By: Bhavik Khandhar, Tracy Marsolo & Matt Shubeck Featuring: Brandon Harlow (Utilities)

 Recap of Sector Analysis  Company Analysis  Business Analysis  Financial Analysis  Valuation Analysis  Recommendation  Q & A

 Increase Industrials by 150 BP to 10.94% of portfolio  Industrials are leaders in a recovery  We recommended buying from Industrial Conglomerates or Electrical Components

 General Electric1.49%  Osh Kosh Corporation1.99%  Shaw Group4.40%  Canada Pacific Railway1.56%  Total9.44%

 Emerson is a diversified global manufacturing and technology company.  Emerson offers a wide range of products and services in the areas of process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies, and industrial automation  Company is recognized widely for their engineering capabilities and management excellence

 Process Management  Industrial Automation  Network Power  Climate Technologies  Appliance and Tools

 Ranked No. 30 on the Information Week magazine's annual listing of the most innovative users of information technology in the United States.  Ranked among the country's 400 best of the biggest publicly traded companies & has been on the list for the past 8 years.  Ranked No. 2 in Institutional Investor Magazine’s America’s Most Shareholder-Friendly Companies in March 2009  Increased dividends over the last 52 years

 Last Trade:  ET Change: 0.51 (1.52%)  Prev Close:  Open:  1y Target Est:  Day's Range:  52wk Range:  Volume: 2,049,884  Avg Vol (3m): 6,631,800  Market Cap: 25.65B  P/E (ttm):  EPS (ttm): 2.76  Div & Yield: 1.32 (3.70%)

Median 17.6

Median 15

EmersonAMETEKBaldor Electric Composite TechCooper Espey MfgFranklin ElectricHubbell AHubbell B Regal Beloit Roper Industries Smith (A.O.) UQM Tech Zareba SystemsTotal >1800 Highly Concentrated <1800 >1000 Moderately Concentrated <1000 Not Concentrated

ROE Leverage ROA Asset Turnover Profit Margin EBIT Margin interest burden interest burden tax bruden tax burden

Absolute EMRhighlowmediancurrent Your Target Multiple Target E, S, B, CF per shareTarget Price P/ Forward E P/S P/B P/CF Average Target: Current Price: Upside: 52%

Year Quarterly Dividend Annual Dividend Dividend Growth Average Dividend Growth Beta1.17Current Price32.18 Market Risk Premium0.08Target Price Risk Free Rate0.0345Upside Rate0.1281

 General Electric1.49%  Osh Kosh Corporation1.99%  Shaw Group4.40%  Canada Pacific Railway1.56%  Emerson Electric1.50%  Total10.94%