Earning Release

Nabors Industries Ltd.’s (NYSE:NBR)revenues and margins declined during the quarter, in line with our estimates, primarily reflecting lower rig activity levels in the US sub segment. Going forward, we expect hydrocarbon prices to remain high, thereby ensuring recovery in demand for rigs and other of Nabors’ services. However, since the NYSE common stock price has appreciated significantly since our last update report, at current price levels we downgrade the common stock from a BUY to a HOLD. We will reassess our NYSE common stock rating for Nabors in our next update report. We continue to anticipate a negative currency impact on the European stock over our investment horizon of 6-12 months, therefore, given significant appreciation since our last update report, we downgrade the rating of the European stock from a BUY to a HOLD. We will reassess our European stock rating for Nabors in our next update report.

Net Serviços de Comunicação S.A. (NASDAQ:NETC) reported healthy growth in 3Q 09 revenues and margins which were above our estimates. Revenues were above our estimate due to higher–than-expected performance from all three segments. In addition, operating and net margin were above estimates and depicted a significant y-o-y improvement, primarily attributable to lower-than-expected Selling, General and Administrative (SG&A), Depreciation and Amortization (D&A), net financial expenses and tax rate, partially offset by higher-than-expected Payroll & Benefit (P&B) expenses during the quarter. Going forward, in light of our expectation of healthy growth in subscription revenues, reflecting robust expansion in subscriber-base due to economic improvement in the Brazilian economy and higher-thanexpected 3Q 09 performance we are likely to revise our target price upwards in our 3Q 09 update report in the coming weeks. In light of this and current price levels we upgrade our Brazilian preferred stock rating from a HOLD to a BUY. As we continue to anticipate a significant negative currency impact on the ADR over the long term and given current price levels, we maintain our current SELL rating for the ADR. We will reassess our target price and rating in our next update report.

News

BHP Billiton Limited (NYSE:BHP) announced its 1Q 10 operating update on 21 October 2009, reporting increased production for major commodities, except for a decline in copper production. We expect the company to report improved production in FY 2010, led by improved demand conditions and start-up of the company's various developmental projects. However, at current price levels, the company's ADR looks overvalued and we therefore maintain our SELL rating. We will reassess our ADR rating (1 ADR = 2 Australian shares) after the company releases its 1H 10 results in February 2010. We anticipate a positive currency impact on the Australian stock over our investment horizon. However, given our outlook for the company's fundamental stock and the Australian stock's current price levels, we downgrade the Australian stock from a HOLD to a SELL rating. We will reassess our Australian stock rating for BHPB after the company releases its 1H 10 results in February 2010.

BHP Billiton PLC (NYSE:BBL) announced its 1Q 10 operating update on 21 October 2009, reporting increased production for major commodities, except for a decline in copper production. We expect the company to report improved production in FY 2010, led by improved demand conditions and start-up of the company's various developmental projects. However, at current price levels, the company's ADR looks fairly valued and we therefore maintain our HOLD rating. We will reassess our ADR rating (1 ADR = 2 UK shares) after the company releases its 1H 10 results in February 2010. We anticipate a negative currency impact on the UK stock over our investment horizon. However, given our outlook for the company's fundamental stock and the UK stock's current price levels, we maintain our UK stock to a HOLD rating. We will reassess our UK stock rating for BHPB after the company releases its 1H 10 results in February 2010.

New Valuations

Yahoo! Inc(NASDAQ:YHOO) reported weak top-line performance as expected, while on a sequential basis, revenues point towards a recovery in advertising budgets. Global economic parameters indicate a recovery in the global economy. The US online advertising market, which experienced a sequential decline, is expected to experience a moderate drop in advertising revenues in FY 2009. Going forward we continue to anticipate a recovery in the global economy by 2H 10, which will improve online advertising not only in the US but also worldwide. With Yahoo's worldwide presence in online advertising space, it has a competitive advantage capturing major advertising budgets when the economy recovers. Yahoo's search space is loosing market share to Google but the rate of decline is expected to slow down after Yahoo and Microsoft Inc's search agreement in a bid to challenge Google's dominance. The partnership which is expected to take effect from FY 2010, has received strong support from the advertising industry, which is expected to benefit Yahoo in the long run. Moreover Yahoo's focus on global brand marketing campaign which began in the month of September and its initiative to improve e-mail and instant messaging will drive ad revenues. Stabilization in the global economy has also triggered higher allocation of advertising budgets from large companies. The company’s initiatives to reposition its brand through the launch of a new social networking orientated home page will improve user base. In addition, branding campaigns to focus on small and medium enterprises along with pushing display models in domestic advertising illustrates long term benefits in terms of growth and profitability. Hence at current levels, taking into account the positive fundamental factors as well as anticipated further recovery in the global economy, we maintain our BUY rating on the stock.

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