Mid-Atlantic Institutional Research

Amazon.Com Inc. (NASDAQ: AMZN ) April 8, 2008

“4Q08 Earnings update Brian Bolan
(312) 345-1534
Long Term Rating: Market Underperform bbolan@sturdivant-co.com
Long Term Target Price: $60
Share Information
EXECUTIVE SUMMARY
Price 1/30 $50.00
52 Wk Lo-Hi $34.68-91.75
.Investment Summary: Amazon.com performed very well in 4Q08 despite very challenging macro
Div Yield -
environment conditions. After hitting the nail on the head last quarter, we moved to a more cau-
Avg. Volume 10M
tious stance for our revenue estimates. Operating expenses continue to be a priority for the com-
pany but will not likely be the source of any outperformance in the quarter. We believed that weak Insiders Own 34%
S&P 500 845.14
guidance and disappointing margins would keep buyers on the sidelines, but we were wrong. We
are maintaining our rating of Market Underperform and increasing our target price to $60. Financial Statistics
Equity Mkt. Cap. $25B
Key Points
Net LT Debt./
Mkt. Cap. 0.1%
Revenue in line with our aggressive expectations. For 4Q08 we had projected $7.032B on
the topline and after adding back the negative impact of foreign exchange the company would Total EV $19B
have reported sales of $7.024. For the first quarter, we are projecting revenues of $4.7B. 10 Yr. Treasury 2.8%
‘08 FCF Yield 4.0%
Potential for outperformance in the quarter is coming margins, not cost containment.
We were impressed by the discipline the company showed in 4Q08, as every line item of op- EPS
erating expense came in below our estimate. In 1Q09 we are expecting costs to be more in EPS P/E
line with expectations and any outperformance to come from the gross margin line. 2006A $0.45 111x
2007A $1.12 42x
Weak gross margins were a non factor as market looked to market share gains. Gross 2008A $1.52 33x
margins came in about 30 basis points below our estimate of 20.42%, down from a 23.4% 2009E $1.42 35x
level in the previous quarter. For 1Q09 we have modeled in gross margins of 22%, down
over 100 basis points from last year, but up significantly from a discount heavy 4Q08. The
general belief was the lower gross margins allowed the company to expand its market share. Free Cash Flow
FCF/
Outlook is challenging and margins show small chances of growth. Recent economic con- Share P/FCF
ditions have taken a toll on Amazon.com’s competitors. We believe that Amazon.com will 2006A $1.00 98x
gain market share from many smaller competitors as well as its main competitors throughout 2007A $2.10 78x
2009. Our target price has increased to $60, a 33% increase from the beginning of the quarter. 2008A $1.38 36x
The stock has increased 43% since the beginning of the quarter, and may be trading more on 2009E $1.50 33x
momentum than fundamentals. Increasing our EPS estimate from $1.42 to $1.50 and renewed
expectations of higher margins helped push our multiple to 40x 2009 earnings estimate.
•
Relative Daily Price 1/30/09

Source: BigCharts, Company

Reports and Sturdivant & Co. Estimates.
Important disclosures appear on the inside cover and back of this publication.

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STURDIVANT & CO., INC.

RELATIVE STOCK PRICE PERFORMANCE

Rating and Price Target History for Amazon (AMZN )

1/30/09
MU: $50.00
T: $45.00

Source: BigCharts.com OP: Outperform MP:Marketperform MU: Market Underperform

Mr. Bolan does own shares of Amazon 
Disclosures
Rating System Definitions
Sturdivant & Co.’s stock ratings system reflects the investment decisions our clients face every day, and is meant to assist clients in making these decisions by recommending a
specific action to take with each stock we cover. All of the ratings correspond to a specific investment action that we recommend taking on the date the research is published. Thus,
“Outperform” (equivalent to “Buy”) ratings are reserved only for stocks that we would be actively buying at the time the research is published. “Marketperform” (equivalent to
“Hold”) ratings are reserved for stocks that we believe are in line with the market’s anticipated performance and we recommend holding. “Underperform” (equivalent to “Sell”)
ratings are assigned to stocks where the analyst anticipates stock price declines relative to the market. Please note also that the price expectations that determine the rating are in
absolute dollar terms, not in terms of relative performance to a sector or an index. Therefore, analysts will not use the “Outperform” rating for stocks that are expected to perform
well relative to their sector but only for stocks that are expected to appreciate in actual dollar returns.
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Analyst compensation is based on: (1) the analyst’s productivity, including the quality of the analyst’s research and the analyst’s contribution to the growth and development of our
overall research effort; (2) ratings and direct feedback from our investing clients, our sales force and from independent rating services. Sturdivant & Co.’s Compliance and Re-
search Departments are responsible for establishing these compensation guidelines and for reviewing and approving senior analyst compensation. Analyst contribution to our
investment banking business is not a factor in determining analyst compensation and compensation is not, directly or indirectly, related to the specific recommendations or views
expressed in the report.
Research Analyst Certification
The senior research analyst(s) certifies that the views expressed in this research report and/or financial model accurately reflect such senior analyst's personal views about the
subject securities or issuers and that no part of his or her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the
research report. Mr. Bolan does owns shares of Amazon. This is not a complete analysis of every material fact regarding any company, industry or security. The opinions ex-
pressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the
accuracy. The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are examples of unmanaged common stock indices used to measure and report performance of
various sectors of the stock market; direct investment in indices is not available. A complete listing of all companies covered by Sturdivant & Co., Inc. and applicable research
disclosures can be obtained from the Company.
Price Target Risks
Investment risks associated with the achievement of the price target include, but are not limited to, the company’s failure to achieve our earnings and revenue estimates, unforeseen
macroeconomic and/or industry events that adversely impact demand for the company’s products or services, product obsolescence, changes in investor sentiment regarding the
specific company or industry, intense and rapidly changing competitive pressures, the continuing development of industry standards, the company’s ability to compete for talent,
and adverse market conditions. For a complete discussion of the risk factors that could affect the market price of the company’s shares, refer to the most recent form 10-Q or 10-K
that the company has filed with the SEC.

2
 Table of Contents
Earnings Analysis 4

Segment Analysis 4

Balance Sheet 4

Guidance 5

Valuation 5

4Q08 Income Statement review 6

Institutional Contacts 8

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STURDIVANT & CO., INC.

Earnings Preview

Last quarter we projected revenues of $7.032B, which were high by a mere $8M after adjusting for
currency. This quarter we expect Amazon to post revenues of $4.7B along with some improvement in
gross margins, as the company likely gained market share from offline competitors. We also took a
look at the rest of the year and adjusted many of our numbers due to the recent strength in traffic and
expected contribution from MP3 downloads and the Kindle.

Our expectations for gross margins have improved, and we even believe there is upside to our 22%
estimate. In the first quarter of 2008, Amazon reported 23.12% gross margin. We do not believe that
the company will be able to achieve that level again this year.

Following a quarter that saw Amazon report lower than expected costs, we selectively trimmed some
operational expense line items. Going forward, we expect marketing to transition to include some pay-
per-click (PPC) advertising. The recent changes in the affiliate program suggest that Amazon will
likely do its own direct to the merchant PPC ads which will be a savings on gross margin line but will
be offset by an increase to the marketing line item.

An upward trending stock may have benefitted from some of the $900M remaining in the stock
buyback program, but it is unlikely that the company repurchased a significant amount of shares. Last
quarter, the company repurchased 2.2M shares at an average price of about $45. We expect the share
count to hold steady at 436M.

Kindle continues to grab attention

The Kindle continues to be a source of upside for the company. Supply restraints helped ignite a
wildfire of hype as demand far outweighed supply. We have noticed that the Kindle is consistently at
the top of the bestsellers list for the electronics segment. We also believe that sales of the Kindle have
boosted and will continue to act as a tailwind for the sale of digital books. The company does not break
out the sales of digital books, but we believe management will make positive comments pertaining to
the growth of sales of digital books.

Looking ahead, the sale of digital books could be the single highest driver of gross margin for the
company. While we have been disappointed over the last several years with little to no margin
expansion, we now believe that Kindle is the light at the end of that particular tunnel. Consumers are
just starting to embrace the Kindle and its adoption rates are encouraging.

We believe that the company could sell as many as 500K-750K Kindles by the end of the year, which
will likely lead to a halo effect for the sales of digital books.

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STURDIVANT & CO., INC.

Balance Sheet

At the end of the year Amazon.com had $3.73B in cash, an increase of $615M from the prior quarter.
The company has $468M in debt. Inventory increased 17% to $1.4B and turns were down by one half
turn to 12.2 as the company moved to increase selection. Accounts payable increased 29% to $3.59B
and payable days increased to 62 from 57 in the year ago period. Payables tend to increase in the first
quarter as the company pays off suppliers from the forth quarter and Holiday season.

Guidance

Amazon.com gave guidance of $4.525B—$4.925B for the topline, in line with our $4.7B estimate.
Operating income guidance of $243M (midpoint) implies 5.1% margin, down 110 basis points from
the year ago period.

Valuation

Posting a solid quarter in a very difficult macro environment denotes the impressive execution and
subsequent market share gains the company is seeing. Previous concerns that technology services were
not being well received by enterprises seems to be abating and could drive outperformance throughout
2009. We also see the Kindle as having a break out year in the back half of the year.

FX had a significant negative impact last quarter. We believe that 1Q09 will not have as severe an
impact but will still be subject to large swings in currency valuations. We tend to look at the broader
picture and with 15% of estimated growth coming from international, we believe that currency will
again hurt revenue.

The basis of our recommendation was weakened by the performance in 4Q08. Gains in market share
and outperformance by the technology segment deserves a premium valuation. Fulfillment by Amazon
and the increase in active users suggests that Amazon.com is widening the gap between itself and eBay.
We believe that 1Q09 will show more gains in market share from smaller competitors.

We were hesitant to remove our Market Underperform rating on shares of Amazon due to the weak
operating income guidance and the weaker than expected gross margins. The rest of the market,
however, was not as hesitant to reward Amazon for the share gains it took and the gains it expected.
Starting the quarter at $51.28, the stock zoomed higher after its earnings announcement on 1/29/09 and
rode that wave to end the quarter at $73.44. This translates to a 43.2% increase in the quarter.

We are increasing our target price due the positives in the quarter, not the least of which include share
gains, increase in active users and future potential of the Kindle. Our new target price of $60 is based
on a multiple of 40x our 2009 estimate of $1.50. A $15 (33%) increase to our price target is attempting
to keep pace with a stock that has renewed momentum interests and may no longer be trading solely off
fundamentals. Keep in mind that management bought 2.2M shares for $45 in 4Q08, a level which is
dramatically below present levels.

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STURDIVANT & CO., INC.

AMAZON.COM, INC.
INCOME STATEMENTS
(in millions, except per share data)
1Q08 4Q08 1Q09E
Net sales $ 4,135 $ 6,704 $ 4,701
Cost of sales 3,179 5,356 3,667
Gross profit 956 1,348 1,034
23.12% 20.11% 22.00%
Operating expenses:
Fulfillment 354 549 400
Marketing 103 169 115
Technology and content 234 278 255
General and administrative 61 72 75
Other operating expense (income) 6 8 8
Total operating expenses 758 1,076 853

Income (loss) from operations 198 272 181

Interest income 26 16 21
Interest expense (22) (12) (14)
Other income (expense), net 4 26 2
Remeasurement and other 2 - -
Total non-operating income (expense) 10 30 9

Income (loss) from operations 208 302 190

Provision (benefit) for income taxes 62 79 55

30% 26% 29%
Income before cumulative effect change in accounting principle 146 223 135

Equity Method Investment Activity 2

Diluted earnings (loss) per share:
$ 142 $ 225 $ 135
Stock based comp 54 79 65
Non GAAP EPS $ 0.33 $ 0.52 $ 0.31
Weighted average shares used in computation
430 436 436

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STURDIVANT & CO., INC.

AMAZON.COM, INC.
INCOME STATEMENT
(in millions, except per share data)
2009E
31-Mar 30-Jun 30-Sep 31-Dec
Net sales $ 4,701 $ 4,662 $ 4,786 $ 7,810
Cost of sales 3,667 3,672 3,770 6,248
Gross profit 1,034 991 1,016 1,562

Operating expenses (1):

Fulfillment 400 390 400 625
Marketing 115 105 105 170
Technology and content 255 245 260 280
General and administrative 75 78 79 120
Other operating expense (income) 8 5 3 5
Total operating expenses 853 823 847 1,200

Income (loss) from operations 181 168 169 362

Interest income 21 13 15 17
Interest expense (14) (13) (12) (15)
Other income (expense), net 2 4 5 8
Total non-operating income (expense) 9 4 8 10

Income (loss) before income taxes 190 172 177 372

Equity method Investment

Provision (benefit) for income taxes 55 45 45 110
29% 26% 25% 30%
Income before cumulative effect change in accounting principle 135 127 132 262
Cumulative effect of change in accounting principle
Net income (loss) $ 135 $ 127 $ 132 $ 262
Diluted earnings (loss) per share:
$ 0.31 $ 0.29 $ 0.30 $ 0.60
Stock based comp 85
Weighted average shares used in computation 436 437 437 437

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 STURDIVANT & CO., INC.

2008

Recent operating net profit

Price marketcap Sales PE EPS margin margin
Search YHOO 12.85 17,838,803,245 7,208 45.1 0.28 0.18% -2.32%
GOOG 360.88 113,722,673,730 21,795 27.0 13.31 25.41% 19.39%
Average 14,502 36.1 12.8% 8.5%

E-Commerce EBAY 13.83 17,826,551,026 8,541 10.2 1.35 24.3% 20.83%

OSTK 9.45 214,449,824 834 #N/A -0.55 -1.31% -1.52%
STMP 8.21 136,722,313 85 15.8 0.52 5.25% 11.97%
Average 3,153 13.0 9.4% 10.4%

Brick and Mortar WMT 52.62 205,230,524,049 378,476 15.6 3.35 5.62% 3.39%
TGT 37.00 28,022,004,239 63,367 13.0 2.86 5.44% 3.41%
BBY 39.30 16,264,296,923 40,023 16.5 2.38 3.91% 2.28%
COST 47.59 20,564,220,144 72,483 17.5 2.7 2.59% 1.64%
KSS 44.77 13,611,676,429 16,473 15.5 2.89 9.37% 5.4%
Average 114,164 15.6 5.4% 3.2%

Books and media BKS 22.45 1,245,064,464 5,286 14.7 1.53 2.8% 1.6%
BGP 0.93 57,681,829 3,820 #N/A -3.06 0.1% -0.5%
BAMM 4.54 71,614,030 535 6.4 0.7 3.68% 2.1%
Average 3,214 11 2.2% 1.1%

Average 19,903,951,633 20,038 18.2 6.8% 5.4%

AMZN 76.03 32,782,323,081 19,166 51.2 1.46 4.4% 3.4%

All averages exclude WMT

Averages when excluding Google 5.48% 4.42%

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 Income Statement
Restated Restated
For the Fiscal Period Ending 12 months 12 months 12 months 12 months 12 months 12 months
Dec-31-2003 Dec-31-2004 Dec-31-2005 Dec-31-2006 Dec-31-2007 Dec-31-2008
Currency USD USD USD USD USD USD
STURDIVANT & CO., INC.

Revenue 5,264.0 6,921.0 8,490.0 10,711.0 14,835.0 19,166.0

Total Revenue 5,264.0 6,921.0 8,490.0 10,711.0 14,835.0 19,166.0

Cost Of Goods Sold 4,007.0 5,319.0 6,451.0 8,255.0 11,482.0 14,896.0

Gross Profit 1,257.0 1,602.0 2,039.0 2,456.0 3,353.0 4,270.0

Selling General & Admin Exp. 727.0 887.0 1,109.0 1,395.0 1,871.0 2,419.0
R & D Exp. 257.0 283.0 451.0 662.0 818.0 1,033.0
Other Operating Expense/(Income) 3.0 1.0 7.0 10.0 9.0 29.0
Other Operating Exp., Total 987.0 1,171.0 1,567.0 2,067.0 2,698.0 3,481.0
Operating Income 270.0 431.0 472.0 389.0 655.0 789.0
Interest Expense (130.0) (107.0) (92.0) (78.0) (77.0) (71.0)
Interest and Invest. Income 22.0 28.0 44.0 59.0 90.0 83.0
Net Interest Exp. (108.0) (79.0) (48.0) (19.0) 13.0 12.0
Income/(Loss) from Affiliates - - - - - (9.0)
Currency Exchange Gains (Loss) (104.0) (24.0) 43.0 13.0 (1.0) 38.0

9
Other Non-Operating Inc. (Exp.) (1.0) 23.0 6.0 (8.0) (6.0) 7.0
EBT Excl. Unusual Items 57.0 351.0 473.0 375.0 661.0 837.0

Restructuring Charges - 9.0 - - - -

Gain (Loss) On Sale Of Invest. 6.0 1.0 1.0 2.0 (1.0) 2.0
Gain (Loss) On Sale Of Assets - - - - - 53.0
Legal Settlements - - (40.0) - - -
Other Unusual Items (24.0) (6.0) (6.0) - - -
EBT Incl. Unusual Items 39.0 355.0 428.0 377.0 660.0 892.0
Income Tax Expense 4.0 (233.0) 95.0 187.0 184.0 247.0
Earnings from Cont. Ops. 35.0 588.0 333.0 190.0 476.0 645.0
Earnings of Discontinued Ops. - - - - - -
Extraord. Item & Account. Change - - 26.0 - - -
Net Income 35.0 588.0 359.0 190.0 476.0 645.0

Diluted EPS $0.08 $1.38 $0.84 $0.45 $1.12 $1.49

Diluted EPS Excl. Extra Items $0.08 $1.38 $0.78 $0.45 $1.12 $1.49
Weighted Avg. Diluted Shares Out. 419.0 425.0 426.0 424.0 424.0 432.0
STURDIVANT & CO., INC.

Cash Flow

For the Fiscal Period Ending 12 months 12 months 12 months 12 months 12 months 12 months
Dec-31-2003 Dec-31-2004 Dec-31-2005 Dec-31-2006 Dec-31-2007 Dec-31-2008

Net Income 35.0 588.0 359.0 190.0 476.0 645.0

Depreciation & Amort. 70.0 75.0 66.0 109.0 117.0 115.0
Amort. of Goodwill and Intangibles 6.0 1.0 55.0 96.0 129.0 172.0
Depreciation & Amort., Total 76.0 76.0 121.0 205.0 246.0 287.0

(Gain) Loss On Sale Of Invest. (10.0) (1.0) (1.0) (2.0) 1.0 (2.0)
Stock-Based Compensation 88.0 58.0 87.0 101.0 185.0 275.0
Tax Benefit from Stock Options - - (7.0) (102.0) (257.0) (159.0)
Other Operating Activities 147.0 (259.0) 14.0 26.0 (78.0) (63.0)
Change in Acc. Receivable 2.0 (2.0) (84.0) (103.0) (255.0) (218.0)
Change In Inventories (77.0) (169.0) (104.0) (282.0) (303.0) (232.0)
Change in Acc. Payable 168.0 286.0 274.0 402.0 928.0 812.0
Change in Unearned Rev. (10.0) 3.0 7.0 26.0 33.0 105.0
Change in Other Net Operating Assets (26.0) (14.0) 67.0 241.0 429.0 247.0
Cash from Ops. 393.0 566.0 733.0 702.0 1,405.0 1,697.0

Capital Expenditure (46.0) (89.0) (204.0) (216.0) (224.0) (333.0)

Cash Acquisitions - (71.0) (24.0) (32.0) (75.0) (494.0)
Divestitures 5.0 - - - - -
Invest. in Marketable & Equity Securt. 277.0 (157.0) (550.0) (85.0) 341.0 (372.0)
Net (Inc.) Dec. in Loans Originated/Sold - - - - - -
Other Investing Activities - - - - - -
Cash from Investing 236.0 (317.0) (778.0) (333.0) 42.0 (1,199.0)

Short Term Debt Issued - - - - - -

Long-Term Debt Issued - - 11.0 98.0 24.0 87.0
Total Debt Issued - - 11.0 98.0 24.0 87.0
Short Term Debt Repaid - - - - - -
Long-Term Debt Repaid (495.0) (157.0) (270.0) (383.0) (74.0) (355.0)
Total Debt Repaid (495.0) (157.0) (270.0) (383.0) (74.0) (355.0)

Issuance of Common Stock 163.0 60.0 59.0 35.0 91.0 11.0

Repurchase of Common Stock - - - (252.0) (248.0) (100.0)

Total Dividends Paid - - - - - -

Special Dividend Paid - - - - - -

Other Financing Activities - - 7.0 102.0 257.0 159.0
Cash from Financing (332.0) (97.0) (193.0) (400.0) 50.0 (198.0)

Foreign Exchange Rate Adj. 67.0 49.0 (52.0) 40.0 20.0 (70.0)
Net Change in Cash 364.0 201.0 (290.0) 9.0 1,517.0 230.0

Supplemental Items
Cash Interest Paid 120.0 108.0 105.0 86.0 67.0 64.0
Cash Taxes Paid 2.0 4.0 12.0 15.0 24.0 53.0
Levered Free Cash Flow 202.1 225.0 266.5 375.4 866.3 942.8
Unlevered Free Cash Flow 283.3 291.9 324.0 424.1 914.4 987.1
Change in Net Working Capital (84.6) (35.5) (112.0) (192.0) (483.0) (540.0)
Net Debt Issued (495.0) (157.0) (259.0) (285.0) (50.0) (268.0)

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STURDIVANT & CO., INC.

Balance Sheet

Dec-31-2003 Dec-31-2004 Dec-31-2005 Dec-31-2006 Dec-31-2007 Dec-31-2008

ASSETS
Cash And Equivalents 1,102.3 1,303.0 1,013.0 1,022.0 2,539.0 2,769.0
Short Term Investments 292.6 476.0 987.0 997.0 573.0 958.0
Total Cash & ST Investments 1,394.8 1,779.0 2,000.0 2,019.0 3,112.0 3,727.0

Accounts Receivable 125.5 187.0 259.0 382.0 425.0 427.0

Other Receivables - - - - 280.0 400.0
Total Receivables 125.5 187.0 259.0 382.0 705.0 827.0

Inventory 293.9 480.0 566.0 877.0 1,200.0 1,399.0

Prepaid Exp. 6.0 12.0 15.0 17.0 - -
Deferred Tax Assets, Curr. 0.6 81.0 89.0 78.0 147.0 204.0
Other Current Assets - - - - - -
Total Current Assets 1,820.8 2,539.0 2,929.0 3,373.0 5,164.0 6,157.0

Gross Property, Plant & Equipment 371.7 423.0 571.0 594.0 738.0 1,078.0
Accumulated Depreciation (147.5) (177.0) (223.0) (259.0) (334.0) (396.0)
Net Property, Plant & Equipment 224.3 246.0 348.0 335.0 404.0 682.0

Long-term Investments 15.0 15.0 8.0 19.0 - -

Goodwill 69.1 139.0 159.0 195.0 222.0 438.0
Other Intangibles 1.0 5.0 11.0 143.0 166.0 332.0
Deferred Tax Assets, LT 4.1 282.0 223.0 199.0 260.0 145.0
Deferred Charges, LT 25.0 19.0 13.0 - - -
Other Long-Term Assets 2.7 3.0 5.0 99.0 269.0 560.0
Total Assets 2,162.0 3,248.0 3,696.0 4,363.0 6,485.0 8,314.0

LIABILITIES
Accounts Payable 819.8 1,142.0 1,366.0 1,816.0 2,795.0 3,594.0
Accrued Exp. 390.8 328.0 402.0 439.0 581.0 560.0
Curr. Port. of LT Debt 2.7 2.0 - 16.0 17.0 59.0
Curr. Port. of Cap. Leases 1.6 - - - - 72.0
Unearned Revenue, Current 37.8 148.0 131.0 261.0 321.0 461.0
Other Current Liabilities - - - - - -
Total Current Liabilities 1,252.7 1,620.0 1,899.0 2,532.0 3,714.0 4,746.0

Long-Term Debt 1,924.2 1,855.0 1,480.0 1,247.0 1,282.0 409.0

Capital Leases 1.2 - 5.0 20.0 62.0 124.0
Unearned Revenue, Non-Current - - - - 19.0 46.0
Other Non-Current Liabilities 20.1 - 66.0 133.0 211.0 317.0
Total Liabilities 3,198.1 3,475.0 3,450.0 3,932.0 5,288.0 5,642.0

Common Stock 4.0 4.0 4.0 4.0 4.0 4.0

Additional Paid In Capital 1,899.4 2,123.0 2,263.0 2,517.0 3,063.0 4,121.0
Retained Earnings (2,974.4) (2,386.0) (2,027.0) (1,837.0) (1,375.0) (730.0)
Treasury Stock - - - (252.0) (500.0) (600.0)
Comprehensive Inc. and Other 34.9 32.0 6.0 (1.0) 5.0 (123.0)
Total Common Equity (1,036.1) (227.0) 246.0 431.0 1,197.0 2,672.0

Total Equity (1,036.1) (227.0) 246.0 431.0 1,197.0 2,672.0

Total Liabilities And Equity 2,162.0 3,248.0 3,696.0 4,363.0 6,485.0 8,314.0

11
STURDIVANT & CO., INC.

Sturdivant & Co.’s

Businessman’s Approach to Value Philosophy

Sturdivant & Co. uses the businessman’s approach to evaluating stocks. This philosophy is predicated on looking at a
company as a prudent man would were he to consider making a reasoned investment in a business. We focus on a
company’s strategy, the competitive position a company has versus its peers, quality of management, risk factors, its
prospect for growth, as well as critical catalysts and milestones as evidence of progress. Finally, of course, we look at a
company’s valuation to determine where we feel the stock is priced attractively.

Chairman

Albert A. Sturdivant
Asturdivant@sturdivant-co.com
856-751-1331 ext. 108

Fundamental Research

Richard A. Verdi Beth Ann Loewy, CFA Brian Bolan

Rverdi@sturdivant-co.com Bloewy@sturdivant-co.com Bbolan@sturdivant-co.com
856-751-1331 ext. 109 856-751-1331 ext. 114 312-345-1534
Industrials Food Technology
Consumer Staples
Retail

Institutional Sales

Carl R. Gibbs, Jr. Terry Williams

Cgibbs@sturdivant-co.com Twilliams@sturdivant-co.com
856-751-1331 ext. 107 856-751-1331 ext. 101

Institutional Trading

Harvey R. de Krafft Debra L. Bailey James Campanella

Hdekrafft@sturdivant-co.com Dbailey@sturdivant-co.com Jcampanella@sturdivant-co.com
800-486-1515 or 800-486-1515 or 800-486-1515 or
856-751-1331 ext. 112 856-751-1331 ext. 110 856-751-1331 ext. 115

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STURDIVANT & CO., INC.

Date Price Rating Target

AMZN 11/17/08 41.75 MU $31.50

1/30/09 50.00 MU $45.00
4/9/09 75.00 MU $60.00

Total Technology Group

Outperform Marketperform Underperform

20% (1) 60% (3) 20% (1)

Investment Banking Relationship

Outperform Marketperform Underperform

0 0 0

Member: FINRA and SIPC

This material is for your private information and we are not soliciting any
action based upon it. This report should not be construed as, or the solicitation
of an offer to buy any security in any jurisdiction where such an offer or
solicitation would be illegal. The material is based upon information that we
consider reliable, but we do not represent that it is accurate or complete, and it
should not be relied upon as such. Opinions expressed are our current opinions
as of the date appearing on this material only. While we endeavor to update on
a reasonable basis the information discussed in this material, there may be
regulatory, compliance or other reasons that prevent us from doing so. We and
our affiliates, officers, directors, partners and employees, including persons
involved in the preparation or issuance of this material, from time to time, have
long or short positions in, and buy or sell, the securities, or derivatives
(including options) thereof, of companies mentioned herein. Sturdivant & Co.
has not received compensation from this company in the past 12 months and
this company is not an investment banking client.

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