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26 November 2010 The Intelligent InvestorU.S.

The Economic Monitor Series. Free Edition.

Commodity-related shares led U.S. stocks lower in a shortenedpost-holiday session, as investors shook off risky assets on worriesthat euro zone debt problems may continue to spread. The DJIAclosed at 11092, down by 95.28 points, or 0.85 percent.

Benchmark 10-year Treasury notes were trading 13/32 higher inprice to yield 2.87 percent, down from 2.91 percent lateWednesday.

The U.S. dollar rallied, while the euro slid to a new two-month lowas growing fears about the euro zone's debt crisis promptedinvestors to embrace safety and shun risk. The dollar rose as highas 84.18 on trading platform EBS, the strongest level since lateSeptember.

U.S. crude oil for January delivery fell 47 cents to $83.39 a barrelby 11:45 a.m. EST (1645 GMT), well above an earlier $82.78 low.

Gold fell 1 percent to a session low of $1,359.65 an ounce as thedollar extended gains against the euro amid nervousness overEurope's debt crisis, with speculation of an imminent Portugalbailout. Gold was trading at $1,359.15 an ounce at 1138 GMT from$1,374.12 late in New York on Thursday.

MARKETS AT A GLANCE

STOCK INDICES

CURRENCIES

INDEX LAST PRIOR

Euro (EUR/USD) 1.3246 1.3355

U.K. Pound (GBP/USD) 1.5614 1.5763

Japanese Yen (USD/JPY) 84.03 83.61

All prices are at 01:04 PM EST

FUTURES

INDEX LAST CHNG % CHNG

DJIA* 11092 -95.28 -0.85

Nasdaq* 2534.56 -8.56 -0.34

S&P 500* 1189.4 -8.95 -0.75

NYSE Composite 7500.54 -78.72 -1.04

Global Dow 1979.61 -22.7 -1.13

* CLOSING VALUES

LAST CHANGE

Crude Oil 83.77 -0.09

Natural Gas 4.401 0.013

Gold, Dec. 1360.8 -14.2

Copper 376 -0.65

Wheat 687.5 2.2

All prices are at 12:53 PM EST

INSIDE THE REPORT

Stock recommendations and price targets from topbrokerage firms

Analysis and views on Veritas Capital to buy CPI Intl. for$525 mln

Economic Indicator Watch along with Graphs

List of companies earnings which hit and miss the analysts‟expectations

Important Events Scheduled on November 29

Economic Events

Federal Reserve Bank of St. Louis President James Bullardgives welcome remarks before the Bureau of ConsumerFinancial Protection: The Direction and Implications eventhosted by the Federal Reserve Bank of St. Louis - 1830GMT

Federal Reserve Chairman Ben Bernanke and Federal

Reserve Bank of Cleveland President Sandra Pianaltoparticipate in "Conversation on the Economy" DiscussionWith Business Leaders event hosted by the Ohio StateUniversity Fisher College of Business - 2000 GMT

Corporate Events

No earnings scheduled for release

Top Stories

New 787 Dreamliner in "few weeks": Boeing

KKR -led group to buy Del Monte

Ford adds more network expansion in china

Chinatrust plans $2 bln share sale to buy AIG unit

Quaker Canada recalls granola bars

Fiat plans JV with Chrysler

Oil falls towards $83



The Intelligent Investor - U.S.

TOP STORIES

New 787 Dreamliner in "few weeks": Boeing

Boeing Co revealed its plan for most anticipated 787 Dreamliner in the first quarter of 2011. The company said arevised 787 program schedule "is expected to be finalized in the next few weeks." It said the fault which led to thefire was most likely caused by foreign debris. Boeing said it is making minor design changes to power distribution

panels on the 787 and updating software that manages power as it plots its way to getting the plane flying again.According to its latest schedule, the company had planned to deliver a Dreamliner to its first customer, Japan's All

Nippon Airways, in the first quarter of 2011.

KKR-led group to buy Del Monte

A Kohlberg Kravis Roberts & Co (KKR) led group agreed to acquire Del Monte Foods in a $4 billion deal that will give the NewYork buyout firm pet-food brands such as Meow Mix and Kibbles „n Bits. The $4 billion deal excludes debt of Del Monte. The $19 pershare offer for the company represents a 5.6 percent premium over Del Monte's closing stock price of $17.99 on Wednesday, and apremium of about 23 percent over its opening price on November 18. Vestar Capital Partners and a fund run by Centerviewpartner James Kilts will join KKR in the deal. The three partners will assume about $1.3 billion in Del Monte's debt. When includingthe debt, the company said the deal value is $5.3 billion. The U.S. pet-food market grew 26 percent to $18.9 billion from 2005 to 2010,according to data tracker Euromonitor International in Chicago. Del Monte has a 9 percent share in the market. Barclays Capital Inc

is financial advisor to Del Monte Foods.

Ford adds more network expansion in china

Ford Motor is going to add 100 new dealers to its network in China, mostly in inland cities that are replacing big,coastal regions as the major growth driver in the world's largest auto market. The company is expecting recordsales in China this year. The move will bring the number of its dealers in China to 340 by the end of the year, saidJoe Hinrichs, president for Ford's Asia and Africa operations, up from the original target of 310. Vehicle sales intier 3 and tier 2 markets jumped 67.7 percent and 56.5 percent, respectively, in 2009, compared with a 42.6percent increase in tier 1 cities, according to Xu Changming, a senior industry researcher at the State Information

Center.

Chinatrust plans $2 bln share sale to buy AIG unit

Chinatrust Financial plans to raise around $2 billion or T$60 billion in a rights issue, as the company prepares itself for the second bidfor AIG's local unit. Chinatrust is one of four Taiwanese operations invited by American International Group (AIG) to look over thebooks of Nan Shan as it puts the unit on sale for a second time. The Taiwan's top credit card issuer said, "The fundraising aims tostrengthen Chinatrust's financial structure, and to help long-term operations and expansion into a different industry." It is supposedthat the company will submit a bid after due diligence is completed next week.

Quaker Canada recalls granola bars

Quaker Canada is recalling granola bars after two packages were found to wrongly contain bars that could cause problems forconsumers with peanut or tree nut allergies. The food company said no illnesses had been reported due to the mislabeled packages.The company called it a precautionary measure.

Fiat plans JV with Chrysler

Italian carmaker Fiat is setting up a joint venture with U.S. peer Chrysler to make top-of-the-range cars at its plant in Turin. Fiat,which owns 20 percent of Chrysler, has pledged to invest $26 billion or 20 billion euros to boost output and improve efficiency at itsItalian car plants in exchange for more labor flexibility.

Oil falls towards $83

U.S. oil prices fell towards $83 per barrel on Friday as Europe's debt crisis pushed the euro to a two-month low against the dollar.The euro concern coupled with tensions in Korea pushed the price down as investors felt more pressure. The dollar index hit a two-month high, while the euro extended losses, shedding 1 percent on the day. The U.S. crude for January contract fell $1.08 from its pre-Thanksgiving close to a low of $82.78 before recovering to around $83.70 by 1445 GMT. ICE Brent futures for January were down 50

cents at $85.60 per barrel.




Veritas Capital to Buy CPI Intl. for $525M

CPI International, Inc. (CPII), which makes broadcast and wireless components, said it agreed to be acquired by an affiliate of private-

equity firm Veritas Capital for about $525 million in cash.

The purchase price of $19.50 a share reflects a premium of about 35 percent over CPI's closing price on November 24. As of July 2010,CPI has about $197 million of debt in its balance sheet.

"Our board of directors and management believe this transaction will provide considerable benefits for CPI's customers, and CPI'sstockholders will benefit from a significant premium over the current stock price," said Joe Caldarelli, chief executive officer of CPI.

"Veritas Capital is pleased to be associated with the management and employees of CPI. We look forward to continuing this traditionunder our ownership, working with Joe Caldarelli and his team, by providing our customers with cost effective, advanced solutions totheir important requirements," said Robert McKeon, chairman and managing partner of Veritas Capital.

The Palo Alto, California-based CPI International said stockholders owing 49 percent of its common stock have agreed to vote in favorof the deal.

"We are very excited by the prospect of working with Veritas Capital to continue to grow CPI's business while providing ourcustomers in all of our commercial and defense end markets with the state-of-the-art technology, dependable products and best-in-class customer service that they have come to expect from CPI," said Joe Caldarelli.

The transaction is subject to CPI stockholder approval, and is also subject to a number of customary regulatory and other closingconditions. The acquisition will be submitted to CPI's stockholders for their consideration. In August, CPI terminated its merger dealwith Comtech Telecommunications Corp. (CMTL), which had agreed to buy CPI in a cash and stock deal with an enterprise value of about $472.3 million. CPI has paid $15 million as termination fee to Comtech.

In fiscal 2009, CPI earned $23.47 million on revenue of $332.9 million. In the recently concluded third quarter, CPI reported profit of $4.2 million or 23 cents a share on revenue of $93.9 million. CPI expects fiscal 2010 profit in the range of $1.10 to $1.20 a share onsales of $360 million to $370 million. Analysts expect profit $1.18 a share on revenue of $364.55 million.

The New York-based Veritas Capital invests in companies that provide critical products and services to governments worldwide. Since

its founding, Veritas has been involved as the lead investor in transactions totaling more than $8 billion in value.

This week, Veritas acquired Lockheed Martin Corp.'s (LMT) Enterprise Integration Group for $815 million. CPI International closedWednesday's regular trading session down 0.35 percent at $25.35 on the NYSE.

ANALYSIS AND VIEWS




This report is produced byInternational Business TimesFor questions or commentsreach us [email protected]

For more information aboutour products visitwww.ibtimes.com

© IBTimes 2010. All rights reserved.

Economic Events

ST. LOUIS - Federal Reserve Bank of St. Louis President James Bullard gives welcome remarks before the Bureau of Consumer Financial Protection:The Direction and Implications event hosted by the Federal Reserve Bank of St. Louis - 1830 GMT

He will give opening remarks. Banking Supervision and Regulation Senior Vice President Julie Stackhouse will facilitate the panel discussion followedby question and answers. “The Bureau of Consumer Financial Protection: The Direction and Implications” is the fourth and fina l discussion to be heldin St. Louis on the implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The previous events held in St. Louis, aswell as in Memphis and Louisville, have featured overviews from a variety of banking, legal and regulatory experts on Dodd-Frank‟s implications forthe banking and finance sectors, as well as the potential impact and ramifications of the new Financial Stability Oversight Council and the FDIC‟s newresolution authority.

COLUMBUS, Ohio - Federal Reserve Chairman Ben Bernanke and Federal Reserve Bank of Cleveland President Sandra Pianalto participate in"Conversation on the Economy" Discussion With Business Leaders event hosted by the Ohio State University Fisher College of Business - 2000 GMT

Ben S. Bernanke will participate in a Conversation on the Economy with a cross-section of global, regional, and local business leaders at FisherCollege of Business. Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto will moderate the discussion, which will focus on the jobmarket and the opportunities and challenges employers are facing in the current economic environment. The conversation will take place before anaudience of approximately 100 invited Ohio State students and faculty, and central Ohio business and community leaders.

Company Events


THE NEXT TRADING DAY

ECONOMIC INDICATOR WATCH ON 29 NOVEMBER 2010

Chicago Midwest Manufacturing Index

Forecast: NA Prior: 80.2

Federal Reserve Bank of Chicago will release data on manufacturing for the month of October at 1200 EST.

DAILY EARNINGS HITS & MISSES AS ON 26 NOVEMBER, 2010


STOCK RECOMMENDATIONS BY BROKERAGE HOUSES

No Broker recommendations reported today

free em us november 26 2010

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