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Zeev Hed

06/04/04 6:58 PM

#253506 RE: John Jet #253502

I'll be watching like a hawk. Don't forget that even that first position, was bought as a "discount" to last sale, so the profit from around $19 all the way to $26.40 (with quite a number of intermediated "sell the high, buy the discount") has been pocketed. If HANS does not manage to close above $22.50 within the first three trading days next week, I'll be out of all positions. My own gut feeling is that the MM's bought the biggest chunk of that and to cover the short position they built in the $23/$26.5 area, so they are doing fine. If they have more in their inventory from that sale, I guess they will want to bring the price up to dump these positions. We'll know in the fullness of time. I think HANS has a very good shot at $.25/share in the current quarter (and I think I am probably conservative), and $.28 in the Sptember quarter before they go into Hybernation. Mind you in th first quarter (still a cold season) they did $.19. If any upward momentum develops after this swoon down, even with the sale of that close to 1 MM share, the float is still quite low at 7 MM shares. They are selling at less than 2 times annual sales (looking at this fiscal year), compare that to more than 5 time sales for KO (barely any growth) and PEP at above 3.