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					                                          Americas Morning Summary
                                          August 27, 2010



The Goldman Sachs Group, Inc.
                                           Focus Items
This document contains comments
related to the following stocks:           United States: Steel: Steel Scraps Monthly: 08/10 - Positive near-term momentum
                                                                                                                                                                                            1
                                           but sustainability is questionable
AK Steel Holding (AKS)                     Americas: Asset Managers: Money manager barometer: More equity flow
                                                                                                                                                                                            2
ALCOA (AA)                                 headwinds amid market weakness.
Allegheny Technologies (ATI)
ARA (ARA.MX)
Aruba Networks, Inc. (ARUN)                Key Data Changes
CBS Corp. (CBS)                            Investment List Additions
Cellcom Israel Ltd. (CEL)
Commercial Metals Company                  Company                                                     Ticker                                Investment List Additions
(CMC)                                      GEO                                                    GEOB.MX                                          Americas Buy List
The Walt Disney Company (DIS)
Freeport-McMoRan Copper & Gold             Rating and price target changes
(FCX)                                                                                   Rating/
                                                                                                                    Price Target                                   Estimates
GEO (GEOB.MX)                                                                        Coverage view
Gerdau AmeriSteel Corp. (GNA)              Company                          Ticker    New     Old             New           Old          % chg     Current Year Next Year Fiscal y/e
Gibraltar Industries, Inc. (ROCK)          ARA                             ARA.MX      S/N      unch      ↑ P$8.40      P$8.20           2.4%         P$0.68            P$0.83     Dec
Homex (HOMEX.MX)
                                           GEO                            GEOB.MX     ↑ B/N     N/N      ↑ P$48.00     P$46.50           3.2%         P$3.12            P$3.89     Dec
Homex (ADR) (HXM)
J. Crew Group, Inc. (JCG)                  Gibraltar Industries, Inc.       ROCK      N/N       unch      ↓ $10.00      $13.00       (23.1%)            $0.23           $0.60      Dec
Metals USA Holdings Corp. (MUSA)           Homex                         HOMEX.MX     N/N       unch     ↑ P$71.00     P$68.40           3.8%         P$5.27            P$7.08     Dec
The News Corp. (A) (NWS__A)
The News Corp. (B) (NWS)                   Homex (ADR)                      HXM       N/N       unch      ↑ $33.30      $32.60           2.1%           $2.54           $3.31      Dec
Noranda Aluminum Holding                   J. Crew Group, Inc.               JCG      N/N       unch      ↓ $33.00      $36.00           (8.3%)         $2.23           $2.32      Jan
Corporation (NOR)
                                           Urbi                           URBI.MX     N/N       unch     ↓ P$28.50     P$30.30           (5.9%)       P$2.06            P$2.49     Dec
NSTAR (NST)
Nucor Corp. (NUE)
NV Energy, Inc. (NVE)                      Estimate changes
Olympic Steel, Inc. (ZEUS)                                                            Rating/                   Current Year                              Next Year                Fiscal
                                                                                     Coverage
Reliance Steel and Aluminum Co.                                                                         New           Old         % chg           New            Old      % chg     y/e
                                           Company                        Ticker       view
(RS)
                                           Aruba Networks, Inc.          ARUN          B/N            ↑ $0.14        $0.09        67.6%           $0.32         unch        --      Jul
Schnitzer Steel Industries (SCHN)
Solera Holdings, Inc. (SLH)                Cellcom Israel Ltd.            CEL          N/N        ↑ NIS12.35 NIS11.81             4.6%       ↓ NIS12.52 NIS13.05          (4.1%)   Dec
Steel Dynamics Inc. (STLD)                 GEO                          GEOB.MX        B/N         ↓ P$3.12         P$3.18        (1.8%)      ↓ P$3.89      P$3.99        (2.5%)   Dec
Teck Resources Limited
                                           Gerdau AmeriSteel
(TCK__B.TO)                                                               GNA          N/N            ↓ $0.35        $0.60     (40.5%)            $0.90         unch        --     Dec
                                           Corp.
Time Warner Inc. (TWX)
                                           Gibraltar Industries,
U.S. Steel Group (X)                       Inc.
                                                                         ROCK          N/N            ↓ $0.23        $0.30     (25.7%)          ↓ $0.60         $0.80    (24.1%)   Dec
Urbi (URBI.MX)
                                           Homex                        HOMEX.MX       N/N         ↓ P$5.27         P$5.86     (10.2%)        ↑ P$7.08      P$6.83        3.6%     Dec
Viacom Inc. (VIA__B)
Worthington Industries (WOR)               Homex (ADR)                    HXM          N/N            ↓ $2.54        $2.83     (10.2%)          ↑ $3.31         $3.20     3.6%     Dec
                                           J. Crew Group, Inc.            JCG          N/N            ↓ $2.23        $2.36        (5.4%)        ↓ $2.32         $2.52     (8.0%)   Jan
                                           NSTAR                          NST          S/N            ↓ $2.49        $2.50        (0.4%)        ↓ $2.66         $2.72     (2.0%)   Dec
                                           Schnitzer Steel               SCHN          N/N             $2.67         unch           --          ↓ $4.40         $4.44     (0.9%)   Aug
For further product information,
contact:

New York Investment Research
(212) 902-1000

Analysts employed by non-US                The Goldman Sachs Group, Inc. does and seeks to do business with companies covered in its research
affiliates are not registered/qualified    reports. As a result, investors should be aware that the firm may have a conflict of interest that could
as research analysts with FINRA in         affect the objectivity of this report. Investors should consider this report as only a single factor in making
the U.S.                                   their investment decision. For Reg AC certification, see the end of the text. Other important disclosures
                                           follow the Reg AC certification, or go to www.gs.com/research/hedge.html.
Global Investment Research
Industries

Solera Holdings, Inc.    SLH       N/N       ↑ $1.55   $1.43    8.4%     ↑ $1.83    $1.79    2.5%     Jun
Urbi                    URBI.MX    N/N      ↓ P$2.06   P$2.11   (2.4%)   ↓ P$2.49   P$2.62   (4.8%)   Dec


Other Headlines
Commodities
Agriculture Update: Raising our corn price forecasts                                                         3

Consumer Cyclicals
Americas: Entertainment: Goldman Sachs Weekly Entertainment Playlist                                         4
J. Crew Group, Inc. (JCG): Great 2Q clouded by outlook that implies a sharp deceleration                     5

Financial Services
Mexico: Real Estate Developers: Buy GEO: attractive valuation and advantages in challenging
                                                                                                             6
market

Technology
Solera Holdings, Inc. (SLH): 4Q illustrates operating leverage, solid execution; adjusting ests              7
Aruba Networks, Inc. (ARUN): Another solid beat-and-raise on strong secular tailwinds; Buy                   8

Telecom Services
Cellcom Israel Ltd. (CEL): Updating estimates following 2Q2010 results                                      9

Utilities
NV Energy, Inc. (NVE): Data Update: Introducing 2011 quarters, reiterate Buy rating                         10
NSTAR (NST): Minor estimate changes, introducing 2011 quarters                                              11
Americas Morning Summary                                                                                                           August 27, 2010




Focus Items

United States: Steel: Steel Scraps Monthly: 08/10 - Positive near-term momentum but sustainability is                                           1
questionable

                                 Sal Tharani (New York): sal.tharani@gs.com, (212) 357-0695
                                 Goldman Sachs & Co.
                                 Sandeep SM (Bangalore): sandeep.sm@gs.com, (212) 934-8155
                                 Goldman Sachs India SPL

                                 Raw material cost push is back in vogue
                                 We see positive momentum for steel prices going into September, primarily driven by rising scrap prices, and
                                 increases in iron ore spot prices and steel prices in China. Steel producers have announced price increases
                                 for hot rolled coil which we believe are sticking.
                                 But we see some risks to steel prices in late 2010
                                 However, we believe that demand in the US remains weak and outside of some seasonal improvement in
                                 September-October, we do not see any marked change in demand drivers. Macro data like the ISM leading
                                 indicator, which continues to show expansion in the industrial economy, has softened recently and inventory
                                 restocking momentum in the supply chain appears to be waning. We see downside risk to steel prices
                                 towards the end of 2010 as prices could slide below $600 again in Nov/December.
                                 2Q10 results were mixed; 2H10 estimates were revised down
                                 2Q earnings results were mixed for the steel sector and commentaries were downbeat. We have revised our
                                 2H estimates downward for the entire sector and see downside risk to our 2011 estimates at this point. We
                                 are changing estimates for ROCK and GNA due to poor outlook for res/non-res construction markets. We
                                 also lower TP for ROCK by 23% to $10.
                                 Will US steel industry be structurally oversupplied?
                                 We have argued in the past that the “new normal” for steel demand in the US would be lower than what we
                                 had seen in the past. Although a rational response would be that the industry permanently shutters some of
                                 the high cost inefficient facilities, to date we have seen the opposite. And now with ThyssenKrupp’s new mill
                                 coming on line, we believe that domestic steel industry will remain structurally oversupplied for a long time to
                                 come.
                                 We see investment opportunities across the supply chain
                                 Considering the volatility in the sector, investors should focus on companies that have the ability to deliver
                                 strong results even in the challenging environment. Our favorite names are STLD (Buy), SCHN (Neutral) and
                                 RS (Neutral). STLD has generated solid earnings in its steel division since mid 2009, and with scrap prices
                                 moving up, we see upside in 3Q. The same should benefit SCHN as well and our view of a long-term
                                 structurally tight scrap market bodes well for it. RS is a solid execution story and has generated above peer
                                 margins through the cycle.



Americas: Asset Managers: Money manager barometer: More equity flow headwinds amid market                                                       2
weakness.

                                 Marc Irizarry (New York): marc.irizarry@gs.com, (212) 902-4175
                                 Goldman Sachs & Co.
                                 Alexander Blostein, CFA (New York): alexander.blostein@gs.com, (212) 357-9976
                                 Goldman Sachs & Co.

                                 Equity funds outflow, bond and MMF’s inflow
                                 Our preliminary estimates and Lipper FMI data suggest equity fund outflows of $3.4 bn for the current week,
                                 versus -$2.8 bn in the prior week, as both domestic (largely growth/value funds) and non-US funds remain in
                                 outflow mode. Bond fund inflows were an estimated $7.8 bn for the current week compared to +$7.9 bn last
                                 week, driven by strong inflows in the corporate IG and international & global debt funds. Inflows in MMF’s
                                 continued with $3.7 bn for the current week, compared to +$4.3 bn in the prior week, as inflows in the
                                 institutional channel continue to offset retail outflows.
                                 ETF flow update




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                            August 27, 2010



                                 Equity ETF (ex-commodities) outflows slowed to $3.2 bn for the week of 8/25, compared to -$8.2 bn in the
                                 prior week, led by weakness in the growth/value funds. Commodity ETF’s inflowed $7.5 mn vs. -$15.3 mn for
                                 the prior week. Bond ETF’s posted $994 mn of inflows, taking the 3QTD flow number to +$5.7 bn.
                                 Equity and fixed income fund performance
                                 3Q10TD equity asset weighted performance for the group was +2.9%, versus the S&P500 at +1.6%. CNS
                                 continues to lead the group with +8.7% in equity asset-weighted performance. FI performance for the group is
                                 +2.3%, versus the Barclays Aggregate Bond Index’ +1.4%.
                                 Two-thirds through 3Q flow check point
                                 Two-thirds of the way through 3Q10, the group appears to be in for another tough quarter for equity flows.
                                 Specifically, over the last two months equity mutual funds saw an estimated $22.5 bn of outflows (-$23.3 bn
                                 domestic and +$0.8 bn international), already surpassing 2Q’s -$17 bn. Moreover with the VIX up 16% in
                                 August, we expect the pace of retail redemptions to stay elevated into September. Bond funds remain the
                                 only game in town with $57.7 bn of inflows 3QTD, a higher run-rate vs. the prior quarter. Money market fund
                                 trends saw a reversal with $21.8 bn of inflows for the quarter, although low yields will keep fee waiver intact in
                                 3Q. Amid this dynamic we recommend avoiding retail equity centric managers such as JNS (Sell) and prefer
                                 idiosyncratic stories such as BLK (CL Buy) and IVZ (Buy).


Other Headlines
Commodities

Agriculture Update: Raising our corn price forecasts                                                                                             3

                                 Damien Courvalin (New York): damien.courvalin@gs.com, (212) 902-3307
                                 Goldman Sachs & Co.
                                 Allison Nathan (New York): allison.nathan@gs.com, (212) 357-7504
                                 Goldman Sachs & Co.

                                 Beyond near-term volatility we expect wheat prices to settle lower
                                 Wheat supply disruptions continue to dominate the agricultural markets. Although wheat prices have
                                 retrenched from their recent peaks on improving weather, we expect prices to remain volatile until the market
                                 gains a better grasp on this year’s deficit. Barring further deterioration in crop production, we expect the
                                 elevated wheat inventories coming into this supply shock to push prices lower than currently priced in by the
                                 forward curve and forecast prices of 650 cents/bu over the next 12 months. Further, a potentially large supply
                                 response to higher prices in upcoming winter wheat crops suggests risk to this forecast is skewed to the
                                 downside.
                                 We are raising our corn price forecasts on tighter balances
                                 For corn, continued strong demand over the past few months and prospects for wheat-to-corn demand
                                 substitution suggest even stronger corn demand than we had previously expected. While strong old-crop
                                 demand has lowered expected beginning stocks for the 2010/11 crop, our forecast of lower US corn yields
                                 also points to lower corn production in 2010/11 than the market currently expects. We therefore forecast the
                                 deficit that we have been expecting to widen further and are revising our corn price forecast higher to 465
                                 cents/bu in 3 months, and 515 cents/bu in 6 months, leaving us constructive versus the forward curve.
                                 Ample soybean supplies will meet strong EM demand
                                 Soybean prices have remained supported by strength in the rest of the grain complex and continued
                                 remarkably strong emerging market demand, in particular import demand from China. We believe that the
                                 expected record-large US crop and the prospect for another large South American crop will meet this strong
                                 demand and we continue to expect marginally lower soybean prices. However, an intensification of the
                                 nascent La Niña weather pattern would create upside risk to these forecasts as it has historically hurt yields
                                 in South America.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                      August 27, 2010



Consumer Cyclicals

Americas: Entertainment: Goldman Sachs Weekly Entertainment Playlist                                                                                       4

                                           Drew Borst (New York): drew.borst@gs.com, (212) 902-7906
                                           Goldman Sachs & Co.
                                           James Mitchell, CFA (New York): james.mitchell@gs.com, (212) 357-1849
                                           Goldman Sachs & Co.
                                           Brian Karimzad (New York): brian.karimzad@gs.com, (212) 357-1745
                                           Goldman Sachs & Co.
                                           Grace Huan (New York): grace.huan@gs.com, (212) 357-8280
                                           Goldman Sachs & Co.

                                           In the spotlight
                                           With two weekends until the end of the summer box office, Paramount leads among studios with a 20%
                                           share. Driven by the strong performance of “Iron Man 2” and DreamWorks Animation’s “Shrek Forever After,”
                                           Paramount has grossed $772 mn since the first weekend in May. Disney is in second place with 16% market
                                           share, grossing $604 mn.
                                           Box office snapshot
                                           Last weekend’s domestic box office finished 1% higher yoy. Quarter-to-date the domestic box office is +7%
                                           yoy and YTD it is up 4% yoy.
                                           In theaters: Opening Pandora’s box … again
                                           The Last Exorcism (PG-13, Lionsgate) – This mock-documentary style horror film follows a disillusioned
                                           reverend as he takes on his final exorcism. Reverend Cotton Marcus has lost his faith and plans to release a
                                           documentary that exposes exorcisms as highly profitable scams. However, after meeting the possessed
                                           victim, he starts to reconsider his stance. According to consensus expectations, this film may gross mid teen
                                           millions in around 2,900 theaters.
                                           Takers (PG-13, Sony) – This heist movie features a large ensemble cast, including rapper T.I., singer Chris
                                           Brown, Idris Elba (The Wire), Hayden Christensen, Paul Walker, and Matt Dillon. Elba’s character is the
                                           ringleader of a group of thieves who attempt to steal $25 million from an armored truck. Dillon plays a
                                           detective who’s obsessed with catching the robbers. Opening in around 2,000 theaters, “Takers” may gross
                                           low teen millions.
                                           Avatar: Special Edition (PG-13, Fox) – Fox is re-releasing the top-grossing film of all time with an additional 9
                                           minutes of footage, which includes an extended hunting sequence and more Na’vi romance. The re-release
                                           runs 2 hours and 40 minutes, and may therefore appeal primarily to hardcore fans of Pandora and those who
                                           missed the first release. To date, the film has grossed $2.7 bn worldwide, and may gross high single digit
                                           millions in around 700 theaters this weekend.




J. Crew Group, Inc. (JCG): Great 2Q clouded by outlook that implies a sharp deceleration                                                                   5

JCG, $33.43                                Michelle Tan, CFA (New York): michelle.tan@gs.com, (212) 902-3099
Market cap                  $2,084 mn
                                           Goldman Sachs & Co.
                                           Nicole Shevins (New York): nicole.shevins@gs.com, (212) 902-9884
Target price                     $33.00
                                           Goldman Sachs & Co.
Fiscal y/e Jan         2011E     2012E     Kamal Suri (Bangalore): kamal.suri@gs.com, (212) 934-6797
EPS ($)                   2.23     2.32    Goldman Sachs India SPL
P/E                    15.0X      14.4X

EPS Quarter/Interim*      0.57     0.67
                                           What's changed
                                           JCG reported strong 2Q results (comps +11%, gross margin +340 bp, EPS excluding items of $0.50 vs.
Investment Lists                           GS/consensus $0.46); However, management lowered full year guidance by $0.13 excluding items to $2.22-
                                 Neutral   $2.32 vs. consensus of $2.46. Factoring in a $0.05-$0.10 beat to 2Q guidance, management effectively
Coverage view                    Neutral   lowered 2H10 by $0.18-$0.23 (now implying a yoy earnings decline in 2H of 11%-19%). Inventory/ft +10% is
                                           ahead of 3Q’s flat comp sales plan, and guidance embeds a 250 bp-350 bp gross margin decline against last
*Current and a year ago
                                           year’s record rate.
                                           Implications




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                            August 27, 2010



                                 JCG has one of the strongest brands in our coverage, with compelling initiatives to drive gradual long-term
                                 growth (wedding, men’s, madewell, etc). However, the outlook for shares over the next 6-12 months comes
                                 down to what happens to the earnings base of the core business. If the environment remains weak but
                                 stable, inventory should be realigned by 1H11 resulting in less margin pressure on the core business and
                                 potential for leverage on other growth initiatives through the balance of the year. However if trends
                                 deteriorate further, we could see some additional markdown pressure in 4Q and there is substantial risk to
                                 record margins earned in the first half of this year. We see risk reward as relatively balanced between these
                                 two possibilities and remain Neutral on the stock.
                                 Valuation
                                 Based on a weaker sales/gross margin we lower our 2010/2011/2012 to $2.23/$2.32/$2.51 from
                                 $2.36/2.52/2.71. Based on lower estimates, we lower our six-month, multiple-based price target to $33 from
                                 $36.
                                 Key risks
                                 Upside: better than expected sell-through due to macro or product execution; Downside: further deterioration
                                 in trends driving markdowns



Financial Services

Mexico: Real Estate Developers: Buy GEO: attractive valuation and advantages in challenging market                                               6

                                 Leonardo Zambolin (Sao Paulo): leonardo.zambolin@gs.com, +55(11)3371-0727
                                 Goldman Sachs Brasil Bco Múlt S.A.
                                 Bianca C.M. Cassarino (Sao Paulo): bianca.cassarino@gs.com, +55(11)3371-0721
                                 Goldman Sachs Brasil Bco Múlt S.A.

                                 Short-term challenges, long-term opportunities
                                 Mexico’s macro situation still remains unfavorable, with moderate credit growth and slow labor market
                                 recovery. The expected deceleration of real activity in the US is also not helping Mexico’s rebound.
                                 Nevertheless, we are already seeing a steadier trend of recovery in the homebuilding space.
                                 Demand is supported by the younger demographics, a substantial housing deficit, firm mortgage origination,
                                 and strong government push. Most of the large builders are well capitalized and appear to have access to
                                 further debt if necessary. Moreover, the sector continues to operate below pre-crisis levels despite improving
                                 significantly from 2009. This is because smaller builders are still out of the market, leaving an even larger part
                                 of demand unsatisfied. As demand should still be waiting for them in 2011 and 2012, we see plenty of
                                 opportunities in the long run for solid builders willing to bite a larger share of Mexico’s housing market.
                                 Adding GEO back to our Buy List
                                 GEO’s long experience in the very-low-income bracket – where the bulk of potential growth is – and its
                                 efficient working-capital management, place it in the sweetest spot to benefit from the unsatisfied demand.
                                 We downgraded GEO to Neutral on May 25, 2010, after its outperformance vs. our LatAm coverage. Since
                                 then, GEO’s shares are down 3%, while Mexico’s IPC index is 3% up and the other LatAm homebuilders
                                 +21% on average. We now believe GEO is trading at an attractive valuation vs. our coverage and upgrade it
                                 to Buy, especially after solid 2Q2010 results, which combined consistent growth with execution, and cash-
                                 flow generation.
                                 Sell ARA; Neutral on Urbi and Homex,
                                 Our Sell rating on ARA reflects its limited scale, higher exposure to middle and higher-end segments, and
                                 execution constraints. We maintain our Neutral rating on both Urbi and Homex due to their weaker working-
                                 capital management, limited cash flow generation, lower upside to our price targets compared to GEO, and,
                                 last, in Urbi’s case, due to its riskier strategy of growing by acquiring smaller builders.
                                 Updating estimates and price targets
                                 We update our estimates for 2Q results and new macro data. We revise 2010E-2012E EPS by -4% to -1%
                                 and revise our price targets by +1%.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 27, 2010



Technology

Solera Holdings, Inc. (SLH): 4Q illustrates operating leverage, solid execution; adjusting ests                                                           7

SLH, $39.35                                  Vincent Lin (New York): vincent.lin@gs.com, (212) 934-0510
Market cap                    $2,636 mn
                                             Goldman Sachs & Co.
                                             Julio C. Quinteros Jr. (San Francisco): julio.quinteros@gs.com, (415) 249-7464
Target price                       $40.00
                                             Goldman Sachs & Co.
Fiscal y/e Jun            2011E    2012E     Snigdha Sharma (Bangalore): snigdha.sharma@gs.com, (212) 934-5056
EPS ($)                     1.55     1.83    Goldman Sachs India SPL
P/E                        25.4X    21.5X

EPS Quarter/Interim
                      *
                            0.36     0.33
                                             What's changed
                                             SLH reported 4QFY10 revenues of $154.7 mn (+7% yoy) vs. our estimate of $156.1 mn. On a constant-
Investment Lists                             currency organic basis, we calculate revenue growth of 3.8% vs. our estimate of 5.1%. Adjusted EPS (ex.
                                   Neutral   stock comp and amortization) finished at $0.53, $0.06 above our estimate on higher margins – adjusted
Coverage view                      Neutral   EBITDA margin was 42.0% vs. our 39.8% estimate. We raise our FY11/FY12 EPS to $1.55/$1.83
                                             ($1.43/$1.78 prior) primarily on lower amortization expense. Excluding stock comp and amortization, our
*Current and a year ago
                                             FY11/FY12 adjusted EPS estimates now stand at $2.25/$2.48 ($2.27/$2.53 prior), reflecting modesty lower
                                             organic revenues partially offset by lower interest expense. We introduce our FY13 of $2.09 ($2.69 adjusted).
                                             Our 12-month price target of $40 remains unchanged.
                                             Implications
                                             Overall, 4Q results support our positive long-term view on SLH anchored on high operating leverage and
                                             solid execution. Despite relatively in-line revenue the company delivered upside on EBITDA (+5%), adjusted
                                             EPS (+13%), and FCF (+41%). Longer term, we believe SLH’s model remains intact and is capable of
                                             delivering sustained double-digits profit and FCF growth driven by 7%-9% organic growth, EBITDA margin
                                             expansion (we estimate 50 bp+ annually), and targeted M&A, the pace of which should accelerate into FY11.
                                             We maintain our Neutral rating on more subdued organic growth in the near-term, which we believe
                                             principally reflects higher macro uncertainties, and current valuation, with the shares trading at 17X CY11E
                                             adjusted EPS vs. an estimated long-term EPS growth of 15%.
                                             Valuation
                                             Our 12-month price target of $40 is based on a weighted average model that incorporates a sector-relative
                                             Investment Framework, FTM P/E, and EV/EBITDA multiples; it implies a P/E of 17.8X our adjusted EPS
                                             estimate.
                                             Key risks
                                             Downside: Lower volume growth, slower service adoption, and FX volatility. Upside: Higher revenue growth
                                             and/or margins.



Aruba Networks, Inc. (ARUN): Another solid beat-and-raise on strong secular tailwinds; Buy                                                                8

ARUN, $16.57                                 Simona Jankowski, CFA (San Francisco): simona.jankowski@gs.com, (415) 249-7437
Market cap                    $1,803 mn
                                             Goldman Sachs & Co.
Target price                       $20.00
                                             What's changed
Fiscal y/e Jul            2011E    2012E
                                             Aruba reported strong July quarter (FQ4) results, with revenue/non-GAAP EPS of $77.3 mn/$0.10, vs. our
EPS ($)                     0.14     0.32    estimate of $74.2 mn/$0.09 and the Street at $73.5 mn/$0.09. For the October quarter, the company targeted
P/E                       115.2X    51.8X    revenue/ non-GAAP EPS of $79-81 mn/$0.11, which compared to our/the Street’s estimates at $80.7
                                             mn/$0.11 and $77.8 mn/$0.10.
EPS Quarter/Interim*        0.02    (0.06)
                                             Implications
Investment Lists
                                             We remain positive on Aruba stock, as the company’s robust growth trajectory shows no signs of abatement
                      Americas Buy List      even in the face of a deteriorating macro environment. This was evidenced not only by the company’s beat-
Coverage view                      Neutral   and-raise, but also by a very strong new customer count of 900, above the 500-700 range of the last eight
                                             quarters. In addition, management commented that it has not seen any signs of slowdown, and the upside in
*Current and a year ago
                                             the quarter was driven entirely by higher product revenues, which were up 51% yoy. We view the
                                             accelerating pace of customer additions as supportive of our above-consensus FY11/FY12 revenue
                                             estimates of $359 mn/$480 mn, vs. the Street at $338 mn/$440 mn. Our thesis is based on several strong
                                             secular tailwinds for enterprise WLAN adoption, including mobile device proliferation, wired substitution, and




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                    August 27, 2010



                                           cellular offload. In addition to these industry-wide drivers, we expect Aruba to continue to benefit from share
                                           gains, augmented by its recently announced OEM relationship with Dell, an expanding VAR presence, and a
                                           longer list of marquee reference accounts. We are raising our FY11 (Jul.) EPS to $0.51 from $0.48 on higher
                                           margins, but lowering FY12 to $0.60 from $0.69 on higher taxes.
                                           Valuation
                                           There is no change to our 12-month price target of $20, based on a target EV/S multiple of 4.8X applied to
                                           our CY11 sales estimate of $420 mn.
                                           Key risks
                                           Risks include slower adoption of WLAN technologies, higher competition, and declining ASPs as a result of
                                           product mix.



Telecom Services

Cellcom Israel Ltd. (CEL): Updating estimates following 2Q2010 results                                                                                   9

CEL, $27.73                                Jason Armstrong, CFA (New York): jason.armstrong@gs.com, (212) 902-8156
Market cap                  $2,757 mn
                                           Goldman Sachs & Co.
                                           Matthew Niknam (New York): matthew.niknam@gs.com, (212) 357-3372
Target price                     $33.00
                                           Goldman Sachs & Co.
Fiscal y/e Dec         2010E     2011E     Lakshmi Venkateshwaran (Bangalore): lakshmi.venkateshwaran@gs.com, (212) 934-6022
EPS (NIS)              12.35      12.52    Goldman Sachs India SPL
P/E                       8.6X     8.5X

EPS Quarter/Interim*      3.35     2.91
                                           Changes and Implications
                                           We have updated our estimates following 2Q2010 results.
Investment Lists                           Our new 2010/2011 service revenue estimates are NIS 5.96bn/NIS 5.90bn (from NIS 5.91bn/NIS 6.11bn
                                 Neutral   previously), as improved near-term forecasts for subscriber net adds and ARPU are offset by lower
Coverage view                    Neutral   interconnect tariffs in late 2010/2011. As a result, our new 2010/2011 EBITDA estimates are NIS 2.64bn/NIS
                                           2.60bn (from NIS 2.63bn/NIS 2.73bn previously), though lower opex keeps our service margin forecasts
*Current and a year ago
                                           relatively unchanged at 44%. Our 2010-2012 EPS estimates are now NIS 12.35, NIS 12.52, and NIS 13.90
                                           (from NIS 11.81, NIS 13.05, and NIS 14.20 previously).
                                           Valuation and key risks
                                           Our 12-month price target of $33 is the average of our DCF and sum-of-the-parts valuations. Key upside
                                           risks to our price target include an improving macro environment and increasing data growth; downside risks
                                           include regulatory, competitive, and macro pressures.



Utilities

NV Energy, Inc. (NVE): Data Update: Introducing 2011 quarters, reiterate Buy rating                                                                     10

NVE, $12.51                                Michael Lapides (New York): michael.lapides@gs.com, (212) 357-6307
Market cap                  $2,938 mn
                                           Goldman Sachs & Co.
                                           Neil Mehta (New York): neil.mehta@gs.com, (212) 357-4042
Target price                     $15.00
                                           Goldman Sachs & Co.
Fiscal y/e Dec         2010E     2011E     Jaideep Malik (Bangalore): jaideep.malik@gs.com, (212) 934-6967
EPS ($)                   0.89     1.11    Goldman Sachs India SPL
P/E                    14.0X      11.2X

EPS Quarter/Interim*      0.70     0.78
                                           Changes and Implications
                                           We update 2010-2014 EPS estimates by 0-1%. 2012E EPS moves to $1.28 from $1.29. We also introduce
Investment Lists                           2011 quarterly estimates. We do not view these changes as material, and there is no change to our
                   Americas Buy List       investment thesis or rating.
Coverage view                    Neutral   Valuation
*Current and a year ago
                                           We maintain our Buy recommendation. We retain our 12-month, P/E and DDM-based price target of $15,
                                           implying 23% total return.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                         August 27, 2010



                                           Key risks to our view include: (1) lower demand, (2) rate case and regulatory risk, and (3) higher than
                                           expected equity financing.



NSTAR (NST): Minor estimate changes, introducing 2011 quarters                                                                                                11

NST, $38.11                                Michael Lapides (New York): michael.lapides@gs.com, (212) 357-6307
Market cap                  $4,078 mn
                                           Goldman Sachs & Co.
                                           Jaideep Malik (Bangalore): jaideep.malik@gs.com, (212) 934-6967
Target price                     $33.00
                                           Goldman Sachs India SPL
Fiscal y/e Dec         2010E     2011E     Neil Mehta (New York): neil.mehta@gs.com, (212) 357-4042
EPS ($)                   2.49     2.66    Goldman Sachs & Co.
P/E                    15.3X      14.3X

EPS Quarter/Interim*      0.95     0.82
                                           Changes and Implications
                                           We update our 2010-2014 EPS estimates for NSTAR after 2Q2010 reporting to $2.49, $2.66, $2.75, $2.69,
Investment Lists                           and $2.82 from $2.50, $2.72, $2.69, $2.71, and $2.84. We do not view these changes as material, and there
                   Americas Sell List      is no change to our investment thesis or rating. We also introduce our 2011 quarterly estimates of $0.66,
Coverage view                    Neutral   $0.58, $0.97 and $0.45.
*Current and a year ago
                                           Valuation
                                           We maintain our Sell recommendation. We retain our 12-month target price of $33 based on a P/E and DDM
                                           valuation, implying total return downside of 9% which includes a 4.2% dividend yield.
                                           Key risks include (1) rate case and regulatory risk, (2) lower than expected power demand and (3)
                                           transmission project delays.



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Each equity and strategy research report excerpted herein was certified under Reg AC by the analyst primarily responsible for such report as follows: I, Name
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expressed in this report.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                               August 27, 2010




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Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                            August 27, 2010



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Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                                  August 27, 2010



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