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					Goldman Sachs

Leng M. Hua
October 26, 2005


                   UNL Finance Club
Agenda

   Company
   Products and services
   Opportunities
   Risks
   Valuation
Company

 Founded in 1869

   Current CEO: Henry M Paulson, Jr
   Global framework
   Strong focus on teamwork
   Ownership mentality among
    management
Business

    FY 2004 Net Revenue         Investment
           $4.6 Billion         Banking


     14%                  16%   Trading &
                                principal
                                investments

                                Asset
            65%
                                management &
                                securities services
Investment Banking

    Advisory services to companies
    Mergers & acquisitions
    Corporate defense
    Equity and debt underwriting
    IPOs
Trading and Principal
Investments
    Interest rate and credit products
    Mortgage backed securities
    Currencies
    Commodities
    Stocks, options, and futures
    Proprietary trading
Asset Management &
Securities

 Financial advice to
                                               Assets Under Management
  institutions and
  individuals                            500

 Prime brokerage                        400




                          Billions ($)
                                         300
 Lending services to                    200

  mutual funds, pension                  100
                                          0
  funds & hedge funds
                                                        1996    2004
Opportunities

  High variable cost structure
  Continued investor demand for high yielding
   debt securities
  Growth in commission revenues, margin
   lending, and merchant banking


               8.8% YTD               2.1% YTD
       S&P Investment Banking          S&P 500
         & Brokerage Index

                                     09/30/2005
Risks
    Rising interest rates
    Flattening yield curve
    Widening credit spreads : lower bond prices
    Exchange rate risks

  Proprietary trading
  Competition
                         Lehman Brothers
                         Merrill Lynch
                         Morgan Stanley
Valuation
  Stock gained 14% YTD 10/15/2005

  Forecast EPS $10.90 for FY 2006
  10.4x P/E multiple in FY 2006
    Comparable to peers
    Steep discount to overall market

  Discount to share’s historical average of 16x
Recommendation




      BUY!

				
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