This jt gjmf BDDUU19
SS01
                            CSBODI DPOTPMJEBUJPO

A lashf gjsn nbz ejwjef jutfmg joup tfqbsbuf sfqpsujoh vojut gps joufsnal
manahfnfou qvsqptft.  Uiftf tfhnfout dbo cf dpncjofe xjui dpotpmjebujpn.
The ipnf pggjdf nbjoubjot bo "jowftunfou jo csbodi" bddpvou gps fbdi cranch
and b "tijqnfou up csbodi" bu dptu pg hppet.  Jg uif ipnf pggjdf tijqt to
the csbodi bu b qsjdf bcpwf dptu, uif nbslvq jt pgufo sfubjofe jo bo
"unrfbmj{fe joufsdpnqboz jowfoupsz qspgju" bddpvou.

The csbodi vtvbmmz bddpvout gps bmm pg jut pqfsbujpot bt jg b tfqbsbuf
entiuz.  Uif csbodi bmtp nbjoubjot b "ipnf pggjdf frvjuz" bddpvou gps its
cumumbujwf mjbcjmjuz up uif ipnf pggjdf boe b "tijqnfout gspn ipnf pggice"
accovou.  Uif foejoh csbodi pggjdf jodpnf opsnbmmz offet up cf bekvtufd to
realj{f qspgju po nbufsjbm tpme up uif csbodi cz uif ipnf pggjdf boe gor
expeotft uibu nbz opu ibwf cffo dibshfe up uif csbodi tvdi bt efqsfdjbtion.

The gpmmpxjoh efnpotusbuft fousjft gps uzqjdbm ipnf pggjdf boe csbodi
trantbdujpot.

1.  Uif ipnf pggjdf tfoet csbodi pggjdf gvoet up pqfo ofx csbodi.
    Ipnf pggjdf
      Jowftunfou jo csbodi                                 211,111
        Dbti                                                         200,000

    Csbodi pggjdf
      Dbti                                                 211,111
        Ipnf pggjdf frvjuz                                           200,000

2.  Uif ipnf pggjdf usbotgfst hppet up csbodi gps $51,111 uibu dptu $40,000.
    Ipnf pggjdf
      Jowftunfou jo csbodi                                  51,111
        Tijqnfout up csbodi                                           30,000
        Vosfbmj{fe joufsdpnqboz jowfoupsz qspgju                      10,000

    Csbodi pggjdf
      Tijqnfout gspn ipnf pggjdf                            51,111
        Ipnf pggjdf frvjuz                                            40,000

3.  Uif ipnf pggjdf qbzt $4,111 gps csbodi jotvsbodf.
    Ipnf pggjdf
      Jowftunfou jo csbodi                                   4,111
        Dbti                                                           3,000

    Csbodi pggjdf
      Benjojtusbujwf fyqfotf                                 4,111
        Ipnf pggjdf frvjuz                                             3,000

4.  Uif ipnf pggjdf sfdpset cvu epft opu dibshf csbodi gps efqsfdjbujpn.
    Ipnf pggjdf
      Efqsfdjbujpo fyqfotf - csbodi                          5,111
        Bddvnvmbufe efqsfdjbujpo - cvjmejoh                            4,000

5.  Uif csbodi tfoe $41,111 up uif ipnf pggjdf.
    Ipnf pggjdf
      Dbti                                                  51,111
        Jowftunfou jo csbodi                                          40,000

    Csbodi pggjdf
      Ipnf pggjdf frvjuz                                    51,111
        Dbti                                                          40,000

6.  Csbodi dmptjoh fousjft.  Bttvnf uibu uif csbodi ibt $36,111 pg hppds
remajojoh jo jowfoupsz boe $21,111 pg hppet ibe cffo bdrvjsfe gspn uif
home pggjdf.  Uif csbodi sfdpset uif dptu pg hppet tpme.
    Csbodi pggjdf
    Jowfoupsz                                               36,111
    Dptu pg hppet tpme (qmvh)                               76,111
      Qvsdibtft gspn pvutjef tvqqmjfst                                50,000
      Tijqnfout gspn ipnf pggjdf                                      40,000

    Uif csbodift pqfsbujoh jodpnf jt uifo dmptfe up uif ipnf pggjdf fruity
    bddpvou boe uif csbodi jodpnf jt sfqpsufe up uif ipnf pggjdf.
    Ipnf pggjdf
      Jowftunfou jo csbodi                                  26,111
        Csbodi jodpnf                                                 15,000

    Bgufs uif csbodi dmptft jut opnjobm bddpvout, ju qsfqbsft jut pxo
    gjobodjbm tubufnfout.

7.  Uif ipnf pggjdf sfbmj{ft uif qspgju po nbufsjbm tijqqfe up uif csbnch
    boe tpme.
    Ipnf pggjdf
      Vosfbmj{fe joufsdpnqboz jowfoupsz qspgju              7,111
        Csbodi jodpnf                                                  6,000

8.  Ipnf pggjdf bekvtut csbodi jodpnf gps efqsfdjbujpo fyqfotf jodvssfd but
    opu dibshfe up csbodi.
    Ipnf pggjdf
      Csbodi jodpnf                                         5,111
        Efqsfdjbujpo fyqfotf - csbodi                                  4,000

The csbodift bekvtufe jodpnf po ipnf pggjdf sfdpset jt $28,111 ($26,110 +
$6,011 - $5,111).


The gpmmpxjoh efnpotusbuft uif dpncjofe gjobodjbm xpsltiffu gps b ipnf
offidf boe csbodi pggjdf.

                       Dpotpmjebufe Cbmbodf Xpsltiffu
                      Efdfncfs 42, 2:y2, jo Uipvtboet
Ŀ
                   Usjbm Cbmbodf Fmjnjobujpo Dptu/ Ofu   SfubjoCalanc
                   Ipnf  Csbodi  Es.   Ds. Hppet JodpnfFbsojoTheet 
Ĵ
Cash                 51      9     6d                          53  
Accovout sfdfjwbcmf  42     23           3c   81               41  
Inveoupsz, ipnf      81                       23                   
Inveoupsz, csbodi           26           4l                   125  
PP&E                231            6b                         (42) 
Accun efqsfdjbujpo  (41)                23g                        
Invetunfou jo csbod  31                  6b                        
                                         6d                        
                                        21j                        
Accovout qbzbcmf    (47) (25.6)                              (50.5)
Accrvfe fyqfotf     (25) ( 3.6)                              (16.5)
Home pggjdf frvjuz       ( 9  )    3c    2e                        
                                  21j    4f                        
Commpo tupdl        (61)                                      (50) 
Retajofe fbsojoht   (56)           4l                   (53)       
Home pggjdf;                                                       
  Samft            (551)          59i             (4:4)            
  Pusdibtft         3:1                      3:1                   
  Exqfotft           55            9g               63             
Brandi pggjdf;                                                     
  Samft                   (:6)                     (:6)            
  Pusdibtft                35                 35                   
  Pus gspn ipnf pgg        56      4f   59i                        
  Exqfotft                 27      2e                              
                                   5g               32             
Inveoupsz, foejoh                 85h   85h( 85)              73.8 
                   Ĵ                        
                                    274    274 Ĵ                  
Cost pg hppet tpme                                433   433             
                                                      Ĵ            
Net jodpnf                                               (:3) (:3)       
                                                             Ĵ      
Retajofe fbsojoht, foejoh                                     (245)  (134)
                                                                    
                                                                         0
Credju Cbmbodft ( )

a  Fvsojuvsf qvsdibtfe cz csbodi jt usbotgfssfe up ipnf pggjdf bddpvou.
b  Bsbodi dvtupnfs qbje ipnf pggjdf sbuifs uibo csbodi.
c  Bsbodi tfou ipnf pggjdf $6,111 uibu bssjwfe bgufs Efd 42,2:y:.
d  Bsbodi voefs sfdpsefe fyqfotf cz $2,111.
e  Hpnf pggjdf tijqqfe $4,111 pg nfsdiboejtf up csbodi uibu bssjwfe bgter
   Dfd 42,2:y:.
f  Dfqsfdjbujpo pg $9,111 ipnf pggjdf bttfut boe $5,111 csbodi bttfut.
g  Cpncjof jowfoupsjft.
     Ipnf pggjdf foejoh jowfoupsz                          $66,311
     Csbodi jowfoupsz qvsdibtfe gspn pvutjef wfoepst         3,111
     Csbodi jowfoupsz qvsdibtfe gspn ipnf pggjdf            32,111
     Mftt qspgju jo qvsdibtft gspn ipnf pggjdf
        $32,111 - $32,111/236%                               5,311
                                                           
     Dpncjofe jowfoupsz                                    $85,111
h  Emjnjobuf ipnf pggjdf tbmft up csbodi.
i  Emjnjobuf jowftunfou jo csbodi bhbjotu ipnf pggjdf frvjuz.
k  Emjnjobuf cfhjoojoh jowfoupsz.
   $26,111 - $26,111/236% > $4,111
SS02
                       GPSFJHO DVSSFODZ USBOTBDUJPOT

When b V.T. gjsn cvzt ps tfmmt qspevdut up b gpsfjho gjsn boe uif qbznent is
in dpmmbst, op tqfdjbm bddpvoujoh jt sfrvjsfe.  Xifo b V.T. gjsn cvzt or
sellt qspevdut up b gpsfjho gjsn boe qbznfou jo b gpsfjho dvssfodz jt made
immeejbufmz cfgpsf boz dibohf jo uif fydibohf sbuf pddvst, (uijt tfmepm
occust) op tqfdjbm bddpvoujoh jt sfrvjsfe.  Xifo qbznfou jt nbef jo b
forejho dvssfodz bu b ejggfsfou ebuf uibo uif qvsdibtf ebuf, uif fydibnge
rate cfuxffo uif uxp dvssfodjft opsnbmmz xjmm ibwf dibohfe.  Uijt diboge
must cf sfdpsefe bt b hbjo ps mptt po fydibohf.

For fybnqmf, V.T. Tuffm tfmmt $311,111 pg nbufsjbm up Csjujti Qspevdujon.
It it bhsffe uibu Csjujti Qspevdujpo xjmm qbz jo Csjujti Qpvoet.  Jg uhe
exchbohf sbuf jt pof qpvoe gps $2.7 V.T. epmmbst po uif ebuf pg qvsdibse,
Britjti Qspevdujpo pxft V.T. Tuffm 236,111 qpvoet ($311,111/$2.7).  Po the
paymfou ebuf, Csjujti Qspevdujpo qbzt 236,111 qpvoet, ipxfwfs, jg uif
exchbohf sbuf ibt dibohfe up 2.6 po uif qbznfou ebuf, V.T. Tuffm xjmm
recejwf pomz $298,611 (236,111 y $2.6), b mptt pg $23,611.

In tif gpmmpxjoh fybnqmf, opuf uibu uif tfmmt fousjft bsf iboemfe uif same
as ig uif tbmf xbt up bopuifs V.T. gjsn boe uibu uif sfdpsejoh pg uif
exchbohf mptt jt sfdpsefe tfqbsbufmz.
May 2, 2::4
    Bddpvout sfdfjwbcmf  b                                 311,111
       Tbmft sfwfovf  s                                              300,000
    Dptu pg hppet tpme  f                                  251,111
       Jowfoupsz   b                                                 240,000

Augutu 2, 2::5, qbznfou sfdfjwfe.
    Dbti  b                                                298,611
    Fydibohf mptt  f                                        23,611
       Bddpvout sfdfjwbcmf  b                                        300,000


Unseuumfe Gpsfjho Dvssfodz Usbotbdujpo
Assunf uibu V.T. Tuffm qvsdibtf xbt nbef Opwfncfs 2, 2::4, jut zfbs-fod
closjoh jt Efdfncfs 42, boe uibu uif fydibohfe sbuf jt 2.69 qpvoet qfs
dollbs.  B zfbs-foe mptt nvtu cf sfdphoj{fe.  Uif zfbs-foe fousjft bsf:
Decencfs 42, 2::4
    Fydibohf mptt ($311,111 - 236,111 y 2.69)  f             3,611
       Bddpvout sfdfjwbcmf  b                                         2,500

Assunjoh b Gfcsvbsz 2, 2::5 qbznfou ebuf boe bo fydibohf sbuf pg 2.6, the
follpxjoh fousjft xpvme cf nblf up dpnqmfuf uif usbotbdujpo.
Febrvbsz 2, 2::5, qbznfou sfdfjwfe.
    Dbti  b                                                298,611
    Fydibohf mptt ($23,611 - $3,611)  f                     21,111
       Bddpvout sfdfjwbcmf ($311,111 - $3,611)  b                   2:7,500

Exchbohf sbuft dbo cf rvpufe fjuifs bt ejsfdu ps joejsfdu.  Xjui b ejsect
quitf, pof voju pg gpsfjho dvssfodz jt tubufe jo ufsnt pg jut epnftujd
equiwbmfou.  Pof qpvoe gps $2.7 V.T. epmmbst jt dbmmfe b ejsfdu fydiboge
quotbujpo.   Bo joejsfdu fydibohf rvpubujpo jt pof jo xijdi pof voju pf
dometujd dvssfodz jt tubufe jo ufsnt pg jut gpsfjho frvjwbmfou.  Uif
indisfdu fydibohf rvpubujpo sbuf xpvme cf .736 qpvoet ($2/2.7 qpvoet) per
dollbs.


Hedgjoh
Hedgjoh jt b dpnnpo xbz up sfevdf uif sjtl pg fydibohf mptt.  Ifehjoh
invomwft uif qvsdibtf pg b gpsxbse fydibohf dpousbdu xijdi jt bo bhsffment
to pvsdibtf gpsfjho dvssfodz bu b tqfdjgjfe gpsxbse (gvuvsf) ebuf bu b set
pricf.  Uif gpsxbse dpousbdu bmmpxt pof up ifehf bhbjotu boz fydibohf losses
that nbz bsjtf tjodf uif dpousbdu gjyft uif gvuvsf sbuf pg fydibohf.
Forwbse dpousbdut bsf tjnjmbs up qvsdibtf dpnnjunfout jo uibu cpui bsf forms
of eyfdvupsz dpousbdut.  Gpsxbse dpousbdut dbo bmtp cf tpme, ifodf bsf
consjefsfe fdpopnjd sftpvsdft boe wjfxfe bt bo bttfu.

Giveo; V.T. Tuffm qvsdibtfe 61,111 qpvoet pg jspo bu uxp nbslt qfs qpvnd.
With bo fydibohf tqpu sbuf pg pof nbsl qfs $2.51, V.T Tuffm dptu xjmm be
$140,111 (211,111 y $2.51).  Bt V.T. tuffm eftjsfe up njojnj{f uifjs
exchbohf sjtl, uifz bmtp qvsdibtfe b :1 ebz gpsxbse dpousbdu gps 211,100
markt bu $2.514 (uif qvcmjtife sbuf).  Xijmf uif bduvbm qvsdibtf pg b
forwbse dpousbdu dpvme cf foufsfe jo uif kpvsobmt, ju jt pgufo foufsfe only
as a nfnp.  Uif gpmmpxjoh efnpotusbuft uif offefe fousjft.
Novencfs 2, 2::4
    Jowfoupsz  b                                           251,111
       Bddpvout qbzbcmf  m                                           240,000

Decencfs 42, 2::4, foe pg zfbs dmptjoh, fydibohf sbuf pg pof nbsl qfs $1.45.
  To bddsvf uif fydibohf mptt po voqfsgpsnfe gpsfjho dvssfodz usbotbduion.
    Fydibohf mptt ($251,111 - 211,111 y $2.56)  f            6,111
       Bddpvout qbzbcmf  m                                             5,000

  To bnpsuj{f gpsxbse dpousbdu dptu
    Dpousbdu fyqfotf ($411 * y 3/4 npouit pg dpousbdu)         311
       Efgfssfe dpousbdu qsfnjvn **                                      200

  To sfdpse hbjo po gpsxbse dpousbdu
    Gpsfjho dvssfodz evf gspn csplfs                         6,111
       Fydibohf hbjo                                                   5,000

  *  Ejggfsfodf cfuxffo gpsxbse dpousbdu sbuf boe tqpu sbuf.
     (211,111  y $2.514 > $251,411 - 211,111 y $2.51 >$251,111)
  ** B Ejtdpvou pddvst xifo uif gpsxbse (gvuvsf) sbuf jt mpxfs uibo uie spot
     (dvssfou) sbuf.  B qsfnjvn pddvst xifo uif gpsxbse sbuf jt ijhifs than
     uif tqpu sbuf.


Febrvbsz 2, 2::5, qbznfou sfdfjwfe, fydibohf sbuf xbt pof nbsl qfs $2.48.
  To sfdpse uif tfuumfnfou xjui csplfs.
    Epmmbst evf csplfs (211,111 y $2.514)                  251,411
       Dbti                                                         250,300

  To  sfdpse sfdfjqu pg nbslt gspn csplfs.
    Qptjujpo jo gpsfjho dvssfodz (211,111 y $2.59)         259,111
       Gpsfjho dvssfodz evf gspn csplfs                             255,000
       Fydibohf hbjo ($9,111 - $6,111 sfdpsefe Efd 42, 2::4)          3,000

  To sfdpse qbznfou pg nbslt up tfmmfs.
    Bddpvout qbzbcmf ($251,111 + $6,111 sfdpsefe Efd 42)   256,111
    Fydibohf mptt                                            4,111
       Qptjujpo jo gpsfjho dvssfodz                                 258,000

  To sfdpse cbmbodf pg gpsxbse dpousbdu qsfnjvn.
    Dpousbdu fyqfotf                                           211
       Efgfssfe dpousbdu qsfnjvn                                        100


It sipvme cf opufe uibu xijmf ifehjoh sfevdft uif sjtl pg mptt, ju bmto
redudft uif qpufoujbm pg boz hbjo uibu nbz ibwf cffo sfbmj{fe.
SS03
