Stock Fundamentals as of December 14, 09 Rating Strong Buy Ticker ENI Market Cap Designation Large-cap Market Capitalization (Billions) $13.9 Price $21.31 52-Week High/Low $21.54/12.41 EPS (TTM) $1.92 P/E Ratio (TTM) 11.1 Dividend Yield 2.3% S&P 500 P/E Ratio 24.5 Price/Book Ratio 2.2 Price/Sales Ratio 1.3 30-Day Average Volume (Thousands) 658.0 Beta 0.75 Current Ratio 1.4 Short Interest Ratio 1.4 Shares Outstanding (Millions) 653.0 Ratings 's Buy/Hold/Sell ratings are based on a combination of dynamic filters that determine which attributes of a stock are most predictive in the prevailing market and which stocks best reflect those attributes but are not yet rewarded. starts with an "extraction" process that uses the best performing filters to identify stocks having certain compelling attributes currently sought by the market. Then, a composite scoring process uses a weighted average of several key scores to quantify the relative likelihood of upside or downside price action. As a result, the Buy/Hold/Sell rating may, in certain cases, seem inconsistent with a simple average of the scores cited in this analysis. A rating means the stock is expected to outperform its relevant benchmark substantially over the next 6 months. A SELL rating means the stock is expected to underperform its relevant benchmark substantially over the next 6 months. A HOLD rating means the stock is expected to perform in line with its relevant benchmark over the next 6 months. If a stock is rated HOLD, the investor should review the stock's history of ratings to see if it has recently changed to HOLD from or SELL. If so, this indicates one of the following: (1) there has been a significant change in the stock's fundamentals, (2) the stock is already appropriately rewarded or punished by the market, or (3) there simply has been some recent price consolidation that warrants attention. A reading of 's analysis should identify which it is. More about on Page 4 's Market Cap Designations Large Cap Mid Cap Small Cap Micro Cap > $5.0 Billion $1.0 - $5.0 Billion $150 Million - $1.0 Billion < $150.0 Million Report prepared on December 15, 09 Page 1 $ $18 $16 $14 3 2 1 Average Daily Volume in Millions Jan '09 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Company Profile 50-Day Moving Average Enersis S.A., through its subsidiaries, engages in electric power generation, transmission, and distribution in Argentina, Brazil, Chile, Colombia, and Peru. It generates electricity using water, coal, oil or natural gas, and wind resources. Earnings and Revenue Update: For the quarter ended September 30, 09, Enersis reported earnings of $293.0 million or $0.45 per share compared with $418.0 million or $0.64 per share for the prior quarter and $318.9 million or $0.49 per share for the same quarter one year ago. Revenues were $2.6 billion for the quarter ended September 30, 09 compared with $3.3 billion for the prior quarter and $2.6 billion for the same quarter one year ago. Last twelve months' earnings were $1.92 per share compared with $1.21 per share a year ago. Last twelve months' revenues were $10.8 billion compared with $11.7 billion a year ago. Analysis ENI boasts a top momentum score, along with a solid growth profile, and is rated a Strong Buy. Momentum: A score of 89.3 for the Momentum Score places Enersis in the upper level of the market with regard to momentum. This score reflects price, earnings and group momentum, so high scores carry the associated risk that could come from deteriorating group strength, earnings disappointment or market reversal. Growth: A Growth Score of 77.2 suggests the stock has good potential as a growth stock. Value: ENI receives a below-average score of 44.7 for the Value Score. A significant improvement in the company's earnings outlook or fundamental metrics could enhance this score. Timeliness: ENI has a Timeliness Score of 99.2. This measures technical strength based on short-term and long-term price performance and long-term group strength. Analysis continued on Page 3
Current Scores Compared with Industry and Relevant Benchmark These scores compare various aspects of with its industry and relevant benchmarks. The scores are percentile rankings from 0 to 99.9. Higher scores are better. We use a weighted average of several key scores to quantify the relative likelihood of upside or downside price action. Therefore, the rating may seem inconsistent with a simple average of the scores cited in this analysis. Growth Score: 77.2 ENI 77.2 Industry 44.0 sp500 52.9 Value Score: 44.7 ENI 44.7 Industry 61.9 sp500 51.1 Momentum Score: 89.3 ENI 89.3 Industry 43.3 sp500 45.9 Earnings Score: 69.4 ENI 69.4 Industry 31.6 sp500 47.4 Balance Sheet Score: 63.7 ENI 63.7 Industry 21.6 sp500 53.9 Fundamental Score: 96.9 ENI 96.9 Industry 61.0 sp500 56.8 The Growth Score reflects a company's historical and projected earnings growth, revenue and sales growth, projected cash flow, analyst activity, and changes in earnings estimates, each over various time periods. The higher the score, the better the combined performance of these key measures. With a Growth Score of 77.2, Enersis is substantially higher than the average of its industry group, which has a Growth Score of 44.0. The Value Score measures the relationship between a company's stock price and its intrinsic value, as indicated by earnings and balance sheet attributes, with an emphasis on earnings. Also considered are cash flow measures and fundamental valuation ratios. With a Value Score of 44.7, Enersis is moderately lower than the average of its industry group, which has a Value Score of 61.9. The Momentum Score measures a company's earnings and price momentum, evenly weighted, and augmented by group strength, money flow, and relative volume. Core technical factors include current price relative to periodic highs and moving averages. With a Momentum Score of 89.3, Enersis is significantly higher than the average of its industry group, which carries a Momentum Score of 43.3. The Earnings Score assesses a company's overall earnings performance and projected outlook. Time periods include an average look-back of three years with an emphasis on the past four quarters and a forward look of one to five years. With a Earnings Score of 69.4, Enersis is substantially higher than the average of its industry group, which has a Earnings Score of 31.6. The Balance Sheet Score measures a company's liquidity and debt issues, as well as receivables and inventory quality. This score is used to assess relative risk associated with a stock: the lower the score, most likely the higher the inherent risk. With a Balance Sheet Score of 63.7, Enersis is significantly higher than the average of its industry group, which carries a Balance Sheet Score of 21.6. The Fundamental Score is the broad measure of a company's financial health, including its balance sheet, cash flow, revenue, and earnings quality. With a Fundamental Score of 96.9, Enersis is substantially higher than the average of its industry group, which carries a Fundamental Score of 61.0. Timeliness Score: 99.2 ENI 99.2 Industry 65.7 sp500 50.1 The Timeliness Score is an assessment of a stock's short and long-term price strength as determined by various chart-based indicators and measures of group momentum and relative price performance. With a Timeliness Score of 99.2, Enersis is substantially higher than the average of its industry group, which carries a Timeliness Score of 65.7. Peer Analysis This table compares ENI with other similar-sized companies in the same industry group, focusing on 's growth, momentum and value scores, which represent the three main investing styles. The Peer Analysis chart compares ENI's 2-year total return with the average 2-year total return of these companies. 2-Year Total Return 25% -25% -50% 08 Report prepared on December 15, 09 Page 2 ENI Peers Symbol Company Growth Score Momentum Score Value Score Market Cap.(B) AEP American Electric 8.5 52.4 54.8 $16.9 ETR Entergy 27.9 37.3 76.9 $15.8 FE FirstEnergy 39.1 23.3 70.2 $14.4 ENI 77.2 89.3 44.7 $13.9 PPL PPL 42.9 25.5.9 $12.2 EIX Edison 27.6 35.8 66.6 $11.9 PGN Progress Energy 65.8 49.2 62.7 $11.7
Historical Scores The recent histories of key scores provide insight into the stock's trends -- whether they are increasing or decreasing in strength in a particular area or simply holding steady. The scores are percentile rankings from 0 to 99.9, with higher scores better. Keep in mind that ratings may seem inconsistent with a simple average of these key scores because a weighted average of several key scores is used to quantify the relative likelihood of upside or downside price action. Growth Score: 77.2 86.8 87.6 Value Score: 44.7 38.0 56.8 96.5 77.2 Momentum Score: 89.3 32.1 43.2 75.8 44.7 9/15/09 10/13/09 11/10/09 Current Earnings Score: 69.4 90.0 91.0 59.4 89.3 Balance Sheet Score: 63.7 59.5 61.8 99.7 69.4 Fundamental Score: 96.9 59.6 84.4 38.0 63.7 Timeliness Score: 99.2 22.8 49.7 43.3 99.0 96.9 99.2 9/15/09 10/13/09 11/10/09 Current Report prepared on December 15, 09 Page 3 Analysis continued from Page 1 Best Performing Filters: To determine the likelihood of near-term performance, builds and backtests "Smart Filters" to establish which caps, styles and attributes are drawing a premium in today's market. Currently, the three most predictive filters for the relevant segment are: Price Momentum Filter: The Price Momentum Filter is a short-term, performance-based filter that measures quarterly share price performance to highlight stocks with recent sharp price gains relative to other stocks. The filter significantly outperformed its large-cap benchmark over the past 90 days. ENI scores 76.9 for this filter. Composite Growth Filter: The Composite Growth Filter includes long-term and short-term factors related to earnings, cash flow and revenue growth. The filter has significantly outperformed its large-cap benchmark over the past three months. ENI scores 77.5 for this filter. Group Momentum Filter: The Group Momentum Filter measures industry group performance in multiple periods with an emphasis on the last three months and serves as a proxy for broader market sentiment toward a group or niche. Backtesting shows that the filter has earned a significant premium to its large-cap benchmark over the past three months. ENI scores 46.8 for this filter. In summary, ENI's Strong Buy rating is based on a profile of forward-looking metrics which show this stock could significantly outperform the broader markets. What the Market Wants: December 09 [Note: For email delivery of the weekly What the Market Wants, sign up at www.sabrient.com. To view this week's stocks ideas an market stats, see "What the Market Wants" at the blog at http://www.sabrient.com/blog/.] MARKET STILL FLAT By David Brown, Chief Market Strategist (December 14, 09) It was yet another week of hanging around the S&P 500's 1 mark amid a few important economic developments. The trade deficit narrowed much more than expected, and retail sales got a substantial boost in November. Retailers alone sold $314.1 billion of goods, 1.4% more than in October and 2.2% more than a year earlier. Meanwhile, initial jobless claims countered by being a little worse than expected, rising by 17,000 to a seasonally adjusted 474,000 versus the expected 4,000. But for the week the market didn't do much of anything with mid-caps leading the way (+0.5%), large-caps barely positive (+0.1%) and small caps being off less than -0.5%. Incidentally, the dollar was much stronger but did not have the negative impact on the market seen recent weeks. All in all, you didn't miss much by sleeping through the week. Could the market be consolidating in advance of a major move? From a sector viewpoint, Utilities led the way, up 3% which probably reflects the lack of commitment by the market to any direction. Consumer Discretionary was up 1%, Financials were down 2.5%, and everything else was sandwiched in between. If you include today's activity (Monday, the 14th), the market continues to have a slight bullish tilt. Small caps led the way today, up 1.5% and all sectors were positive with none doing much better than the others.
Our forward looking sector ranks this week are led by Telecom, Healthcare, and Consumer Staples with Materials, Industrials and Consumer Discretionary at the bottom. The dollar was relatively flat today and the Materials Sector was slightly ahead of the pack, so if the dollar should resume its downward trend, Materials would likely do better than our forecast. It was somewhat startling over the weekend to receive forecasts from two respected pundits that stand in direct opposition to each other. One suggested that the market was at a peak and would "crash" during 10, while the other insisted that we were about to see a major surge higher. Nothing I'm looking at gives me that much strength of conviction in either direction. So I suggest that we continue to build prudent positions by purchasing undervalued stocks, selling fully valued or overvalued positions, and using hedges where feasible. To view this week's stock ideas and market stats, see "What the Market Wants" on the blog at www.sabrient.com/blog/. Next update: Monday, December 21. Company Description Enersis S.A., through its subsidiaries, engages in electric power generation, transmission, and distribution in Argentina, Brazil, Chile, Colombia, and Peru. It generates electricity using water, coal, oil or natural gas, and wind resources. The company also transports natural gas to refineries, generators, distribution companies, and industrial and mining clients; develops real estate; provides consulting and engineering services in various specialties; and engages in tunnel operation. In addition, it provides information technology (IT) services, which include outsourcing and infrastructure, data centers, contact centers and mass printing services, remote applications service provider, and assessment and implementation of technology solutions to support business processes; products integration, information systems services and technologies, and implementation and maintenance; and IT solution construction and development for high availability and complex business processes. Further, Enersis S.A. offers various products and services related to electricity comprising measuring and certification services; engineering, construction, assembly, and electric power operations; and energy consulting services to companies in various industrial sectors, such as retail, telecommunications, manufacturing, agro-industrial, and mining. As of December 31, 08, it had an installed generation capacity of 13,893 MW, and supplied electricity to approximately 12 million customers. The company was formerly known as Compania Chilena Metropolitana de Distribucion Electrica S.A. and changed its name to Enersis S.A. in 1988. The company was founded in 1889 and is headquartered in Santiago, Chile. Enersis S.A. is a subsidiary of Endesa SA. About Systems is an independent research firm providing statistical analysis of a company's fundamental data to investment professionals. We use a computer-driven, quantitative methodology to identify stocks that appear poised to outperform or underperform the market. The methodology was developed by an experienced research team led by David Brown, a former NASA scientist and retired CEO of Telescan and designer of its premier stock search program, ProSearch. The research team employs a scientific approach to the creation and testing of multi-factor filters. Each filter targets a key area of traditional stock analysis, including value, growth, momentum, fundamentals, earnings, balance sheet, and group strength. Using an adaptive process, filters are continually tested and monitored to ensure that only the best performing filters are at work. 's ratings begin with an extraction process in which each of the few best-performing filters scans the universe of equities to identify stocks having certain compelling attributes sought, but not sufficiently rewarded, by the current market. Then, a composite scoring system employs a broader set of "weighting" filters to rank the extracted stocks. To support individual investors, uses the same sophisticated methodology to provide individual stock reports on a universe of approximately 5,0 stocks. regularly tests the performance of its stock selections, using its primary list of published rankings and statistical techniques it believes appropriate. These recommendations have consistently outperformed relevant benchmarks across a broad range of investing styles, market caps, time frames and market conditions, demonstrating the robustness of 's proprietary methodology. While past performance is no guarantee of future results, believes it can maintain its strong performance through its rigorous, scientific approach to filter construction and ongoing backtesting within a dynamic and adaptive composite scoring system. For more information on and its performance, go to www.sabrient.com Report prepared on December 15, 09 Page 4
Disclaimer SmartStock research is provided for informational purposes only. It is neither a solicitation to buy nor an offer to sell these securities. The report is based upon data from sources believed to be reliable, but makes no representation as to the data's adequacy, accuracy, completeness or timeliness. The report does not address individual investment objectives or financial situations. The analysis used in preparing these reports may also be used in the preparation of other research products which may reflect distinct investment objectives. accepts no liability for any loss arising from any use of this report. This report is based solely on mathematical calculations and does not reflect any bias of individual analysts. provides no investment banking, consulting or other services to the subject company of this report. No employee is on the Board of Directors of the subject company, and no one at the subject company serves on the Board of Directors of Systems. or its employees may have long or short positions in the securities or other related investments of the company mentioned herein, but never more than one percent (1%) of the outstanding shares of any company covered by. No part of this document may be reproduced without the written permission of Systems. Report prepared on December 15, 09 Page 5