Earning Release

Garmin Ltd. (NASDAQ:GRMN) reported a decline in 4Q 08 revenues. However, the company was able to maintain margin levels, reduce inventories and increase market share. Management holds a cautious outlook based on the challenging market conditions. We believe Average Selling Price (ASP) erosion and decline in consumer spending will apply pressure on future margins and, therefore, we maintain our fundamental outlook for the company. Hence, although the NASDAQ common stock target price does not support a HOLD rating at current price levels, we maintain our HOLD rating and will reassess our target price and rating in our 4Q 08 and FY 2008 update report. We continue to anticipate a significant positive currency impact on the European stock over the next 6- 12 months and, hence, maintain our BUY rating for the European stock. We will reassess our target price and rating in our 4Q 08 and FY 2008 update report.

Desarrolladora Homex S.A.B. de C.V.’s (NYSE:HXM) 4Q 08 total revenues were above our expectation. However, margins were below our estimate due to higher-than-expected expenses. Going forward, despite the deteriorating macroeconomic environment, we are encouraged by Management’s FY 2009 revenue and EBITDA margin guidance. Hence, we view the common stock as an attractive investment opportunity and, therefore, we maintain our BUY rating at current price levels. We will reassess the common stock rating and target price in our next update report. We continue to anticipate a significant negative currency impact on the ADR (1 ADR = 6 common shares) over our investment horizon. Although our target price does not support a HOLD rating at current price levels, given our fundamental outlook and the negative currency impact, we maintain our HOLD rating for the ADR. We will reassess the ADR rating and target price in our next update report.

News

Infineon Technologies AG’s (NYSE:IFX) common stock price has declined significantly since our previous update report, exceeding broader equity market falls, with the deadline for Qimonda AG to find a buyer being set for the end of March 2009, and Qimonda’s US affiliate following it in filing for bankruptcy on 20 February 2009. If it fails to find a buyer for Qimonda, the company could be exposed to significant contingent liabilities. Furthermore, given the constantly deteriorating global economic scenario, we are concerned by contracting semiconductor demand, the impact of increasing losses on the company’s cash position and its ability to refinance debt. Hence, although the stock does not support a HOLD rating at current levels, we temporarily moderate our rating from a BUY to a HOLD until we reassess the common stock in out next full update report. Although the current price does not support a HOLD rating, we maintain our current HOLD rating for the ADR (1 ADR = 1 common share) based on our fundamental outlook and anticipated negative currency impact over the medium term. We will reassess the ADR rating for Infineon in the coming weeks.

On 23 February 2009, Nova Chemicals Corporation (NYSE:NCX) announced that it had entered into an agreement to be acquired by Abu Dhabi based International Petroleum Investment Company (IPIC), in an offer of US$6.0 for each outstanding share. Given Nova Chemical’s delicate cash position, its looming bankruptcy risk and the premium on prevailing stock prices, we believe that shareholders will readily approve the deal. As a result, we are revising our target price for NYSE common stock on par with IPIC’s offer price and upgrade the stock from a HOLD to a BUY. We will continue to track the developments relating to the company until the stock is delisted from the stock exchange. In line with IPIC’s offer and the current CAD/USD exchange rate, we have revised our target price for Nova Chemical’s Canadian stock and upgrade it from a HOLD to a BUY. We will continue to track the developments relating to the company until it is delisted from the stock exchange.

Schlumberger Ltd. ‘s (NYSE:SLB) NYSE common stock price has declined significantly since our 4Q 08 & FY 2008 update report dated 06 February 2009, which we believe reflects ongoing volatility in global equity markets and a decline in crude oil prices over the same period. However, given the variety of services and technology provided by Schlumberger, its geographical diversification and its technological edge over its peers, we are confident of its fundamentals despite current economic conditions. As a result, we believe the NYSE common stock is undervalued at current price levels and therefore upgrade the common stock from a HOLD to a BUY. We will reassess our rating for the stock Ticker: SLB after the company announces its 1Q 09 results in April 2009. As we continue to expect a positive currency impact on the European stock and given our fundamental outlook, we maintain our BUY rating for the stock. We will reassess the European stock rating after the company announces its 1Q 09 results in April 2009.

Trina Solar Ltd.’s (NYSE:TSL) ADR price has declined significantly since our previous update report dated 13 January 2009, reflecting industry wide concerns of slowing solar demand amidst sustained lows in crude oil and solar product prices. The impact of declining prices was realized in the company’s select 4Q 08 and FY 2008 preliminary results announced on 17 February 2009, wherein the company guided for a substantial decline in its gross margin. Therefore, as it is likely that we will reduce our estimates in our next update report, we maintain our current HOLD rating for the ADR although our target price does not support a HOLD. We will reassess the ADR rating for Trina Solar in our next full update report, after the company announces its 4Q 08 and FY 2008 results on 03 March 2009. As we anticipate a significant positive currency impact on the European stock, we do not anticipate a change in our current BUY rating for the European ADR. We will reassess the European stock rating for Trina Solar after the company announces its 4Q 08 and FY 2008 results on 03 March 2009.

Daimler AG’s (NYSE:DAI) common stock achieved our target price on 23 February 2009. We are likely to revise downwards our estimates in our next update report, in light of weak Management outlook, coupled with severe recession in the company’s key markets, such as Western Europe and the US. Hence, our outlook for the company remains unchanged and consequently, although the common stock target price does not support a SELL rating at current price levels, we reiterate our SELL rating and will reassess our target price and rating in our 4Q 08 and FY 2008 update report. We reiterate our SELL rating for the ADR based on our fundamental outlook and our expectation of a significant negative currency impact over the medium term. We will reassess our target price and rating in our 4Q 08 and FY 2008 update report.

Embraer-Empresa Brasileira de Aeronautica S.A.’s (NYSE:ERJ) ADR has declined 27.6% since our last update report, reflecting downward revision in Management’s guidance and weakening market conditions. Despite our expectations of subdued performance in FY 2009, given the current price levels, we maintain our BUY rating for the ADR. We will reassess our target price and rating in our next update report, once the company issues its 4Q 08 and FY 2008 results. Given current price levels and our continued expectation of a positive currency impact on the Brazilian stock over our investment horizon, we maintain our BUY rating for the Brazilian stock. We will reassess our target price and rating in our next update report, once the company issues its 4Q 08 and FY 2008 results.

Marvell Technology Group Ltd.’s (NASDAQ:MRVL) NASDAQ common stock price has declined significantly since our supplement to the 3Q 08 update report, reflecting the overall decline in broader equity indices. Although deteriorating economic conditions and declining consumer demand have significantly curbed expectations for the company, we believe that current price levels leave the stock undervalued. We therefore upgrade the NASDAQ common stock rating from a HOLD to a BUY. We will reassess the rating once the company announces its 4Q 09 and FY 2009 results on 05 March 2009. We continue to expect a significant positive currency impact on the European stock over our investment horizon and hence maintain our current BUY rating for the stock. We will reassess our target price and rating for the European stock once the company announces its 4Q 09 and FY 2009 results on 05 March 2009.

ACE Group’s (NYSE:ACE) NYSE common stock price has decreased significantly since our 3Q 08 update report dated 10 December 2008, reflecting broad-based weakness in the NYSE composite index and insurance stocks in particular. Although we believe current conditions and realized losses on investments will place serious constraints on the company’s performance in the near to medium term, we believe that the recent decline does not reflect the company’s fundamental strength. We believe ACE has sufficient reserves to withstand downturn and further losses, and our outlook remains broadly positive for the company over the longer term. Therefore, at current levels we maintain our BUY rating for the NYSE common stock. We will reassess the NYSE common stock rating for ACE in the coming weeks. Based on our fundamental outlook and as we anticipate a significant positive currency impact on the European stock, we maintain our BUY rating for the European stock. We will reassess the rating for ACE in the coming weeks.

Sun Life Financial Inc.’s (NYSE:SLF) common stock price has declined significantly since our last update report, reflecting broad-based weakness in global financial markets and its impact on insurance stocks, and is in line with the performance of the Canadian financial market. Furthermore, on 17 February 2009, Standard & Poor’s placed Sun Life and its subsidiaries’ ratings on credit watch with negative implications. Although the impact of financial market weakness and the deepening recession in Canada will lead us to reduce our estimates and target price in our next update report, we believe that the company is sufficiently fundamentally strong to withstand the downturn, with the sale of its stake in CI Financial shoring up its capital adequacy position significantly. Therefore, at current price levels we maintain our BUY rating for the Sun Life common stock. We will reassess the common stock rating for Sun Life in our next full update report. Although the current price no longer supports a HOLD rating, we maintain our current HOLD rating for the NYSE stock based on our moderated fundamental outlook and current expectation of a significant negative currency impact on the NYSE stock over our investment horizon. We will reassess the NYSE stock rating for Sun Life in our next full update report.

The UBS (NYSE:UBS)common stock has depreciated significantly since our last update report, reflecting negative investor reaction to the company’s disappointing 4Q 08 and FY 2008 results, as well as news that the company will pay a fine of US$780 mn to settle a tax investigation in the US. Meanwhile, our fundamental outlook remains unchanged. Therefore, we maintain our HOLD rating even though the target price derived in our last update report does not support a HOLD. We will reassess our common stock rating for UBS in our next full update report. We continue to anticipate a significant negative currency impact on the NYSE stock over our investment horizon. Therefore, we maintain our SELL rating. We will reassess our NYSE stock rating for UBS in our next full update report.

Elan Corporation PLC’s (NYSE:ELN) ADR price has experienced a significant decline of 25.2% since our company result alert, dated 10 February 2009, primarily due to weakening investor sentiments in light of recession in the US economy and the current uncertainty in global financial markets. Elan is seeking access to financial resources to fund its product development plans. We believe that due to the lack of existing cash, Elan’s product development will be significantly limited, negatively impacting top-line growth, going forward. Therefore, we maintain our cautious outlook for the company. As a result, although the ADR target price does not support a HOLD rating at current price levels, we maintain our HOLD rating and will reassess our target price and rating in our 4Q 08 and FY 2008 update report. We continue to anticipate a significant positive currency impact on the European stock over the medium term. However, although the European stock target price does not support a HOLD rating at current price levels, we reiterate our HOLD rating based on our fundamental outlook for the company. We will reassess our target price and rating in our 4Q 08 and FY 2008 update report.

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