Thursday Morning, April 26th
A disreputable anonymous site attempted to discredit NNRF yesterday. Here are some facts on the matter:
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Strong Retort:
A website with the name citronresearch.com wrote a totally uniformed piece today about NUCON-RF. Their purpose seems to be to use lies and innuendos to try and get people to think negatively about a company in which they probably have shorted the stock.
The writer used no name and gives no contact information so that is very suspicious right away. As you all know my personal phone number is on my website as I have nothing to hide but the writer of this piece hides behind a web address where they think they can say whatever they want.
Their site used to be named stocklemon but I imagine they had so many lawsuits created by their lies in the past that they needed to change the name but I do not know for sure. We do know however that they are writing anonymously and if you go to their "About Us" page it says suspiciously "This page is under construction…"
They use the name "research" in their site title but they seem to do none on their own.
So we have an anonymous writer on a suspicious and unknown owner website writing false things.
To start they write that NUCON-RF has made "a series of mysterious acquisitions"
Well what kind of deranged statement is that? The CEO of NUCON-RF Prof. Valery Lebedev, PhD is the former Deputy Nuclear Power Minister of Russia and they bought 50% of ATOLL who make parts for nuclear power plants. How much more un-mysterious can that be? For the Russian government to allow a US company (the first and only one) to purchase such a highly sensitive Russian company says to me that the Russian government thinks very highly of NUCON-RF – think about that for a minute – do you really think just anyone can so such a thing? – if so than it is also very strange that no one before was able to do this. They write that they think it strange that ATOLL with such good sales would sell for only $2+ million in cash plus 4 million shares. Of course since they did absolutely no real research whatsoever but only wrote off the top of their head, they did not learn that ATOLL on its own could not expand to sell into and other countries or the former CIS ones as they had no licenses or access to capital to do so. To partner with NUCON-RF is a perfect match for ATOLL.
NUCON-RF has an agreement to co-lead an international consortium of European and Russian companies that will provide equipment, technologies and maintenance services to Rosenergoatom and their listed Russian contractors. Rosenergoatom is the operating utility of all Russia's nuclear power plants and is a main buyer from ATOLL. So ATOLL of course can see the huge benefit to them in this situation. Is there is a possible better fit to have the 50% shareholder in your company be the former Deputy Nuclear Power Minister of Russia and for them to already have an agreement with the country's operator of all nuclear power sites? I think there is no better partner in the world. For the unknown person to write that this is a mysterious acquisition is the most bizarre thing in my opinion. They even question the price of the acquisition. So on the one had they use innuendo to question the ATOLL company and on the other they say that that price paid is too small.
We have shown that this combining of these two companies is a perfect match and can help to expand the business for ATOLL . Besides the $2+ million in money they received 4 million is stock. Today it is true it is only worth $36 million but these are bright people and they see the huge renaissance of nuclear power plant construction going on in the world and they know also of the tremendous efforts underway and in the final planning to do remediation projects around the world and they know of the NUCON-RF expertise in this field. So yes at present the 4 million shares are only worth $36 but the owners of ATOLL understand that the share price will be much higher.
The writers from this website seem also blind to the knowledge of the formation of the huge Russian holding company ATOMPROM and what that means to the nuclear industry in Russia. I will not repeat the details here but they again so obviously did no research what so ever. Hint – ever hear of GAZPROM who has a $300 billion market cap and may become a $1 trillion market cap in 10 years? Twice the size or ExxonMobile Well ATOMPROM is modeled about the same but for the nuclear industry instead of gas – do a Google search to learn something. This site citronresearch has never come to the company or to ATOLL at all and they make things up as they wish. If this website were a real company or even had a serious writer they would visit a NUCON-RF or at least talk to them instead of hiding behind a URL. I invite them to come to Russian and see NUCON-RF and ATOLL in person. They seem to not understand that ATOLL is a very restricted company so have no website where you can look around. They work with very secure nuclear technology but I think a visit could be arranged for them
The writers make a very derogatory comment about Mercer Capital and again they show their total incompetence. They suggest that Mercer Capital is selling stock retail. Mercer Capital does private placement of stock and no retail and they could have learned this with one phone call that they did not make. This citronresearch is looking more and more like a scam site that tries to scare people into selling stock based on lies they write. I imagine that the Mercer Capital attorneys will have something to say about the false statements made.
So citronresearch never came to Russia to check anything but Mercer Capital has come twice. Which one is real - the one with real people and phones or citronresearch who is totally unknown and hides.
Speaking of phones the writer does not even know that NUCON-RF has its operational offices in Moscow Russia – hello – they state that the headquarters is a P.O. box.
Let's see – the Chairman of the board of NUCON-RF is Larry McQuade, Formerly Vice Chairman of Prudential Mutual Fund Management and Executive Vice President with W.R. Grace & Co. He also served as United States Assistant Secretary of Commerce from 1963 through 1969 and at the U.S. Department of Defense, as Assistant to the Assistant Secretary for International Security Affairs, in the administration of John F. Kennedy. With all of this the site citronresearch claims the headquarters for NUCON-RF is a P.O. box. I hate to use the word lame but really – do they not even check to see who is running a company they want to write about? Let me repeat--- Formerly Vice Chairman of Prudential Mutual Fund Management - United States Assistant Secretary of Commerce and yet they question the integrity of the company and at the same time give no name or phone number for themselves? They are a joke.
Did they not – no of course they didn't, know that the adviser to NUCON –RF is Valery Zubov, Ph.D., Member of the Russian Federal Parliament Committee on Credit Organizations and Financial Markets. In other words he oversees the stock market and banking regulations but this seeming low life site citronresearch prints the trash they said about NUCON-RF? Once again read who heads this company and with whom they have strategic relationships and learn a little. These relationships have been formed over many years and you only in the last year began to see the results and may more will come.
The thrust of the short article seems to be the hope that people would read and want to sell stock so citronresearch could make a profit on their short position in the stock.
We do not like to make any price predictions exactly here but let's suppose that knowing the extremely high level and qualified leadership of NUCON-RF, that what is in the press releases is becomes the case. We can extrapolate from the ATOLL releases $183 million in orders for 2007. As these are mostly from the main operator of all nuclear plants in Russia we need not question them. The profits in an earlier press release pointed to about an 18% profit so if that holds true it would be about $33 million and NUCON-RF's share is 50% or $16.5 million. There are two other acquisitions in the works and they may contribute $4 million more give or take. This is only a rough guide but in this case the profits would be $20.5 million or about $0.58 per share based on 35,000 shares outstanding. (again realize that these are my personal extrapolations for illustration purposes but you can do your own using the press releases) So far we only show that if this is the least they do the current share price seems low for average of a company in this field. PESI has a PE of about 23and ECOL a PE of 20 While CLHB (who does not do nuclear waste) has a PE of 24. So let's say an average of 22 x $0.58 gives us $12.76. This is before any additional contracts.
So the site operators of citronresearch who may be lemons but do absolutely no research want to short the stock in a company that trades at a forward PE lower than the other in the field but one that has significantly higher potential in my opinion than the other three mentioned.
One specialty of NUCON-RF with huge potential is in International nuclear decommissioning and remediation projects. They have established themselves. NUCON-RF has an agreement with the Department of Nuclear Sites Decommissioning of the Federal Agency of Nuclear Energy of the Russian Federation to supply nuclear safety technologies, products and equipment for Russian and G-8 funded nuclear waste decontamination projects.
At the moment the most urgent decontamination project is Andreyeva Bay, Building No.5, a highly contaminated former radioactive waste storage site undergoing decommissioning.
The total of projects to be funded in part by Russia, the G-8 or and/ or the European Bank of Reconstruction and Development is estimated to last until 2012 and perhaps beyond, will cost $4 billion and $2 billion of this amount will be funded under a G-8 funded decommissioning plan. Approximately $438.5 million of the $2 billion in working contracts have been concluded to date. NUCON-RF is awaiting any assignment of contracts.
So the shortsightedness of citronresearch does in any way grasp the very serious business that NUCON-RF is in and obviously as we have said they totally ignored the high level stature of the people running and connected to NUCON-RF.
This clean up above is only part of what is needed as we all know NUCON-RF has an agreement with ATOMSTROYEXPORT (another major part of what will become the giant ATOMPROM) in which NUCON-RF will become the project partner and supplier to ASE of technologies and services in the Chernobyl Shelter Implementation Plan funded by the G-7 donor countries through the European Bank for Reconstruction and Development in Ukraine. The principal aim of the plan is to convert Chernobyl's Reactor 4, destroyed by the 1986 nuclear accident, into an environmentally-safe site.
You see citronresearch sees only that a company seemed to appear out of nowhere and have a run up in the stock price. What they do not see are the years of planning that have taken place before. The company for simplicity reasons took over and exiting shell company to be in the US exchange as is a common practice. We know the company plans to move to the AMEX or other major exchange and they await the comment from their February *FORM 10-SB*filing.
NUCON-RF also has several proprietary technologies that have positioned the Company for multiple international projects.
NUCON-RF holds an exclusive license for NuCap™ in the Russian Federation and other CIS Countries. NuCap™ is a silicon-geopolymer material that stabilizes, encapsulates and stores nuclear waste for up to 170 years. It will be used on many of the cleanup sites.
NUCON-RF also owns a proprietary, moldable, non-toxic polymer-based nuclear energy shielding material known as FEECOM/BIECOM. FEECOM/BIECOM can be utilized in lieu of lead shielding. In the European Union, the use of lead will be banned as of 2010 for use in nuclear energy projects. NUCON-RF is in negotiations to establish its own European manufacturing facility for FEECOM/BIECOM as it anticipates strong demand for this product.
This should be enough for now to point out the total foolishness of the writing about NUCON-RF at citronresearch.
We would of course expect anyone to actually do something before they write and they made no call at all and no research either. We should expect them to remove their article from their site and to also make a retraction statement as they are being totally irresponsible and slanderous.
When we find out who these people are who hide behind their URL and make things up without checking first,. We will let you know.
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Breakouts the Ice Man may consider trading:
BTJ - 40
ENTG - 12
IOC - 32.20
AZ - 22.60
ALG - 40
ED - 52.80
LFL - 76
NICE - 38
ACN - 39.50
RYAAY - 50
Regular Trades the Ice Man may consider:
NWRE - 12.15 Close = 12.77 Gap
ZOLL - 28.60 = 29.50
IVN - 13
DIOD - 38
COGN - 42.50
LEND - 11.50
SYKE - 19.50
UPS - 73.20
Depressed stocks the Ice Man may buy:
CBA - 21.10 Gap
UCTT - 14.40 Gap * Best Bet
AKAM - 47.85 Gap
TZOO - 20 Gap
BMD - 3.25 * Best Bet
Extended Shorts the Ice Man may consider:
BHI - 80.50 / 81
Dollar Man Ideas:
UQM - 4.50 warning 4.70
PRLS - 3.15
SQNM - 3.50
NICH - 4.60 = 5.37 Gap
SGMO - 7.55
SSTR - 2
WBWT - 1.50
BMD - depressed Buy
AT 3.25 * Best Bet
Cramer's Comments:
Bullish: KO, PEP, CAKE, KSU;
Gorilla Trades:
New Potential Buys:
Google (GOOG): ABOVE $481.37, with a $525 first target, a $600 second target, and a $437 stop loss. Confirmation Volume Area = 5.1M Risk Rating = 4
Humana (HUM): ABOVE $64.41, with a $69.50 first target, a $76 second target, and a $59.50 stop loss. Confirmation Volume Area = 1.35M Risk Rating = 3
Richard the Break-out Buyer Video Summary:
Break out buy watch list for short term gains April 26 includes:PRLS, DRH, BTJ, FSLR, ALJ, LYO, POTP, JADE, WIRE.
Several candidates for break out or pullback plays for at least short term gains by buying the break out on good volume and selling at least some on the first day.
Swing Man Market Recap:
by Steve Nelson
Needless to say, the stock market incurred a strong broad based rally Wed. A very positive durable goods report helped the already strong futures get even stronger once before the market opened for trading. As a result, stocks gapped up at the open and for the most part rallied right into the closing bell. Yesterday’s action was quite impressive with all the major indices now officially on a breakout. Every US stock index we follow posted new bull market highs during today’s trading session. Even technology stocks participated in today’s rally as the semiconductor index added to Tuesday’s gains.
Patience can be hard to come by if all you do is play Nasdaq stocks. As you are aware, the Nasdaq was the only index prior to today that had yet to breakout. Well, the Nasdaq finally joined the other indices and broke out convincingly over the 2531 resistance level on extremely heavy volume and good breadth. This is a necessary combination if one is to believe in the breakout. The market is extremely overbought but remember, stochastic and RSI readings are secondary indicators and the primary indicators or price/volume served to confirm the breakout. The market will face strong resistance as the SPX nears the 1520-40 range and most likely will stall/pullback from these levels on the first test. That’s my belief and we could see some selling before reaching those levels but the reality is that we made a clean break yesterday that was confirmed by volume so let’s enjoy it for now.
The one constant during this bull market has been the investor sentiment issue. Traders need to be aware of sentiment issues when they are at extremes. Back in June of 2006, we saw two of the highest readings in history on the put call ratio of 1.87 and 1.92. Those two readings occurred within two days of each other and actually marked an intermediate bottom to the market. As I’ve pointed out over the past few weeks, we identified a very high 21 day put/call ratio which has served to provide fuel for this advance. Such a reading suggested that very few market participants believed the market was positioned to move higher. Although the readings have declined somewhat, they still remain relatively bullish at 0.96 which should continue to provide a tailwind for the market over the short term.
Of course there will be a time soon when we’ll have to deal with a more sustained pullback. In the meantime, don’t be spooked by normal selling days in between here and the major resistance levels discussed above. If something were to change, we’ll react accordingly but for now continue to participate in this strong advance. Let’s take things one day at a time and continue to stay disciplined with our trading.
Good Trading.
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CNBC Fast Money Review:
1. The Top 3
Dow Closes Above 13,000
Strazzini: 13,000 psychological threshold. Financial, asset managers will benefit. New investors coming into market.
Bolling: Dollar hitting multi-year lows. Upside to multinationals. Top 50 stocks in S&P have 72% international sales.
Adami: Likes HON.
Macke: Financial leading. Go long GS.
Apple Breaks $100
Bolling: Buy AAPL now before iPhone comes out. There is only upside.
Strazzini: Can buy as iPhone is released.
Goldman: Monumental earnings.
Runaway Trains
Bolling: Auto, housing still soft. Material transport for that sector via rails. NSC is not a buy.
2. Earnings Edge - Corning Inc.
Bolling: GLW is great play - good multinational exposure.
Adami: Compelling story.
3. Take Your Position
Playing Microsoft Ahead Of Earnings
Strazzini: Expects $14 billion in revenue. Look at Vista sales. Don't own MSFT before earnings.
4. Word on the Street
Bolling: Miners ripping - global growth, weak doller, liquidity. Likes FCX, HES, HCR.
My Cart Overfloweth
Bolling: Will be $68 or $42 by July.
Victoria's Other Secret
Macke: Own LTD for possible breakup speculation.
Wendy's For Sale
Adami: MCD is much better company.
Reinsurers Rejoice
Strazzini: XL, ACE on fire. Reinsurer space doing really well.
Nutrisystem's Healthy Rally
Adami: NTRI up 50% since Feb. Still going higher.
5. Face 2 Face
Becky from NC - COH, WSM, TIF, LVMUY?
Macke: Buy COH on dip.
Dick from DC - CTSH, WIT, SAY?
Adami: Likes WIT - third largest software provider in India.
Chi from NY - MRK?
Strazzini: Buy GSK, NVS for big pharma. Buy PDLI, IMMU in biotech.
Colonel Possum - GMO?
Bolling: Private equity looking at GMO. Buy GMO.
6. Final Trade
Bolling: AAPL, T are buys.
Macke: MSFT is a buy.
Strazzini: AXS is a buy.
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Breaking
News
:
Wendy's International on Wednesday said its board had formed a special committee to review strategic options to boost shareholder value, including a possible sale of the company. The announcement came as the No. 3 U.S. hamburger chain also reported a sharp drop in quarterly earnings. - CNBC
M&A Activity:
Computer Sciences Corp. (CSC), an information technology services company, will buy Covansys Corp. (CVNS) for about $1.3 billion in an all-cash transaction, according to a joint statement from the companies on Wednesday. - Reuters
IPO Central:
Dolan Media Company on Thursday filed to raise up to $150 million in an initial public offering with underwriters Goldman Sachs and Merrill Lynch. The Minneapolis-based company publishes 60 print publications consisting of 14 paid daily publications, 29 paid non-daily publications and 17 non-paid non-daily publications aimed at the legal, financial and real estate sectors in the United States. The company plans to trade on the New York Stock Exchange under the symbol DM. James P. Dolan, 57, serves as chairman and CEO. From 1989 to 1993, Dolan served first as managing director, and then executive vice president, of the Jordan Group, an investment bank specializing in media.
Economic Data:
8:30 Initial Claims
10:00 Help-Wanted Index
Stock Split Announcements:
Marathon Oil Corporation (Ticker: MRO) announced that its board of directors approved a 2 for 1 stock split.
CIGNA Corporation (Ticker: CI) announced that its board of directors approved a 3 for 1 stock split.
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Upgrades and Downgrades by Sector:
Audio-Video Equipmnt
EMR Emerson Banc of America Sec Price Target Raised Buy $50 to $54
Biotech
MBLX Metabolix Cantor Fitzgerald Price Target Raised Buy $26 to $40
Broadcasting
TVL Lin TV Stifel Nicolaus Downgraded from Buy to Hold
Brokerage Services
CNS Cohen & Steers UBS Upgraded from Neutral to Buy
Business Services
FIS Fidelity National Information Services Friedman Billings Price Target Raised Mkt Perform $45 to $48
Chemicals
PX Praxair JP Morgan Upgraded from Neutral to Overweight
Chemicals-Ethanol
VSE VeraSun Energy Piper Jaffray Initiated at Outperform $23
Computer Hardware
AAPL Piper Jaffrey Price Target Raised $140
FFIV F5 Networks Kaufman Bros Price Target Raised Buy $76 to $86
FFIV F5 Networks Banc of America Sec Price Target Raised Buy $95 to $100
FFIV F5 Networks Robert W. Baird Price Target Raised Outperform $80 to $83
MRVC MRV Comms Roth Capital Price Target Raised Buy $4.80 to $4.90
FFIV shares not attractive at these levels says JPMS Negative
Computer Services
AKAM STFL Says Buy on Dip
GSIC GSI Commerce CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform
Computer Software
ARBA Ariba RBC Capital Mkts Price Target Raised Sector Perform $10 to $12
CDNS Cadence Design RBC Capital Mkts Price Target Raised Outperform $23 to $25
MANH Manhattan Assoc RBC Capital Mkts Price Target Raised Sector Perform $26 to $28
MANH Manhattan Assoc Cantor Fitzgerald Price Target Raised Sell $26 to $28
TIBX TIBCO Software Goldman Sachs Downgraded from Neutral to Sell
CTXS Citrix Systems Kaufman Bros Cut Price Target Buy $38.50 to $38
Computer Technology
ISLN Isilon Systems RBC Capital Mkts Cut Price Target Outperform $27 to $18
Healthcare
PRAI PRA International Robert W. Baird Upgraded from Underperform to Neutral $19 to $21
CEPH Cephalon CIBC Wrld Mkts Price Target Raised Sector Outperform $89 to $93
SHPGY Shire Pharm RBC Capital Mkts Price Target Raised Sector Perform $72 to $75
QLTI QLT Inc RBC Capital Mkts Cut Price Target Sector Perform $9 to $8
VAR Varian Medical Jefferies & Co Downgraded from Buy to Hold $62 to $45
Heavy Machinery
AG AGCO Corp Wachovia Upgraded from Underperform to Mkt Perform
Hotels and Motels
CHH Choice Hotels CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $45 to $49
Industrial Equipment
DOV Dover Deutsche Securities Upgraded from Hold to Buy $53 to $56
GGG Graco Friedman Billings Downgraded from Outperform to Mkt Perform $46 to $43
DOV Dover Friedman Billings Cut Price Target Outperform $58 to $55
GGG Graco CIBC Wrld Mkts Cut Price Target Sector Outperform $50 to $46
Insurance
ABK AMBAC Fincl Friedman Billings Price Target Raised Outperform $105 to $106
UNM UNUMProvident Sun Trust Rbsn Humphrey Downgraded from Buy to Neutral
Mfg-Chinese Medicine
TCM Tongjitang Chinese Medic CIBC Wrld Mkts Initiated at Sector Outperform $13
Mfg-Instruments
VARI Varian Robert W. Baird Downgraded from Outperform to Neutral $55 to $63
Mining - Steel & Iron
GNA Gerdau AmeriSteel CIBC Wrld Mkts Price Target Raised Sector Outperform $12.50 to $15
Motion Pictures
WPTE WPT Enterprises Roth Capital Upgraded from Sell to Hold $4 to $5.50
Motor Vehicles
HMC Honda Motor Banc of America Sec Cut Price Target Buy $47 to $44
Oil and Gas
BHI Baker Hughes RBC Capital Mkts Price Target Raised Outperform $89 to $100
CNQ Canadian Natrl Res Banc of America Sec Price Target Raised Buy $58 to $64
RES RPC Inc Friedman Billings Price Target Raised Mkt Perform $15 to $20
HLND Hiland Partners Wachovia Downgraded from Outperform to Mkt Perform
HPGP Hiland Holdings Wachovia Downgraded from Mkt Perform to Underperform
Personal Services
NTRI Nutrisystem Kaufman Bros Price Target Raised Buy $85 to $90
NTRI Nutrisystem Citigroup Price Target Raised Buy $92 to $96
Regional Banks
PFBC Preferred Bank RBC Capital Mkts Price Target Raised Sector Perform $42 to $43
NRIM Northrim Bank Friedman Billings Downgraded from Outperform to Mkt Perform $32
MBHI Midwest Banc Friedman Billings Cut Price Target Mkt Perform $21 to $18
REITs
FPO First Potomac Realty RBC Capital Mkts Cut Price Target Sector Perform $31 to $29
ARC Affordable Residential RBC Capital Mkts Coverage Dropped
Restaurants
WEN Wendy's RBC Capital Mkts Price Target Raised Sector Perform $34 to $38
MRT Mortons Restaurant Group RBC Capital Mkts Cut Price Target Sector Perform $22 to $20
Retail Trade
GCO Genesco Banc of America Sec Price Target Raised Neutral $40 to $52
ORLY O'Reilly Auto Friedman Billings Price Target Raised Outperform $41 to $47
Savings & Loan
NYB NY Comm Bancrp RBC Capital Mkts Price Target Raised Sector Perform $14 to $15
BRKL Brookline Bancorp Friedman Billings Cut Price Target Outperform $17 to $15
Semiconductors
SWKS OPCO Upgraded to Buy $8
MCRL Micrel JMP Securities Upgraded from Mkt Perform to Mkt Outperform $15
MXIM Maxim Integrated Friedman Billings Price Target Raised Mkt Perform $30 to $35
XLNX Xilinx Banc of America Sec Price Target Raised Buy $32 to $36
Telecommunications
ARRS Arris Friedman Billings Price Target Raised Outperform $19 to $20
ARRS Arris Kaufman Bros Price Target Raised Buy $17 to $19
EQ Embarq RBC Capital Mkts Price Target Raised Sector Perform $58 to $60
QCOM DBAB Price Target Raised $58
RTN Raytheon Friedman Billings Price Target Raised Mkt Perform $54 to $61
XFML Xinhua Finance CIBC Wrld Mkts Initiated at Sector Outperform $14
ERIC LM Ericsson UBS Downgraded from Buy to Neutral
AV Avaya Banc of America Sec Cut Price Target Neutral $13 to $12
SNWL SonicWALL RBC Capital Mkts Cut Price Target Sector Perform $11 to $10
Tobacco
RAI Reynolds American JP Morgan Upgraded from Underweight to Neutral
Transportation
OSG Overseas Shipholding Jefferies & Co Price Target Raised Buy $78 to $84
OSG Overseas Shipholding Cantor Fitzgerald Price Target Raised Buy $80 to $87
Utilities
APU AmeriGas Partners Wachovia Upgraded from Mkt Perform to Outperform
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