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David,

Wondering what your thoughts are regarding the 8% drop after an already sizable fall. My take is that we're dealing with market irrationality and that HANS deals with a different market niche than does Pepsi, thereby making the current HANS share price of ~38.00 an even more attractive one than before the Pepsi numbers came out. Thoughts?

Humbly,

Slothrop and his Monkey
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Hi Slothrop,

I see no reason to be concerned here. Nothing has changed with Hansen or its prospects, which is what really matters. Hansen does have a pretty high multiple pinned on it (and rightly so) so the stock will be volatile in times like these when the market is very jittery. But even if economic troubles are ahead as many are speculating (the main reason for the recent market downturn), Hansen will not be effected in the long run. The company has a stellar balance sheet and excellent margins, so they won't feel much of a pinch. And given the nature of their targeted crowd with energy drinks (mainly younger adults), I don't think a recession would hurt results that much.

So, I would say we have a great buying opportunity today. I've said it many times before; this is a top-notch company with stellar financials and an experienced, dedicated management team. It doesn't get much better than that, and I didn't even mention that international expansion is just getting started and great new products are being rolled out.

Hansen and Pepsi aren't the companies to compare, but the market doesn't really care about that. Both companies sell beverages and that's all that matters to the Street in these times. Hansen is on a roll with pretty much every aspect of the business and financials, and I think we'll continue to see strong earnings growth this year even if things get a little wobbly. This management team has carried the company through tough times before and today the company is in terrific financial shape.

If the stock goes much lower I'll have to dump something else in my portfolio and buy another position. :-)

Best,

David K
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If the stock goes much lower I'll have to dump something else in my portfolio and buy another position.

Hi David,

I echo your thoughts there. I was too busy at work today to notice the big drop until this evening or I would have tried to pick up some stocks. I didn't intend to add more to my HANS position since I'm already heavy on this stock but it is so tempting ... !!

Diane
Long HANS
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