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Monday, 12/11/2000 12:21:53 PM

Monday, December 11, 2000 12:21:53 PM

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aggressivepicks - http://www.aggressivestockpicks.com


12-11-2000
AggressiveStockPicks.com initiates coverage of:


Havana Republic, Inc.
Symbol: HVAR
Price: .045
Shares Outstanding: 34 million
Float: 28 million




The Cigar Market is alive and doing quite well.


Actually, it's probably in better shape today than it was during the boom
times of the 1990s. The marginal players are long gone, and the companies
that are left - like Havana Republic, Inc. ("HVAR" on OTC-BB), are in a
much stronger position, particularly in the market for Premium Cigars.


According to the Cigar Association of America, Americans smoke several
billion cigars each year - more than any other country in the world except
for China. There are an estimated six million cigar smokers in the United
States, of which about one million smoke premium, hand-made cigars
(selling from $5 to $20 or more per stick) on a regular basis.


On the horizon is the possibility that the Cuban Embargo might be lifted
next year, and that the availability of genuine Cuban cigars might set off
another boom period for the industry. Overall, we believe that the cigar
market has lots of room to grow, both in the United States as well as
Europe and Asia.


Surprisingly, there are only a handful of publicly-traded cigar companies.


Of the available cigar stocks, we believe that HVAR is significantly
undervalued in light of its current expansion plans, particularly with
their new Emporium about to open at the Aladdin Resort & Casino in Las
Vegas. Havana Republic is positioned to have immediate and direct access
to Cuban cigars when the Embargo is lifted, which adds additional upside
to a stock that is coming off of its all-time lows.




HAVANA REPUBLIC SELLS PREMIUM CIGARS AND CIGAR-RELATED MERCHANDISE


Havana Republic is an established and growing company that owns and
operates upscale cigar Emporiums devoted to the sale of premium cigars and
the finest cigar-related merchandise from companies such as Dunhill,
Davidoff, Elie Bleu and others. HVAR also sells cigars and accessories
over the Internet through its fully interactive e-commerce site,
HavanaRepublic.com. In addition, HVAR owns a 50% interest in a 170-acre
tobacco plantation and cigar factory in Jalapa, Nicaragua.


Havana Republic has an image in the cigar industry as "the place" to find
premium cigars, and has positioned itself as the most luxurious and
upscale retailer in the United States. Each of Havana Republic's existing
Emporiums are authorized Davidoff White Label retailers.


Davidoff ( www.DavidoffUSA.com )is one of the most prestigious lines of
cigars and accessories in the world, and its White Label line is
considered to be the most exclusive line for a retailer to obtain. Havana
Republic's appointment, after lengthy and through evaluation by Davidoff,
is a significant sign of HVAR's recognition as a premier tobacconist in
the U.S.




HAVANA REPUBLIC OPERATES PROFITABLE UPSCALE RETAIL CIGAR EMPORIUMS..


Havana Republic ( www.HavanaRepublic.com ) currently operates three retail
cigar emporiums in southern Florida, and has slated three more retail
Emporiums that are targeted to open their doors in the very near future.


Each Cigar Emporium consists of an upscale retail store and a private club
section that is designed for leisurely smoking complemented by satellite
television, coffee and espresso in a truly luxurious and upscale
atmosphere, with floor to ceiling mahogany and marble decor. Individual
humidors (approximately 100 per store) are leased to patrons for storing
their cigars. Each Emporium carries merchandise that caters to the upper
end of the cigar market.


HVAR intends to expand its retail operations through the opening of
additional Emporiums in South Florida and in other cities in the United
States in which it believes there is a local market for premium cigars.
Right now, the company has a new Emporium under construction at the new
Aladdin Resort and Casino in Las Vegas. The Company also has plans to open
new Emporiums in New Orleans and West Palm Beach in early 2001.




HAVANA REPUBLIC WILL OPEN A NEW EMPORIUM ON FEBRUARY 15th


AT THE ALADIN RESORT & CASINO - THE HOTTEST PLACE IN LAS VEGAS !!


HVAR has secured what it believes to be the best retail site at the new
2,600 room Aladdin Resort and Casino / DesertPassage in Las Vegas, which
opened in August 2000.


Havana Republic's location?


Right next door to Commander's Palace (an upscale, New Orleans-style
restaurant, which was rated by Zagat's as one of the top restaurants in
the country), directly across from one of the main Casino entrances and
the main entrance from Las Vegas Boulevard, one of the most glamorous and
heavily trafficked pedestrian boulevards in the world (visit
www.DesertPassage.com to see a schematic diagram of the 600,000 sq. ft.
upscale retail Desert Passage project - Havana Republic is located at site
#720). Havana Republic is presently the only cigar Emporium in the entire
Aladdin / DesertPassage casino and retail shopping complex.


Here's some other key market and demographic factors about HVAR's
soon-to-open (February 15th) Emporium and its Las Vegas location:


The Aladdin Resort & Casino / DesertPassage attracted over 1,000,000
visitors in its first two weeks of operations, and, since opening in
mid-August, the DesertPassage retail project has reportedly averaged
110,000 visitors per day.


As one of the world's premier tourist destinations, Las Vegas is visited
by more than 40 million people every year and has more hotel rooms (about
120,000) than any other city in the U.S., with an incredible 93% occupancy
rate year-round. During the last twelve months, nearly 13 million visitors
to Las Vegas passed in front of the Aladdin Hotel / DesertPassage complex
during its $1.3 billion development and construction phase.


The sheer volume of people who have explored the exciting retail shops and
world-class restaurants demonstrates that DesertPassage is the "must-see"
hot spot in Las Vegas.


Being located adjacent to a major casino and a top-rated restaurant, HVAR
is in an ideal marketing position. In Las Vegas, there really is no
competition on prices - it really comes down to just being in the right
location and having the merchandise that people want.


With such strong traffic, HVAR is very excited about the profit potential
of the new Aladdin location. Stephen Schatzman, President of Havana
Republic, says that "based on the latest revised pedestrian traffic
forecasts, we believe that the potential first-year revenues from this
first Las Vegas location alone could equal or exceed total revenues from
all of our other cigar emporiums combined" and that this newest Emporium
".could be cash flow positive by the end of Fiscal 2001."


HVAR's other anticipated new Emporium will be at the $500 million "City
Place" development in West Palm Beach (Florida), a 600,000 square foot
up-scale facility being developed by the Palladium Group.


Havana Republic has also slated an Emporium located on the Casino Floor of
Harrah's New Orleans Casino, one of the most luxurious and heavily-visited
casinos in the world with more than 1.2 million visitors per month. Havana
Republic's new Emporium at Harrah's - New Orleans is anticipated to
produce at least $1 million per year in sales, and is expected to be
profitable beginning with its second quarter of operation.


Havana Republic anticipates that between existing and new Emporiums either
under construction or slated to open in 2001 that the Company can with all
six Emporiums in operation, generate annual revenues on the order of $8
million, with the Aladdin / DesertPassage location accounting for an
estimated $1.5 million in sales.




HAVANA REPUBLIC ALSO GROWS & MANUFACTURES PREMIUM CIGARS IN NICARAGUA..


In its quest to make and sell only the world's finest cigars, HVAR has
acquired a 50% equity interest in Tabanica, S.A. ("Tabanica"), a
Nicaraguan corporation that grows and produces premium cigars.


Tabanica's factory and plantations are located in the Jalapa Region of
Nicaragua, the "Napa Valley" of that country's cigar tobacco market.
Havana Republic distributes premium cigars (with true Havana seed wrappers
that have been aged two years) purchased from Tabanica.


We believe that the acquisition of the Nicaraguan cigar company was an
astute move. The deal provides HVAR with a continuous source of premium
cigars and an ability to develop its own private label brand cigars.
Nicaragua is also considered to be a "hot place" for cigars. Nicaraguan
cigars are getting lots of positive press, with many brands cracking into
the 90s ratings in Cigar Aficionado ( www.CigarAficiando.com ).


So, where are these cigars sold?


Well, for starters, Havana Republic has recently begun manufacturing and
supplying private label cigars to Harrah's New Orleans Casino with a
commitment for 5,000 premium cigars per month. The cigars are sold by the
casino, and are also "comped" to its better customers.


Havana Republic also manufacturers and sells in its existing Emporiums the
"Grand Havana Series II", which was introduced in January 1999 to rave
reviews. These cigars are Nicaraguan Puros, meaning that the filler,
wrapper and binder are all grown on Havana Republic's plantation in
Nicaragua. The distinctive, flat, square-shaped cigar uses a two-year aged
Cuban seed wrapper that is smooth as silk.




WITH THE ANTICIPATED LIFTING OF THE CUBAN EMBARGO..


Given the thaw in relations between the U.S. and Cuba, it seems that it
really is just a matter of time until the Embargo is lifted. Whenever it
happens, it's going to be a big plus for HVAR (just think of what the
HavanaRepublic.com website address will be worth!).


It seems safe to say that once the Cuban Embargo is lifted, every cigar
smoker is going to want to try some real- (legal) Cuban cigars! Let's face
it - there's a certain mystique and allure of getting a cigar from the
"forbidden land" of Cuba.


>From coast to coast, and all over the Internet, retailers are taking
reservations for Cuban cigars. The problem is going be that only a very
small number of retailers will be able to deliver these cigars (getting
one will probably as tough as finding a Sony PlayStation 2 for the
holidays).


We believe that Havana Republic is going to be one of the fortunate few
companies that will have access to a steady supply of premium Cuban cigars.


Why?


The answer lies in the distribution network for cigars in the United
States, and HVAR's strong relationship with the two companies that own the
U.S. rights for every registered Cuban cigar name - Altadis (
www.Altadis.com ) and General Cigar Co. ( www.CigarWorld.com ). We
understand that Altidus and General Cigar have assured Havana Republic
that once the embargo is lifted, that HVAR will be the among the first
retailers in the United States to be able to offer Cuban cigars to its
clientele through its Emporiums.




HVAR SHARE STRUCTURE & RECENT TRADING RANGE


Total Issued & Outstanding: 34,091,073 common shares


200,000 Series "B" Preferred


Public Float: Est'd @ 28 million


52-week Trading Range: $0.04 by $0.20


Last Trade (December 8th, 2000): $0.045




As of September 30, 2000, the Company had working capital of approximately
$1,170,000.



Havana Republic's officers and directors own about 5.6 million common
shares, plus options to acquire an additional 3.5 million shares @
$0.06/share. The Series B Preferred Shares (also owned by management) are
not redeemable, have no conversion rights, but do have 400 votes per
share. The 449 Series A, C and D Convertible Preferred Shares outstanding
may be converted into common shares at various price levels - further
details may be found in the latest 10-K Report.


Havana Republic is a fully-reporting company with the SEC. Corporate
filings (including the 10-K Report for the year ending June 30, 2000 and
the September 30, 2000 Quarterly Report) can be accessed through
www.FreeEdgar.com.




FOR ADDITIONAL INFORMATION, PLEASE CONTACT


Marc Cohen @ The Pinnacle Group


Phone: (516) 773-2477




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