Exiting Prosperity

Prosperity Bancshares iThis Texas-based holding company owns Prosperity Bank, which provides financial products and services to small and medium-sized businesses and consumers.

[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'PB'" symbolprices="56" div_align="right"]

• We bought PB in January 2015 at $51.59 and are exiting this investment to finance our purchase on the same day of ITC Holdings. We take this action whenever we have the opportunity to upgrade the portfolio by selling one stock at a higher valuation and replacing it with one of similar or higher quality at a low valuation.

• The Purple Chips valuation range is now: low: $USD 49 high: $USD 62

• EXITING PROSPERITY BANCSHARES AT $56.94 (PB-US) FULL POSITION

• TOTAL RETURN: +11.4%

PURPLE CHIPS TARGET: $62.00 POSITION SIZE: FULL (5.%) P/E: 13.2X DIV: $1.09 (2.10%) MKT CAP: $4.0B Cash:$200M RETURN ON CAPITAL: N/A EARNINGS YIELD: 11.9% 5 YR EPS Growth rate*:10.1% P/E/G Ratio: 1.31X EPS: $4.32 2016 EST.: $4.20 2017 EST.: $4.48

*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.