Ethan Allen Interiors (ETH)

RECOMMENDATION:

BUY

Background

• • Ethan Allen Inc. is a leading manufacturer and retailer of quality home furnishings, offering a full range of furniture products and accessories. Ethan Allen manufactures and distributes three principal product lines: • case goods (wood furnishings), consisting primarily of bedroom and dining room furniture, wall units and tables • upholstered products, consisting primarily of sofas, loveseats, chairs, and recliners • home accessories, and other, including carpeting and area rugs, lighting products, clocks, wall decor, bedding ensembles, draperies, decorative accessories and indoor\outdoor furnishings. The Company's operations are classified into two main businesses: wholesale and retail home furnishings. The wholesale home furnishings business is principally involved in the manufacture, sale and distribution of home furnishing products to a network of independently-owned and Ethan Allen-owned stores. The retail business exclusively sells Ethan Allen's products though a network of 309 retail stores (73 owned and operated by ETH, 215 independent retailers, 21 stores abroad). Ethan Allen is one of the ten largest manufacturers of household furniture in the United States. Ethan Allen manufactures and/or assembles approximately 90% of its products at 21 manufacturing facilities which includes 3 saw mills, thereby maintaining control over cost, quality and service to its consumers. Ethan Allen distributes its products primarily through eight regional distribution centers and terminals strategically located throughout the United States.

Background

• •

Revenue Generation

Case Goods Upholstered Products Home Accessories 1999 57% 28% 15% 100% 1998 58% 28% 14% 100% 1997 58% 30% 12% 100%

Ethan Allen's policy is to sell its products at the same delivered cost to all

dealers nationwide, regardless of their shipping point. The adoption of this

policy has discouraged dealers from carrying significant inventory in their

own warehouses. As a result, Ethan Allen obtains accurate information regarding sales to dealers to better plan production runs and manage inventory. Having one national landed cost has permitted Ethan Allen to provide one national

suggested retail price which, in turn, helps facilitate a national advertising

program. Ethan Allen television advertising is aired approximately 27 weeks per year.

Ethan Allen's product strategy has been to expand its home furnishings collections to appeal to a broader consumer base while providing good quality and value. Management believes that the two most important style categories in home furnishings today are Classic (style which includes English 18

th Century and 19 th Century Neo-Classic styling) and Casual (style is based on classic contemporary design elements). Each collection includes case goods, upholstered products and

accessories, each styled with distinct design characteristics. Ethan Allen's store

concept allows for the display of these categories in complete room

settings which utilize the related collections to project the category lifestyle.

Background

Important Holdings

All Directors except CEO Farooq Kathwari (CEO) Purchases Sales Net 0.5% 11.2% Number of Institutions Percent of total

Institutional Holdings

American Express Financial Thomson Horstmann Maverick Capital Commerce Bank MO Fred Alger Mgmt.

213 77%

% SHO

7.4% 4.2% 3.5% 3.5% 2.5%

% Chg

56.0% -1.0% -8.0% 25.0% 43.0% 5,295,840 (3,636,862) 1,658,978 13% -9% 4%

Honors / Management

• • Furniture Today (a leading industry publication) published a survey of America's Top 100 Furniture Retailers for 1999. Ethan Allen was ranked No. 2 in terms of furniture, beddings and accessary sales for dealer-owned and company-owned stores and was ranked No. 1 as the largest single-source store network for home furnishings in the country.

Worth Magazine named ETH CEO Farooq Kathwari in the top 50 for successfully reinventing the Ethan Allen Brand. In the past 7 years, he has introduced furninture with a more casual, classic style, cut prices, designed new customer friendly stores and launched a $67.5M national advertising campaign in 1998

• • •

What’s up ? (Firm)

First quarter sales and EPS increased 14.1% and 18.4% respectively. EPS(Q) at 0.45 was a 4.65% surprise. This is the 17th consecutive quarter ETH has been able to report significant growth in sales and earnings.

Approximately 90% of the Company's products have been redesigned over the last six years. This allows the Company to maintain focused lines within each style category which enhances efficiencies. In 1992, Ethan Allen instituted a new image and logo program. Additionally, Ethan Allen undertook a program to renovate the exterior of its stores. As of June 30, 1999, this renovation program has been substantially completed with 297 or 96% of all stores (including dealer-owned and Ethan Allen-owned stores) having either implemented new exteriors or are currently under renovation. The store is divided into three-stores-in-one and positions Ethan Allen

as specialists in casual styles, classic designs and decorative accessory

retailing. It features two fully designed show homes to inspire consumers and show them how product could look in their homes. In addition, it presents products in focused vignettes that are easy and relatively inexpensive to update each season. In the last six years 130 new stores were opened, many of them relocations. Sales to independent dealer-owned stores accounted for approximately 60% of total net sales of the Company in fiscal 1999. In fiscal year 1999, the Company's focus was on introducing the Avenue and Ethan Allen Kids lines of home furnishings. These products have recently been introduced at the retail level and revenues to date have not been significant. Also, in fiscal year 1999, the Company initiated its

Internet distribution strategy, which is expected to be launched in the second quarter of fiscal year 2000.

“We’re expanding our reach, our relationship…There’s no reason not to help decorate the client’s children’s room and garden.” (CEO)

•

What’s up ? (Industry 1/2)

BAC (10/04): Home furnishings is $125 billion industry (accounting for 2.2% of total annual consumer spending). Consumers spend an average of $1,215 per household per year on home furnishings of which 46% of that figure on furniture. According to BAC the industry is not as volatile as investors think with only three years of declining growth since 1970. Three areas besides furniture are housewares, accessories and textiles that are growing at a faster rate. Sector has been holding share better than most other product sectors. Growth for home furnishings segment has a rate of 8% since 1970 • BAC enumerated four ``growth drivers'' for the home furnishings industry:     Favorable Demographics -- 35-54-year-olds represent 52% of home furnishings purchases and this age group is estimated to increase 33% to 46 million people by 2010.

Home Ownership - home ownership is at record levels in the U.S., up 67% since 1970. And, homes are larger these days, requires more furnishing.

Influence of Media - a dramatic increase in home magazine readership (up 13% since 1995) illustrates a growing consumer interest. Home furnishings television programming has also gained enthusiasts.

Renovations are at an all-time high, having totaled $164 billion in 1998. In the last seven years, home renovation spending has increased 74%. Increase in renovation has come about particularly as more Americans begin to work from home offices. Last year, 3.6 million Americans were paid to work at home 89% more than in 1991.

What’s up ? (Industry 2/2)

• • Finally, Hale (BAC) outlined some of the trends that will continue to characterize the home furnishings industry, including: the polarization of spending; a focus on value at the low-end; increased dominance of brands at the high-end; new retail concepts from national players; and ``do-it-for-me'' one-stop redecorating resources offered by companies like The Home Depot and Sears.

AG Edwards (10/04): believes that the broad economic environment has been quite conductive to solid growth and profitability in the home furnishings arena…we expect those trends to continue…at a somewhat slower more sustainable pace over the next year or two. Virtually all of the economic variables necessary to drive growth in this segment are positive – house activity, interest rates, consumer confidence, employment levels and demographic trends such as the middle aging of the baby boomers • Brand names (including Ethan Allen as one of five mentioned) are key to expansion in the retail industry.

ETHAN ALLEN INTERIORS INC Balance Sheet Period End: Jun 30, 1999 Date Filed: Sep 22, 1999

06/30/98 06/30/99 ASSETS Current assets: Cash and cash equivalents Accounts receivable Notes receivable Inventories Prepaid expenses and other current assets Deferred income taxes Total current assets Property, plant and equipment, net Property held for sale Notes receivable Intangibles, net Deferred financing costs, net of amortization Other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt and Accounts payable Accrued expenses Accrued compensation and benefits Total current liabilities Long-term debt, less current maturities Obligations under capital leases, less current Other long-term liabilities Deferred income taxes Total liabilities Commitments and contingencies Shareholders' equity: Class A common stock, par value $.01, Preferred stock, par value $.01, 1,055,000 Additional paid-in capital $19,380 35,640 686 $8,968 34,302 640 114,364 10,735 7,094 7,783 $187,899 $209,826 188,171 144,045 14,088 214,492 1,129 1,790 50,773 632 484 1,407 51,598 444 2,729 2,371 $433,123 $480,622 $879 51,135 5,863 15,735 73,612 11,480 1,016 812 31,883 $757 59,378 9,174 16,937 86,246 9,611 308 1,370 32,552 $118,803 $130,087 - - - 445 262,313 262,758 - 447 267,286 267,733 Less: Treasury stock (at cost) 3,745,928 shares at June 30, 1998 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity (33,750) 229,008 85,312 (78,887) 188,846 161,689 314,320 350,535 $433,123 $480,622 4.5% 8.2% 0.2% 26.4% 2.5% 1.6% 43.4% 43.4% 0.3% 0.4% 11.7% 0.1% 0.6% 100.0% 0.2% 11.8% 1.4% 3.6% 17.0% 2.7% 0.2% 0.2% 7.4% 27.4% 0.1% 60.6% 60.7% -16.4% 39.3% 33.6% 72.9% 100.0% 1.9% 7.1% 0.1% 30.0% 2.9% 1.6% 43.7% 44.6% 0.1% 0.3% 10.7% 0.1% 0.5% 100.0% 0.2% 12.4% 1.9% 3.5% 17.9% 2.0% 0.1% 0.3% 6.8% 27.1% 0.1% 55.6% 55.7% -7.8% 52.9% 19.7% 72.6% 100.0% Dun & Bradstreet Furniture Home Furniture Stores RMA Wood Household Furn(upholstered) 14.2% 20.4% 60.0% 39.1% 78.1% 17.0% 30.0% 15.1% 35.0% 11.5% 35.6% 12.7% 18.5% 80.0% 44.4% 80.3% 15.0% 30.0% 12.3% 31.6% 11.1% 37.8% 5.1% 24.1% 29.3% 62.0% 16.4% 12.8% 48.5%

Balance Sheet

BV per sh

•1999: 8.58

•1998: 7.28

•1997: 6.05

•1996: 5.15

•1995: 4.49

1999 1998 1997 Operating activities: Net income Adjustments to reconcile net income to net cash Depreciation and amortization Compensation expense related to restricted stock Provision for deferred income taxes Extraordinary charge Other non-cash benefit Change in assets and liabilities: Accounts receivable Inventories Prepaid and other current assets Other assets Accounts payable Accrued expenses Other long-term liabilities

Net cash provided by operating activities

Investing activities: Proceeds from the disposal of property, plant, and Proceeds from the disposal of property held for sale Capital expenditures Acquisition of businesses Payments received on long-term notes receivable Disbursements made for long-term notes receivable Redemption of short term securities Investments in short term securities

Net cash used in investing activities

Financing activities: Borrowings on revolving credit facilities Payments on revolving credit facilities Redemption of Senior Notes Premium paid on Senior Note redemption Other payments on long-term debt and capital Other borrowings on long-term debt Payments to acquire treasury stock Net proceeds from issuance of common stock Increase in deferred financing costs Dividends paid

Net cash used in financing activities

Net (decrease)/increase in cash and cash Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $81,288 $71,146 $48,740 16,344 1,819 - (20) 251 1,222 (25,040) (3,353) (1,065) 10,652 4,023 558 86,680 15,868 2,136 683 802 77 (3,340) (6,839) (4,011) (891) 11,576 414 (3) 87,618 16,411 891 - 575 498 1,822 2,726 653 137 5,099 973 (221) 78,304 1,721 - - 827 110 1,945 (40,628) (29,665) (23,383) (7,164) - - 799 (255) - - (45,527) 1,538 (302) 30,270 1,152 (1,077) - (12,295) (17,975) (9,627) (39,228) 81,500 (81,500) - - (2,717) - - (52,543) (461) (2,079) 18 111 (45,137) (23,310) 747 1,255 (55) (4,421) - (3,450) 14,500 (21,500) (9,457) - (2,134) 794 (7,249) 1,235 (173) (2,304) (51,565) (80,477) (26,288) (10,412) 19,380 (2,486) 21,866 12,788 9,078 $8,968 $19,380 $21,866

Cash Flow Statement

Capital expenditures have increased due to new store openings and expanding manufacturing capacity.

Financing flows include buying back of stock (due to stock options given to management) so that earnings are not diluted.

Income Statement

ETHAN ALLEN INTERIORS INC Income Statement Period End: Jun 30, 1999

Net sales Cost of sales Gross profit Operating expenses: Selling General and administrative Operating income Interest and other miscellaneous income, net Interest and other related financing costs: Interest expense Amortization of deferred financing costs Total interest and other related financing costs Income before income taxes and extraordinary Income tax expense Income before extraordinary charge Extraordinary charge from early retirement of Net income

EPS before extraordinary charge

Extraordinary charge EPS per basic share EPS diluted before extraordinary charge Extraordinary charge EPS per diluted share Dividends declared per common share 6/30/97 6/30/98 6/30/99 $571,838 $679,321 $762,233 323,600 363,746 407,234 248,238 315,575 354,999 85,927 76,462 85,849 1,272 (5,864) 563 6,427 80,694 31,954 48,740 - $48,740

$1.13

- $1.13 $1.11 - $1.11 $0.07 110,240 85,645 119,690 3,449 (4,245) 364 4,609 118,530 46,582 71,948 802 $71,146

$1.67

(0.02) $1.65 $1.63 (0.02) $1.61 $0.09 123,742 98,365 132,892 1,707 (1,639) 243 1,882 132,717 51,429 81,288 - $81,288

$1.97

- $1.97 $1.92 - $1.92 $0.12 1997 100.00% 56.59% 43.41% 1998 100.00% 53.55% 46.45% 1999 Average 100.00% 53.43% 46.57% 100.00% 54.52% 45.48% RMA 22% 15.03% 13.37% 15.01% 0.22% -1.03% 0.10% 1.12% 14.11% 39.60% 8.52% 8.52% 16.23% 12.61% 17.62% 0.51% -0.62% 0.05% 0.68% 17.45% 39.30% 10.59% 10.47% 16.23% 12.90% 17.43% 0.22% -0.22% 0.03% 0.25% 17.41% 38.75% 10.66% 10.66% 15.83% 12.96% 16.69% 0.32% -0.62% 0.06% 0.68% 16.32% 39.22% 9.93% 9.89% 5% 5% • • Fantastic Margins !!!!

Margins that are greater than any competitor’s and the industry’s

Growth/Assumptions for model

Revenue - Quarterly Results

FY (6/99) FY (6/98) FY (6/97)

Revenue - Growth

FY (6/99) FY (6/98)

EPS - Quarterly Results

FY (6/99) FY (6/98) FY (6/97)

EPS - Growth

FY (6/99) FY (6/98)

Expected EPS Gwth Rates

Money Central Robertson Stephens(10/1) 1st Qtr 9.0% 15.2% 2nd Qtr 12.2% 24.9% 3rd Qtr 13.5% 18.5% 4th Qtr 166.2

152.5

132.4

1st Qtr 193.7

172.7

138.3

2nd Qtr 194.6

171.4

144.7

3rd Qtr 207.7

182.6

156.4

4th Qtr 13.7% 16.8% 1st Qtr 0.38

0.32

0.2

1st Qtr 0.5

0.43

0.28

2nd Qtr 18.8% 60.0% FY2000 13.00% FY2001 14.00% 15.00% 2nd Qtr 16.3% 53.6% 15.00% 3rd Qtr 0.5

0.41

0.29

3rd Qtr 0.54

0.47

0.34

4th Qtr 22.0% 41.4% Next 5yrs 17.20% 00 P/E 13.8

15.00% 4th Qtr 14.9% 38.2% Raymond James (08/06) First Union Cap (07/01) First Call Average 5yr Annual Growth Rate Revenue NI 12.00% 15.00% 12.00% 12.00% 13.75% 13.67% 15.00% 14.73% 0.12

0.35

762.2

679.2

571.8

12.2% 18.8% 1.92

1.63

1.11

17.8% 46.8%

Proforma Income Statement

7% 12% 14.73% 6/30/00 6/30/01 6/30/02 6/30/00 $815,589 $872,681 $933,768 $853,701 $444,663 $475,790 $509,095 $465,442 $370,926 $396,891 $424,673 $388,259 6/30/01 6/30/02 6/30/00 6/30/01 6/30/02 $956,145 $1,070,882 $874,510 $1,003,325 ######## $521,295 $583,850 $476,787 $547,018 $627,593 $434,850 $487,032 $397,723 $456,308 $523,522 $129,104 $138,141 $147,811 $135,137 $105,710 $113,110 $121,027 $110,650 $136,112 $145,640 $155,835 $142,473 $2,594 $151,353 $123,928 $159,569 $169,516 $138,431 $138,799 $113,347 $178,718 $145,945 $158,822 $182,216 $130,043 $149,198 $167,443 $192,107 (1,639) 243 1,882 (1,639) 243 1,882 (1,639) 243 1,882 (1,639) 243 1,882 $134,942 $141,876 $152,071 $138,709 $52,920 $55,639 $59,637 $54,397 $82,022 $86,237 $92,434 $84,312 (1,639) 243 1,882 $155,805 $61,101 $94,704 (1,639) 243 1,882 (1,639) 243 1,882 $174,954 $142,181 $68,611 $55,759 $106,343 $86,423 (1,639) 243 1,882 (1,639) 243 1,882 $163,679 $188,343 $64,189 $73,862 $99,490 $114,482 $82,022

$2.00

$86,237

$2.10

$92,434

$2.25

$84,312

$2.06

$94,704

$2.31

$106,343

$2.59

$86,423

$2.11

$99,490 $114,482

$2.43 $2.79 Estimates

•First Call: ‘00 2.17 ‘01 2.47

•Schwab: ‘00 2.17 ‘01 2.47

•Value Line: ‘00 2.20 ‘04 2.80

•Zacks: ‘00 mean 2.18 ‘01 mean 2.47

EPS P/E high P/E low P/E mid average P/E Industry Stock Price (mid) Stock Price (high) Stock Price (low) Stock Price (industry)

Average

Value Line P/E high P/E low Mid

Stock Price Estimate

2000 2001 2002 2000 2001 2002 2000

$2.10 $2.25 $2.06 $2.31 $2.59 $2.11 $2.00

36.93

17.60

27.27

15.75

$54.55 $73.89 $35.21 $31.51

$48.79

1993 10.5

5.4

$57.35 $77.68 $37.02 $33.13

$51.30

1994 10.7

6.5

$61.47 $83.27 $39.68 $35.51

$54.98

1995 8.3

5.8

$56.07 $75.95 $36.19 $32.39

$50.15

1996 13 6.5

$62.98 $85.31 $40.65 $36.38

$56.33

1997 28.6

12.3

20.45

2001

$2.43

$70.72 $95.80 $45.65 $40.85 $57.47 $77.85 $37.10 $33.20 $66.16 $89.62 $42.71 $38.22

$63.25 $51.41

1998 1999E

$59.18

Average 44.4

37.8

36.93

15.8

30.1

24.7

31.25

17.6

27.27

Scenario1 Scenario2 Scenario3 Average Average P/E above Industry Stock Price Stock Price (industry) Analysts High Analysts Low Stock Price Analysts High Stock Price Analysts Low ROI 2002 Bought @ 31 Stock Price 2002 @ 46 Market rate @ 9% Premium return over market 2.00

2.06

2.11

2.05

24.39

2.10

2.31

2.43

2.28

2.25

2.59

2.79

2.55

15.75

Average $ 50.11 $ 55.60 $ 62.11 $ 55.94 $ 32.37 $ 35.91 $ 40.11 $ 36.13 2.21

2.58

2.11

2.38

53.90

33.23

62.92

37.49

58.41

35.36

Mid 46.04 High Low Mid Value Line 2002-2004 50 35 42.5

46.88

First Union Cap Banc of America based on '99 '00 est $50 target $40 target 48.4% 29.5% 164.0% 2002

$2.79

$76.13 $103.13 $49.14 $43.98

$68.10

DuPont Analysis

YEAR ROE

1998 1997 1996 23.2% 22.7% 18.4%

NI/Pretax Pretax/Sales Sales/Assets Assets/Equity ROA

61.3% 60.0% 60.4% 0.1741

0.1745

0.1411

1.59

1.57

1.34

1.37

1.38

1.61

16.9% 16.4% 11.4%

• Profit Margin increasing • More sales generated from assets • Less leverage

Firm Ratios and Comparisons

P/E P/Rev P/Bk P/E/Growth 1yr Rev Gr 5yr Rev Gr 1yr Earnings Gr 5yr Earnings Gr Gross Margin Oper Mar Profit Mar Curr Ratio Debt/Equity ROA ROE Mrkt Val Revenue NI EPS La-Z-Boy 14 0.77

2.4

Ethan Allen FurnBrandsInt. Haverty 15.7

1.62

3.52

9.17

0.5

2.14

15.78

0.61

1.64

Industry 15.75

1.4

3.2

0.47

15.1

9.42

30.1

14.2

1.2

12.2

11.96

13.1

35.33

1.16

7.89

14.86

46.26

34.4

1.20

13.11

10.85

57.76

9.68

1.47

10.69

13.8

15.11

19.33

26.72

8.7

5.1

3.2

0.15

11.74

17.98

992 1340.40

71.51

1.37

46.57

17.4

10.7

2.4

0.03

17.65

23.2

1229 762.20

81.00

1.92

28.35

9.84

5.42

3.98

1.2

8.46

26.73

974.5

1960.00

98.00

1.82

47.21

6.22

3.91

3.8

0.86

5.88

14.35

272 441.88

17.33

0.99

34.1

12.86

8.12

2.08

0.55

10.14

20.96

0. 6 0. 5 0. 4 0. 3 0. 2 0. 1 0

Firm Ratios and Comparisons

F B N Qu a t e r l y ET H Qu a t e r l y

0. 6 0. 5 0. 4 0. 3 0. 2 0. 1 0 M ar c h J un Sep Dec M ar c h J un Sep Dec

ETH Annual EPS

2.5

2 1.5

1 0.5

0 -0.5

-1 19 90 -1.5

19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99

FBN Annual EPS

2 1.5

1 0.5

0 1994 1995 1996 1997 1998 1999

Firm Ratios and Comparisons

MED P/E P/Rev P/Bk P/E/Grow 1yr Rev 5yr Rev 1yr 5yr Gross Oper Mar Profit Mar Curr Ratio Debt/Equi ROA ROE Mrkt Val Revenue NI EPS Rec Inventory Asset Ethan Allen 15.7

FurnBrandsInt 9.17

1.62

3.52

0.5

2.14

1.2

12.2

11.96

13.1

1.16

7.89

14.86

46.26

35.33

46.57

17.4

10.7

2.4

0.03

17.65

23.2

34.4

28.35

9.84

5.42

3.98

1.2

8.46

26.73

1229 762.20

81.00

1.92

22.25

3.09

1.66

974.5

1960.00

98.00

1.82

6.02

4.84

1.56

Ethan 15.7

Industry 15.75

Home Furn Furn Stores 1.62

3.52

1.2

12.2

1.4

3.2

1.47

10.69

11.96

13.1

35.33

46.57

17.4

10.7

2.4

0.03

17.65

23.2

13.8

15.11

19.33

34.1

12.86

8.12

2.08

0.55

10.14

20.96

3.1

2.4

72.2

7.3

14.7

3.1

2.8

61.7

5.9

10.7

22.25

3.09

1.66

7.52

8.5

1.31

Why ETH? (as opposed to FBN) • Significantly better margins • Vertically integrated company taking advantage of cost savings and advantageous margins. Also lower risk.

• Initiation of Internet presence • Proven management

Determining the Value of ETH based on Free Cash Flow

NI Depre Cap Exp WCCF FCF WACC PVFCF TV PV TV g Value Share Price $84,311.88 $16,000.00 $50,000.00 $20,000.00 $30,311.88 22.63% $24,717.74 $4,089,220.05 $2,217,318.55 21.79% $2,297,484.62 $54.70 $94,703.85 $106,342.86 $16,000.00 $16,000.00 $50,000.00 $50,000.00 $20,000.00 $40,703.85 $20,000.00 $52,342.86 $27,066.20 $28,382.13 • • • • FCF = NI+Depreciation-Capital Exp-WCCF TV = FCF3 * (1+g) / (WACC - g) Value = PVFCF (=FCF/1+WACC) + PV TV Share Price = Value / 42M

Summary • Increase in EPS since 1991 (17 consecutive quarters with significant increase in sales and eps) • Overall performing better than industry and peers with higher profit margins • Proven management that has revived the firm • Firm is adaptive to current market trends and takes advantage of them • Attractive stock price (P/E to EPS growth ~ 1.2, broke through 50,100,150 moving day average, below P/E high of 27 with current P/E at 17) • Future looks stable with growth potential and sustainability in the long term RECOMMENDATION:

BUY