The ICI, in particular, urged the Commission to reaffirm the core principles of the mosaic theory - under which an analyst can assemble pieces of non-public and immaterial information into a mosaic that reveals a material conclusion. I hope that the Commission’s adopting release couldn’t be clearer on this point. We did, of course, make clear that we wanted to keep a clear path for analysis while blocking the path to the practice of distributing material nonpublic information to a favored few.

The Channel Checkers is in the business of collecting large amounts of immaterial information that we believe our clients can add to their mosaics to help them draw better more meaningful investment conclusions. We do five things that make us unique when compared to expert networks and other independent research firms: 1. We never pay anybody for information (experts are paid) 2. We never contact or speak to high level personnel.  All our contacts are with frontline field workers who do not hold material information. 3. We do not catalog our channel check respondents meaning we do not build recurring information connections.  We capture random connections with people, boosting the immateriality of each individual connection we make. 4. We do not offer investment opinions to clients.  We intentionally ask our clients to not even tell us what purspose our channel checking data will be used for. 5. 100% transaprency.  We allow clients to dictate where, when and how we collect our data. We believe that large scale, low level channel checks meet the demands of Regulation FD while also providing strong insight into business trends in the real economy.  We believe that by collecting large amounts of immaterial information, better investment decisions can be reached, without legal risks that are sometimes required when utilizing other forms of investment research. Please take this posting as an invitation to reach to me or our team to have a discussion about our methods for research or for ideas on how to accomplish your research objectives in light of current events. Thank you. Casey Ryan Managing Partner The Channel Checkers 415.786.2607

1. What is the most popular pizza deal right now?

2. Are you busier, slower, the same as last month?

3. Who is your primary competition?

• 65%% of respondents said that the two medium pizzas with 2 toppings for $5.99 deal was the top deal at Domino’s in April. 9% cited the older 5-5-5 deal.

• 48% of respondents reported that their location was busier in April than in March. However, 43% reported having the same level of activity while 9% said business was slower in April.

• 48% of respondents felt that Pizza Hut was their primary competitor. This is a similar result to what we saw with our recent Papa John’s survey. 22% view Papa John’s as its primary competitor while 17% viewed local pizza operators as their primary competition.

Conclusion of Channel Check: Domino’s shows solid demand trends and consistent competitive viewpoints to that of Papa John’s. However compared to casual dining where an uptick in demand is clearly discernible it appears that the consumer is not ramping its delivery pizza deliveries in April.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com

1. How well are high end jeans selling right now?

2. What brand of jeans would you NOT recommend, why?

3. What is the best selling brand of high end jeans?

4. What is your opinion of True Religion jeans?

    

• 36% of respondents said that sales of high end denim jeans was “above average” in April. 14% said sales were below average and another 32% said sales were simply average, a response we view as a negative trend point.

• Levi’s and Lee’s were cited as brands that the store employees we spoke with would not recommend. These brands were cited as being “plain”, not having enough fit options and store employees noted that other brands were simply superior to these two main line brands.

• 7 for All Mankind was seen as the top selling brand of jeans by 27% of respondents. 18% saw True Religion as the top selling brand.

• 23% of respondents saw True Religion jeans as being too expensive on the negative side while many others talked up the brands durability, high fashion image and fit options.

   

Conclusion of Channel Check: True Religion jeans were recommended well in our survey as they have been in many of our efforts in the high end denim space. The one element of potential concern is that overall the perception of high end jean sales is lagging the broader retail space we cover. Additionally the concern on price of True Religion jeans suggests the competing brands may be offering similar value at lower price points in the department store sales channel.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com

1. What is the most popular pizza deal right now?

2. Are you busier, less busy or the same as last month?

3. Who is your primary competition?

• 43% of respondents said that the XL 4 topping pizza for $11.99 was the top pizza deal right now. 36% said that the $10 for any large pizza was the best deal currently.

• 42% of respondents said that their Papa Johns location was busier in April as compared to March. 29% said that business levels were the same in April as in March, while 29% said their location was slower in April.

• 50% of respondents said that Pizza Hut was their primary competition. 29% cited Dominos, while 21% said that a local competitor was the primary threat to Papa Johns.

Conclusion of Channel Check: Papa Johns low priced deals appear to be getting good uptake by the market. Despite the deals, the business trend with 43% citing improved business in April is weaker than some other restaurant surveys we have completed in April. Pizza Hut remains the perceived primary competition by Papa Johns employees.

1. Why do people eat here?

2. How is business compared to last month?

3. What is the most popular item on the menu?

4. What is the average bill for a party of two?

• 38% of respondents said that “atmosphere” was the reason that many customers came to CPKI. 25% said the menu was the key driver. 25% said they believed a combination of menu, atmosphere, location and prices.

• 42% of respondents reported that business in February was better than in January. 33% reported business was the same and 21% reported that business was slower.

• The most popular menu item was the Original BBQ Chicken pizza according to 46% of respondents. 13% of respondents cited the Buffalo Chicken Pizza.

• The average bill was reported as being $36.70 for a party of two with responses ranging from $12 to $75.

Conclusion of Channel Check: Based on the survey, the activity level at California Pizza Kitchen appears favorable, however the trends are less positive than recent survey data we found on the Cheesecake Factory.

For access to the underlying survey or for more information, please contact Ann Dykes at 978-358-7809 or ann@thechannelcheckers.com

1.What is the average wait time for a party of two?
2.What is the average bill for a party of two?
3.What is the most popular menu item?
4.Was this location busier this month than in January?

62% of respondents said that wait times ranged from 5 minutes to 15 minutes. 22% of respondents reported wait times of 20 minutes to 30 minutes while 13% of respondents reported now wait time at all.
The average bill was reported as being $49 for a party of two with responses ranging from $25 to $80.
The most popular items unsurprisingly was listed as Cheesecake by 39% of respondents. Respondents stated that customers order cheesecake 61% of the time they eat at the restaurant.
72% of respondents reported that their location was busier in February versus January. 24% reported that their locations was slower while 4% said that business was the same in February as in January.

Conclusion of Channel Check: Based on the survey, the activity level at Cheesecake Factory locations appears to be increasing. Average check size remains a little lower than what we might expect to see in a very strong environment but wait times and traffic levels look solid.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com

1. How well is business today at your store?

2. Do you have excess inventory of any product or brand that will go on discount soon?

3. Do you think the weak housing market and economy are hurting business at your store?

4. What is the top selling brand of women’s clothing at your store?

• 37% of respondents described business at their store as “above average”. 63% saw business as “average”. 10% saw business as ”below average”.

• 90% of respondents cited having some excess inventory, although the bulk of these cited summer and seasonal items.

• 74% of respondents do believe that the economy and weak housing market are negatively impacting sales at their store. 11% said that the housing market and weak economy are not hurting sales. 15% were unsure of the impact of the broader economy or housing market.

• Sonoma and Apartment 9 were seen as the top selling women’s brand by 25% of respondents each.

Conclusion of Channel Check: Sales trend look mildly positive at Kohls. Excess inventory results are high by historical standards across our retail surveys. Concern over the economy and weak housing market are higher than expected. Top selling brands such as Apartment 9 are consistently near the top of Kohls sales of women’s apparel.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com

1. What is the best selling motorcylce right now?

2. Are you sold out of any models currently?

3. How is business compared to this time last year?

4. Has business picked up in the past month?

• 26% of respondents said that either the Street Glide or Electra Glide was the best selling model. 17% said that the Sportster was the best selling line.

• Over 70% of respondents said they were not sold out of any models. The remainder cited 2009 Sportsters specifically, but said they had stock of 2010 Sportster models. The Street Glide was cited as being sold out at one dealer while another cited the FLHR Road King.

• 57% of respondents said that business was the same as a year ago. 26% said business was better than last year. 17% said business was worse than last year.

• 43% of respondents stated that business was improving in the past month, while 57% said that business had not improved. Cash for clunkers was cited as a negative drawing business away in July and August. Anectdotally, one dealer reported being closed for a week on a temporary basis in September.

Conclusion of Channel Check: Harley dealers appear to be reporting stable business conditions across the board with some signs of improvement offset by a general report of flat sales compared to last year and to the previous few months.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com

1. What is the best selling mobile phone right now?

2. What is the best device to get for e-mail?

3. What is the best device to get for music?

4. Has there been an increase in the number of people buying new phones or upgrading their accounts in the past month?

• 53% of respondents said that a Blackberry device was the best selling device at their location. 16% cited an LG model while another 16% cited a Samsung model. HTC and Motorola phones were cited as well.

• 68% respondents cited Blackberry models when asked which device was the best for e-mail. LG again scored a number two spot with 16% of respondents.

• LG was the top brand recommended for music with over 35% of respondents recommending an LG model as tops of music. Samsung was second with over 25% of respondents citing it as a the best model/brand for music.

• 79% of respondents reported that they are seeing increased new account openings or upgrades from customers in the past month. 21% of respondents say they are not seeing an increase in these categories.

Conclusion of Channel Check: New accounts and upgrades of existing plans appear to be picking up at Verizon stores in September and October. Research In Motion’s Balckberry line of mobile devices appears to be the best selling at Verizon. Samsung and LG look strong in the music focused segments and also run distant number 2 and 3 respectively in the e-mail and best selling categories. Verizon looks focused on hardware ASP’s as all three of these top vendors offer a wide range of mid-priced to lower priced devices to Verizon’s customer base.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com

1. How much does the average customer spend per visit?

2. What % of customers are repeat customers?

3. What is the top selling item right now?

4. Do you have trouble keeping the most popular items in stock?

 

• 77% of respondents said the average customer spend between $50 and $150 dollars. We believe the average purchase is right around $100 per customer. 12% said customers spend less than $50 on average, while 8% said they spend over $150 per visit.

   

• 31% of respondents report that around ¼ of all customers are repeat customers. The remaining 69% report that half or more of customers are repeat buyers of Lululemon clothing.

   

• Tank tops and shirts for women are the best selling item according to 23% of respondents. 19% report that pants are the top selling item.

   

• 77% of respondents say that they have no trouble keeping top selling items in stock. 15% report that they do have some challenges in keeping popular items in stock. While a small number, this small stock-out problem seems positive in the current retail environment.

Conclusion of the Channel Checkers: Lululemon appears to be maintaining strong store fundamentals including solid average tickets for each customer and strong repeat buyer business. Top items are not in short supply but our report does suggest some tightness for top items may be beginning to appear suggesting demand may be improving for Lululemon clothing.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com