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To: Sergio H who wrote (7)	7/23/2012 7:11:15 PM
From: Sergio H	Respond to of 32

SPLS (Staples Inc.) Message 28279383 Staples: This 3.5% Yielder Looks Like It Has Bottomed http://seekingalpha.com/article/665911-staples-this-3-5-yielder-looks-like-it-has-bottomed Staples ( SPLS) is one of the few retailing stocks in my portfolio. The stock unfortunately has been a laggard in 2012 so far. However, it looks like it has found a nice floor at current price levels and it is supported by a solid dividend yield. It also should benefit by the continuing struggles of its two major competitors and looks like a compelling value for long term investors. 6 reasons is a solid bargain for long term value and income investors at under $13 a share: The stock has a generous yield of 3.5% and has grown its dividend payouts at roughly an 8% annual rate since the end of the financial crisis. The stock is selling the very bottom of its five year valuation range based on P/E, P/S, P/CF and P/B. The company has a much better balance sheet and operating margins than its two biggest competitors, Office Depot ( ODP) and OfficeMax ( OMX). Staples is going for less than 8 times forward earnings, a sharp discount to its five year average (14.4). The median analysts' price target on SPLS by the 16 analysts that cover the stock is $16.50. S&P has a "Buy" rating and an $18 price target on the company. SPLS is selling at price levels it has bounced off of over the past year (see chart).

To: Sergio H who wrote (7)

7/23/2012 8:51:42 PM

From: Brian Sullivan

Respond to of 32

Company Profile CMI

What Does This Company Do?
Indiana-based Cummins designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related products. The firm sells to original equipment manufacturers and distributors, including PACCAR and Daimler, through a network of 600 independent distribution centers and 6,500 dealer locations in more than 190 countries. Cummins employs 44,000 workers and generates annual revenue of $18 billion.

The result has cemented Cummins as one of the world's only fully integrated engine manufacturers. Today, Cummins constructs the critical components--those that drive fuel economy and emissions controls--in-house and outsources the non-value-added components. Aside from our estimate that its break-even level has fallen nearly 20%, this technological mastery is important for two main reasons.

First, the government regulations for emissions control and fuel economy that have crept into the developed nations will blanket the globe in the coming decade. This should benefit Cummins tremendously, since the per-engine dollar amount of content will increase at least 60% from current levels, and because these are sophisticated technologies, we expect the company can capture a greater proportion of the economic profits.

Last Price

$87.46

		52-Week Range 79.53-129.51	Yield 1.83	Market Cap 17.1 bil



Volume 2.9 mil	Avg Vol. 2.9 mil	Forward P/E 7.9	P/B 2.8	P/S 0.9	P/CF 8.5