hi teddyi will preface this with im not certain i have made the...

hi teddy

i will preface this with im not certain i have made the right choice in selling down. but certainly the investment case for acl is not as clear to me as it was so i decided to apply some risk management.

when they explained the split last year they said they would need a small amount of capital to support what is now Audeo and they would ride the success of the PIII trial without kicking off new PII trials. i was pretty happy with that despite the dilution from the CR at the time. it left me with a feeling that they understood that HyActs future rests on the outcome of the PIII trial and thats how they will play it... role the dice style. but this last announcement has a different tone.

then there was the comment in the telecon that they look forward to seeing fonda cost of production come down over coming years. i thought we were suppose to see benefits from changes in the process in q3 this year... not in 2 years. i emailed pete on this and received no reply. this is the fist time that has happened.

then there is all the other stuff we have been talking about: cogs, dilution, communication, etc.

another way to explain this... i got scared and chickened out. an equally valid explanation.