STANDARD & POOR’S FIVE STAR STOCKS - TD Ameritrade

[Pages:4]March 1, 2006

STANDARD & POOR'S FIVE STAR STOCKS Recommended by S&P analysts for superior price appreciation over the next 6-12 months.

SYM ACAS ADP AES AET AKS

ALL ALTR AMR ANF APPB

BAC BEN BRKS BSC C

CAJ CAL CHK CHTT CIT

CL CN CNX COF COH

COP CSC CTCO CTL CVD

CVS CVX DHR DNA DOW

COMPANY NAME

Amer Capital Str Automatic Data AES Corp Aetna Inc AK Steel

5 STARS PRICE WHEN CURRENT SINCE RECOMMENDED PRICE CURRENT REASON

02/03/06 10/07/03

35.27 38.44

35.61 Valuation 46.21 Improving job market

04/28/04

7.7

17.50 Improving subsidiaries

02/10/05 01/24/06

33.5* 10.16

51.28 Strong membership gains, cost controls 11.38 More optimistic outlook for '06 FCF

Allstate Corp Altera Corp AMR Corp Abercrombie & Fi Applebee's

02/06/03 12/01/05 11/02/05 09/20/05 09/29/05

32.02 19.18 14.19 45.96 20.36

54.74 21.18 25.37 67.25 23.57

Modestly undervalued; trend improvement Chip industry growth, valuation Improving revenues, moderating oil Valuation Strong expansion prospects

Bank of America

05/20/04

40.33*

45.59 Shares undervalued vs. peers

Franklin Res

12/09/03

48.9

103.37 Shift toward higher-margin equity funds

Brooks Automatio 08/02/05

16.29

16.19 Valuation, improving fundamentals

SAMPLE Bear Stearns

Citigroup Inc

11/12/03 05/17/02

Canon Inc Contl Airlines'B Chesapeake Ene Chattem Inc CIT Group

01/30/06 11/02/05 02/14/06 02/09/06 01/20/05

Colgate-Palmoliv China Netcom Gro CONSOL Energy Capital One Fina Coach Inc

12/07/04 12/22/05 02/16/06 07/22/04 08/02/05

ConocoPhillips Computer Science Commonwealth Tel CenturyTel Inc Covance Inc

03/28/05 01/25/06 03/01/06 07/20/04 01/12/05

CVS Corp Chevron Corp Danaher Corp

02/02/05 10/21/05 07/21/05

75.1 44.38

61.26 13.47 28.84 37.11 40.17

50.07 32.74 62.45 69.3 34.75

52.63* 49.41 32.28 30.95 37.34

24.13* 56.3 55.1

134.69 Revenue growth, diversification 46.52 Big discount to historical valuation

63.03 24.06 30.43 39.30 53.98

See strong demand, better margins Improving revenue environment Higher guidance; production hedges Strong sales prospects, valuation Valuation

54.77 35.74 65.20 88.29 35.88

Benefits from restructuring plan Shares undervalued relative to peers Low customer coal stockpiles Strong credit quality & loan growth Continued market share opportunities

61.77 54.66 31.95 36.63 55.75

Valuation Valuation, recent US govt biz wins Valuation Below peers on multiple of metrics Valuation

29.06 57.23 61.20

Increased generic drug sales, valuation Valuation Improving demand from end-markets

Genentech Inc

01/24/06

86.2

84.95 Valuation, potential new FDA approvals

Dow Chemical

01/29/04

41.26

43.95 Better results, business trends

Page 1 of 4

*Adjusted for stock split

#####

SYM DOX DUK EMC ENDP EON

ERTS ET FCH FDX FMC

FPL GS GTRC GWW HD

HIG HNT HOLX HSY IACI

IM IR JEC JNJ KLAC

KMP KSS LHO LLY LSTR

MC MCK MER MET MFE

MOT MOV MSFT MYGN MYL

COMPANY NAME

Amdocs Ltd Duke Energy EMC Corp Endo Pharmaceuti E.ON AG ADS

March 1, 2006

5 STARS SINCE

09/15/05 04/14/05 04/28/04 07/14/05 02/27/06

PRICE WHEN RECOMMENDED

27.47 28.26 11.83 27.97 37.74

CURRENT PRICE

33.59 28.28 14.24 32.11 37.27

CURRENT REASON

Positive communications industry trends Higher free cash flow growth Favorable industry position Higher sales of generic OxyContin Proposed acquistion bid for Endesa

Electronic Arts E Trade FelCor Lodging T FedEx Corp FMC Corp

11/14/05 03/22/04 04/07/04 12/21/05 02/03/04

59.09 12.27 10.32 103.7 33.16

52.02 25.51 20.08 110.43 61.89

Valuation Co, gaining market share Valuation, industry recovery Strong growth & margin improvement Improving outlook

FPL Group Goldman Sachs Gr Guitar Center Grainger (W.W.) Home Depot

10/21/05 09/21/04 03/31/04 09/29/04 09/28/05

42.52 94.9 35.92 56.56 37.85

41.60 143.15 51.23 75.40 42.59

Valuation, higher power prices Valuation Valuation Better market conditions for manfctrng Valuation-hurricane rebuilding efforts

Hartford Finl

08/05/05

77.15

83.50 See catalysts for growth

Health Net

02/01/06

48.33

48.66 Lower medical cost trends

SAMPLE Hologic

Hershey Co IAC/InterActiveC

Ingram Micro'A' Ingersoll-Rand'A Jacobs Engr Grou Johnson & Johnso KLA-Tencor Corp

Kinder Morgan Eg Kohl's Corp LaSalle Hotel Pr Lilly (Eli) Landstar Sys

Matsushita El In McKesson Corp Merrill Lynch MetLife Inc McAfee Inc

Motorola Movado Group

09/16/05 01/25/06 02/09/06

09/20/05 04/06/04 01/24/06 02/08/06 02/01/06

12/12/05 12/13/05 12/08/05 12/13/05 07/18/02

10/31/05 01/27/06 01/19/06 12/07/05 08/12/04

10/03/05 01/31/06

26.72* 52.3 28.02

17.91 35.16* 77.21 58.6 53.44

49.93 45.65 33.6 55.7 11.94*

18.4 53.8 72.05 50.62 17.52

22.44 18.89

50.12 51.41 29.65

Favorable clinical data Strong operating trends Valuation

20.21 41.95 86.94 57.66 54.16

Restructuring efforts & acquisitions Expected imprvmnts in several end mkts See backlog growth for oil & gas Valuation Improving business fundamentals

47.27 48.77 40.07 55.88 47.16

Solid capital appreciation potential Valuation Recent acqs, pull back in stock price Robust R&D pipeline, solid growth prods High returns on asset, equity

21.45 54.77 77.54 49.67 23.46

Valuation, strong demand for plasma TVs Strong demand for high margin IT prods Strong growth, investor confidence Valuation, improving underwriting mrgns Refocus on highly profitable operations

22.09 Strong wireless demand 21.99 Attractive valuation

Microsoft

11/04/02

28.05*

27.14 Solid fundamentals; valuation

Myriad Genetics

12/12/05

20.74

25.80 Positive predictive medicine testing

Mylan Labs

02/03/06

19.3

23.25 Recent restructuring, pipline growth

*Adjusted for stock split

Page 2 of 4

SYM

NBR NDE NE NFB ORCL

COMPANY NAME

Nabors Indus IndyMac Bancorp Noble Corp North Fork Banco Oracle Corp

March 1, 2006

5 STARS SINCE

12/07/01 04/19/01 02/27/06 03/01/06 02/28/06

PRICE WHEN RECOMMENDED

32.11 25.75 72.21 25.54 12.42

CURRENT PRICE

66.86 39.20 76.30 25.68 12.80

CURRENT REASON

See nat gas activity rising Attractive after price dip Rising jackup rig dayrates benefits Valuation Valuation

OXY PDLI PEP PETM PG

Occidental Petro PDL BioPharma PepsiCo Inc PETsMART Inc Procter & Gamble

11/01/05 02/02/06 03/19/01 08/04/05 06/12/02

79.53 29.51 42.68 28.3 46.16*

92.64 31.75 59.24 26.21 60.10

Valuation Royalty growth will remain very strong Reflects strong growth trends Valuation, attractive metrics Improving fundamentals

PWAV RHI RNVS SANYY SIRI

Powerwave Techno Robert Half Renovis Inc SANYO Elec Sirius Satellite

09/14/05 05/04/05 04/07/05 07/01/05 02/16/06

12.25 25.58 6.95 13.01 5.65

15.32 37.14 22.41 12.29 5.04

Stronger wireless handset demand Higher estimates, valuation Valuation Restructuring to lower costs, focus ops Valuation

SLH SMTC SRCL SSCC STZ

TEVA TOT TROW TXN UNH

VLO WLP WMT WWY XEC

XOM XRAY ZQK

Strategic Htl

06/30/05

18

22.29 Valuation

Semtech Corp

01/27/06

19.06

19.49 Valuation, improving industry dynamics

SAMPLE Stericycle Inc

Smurfit-Stone Co Constellation

Teva Pharm Indus Total 'B' ADS T.Rowe Price Texas Instrument UnitedHealth Gro

Valero Energy WellPoint Inc Wal-Mart Stores Wrigley (Wm) Jr Cimarex Energy

Exxon Mobil DENTSPLY Intl Quiksilver

04/22/05 01/03/06 09/29/98

44.18 13.71

5*

10/12/05 10/13/04 02/17/06 02/02/06 10/14/05

34.55 102.21 76.36 29.76 56.43

03/28/05 12/01/04 02/17/05 07/28/04 10/06/05

35.43* 54.55* 52.7 60.25 40.62

03/28/05 04/28/04 12/05/05

58.89 48.09 12.01

*Adjusted for stock split

60.45 13.04 26.53

Valuation Improved containerboard industry Large discount to peers, mid-cap index

43.42 126.94 77.23 32.17 58.42

Imprvd prospects, assmng the acq closes Valuation, refining margins projections Valuation Valuation, improving semicndtr industry Improved prospects from PHS acq

54.93 76.59 45.14 62.85 43.05

Valuation Profits prospects improved from merger Valuation Strong operating momentum Valuation, high energy prices

60.34 56.80 14.55

Valuation Excelled internal growth See FY 06 as transitional for co.

Page 3 of 4

March 1, 2006

CHANGES LAST 5 DAYS

DATE CHANGED

3/1 3/1 2/28 2/27 2/27

SYM

CTCO NFB ORCL EON NE

STOCK

Commonwealth Te North Fork Banc Oracle Corp E.ON AG ADS Noble Corp

NEW RANKING

$$$$$ $$$$$ $$$$$ $$$$$ $$$$$

OLD RANKING

$$$$ $$$$ $$$$ $$$ $$$$

REASON WHY

Valuation Valuation Valuation Proposed acquistion bid for Endesa Rising jackup rig dayrates benefits

SAMPLE

This report is provided for information purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy, any security. While the information contained herein has been obtained from sources deemed to be reliable, neither S&P nor its licensors nor any party through whom the user obtains this Report guarantee that it is accurate or complete or make any warranties with regard to the results to be obtained from its use. Reproduction or redistribution of this report in any form is prohibited except with written permission. The providers of this Report, their affiliated companies or their shareholders, may have a position in the securities discussed herein.

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