Corporate Profits Will Rise in India and China 12 to 20% and 15 to 25% Respectively, According to Industry Expert

• On 5:31 pm EDT, Thursday September 10, 2009

67 WALL STREET, New York - September 10, 2009 - The Wall Street Transcript has just published its TWST Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This 53 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mid-Cap Investing -- M&A Candidates -- Compelling Events -- Shifting Strategies -- What To Look At -- Looking at the Environmental Record -- Impact of World Events -- Corporate Governance -- Foreign Sales -- Outsourcing -- Canadian Market -- Venture Capital Firms -- Raising Money -- Active Advice -- Economic Expansion -- De-Leveraging -- Shape of the Recovery -- Increasing Profit Margins -- International Opportunities -- Chinese Exports -- India's Growth Potential -- Diversification -- Internet Advertising Growth -- Technology Sector -- Growth in Technology -- Cash for Clunkers -- Credit Market

Companies include: Sybase (SY); Mettler-Toledo Internaitonal (MTL); Baldor Electric (BEZ); FEI (FEIC); Rolls-Royce (RR:LSE); Tyco International (TYC); Johnson & Johnson (JNJ); Procter & Gamble (PG): Correction Corporation of America (CXW); Amgen (AMGN); Goldman Sachs (GS); Prudential Financial (PRU); Home Depot (HD); Tata Motors (TTM); Shriram Transport Finance; Yanzhou Coal Mining (YZC); Central European Distribution (CEDC); Sun Hung Kai Properties; Hutchison Whampoa; Usiminas; Harbin Electric (HRBN); Wal-Mart (WMT); Google (GOOG); Microsoft (MSFT); Patterson Companies (PDCO); JPMorgan (JPM); Mylan (MYL); Magna International (MGA); Cisco Systems (CSCO); JPMorgan (JPM); American Express (AXP); Bank of America (BAC); Citigroup ©

In the following brief excerpt from the 53 page report, Montague Guild discusses the outlook for the sector and for investors.

TWST: Would you start then with an overview of Guild Investment Management and your investment philosophy?

Mr. Guild: We are a global investment manager, and have been doing global investment since 1971. Our basic investment philosophy is to do a global macro top-down analysis to find the most attractive countries and industries, and then we do bottom-up research on the individual companies within those industries and countries, which we feel are most attractive.

TWST: Do you have a certain investment style? Do you look for growth?

Mr. Guild: Our approach is macro with growth drivers. We are driven by growth. We use fundamental analysis as opposed to technical, although we do consider technical factors a small amount. We are not mathematically driven. We don't use mathematical models to determine what to invest in. Our approach is basically fundamental bottom-up research after we have determined which economies and countries are most attractive, based on social, political, and economic trends.

TWST: Do you investing in ADRs, or are investing in companies headquartered in China?

Mr. Guild: We invest in companies headquartered in China, Hong Kong, Singapore, India, and Brazil, and periodically, we'll do something in US or Europe or Japan if we feel that it's attractive special situation, a fundamentally strong company in a unique position. However, in general, most of our capital is deployed in these foreign markets.

TWST: What about the worldwide credit crunch? What are the capital markets like in these emerging markets?

Mr. Guild: Countries in much of Eastern Europe are worse off than the United States and that's why we don't like much of Eastern Europe. In the Baltic countries, Russia and much of Eastern Europe, with the exception of Poland, there is a terrible banking crisis. However, in Singapore, Hong Kong, Canada, China and India, bankers did not drink the cool-aid. They did not get involved in credit swaps to a large degree. They did not get involved in modern portfolio theory driven models of finance, which led to the current crisis. They were more worried about providing the necessary liquidity to companies in their respective countries to build out their infrastructure and grow their basic nation building activities. As a result, they were very fortunate. In Canada's case, their banking regulators were a lot more conservative. They weren't run by a guy like Alan Greenspan, who is basically a Libertarian who believed "let them do what they want, it's okay, it will work out". Well, they didn't have that philosophy up in Canada or in most of these countries; they had a much more controlled philosophy. The thinking was "all the banks are here to serve our nation-building needs and we want them to lend for infrastructure development or corporate growth, not to finance instruments like derivatives, and swaps, and so forth".

TWST: How do you deal with currency issues?

Mr. Guild: We do economic analysis of currencies based on a number of variables, including relative interest rates, technical patterns, economic backdrop, GDP growth, current account, budget and trade surplus or deficit. Based on that, we've been basically bullish on the non-US currencies for quite a while. We continue to be bullish on the Australian, Canadian, Norwegian, the euro, and other currencies as opposed to the US dollar.

TWST: What do you think gives your investing in emerging markets its edge? What differentiates Guild Investment Management from that of other firms that also have their portfolios in emerging markets?

Mr. Guild: One thing is that we are macro. We are going to pick the best markets at any given time. We may love Singapore today, but two years now, we may be far away from Singapore. Other investors often say, well Singapore is x percent of the EAFE index or the entire global index, and we are always going to be x% in Singapore because it makes up that percentage of the world index. We don't do that. The other difference between us and other people who are macro is that we focus on only a few countries instead of every place, and we do bottom-up research. There may be other people that do both top-down and bottom-up research, but it's much more expensive and time consuming and therefore we don't think there are many people who do both.

TWST: Thank you. (PS)

MONTAGUE GUILD Guild Investment Management 12400 Wilshire Boulevard Suite 1080 Los Angeles, CA 90025 (310) 826-8600

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 53 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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