1. Strategy and Research Samuel Kunz, CFA, MFTA

2. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research SELECTION PROCESS ›Macro Filter ›Fundamental ›Quantitative ›Technical/Timing

3. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research APPROACH Macro  Laffer Fundamental  Argus Technical/Timing  DeMark / Oscillators / Paterns / Etc… Quantitative  Q Prime

4. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research APPROACH Macro  Laffer Fundamental  Argus Technical/Timing  DeMark / Oscillators / Paterns / Etc… Quantitative  Q Prime Strategy Don Hahn

5. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research LAFFER/MACRO/WHY? ›Father of “Supply Side Economics” ›Founding member of Congressional Policy Advisory Board ›Member of President Reagan’s Economic Policy Advisory Board (1981-1989)

6. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research LAFFER/MACRO/WHY? ›Created the Laffer’s Curve - “Memorable event in financial history” Institutional Investor July 1992 - “A few of the advances that powered this extraordinary century” Times March 1999

7. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research LAFFER/MACRO/WHY? Investment Returns Laffer Macro-100 Large Cap. Composite Vs. S&P 500 Index 09/2000 -05/2004*

8. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research LAFFER/MACRO/WHY? Annualized Returns Laffer Macro-100 Large Cap. Composite Vs. S&P 500 Index 09/2000 -05/2004*

9. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Economic Outlook ›5 Areas of Information Incomes Policy Trade Policy Monetary Policy Fiscal Policy Special Situations RESULT Economic Outlook

10. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Economic Outlook ›5 Areas of Information Incomes Policy Trade Policy Monetary Policy Fiscal Policy Special Situations Impact on Private Sector Regulations Restrictions Requirements

11. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Economic Outlook ›5 Areas of Information Incomes Policy Trade Policy Monetary Policy Fiscal Policy Special Situations Affects Terms Of Trade GAAT NAFTA Exchange Rates

12. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Economic Outlook ›5 Areas of Information Incomes Policy Trade Policy Monetary Policy Fiscal Policy Special Situations Federal Reserve Systems Monetary Base Interest Rates

13. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Economic Outlook ›5 Areas of Information Incomes Policy Trade Policy Monetary Policy Fiscal Policy Special Situations Taxing Spending Government

14. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Economic Outlook ›5 Areas of Information Incomes Policy Trade Policy Monetary Policy Fiscal Policy Special Situations Monopolies / OPEC Wars Weather Etc…

15. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Macro Models Company Size Domestic Location Earnings Forecast Fiscal Sensitivity Global Location Laffer Top 100 Interest Rate Sensitivity Trade Sensitivity

16. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Laffer / Methodology / Macro Models Macro Model Biases Company Size +1 0 LARGE CAPITALISATION SMALL CAPITALISATION Domestic Location +1 0 + FISCAL CHANGE - FISCAL CHANGE Earnings Forecast +1 0 + EARNINGS CHANGE - EARNINGS CHANGE Fiscal Sensitivity +1 0 + FISCAL CHANGE - FISCAL CHANGE Global Location +1 0 + FISCAL CHANGE - FISCAL CHANGE Interest Rate Sensitivity +1 0 RISING RATES FALLING RATES Trade Sensitivity +1 0 + VALUE ADDED - VALUE ADDED

17. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research LAFFER/MACRO/Performance Macro Portfolio Performance By Quintiles vs. The S&P-500

18. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus Fundamental / Why ›Independent Research Firm ›In Business for nearly 70 years ›6-point system is a blend of: A.Top Down B.Bottom Up

19. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6-Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Result Buy / Hold / Sell Rating Valuation Analysis

20. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6-Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Valuation Analysis Outperforming Industries Forecast Economy Forecast Interest Rates Collaborate with Industry Analysts

21. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6-Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Valuation Analysis Peer Market Comparison Sales Earnings Dividends Cash Flows

22. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6 Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Valuation Analysis Ratio Analysis Financial Statements Footnotes

23. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6 Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Valuation Analysis Know Management Meetings Road Shows Conference Calls

24. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6 Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Valuation Analysis Qualitative Porter five Forces Quantitative Institutional Ownership Insider Ownership

25. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Argus / Methodology / 6 Point System Industry analysis Growth Analysis Financial strength analysis Quality of Management Risk Analysis Valuation Analysis Establish Target Price Forecasts Adjust for Beta

26. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Why ? ›Flexible  Tailor-made A.Relative factors B.Historical factors ›Proven track record from Morningstar

27. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology 6 Categories 123456 17 Factors 1234567891011121314151617 Infinite Combinations

28. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology ValuationsDividendsMomentumGrowthReliabilityReturn A/PE R/PE A/PB R/PB A/PS ›6 Categories

29. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology ValuationsDividendsMomentumGrowthReliabilityReturn Yield Payout Reinv. Rate ›6 Categories

30. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology ValuationsDividendsMomentumGrowthReliabilityReturn Quarterly EPS Quarterly Sales ›6 Categories

31. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology ValuationsDividendsMomentumGrowthReliabilityReturn Estimated Growth Estimated Revisions Time Weighted Revisions ›6 Categories

32. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology ValuationsDividendsMomentumGrowthReliabilityReturn Growth EPS Surprises Vola. Ajd. EPS Surprises ›6 Categories

33. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Methodology ValuationsDividendsMomentumGrowthReliabilityReturn Long Term Price Trend 1-Month Relative Perf. 2- Month Relative Perf. Etc... ›6 Categories

34. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Model 1) Value 2) Growth 3) Rotational (Balanced) 4) Q-Score

35. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Value Model 1) Deep Value 2) EPS Surprises 3) EPS Revisions 4) 6-month returns

36. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Q Prime / Quantitative / Value Model

37. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Technical/Timing ›Don Hahn  Long/Intermediate-term ›DeMark  Overbought/Oversold ›Oscillators  Momentum ›Pattern Recognition  Bar charts, candlesticks, P&F

38. For Financial Professional Use Only Samuel Kunz, CFA, MFTA - Strategy and Research Recap Macro  Laffer Fundamental  Argus Technical/Timing  DeMark / Oscillators / Paterns / Etc… Quantitative  Q Prime