Drexel Hamilton Morning Note

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1 March 31st, 14 Drexel Hamilton Drexel Hamilton Non-Deal Roadshows Date Company Sector City April 8, 14 Vanguard Natural Resources Oil and Gas New York CEO-Scott Smith May 22, 14 AAR Corp. Aerospace San Francisco, CA CEO - David Storch May 23, 14 AAR Corp. Aerospace Los Angeles, CA CEO - David Storch Drexel Hamilton Analyst Marketing Date Analyst Sector City Venue March 27, 14 Richard Whittington Semiconductors Philadelphia, PA March 27, 14 Peter Skibitiski A&D Philadelphia, PA March 27, 14 James Gilman, CFA Enterprise Software Philadelphia, PA March 28, 14 James Gilman, CFA Enterprise Software Atlanta, GA April 2-3, 14 James Gilman, CFA Enterprise Software New York, NY April 3, 14 Barry M. Sine, CFA, CMT Technical Analysis New York, NY Market Technicians Assoc. April 1-17, 14 James Gilman, CFA Enterprise Software San Francisco, CA April 23, 14 Barry M. Sine, CFA, CMT Telecommunications Richmond, VA April 2, 14 Barry M. Sine, CFA, CMT Technical Analysis Ft. Lauderdale, FL Financial Planning Association Drexel Hamilton Conferences Date Sector City Venue May 1, 14 Drexel Hamilton Conf. Microcaps New York, NY Drexel Hamilton offices - 77 Water St. June 12, 14 Drexel Hamilton Conf. Aerospace New York, NY Westin Hotel - Times Square September 3-4, 14 Drexel Hamilton Conf. TMT New York, NY W Hotel - Lexington Avenue For full reports, please contact your Drexel Hamilton salesperson or call Important: All disclosures, including analyst certification can be found on pages 4 of this document. Important: All disclosures, including analyst certification can be found on pages 4-14 of this document.

2 March 31st, 14 Analyst Huntington Ingalls Industries (HII, 99.9) Peter Skibitski Rating: Buy Target: 129. (44) Generals Support Could Help HII link to document Share Data Recommendation Buy Shares Outstanding (m). Shares Outstanding Float (%) 8.8 Institutional Holdings (%) 86.8 Market Capitalization (m) Week Range () Average Daily Volume () 437 Dividend ().8 Dividend Yield (%).8 A group of twenty retired Marine Corps three- and four-star generals has written to the chairman and ranking member of the Senate Armed Services committee to encourage Congress to fund the twelfth ship of the LPD-17 class of vessels (LPD-28), built by HII. The letter was reported by Insidedefense.com and was also addressed to the other 24 members of the Armed Services committee. Included in the group that wrote the letter is the former Commandant of the Marine Corps, Gen. Analyst Richard Whittington Semiconductors Earnings Season The Next Step To Chip Revaluation rwhittington@drexelhamilton.com link to document Attention sidetracked by winter storms and the Kremlin s return to the top of the threat parade, we believe this week s Micron report will usher in a series of upbeat orders and outlooks throughout the chip sector this earnings season. Our bull case for the stocks remains 1) upside financials and 2) valuation expansion, former predicated upon global economic recovery on top of secular tech drivers, then capitalized by prevailing low interest rates and low inflation. The late winter investor conference circuit concluded two weeks ago made it clear the bulk of semiconductor and equipment companies were seeing solid, at least seasonal sales and orders gains the first two-plus months of Q1. Important: All disclosures, including analyst certification can be found on pages 4 of this document. Important: All disclosures, including analyst certification can be found on pages 4-14 of this document.

3 March 31st, 14 Analyst Micron Technology (MU, 21.91) Richard Whittington Rating: Buy Target: On The Road To Memory Valhalla link to document Share Data Recommendation Buy Shares Outstanding (m) Shares Outstanding Float (%) 96.7 Institutional Holdings (%) Market Capitalization (m) Week Range () Average Daily Volume () 31,864 Dividend () Dividend Yield (%) Rather than the short duration anticipated by reawakened perma bears, this memory upcycle looks to have long legs as Cloud/mobile sustain. A major acquisition under their belts after several years of fab and joint ventures restructuring, full earnings power has yet to come to the fore. Post the still unfolding consolidating paradigm is the global economy s shift to memory-facilitated Cloud services and mobile implements. Analyst Qualcomm Incorporated (QCOM, 79.28) Richard Whittington Rating: Buy Target: Headed To A New All-time High rwhittington@drexelhamilton.com link to document Share Data Recommendation Buy Shares Outstanding (m) 178. Shares Outstanding Float (%) 98.7 Institutional Holdings (%) 82.6 Market Capitalization (m) Week Range () Average Daily Volume (),113 Dividend () 1. Dividend Yield (%) 1.26 Rising visibility for Qualcomm s mobile IP and unsurpassed products looks likely to push the stock to new high ground this earnings season. Following also well-situated chip and equipment names ASML, MCHP, and SNDK, QCOM should soon push past 1999 s 88 closing record. Our upped price target reflects a well less than exuberant x P/E on 14 s.16 non-gaap EPS estimate, a rate that has room to climb. Analyst Intel Corporation (INTC, 2.62) Richard Whittington Rating: Hold Target: Play For Time, Or Strike Boldly Out? rwhittington@drexelhamilton.com link to document Share Data Recommendation Hold Shares Outstanding (m) 13. Shares Outstanding Float (%) Institutional Holdings (%) 62.4 Market Capitalization (m) Week Range () Average Daily Volume () 31,694 Dividend ().88 Dividend Yield (%) 3.43 One of the few semis to go nowhere the last two years, Intel is both hostage to paradigm change from PC to mobile, yet master of its destiny. Process development pursuing its own course has kept Intel afloat, even with unexpected degrees of freedom in spite of utter failure in mobile. H2 s data center processor roll-out hitting a hot market could give Intel the cover it needs to exit mobile s dry hole where losses are piling up. Important: All disclosures, including analyst certification can be found on pages 4 of this document. Important: All disclosures, including analyst certification can be found on pages 4-14 of this document.

4 March 31st, 14 Important Disclosures All companies under coverage: All companies under coverage to which it has provided investment banking services in the previous 12 months: Buy 66% Buy % Hold 34% Hold % Sell 4% Sell % Not Rated (NR) % Not Rated (NR) % Rating System The Equity Research Department Stock Rating System consists of three separate ratings. The appropriate rating is determined by a stock s estimated 12-month total return potential, which consists of the expected percentage price change to the 12-month price target plus the current yield on anticipated dividends. A 12-month price target is the analyst s best estimate of the market price of the stock in 12 months. A 12-month price target is highly subjective and the result of numerous assumptions, including company, industry, and market fundamentals, both on an absolute and relative basis, as well as investor sentiment, which can be highly volatile. The definition of each rating is as follows: Buy: estimated total return potential greater than or equal to % Hold: estimated total return potential greater than -% and less than % Sell: estimated total return potential less than or equal to -% NR: Not Rated Company Huntington Ingalls Industries Intel Corporation Qualcomm Incorporated Broadcom Corp. Micron Technology Analog Devices Texas Instruments Altera Corp. Xilinx Inc. Linear Technology Corporation SanDisk Corp. Maxim Integrated Products NXP Semiconductors NV Freescale Semiconductor Microsemi Corporation Microchip Technology ON Semiconductor International Rectifier Disclosure Equity Research Disclosure Legend 1. Drexel Hamilton makes a market in the securities of the subject company. 2. The analyst or a member of the analyst's household serves as an officer, director, or advisory board member of the subject company. 3. The analyst or a member of the analyst's household owns shares of the subject company. 4. Drexel Hamilton has managed or co-managed a public offering of securities for the subject company in the last 12 months.. Drexel Hamilton has received compensation for investment banking services from the subject company in the last 12 months. 6. Drexel Hamilton expects to receive or intends to seek compensation for investment banking services from the subject company in the 4

5 9//13 9//12: Buy, T: 4 2/14/13: Buy, T: 9/16/13: Buy, T: 6 11/29/13: Hold, T: 48 1/17/14: Buy, T: 6 9//13 9/11/12: Buy, T: 4 /2/12: Buy, T: 4 2/28/13: Buy, T: 4 /24/13: Buy, T: 4 March 31st, 14 next three months. 7. Drexel Hamilton or its affiliates beneficially own 1% or more of the common stock of the subject company as calculated in accordance with Section 13(d) of the Securities Exchange Act of The subject company is, or during the past 12 months was, a client of Drexel Hamilton, which provided non-investment banking, securities-related services to, and received compensation from, the subject company for such services. The analyst or employees of Drexel Hamilton with the ability to influence the substance of this report knows the foregoing facts. 9. An affiliate of Drexel Hamilton received compensation from the subject company for products or services other than investment banking services during the past 12 months. The analyst or employees of Drexel Hamilton with the ability to influence the substance of this report know or have reason to know the foregoing facts. D rexel H amilto n R atings fo r A LT R R ating: B uy, T arget P rice: 4 C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r A D I R ating: B uy, T arget P rice: 6 C lo sing P rice M arch 28, 14:

6 /26/11 7/12/11 8/24/11 /7/11 11/21/11 1/6/12 2/22/12 4//12 /21/12 7//12 8/17/12 /2/12 11/16/12 1/3/13 2/19/13 4/4/13 /17/13 7/2/13 8/1/13 9//13 11/12/13 12/27/13 2/12/14 3/28/14 11/12/13: Hold, T: 16 2//14: Buy, T: 2//14: 24 Buy, T: 26 : Buy, T: 9//13 9//12: Buy, T: 4 4/2/13: Hold, T: 38 8/6/13: Buy,T: /16/13: Hold, T: /24/13: Hold, T: 22 2/3/14: Hold, T: March 31st, 14 D rexel H amilto n R atings fo r B R C M R ating: H o ld, T arget P rice: C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r F SL R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14:

7 9//13 9//12: Hold, T: 22 1/7/13: 1/8/13: Sell, T: /27/13: Hold, T: 22 4/18/13: 4/16/13: Buy, T: //13: Buy, T: 26 /23/13: Buy, T: 6//13: 28 Buy, T: /17/13: Hold, T: 26 12/9/13: Buy, T: 1/23/14: Hold, T: 26 3/7/14: Sell, T: 3/28/14: Hold, T: 26 9//13 7/17/12: Hold, T: 4 8//12: Buy, T: 47 11/12/12: Buy, T: 46 3/1/13: Buy, T: 2 3/2/13: Buy, T: 8 //13: Buy, T: 63 8/9/13: Buy, T: 84 11/11/13: Buy, T: 94 1/16/14: Buy, T: 117 3/6/14: Buy, T: 129 March 31st, 14 D rexel H amilto n R atings fo r H II R ating: B uy, T arget P rice: 129 C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r IN T C R ating: H o ld, T arget P rice: 26 C lo sing P rice M arch 28, 14:

8 9//13 9//12: Buy, T: 4 1/22/13: Buy, T: 4 1/17/14: Buy, T: 6 9//13 11/11/13: Buy, T: : Buy, T: 32 March 31st, 14 D rexel H amilto n R atings fo r IR F R ating: B uy, T arget P rice: 32 C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r LLT C R ating: B uy, T arget P rice: 6 C lo sing P rice M arch 28, 14:

9 9//13 11/2/13: Buy, T: 2/3/14: Buy, T: 9//13 /28/13: Buy, T: 36 11/14/13: Hold, T: 32 2/18/14: Buy, T: 38 March 31st, 14 D rexel H amilto n R atings fo r M XIM R ating: B uy, T arget P rice: 38 C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r M C H P R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14:

10 9//13 11/11/13: Hold, T: 12/2/13: 2 Buy, T: 12/9/13: Hold, T: 26 1/21/14: 1/24/14: Hold, Buy, T: T: 28 9//13 9//12: Hold, T: 7 12/17/12: Buy, T: 8 1/22/13: Buy, T: 12 3/11/13: Buy, T: 1 6//13: Buy, T: 18 8/1/13: Buy, T: 24 12/4/13: Buy, T: March 31st, 14 D rexel H amilto n R atings fo r M U R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r M SC C R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14:

11 9//13 2//14: Buy, T: 12 9//13 11//13: Buy, T: 2/7/14: Buy, T: 6 3/6/14: Buy, T: 7 March 31st, 14 D rexel H amilto n R atings fo r N XP I R ating: B uy, T arget P rice: 7 C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r ON N N R ating: B uy, T arget P rice: 12 C lo sing P rice M arch 28, 14:

12 9//13 /28/13: Buy, T: 8 3/21/14: Buy, T: 9//13 9//12: Buy, T: 7 2/4/13: Buy, T: 8 : 2/3/14: Buy, T: 8 9 3/28/14: Buy, T: March 31st, 14 D rexel H amilto n R atings fo r QC OM R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r SN D K R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14:

13 9//13 9//12: Buy, T: 4 1/22/13: Buy, T: 44 4/29/13: Buy, T: 48 7/22/13: Buy, T: /21/13: Hold, T: 12/24/13: Buy,T: 2/18/14: Buy, T: 6 9//13 9//12: Hold, T: 32 /28/13: Buy, T: 4 6/12/13: Buy, T: 44 9/16/13: Buy, T: 2/18/14: Buy, T: March 31st, 14 D rexel H amilto n R atings fo r T XN R ating: B uy, T arget P rice: C lo sing P rice M arch 28, 14: D rexel H amilto n R atings fo r XLN X R ating: B uy, T arget P rice: 6 C lo sing P rice M arch 28, 14:

14 March 31st, 14 Analyst Certification I, Richard Whittington, was principally responsible for the preparation of this research report and certify that the views expressed in this research report accurately reflect my personal views about the subject security(ies) or issuer(s) and that my compensation was not, is not, or will not be directly or indirectly related to the specific recommendations or views contained in this research report. I, Peter Skibitski, was principally responsible for the preparation of this research report and certify that the views expressed in this research report accurately reflect my personal views about the subject security(ies) or issuer(s) and that my compensation was not, is not, or will not be directly or indirectly related to the specific recommendations or views contained in this research report. Other Disclosures The information and statistics in this report have been obtained from sources we believe are reliable but we do not warrant their accuracy or completeness. We do not undertake to advise the reader as to changes in figures or our views. This is not a solicitation of an order to buy or sell any securities. FINRA Regulation has adopted rules that will prohibit research analysts from trading in securities of covered companies during specified time periods before and after the publication of research. Drexel Hamilton will effect agency transactions in the securities mentioned, on behalf of its clients submitting orders to buy or sell. Drexel Hamilton makes its research reports available to institutional investors through Bloomberg, Thomson Reuters, FactSet, and Capital IQ. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Drexel Hamilton. Copyright Drexel Hamilton 14. Member FINRA and SIPC. 14