Advisors (AEFA) and American Express Bank (AEB).

Quick Look Current Pricing as of9/17/04 Recent Price$ Week High$ Week Low$43.53 Price Change - Last Month2.8% Price Change - 26 Week0.6% Price Change - 52 Week9.2% Price Change - YTD6.6% Dividend Information Latest Ex. Date6/30/04 Indicated Dividend Rate$0.40 Dividend Yield0.8%

SWOT Strengths #1 in traveler’s checks #1 financial planning company Warren Buffett owns 11% Weaknesses Charge higher fees 80% of revenues are domestic Lag behind competition Opportunities Expansion abroad Debit card explosion Threats Sluggish consumer spending Terrorist attacks

Pennsylvania REIT

Quick Look 52 Week Change: 15.01% Market Cap: 1.32 Billion FFO: 79 Million Beta: Annual Dividend: 2.16 Dividend Yield: 5.85% ROA: 1.99% ROE: 3.51% Consecutive Dividends: 110

SWOT Strengths Consistent dividend Quality retail portfolio Weaknesses Non-core assets provide distraction Declining operating margin Opportunities Low interest rates Strong business investment Threats Sluggish consumer spending Over-leveraging

Citigroup Tumbles as Merrill Cuts Rating on Japan (Correct) September 20, :49 EDT -- Citigroup Inc. shares had their biggest one-day drop in 18 months after Merrill Lynch & Co. cut its rating on the stock because Japanese regulators shut the bank's Tokyo-based private banking unit. Price: $45.40P/E ratio: week range: $52.88-$42.99Year est. EPS: year return: %Earnings past 12 months: 3.81 Market cap: 235,184MROE: Shares outstanding: 5, MDiv Yield (trailing 12 months): Quick Look

SWOT Strengths Diversified Successful M&A Leader Weaknesses Growth through acquisition Net income growth lags behind “comps” Opportunities Rebounding market Financing and deals abroad Threats Other conglomerates Reliance on the market

Price: $4.12P/E ratio: week range: $4.26-$0.80Year est. EPS: N/A 1-year return: %Earnings past 12 months:.78 Market cap: MROE: N/A Shares outstanding: MDiv Yield (trailing 12 months): N/A NORTHBROOK, Ill. (Aug. 25, 2004) -- Grubb & Ellis Company (OTC: GBEL), one of the leading providers of integrated real estate services, today reported net income of $12.6 million, or $0.83 per share, for the fiscal year ended June 30, 2004, compared with a net loss of $17.9 million, or $1.19 per share, for the prior year. For the fourth quarter, the Company reported net income of $9.0 million, or $0.59 per share, compared with a net loss of $870,000, or $0.06 per share, in the fourth quarter of fiscal 2003.

SWOT Strengths Local market knowledge Hiring back management Turnaround Weaknesses Work without pay CEO controls 60% of stock Opportunities New alliances Partnerships abroad Threats Takeover/merger Rising interest rates

Sell Agreement last semester to sell half and see how things go It has only gotten worse

Stock Decline

Management Problems Charles Schwab in and out. Cost cutting – more job cuts and closures. Reexamine SoundView acquisition – Charles Schwab said that business lacked "synergy" with its tradition of supporting the individual investor. UBS has agreed to buy the unit.

Awful Financials SchwabAmeritradeE*Trade Net PM11.71%30.01%16.45% ROE11.6%22.8%18.0% ROA1.2%1.8%1.3% ROIC10.2%22.8%8.4% P/E Interest Cover Month Net Income Growth 381.6%655.0%330.1%

Intuitively Speaking Bad company in a bad industry – Fierce competition, on price – Company left its roots – Operates in a way it once despised – Industry based upon individual active traders – Ramped up branching only to slash them a few years later – Launch of Charles Schwab bank - conglomerate

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