Thrivent Investment Management, Inc.

Appleton, Wisconsin

Historical Ownership
12/31/2008 9/30/2008 6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007 3/31/2007
0 0 982,311 1,997,083 3,604,165 2,284,407 1,839,302 1,279,050

CONTACT Investment Style : Growth Turnover : High

Equity Assets : $8,904.90 Energy Assets : $855.90

John Groton - A senior equity analyst at Thrivent
% Change : -26.28% % Change : -7.44%
Investment Management. Previously, he worked at Black
River Asset Management. Phone: (312) 555-0566
Q4 08 Q4/Q3 Q3 08 Q4 07
Peer Position % Chg Position Position
METHODOLOGY
Peer 1 900,478 -23.98% 1,184,568 2,145,214

Thrivent uses a combination of fundamental and technical
investment research techniques to determine what stocks to Peer 2 1,685,179 26.06% 1,336,857 1,002,854
buy and sell. Peer 3 3,936,853 16.33% 3,384,163 2,154,365

They focus on companies that have a strong record of
Peer 4 1,930,836 23.76% 1,560,168 1,401,236
earnings growth or show good prospects for growth in sales
and earnings. Peer 5 390,759 -37.02% 620,473 998,798

The firm seeks to invest in companies with strong
management teams that will develop business strategies that 2009 Estimates
lead to sales and earnings growth.
EPS P/E Price/Book EV/EBITDA
XYZ 3.40 4.68 1.03 4.60
TARGET ANALYSIS
Peer 1 2.60 9.34 0.51 3.91

Purchasing Power - Based on our research and experience,
Thrivent will take a reasonable position in XYZ stock, which Peer 2 1.59 8.80 0.60 3.81
may result in holding close to 4.0 million shares. Peer 3 2.83 6.37 0.83 3.61

Target Grade A - What makes Thrivent an excellent Peer 4 1.71 7.85 1.17 3.39
target is their current holdings in the sector and XYZ’s peers.
The continued demand for energy products and services Peer 5 2.35 7.90 0.85 4.00
represents a appropriate risk/return tradeoff for Thrivent to
include XYZ in their portfolio.
Activities:

Thrivent has a high turnover rate and will churn its stake to
capture any profits. The firm will build a sizable position and
hold for three to four quarters, but may exit just as quickly.  7/8/08 – Conversation - John Groton – on 2Q08 follow-up on
inventory/payables levels and margins vs. beginning.
 9/15/07 – Analyst Conference – Matthew Finn – Lehman Energy
QUALITATIVE
Conference - 1-on-1.

The average Price/Book ratio in their portfolio holdings is
 7/03/07 – Meeting (Group) – Bear Sterns Global Oil & Gas
very much in-line with XYZ’s Price/Book ratio. This suggests
Conference.
a good fit for a key fundamental variable for inclusion in their
portfolios.

Given, XYZ’s higher EPS ratio compared to the peer group,
they should find XYZ’s current share price attractive in the Meeting Notes:
current Energy market environment.
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Other fundamentals Thrivent keys on: Price Earnings
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Ratio (P/E) in the bottom 20% of its sector; PEG of less than
one and a Enterprise Multiple consistent with the peer group. _________________________________________________
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