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 Electric 1.49% Osh Kosh Corporation 1.99% Shaw Group 4.40% Canada Pacific Railway 1.56% Total 9.44%

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: 32.18 ETChange: 0.51 (1.52%) Prev Close:33.63 Open:33.33 1y Target Est:37.17 Day's Range:33.33 -

34.19 52wk Range:24.39 -

58.72

Volume:2,049,884 Avg Vol (3m):6,631,800 Market Cap:25.65B P/E (ttm):12.39 EPS (ttm):2.76 Div & Yield:1.32

(3.70%)

Median 17.6

Median 15

Emerson AMETEK Baldor ElectricComposite Tech Cooper

Espey Mfg Franklin

Electric Hubbell A Hubbell BRegal Beloit

Roper Industries

Smith (A.O.)

UQM Tech

Zareba Systems Total

25632 3273 1058 52 5600 38 542 248 1615 1224 4067 645 50 4 44048

58.1911 7.4305 2.4019 0.118112.713

4 0.0863 1.2305 0.5630 3.66652.778

8 9.2331 1.4643 0.1135 0.0091

3386.2 55.2128 5.7692 0.0139161.63

06 0.0074 1.5141 0.3170 13.44297.721

7 85.2503 2.1442 0.0129 0.00013719.2

37

>1800Highly Concentrated

<1800>1000

Moderately Concentrated

<1000Not Concentrated

ROE 0.27442

Leverage 2.27677

ROA 0.12053

Asset Turnover 1.21842

Profit Margin 0.09892

EBIT Margin 0.15234

1-interest burden 0.95025 interest burden 0.049749

1-tax bruden 0.68338 tax burden 0.31662

Absolute EMR high low median current

Your Target Multiple

Target E, S, B, CF per share Target Price

P/ Forward E 21.3 10 17.6 14.8 17.6 2.330 41.008

P/S 2.1 0.8 1.8 1 1.8 28.556 51.401

P/B 5.1 2.4 4.1 2.9 4.1 11.097 45.496

P/CF 17.5 6.5 15 8.3 15 3.877 58.157

Average Target: 49.02

Current Price: 32.18

Upside: 52%

Year 2004 2005 2006 2007 2008 2009

Quarterly Dividend 0.2 0.2075 0.2225 0.2625 0.3 0.33

Annual Dividend 0.8 0.83 0.89 1.05 1.2 1.32

Dividend Growth 0.0375 0.072289157 0.179775 0.142857 0.1

Average Dividend Growth 0.106484

Beta 1.17 Current Price 32.18

Market Risk Premium 0.08 Target Price 61.06677

Risk Free Rate 0.0345 Upside 0.897662

Rate 0.1281

General Electric 1.49% Osh Kosh Corporation 1.99% Shaw Group 4.40% Canada Pacific Railway 1.56% Emerson Electric 1.50% Total 10.94%