From: Richard Kahn

Sent: Thursday, August 14, 2014 1:40 PM
To: Jeffrey E.
Subject: Re: Bruce Galloway

do you have a specific time you would like to speak with him?

Richard Kahn
HBRK Associates Inc.
575 Lexington Avenue 4th Floor
New York, NY 10022
tel █████████████
fax █████████████
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On Aug 14, 2014, at 9:16 AM, jeffrey E. <jeevacation@gmail.com <mailto:jeevacation@gmail.com» wrote:

confernce with him today

<u>On Thu Au</u> 14 <u>2014 at 9:03</u> AM, Richard Kahn

wrote:

account closed at 3,720,139.67 last night (see attached) there are 14 option positions expiring on 8/16/2014 only 4 positions have value that must be sold and all others will expire worthless:

1) C 49 Calls 400 quantity bid 0.15 / 0.16 ask 6,000 value

2) PEIX 16 Calls 270 quantity bid 3.80 / 4.20 ask 102,600 value

3) RDNT 5 Calls 110 quantity bid 1.70 / 1.85 ask 18,700 value

4) YHOO 33 Calls 120 quantity bid 3.05 / 3.25 ask 33,600 value

In email below Bruce is asking if he can role PEIX calls to a later month Please advise

From: Bruce Gallowa

Subject: PEIX CALLS

Date: August 13, 2014 at 4:24:45 PM EDT

RICH, We have a n option position expiring on Friday, PEIX . They are a premier west coast ethanol producer. Due to corn prices tanking and a bumper crop, along with firm ethanol export demand, the crush spread for them is currently .70. They produce 200mm gallons per year. At this rate the co. should make 140mm . The market cap is 440mm or 3x earnings . I feel that it should trade at 7-8X, which implies a 40-60 dollar stock price. As a result, I would like to roll the position into a forward contract. Let me know if this is OK . This is an industry thrown out for dead. The stock is down from 6500 to 20.

Begin forwarded message:

- Context: "Begin forwarded message:" and "please note"
- From: [redacted]
- Subject: Message from KMBT_C253
- Date: August 13, 2014 at 4:11:46 PM EDT
- To: [redacted]
- Reply-To: [redacted]

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