WRPRIWKHHPDLOUHSO\WKDWDOOUHVSRQV
HVZHUHPDGHYLDFHOOSKRQHVHTXLSSHG
ZLWKHPDLO,KDWHWRWKLQN,GLVWXUEHG
VRPHRQHDIWHUQRUPDOZRUNKRXUVWR
DQVZHUP\TXHVWLRQVEXW,FDQSHU
VRQDOO\DWWHVWWKDW7DOHQW&HOOLVFRP
PLWWHGWRSURYLGLQJLPPHGLDWHFXVWRPHU
VXSSRUW
7KHILUVWTXHVWLRQ,DVNHG7DOHQW&HOO
ZDVKRZORQJLWWRRNWRFKDUJHWKHEDW
WHU\SDFNVVLQFHWKHLQVWUXFWLRQVKHHW
GLG QRW FRQWDLQ WKLV LQIRUPDWLRQ ,
DVVXPHG LW ZRXOG WDNH DURXQG VL[
KRXUVWRFKDUJHWKHP$KEDWWHU\
VLQFHWKHFKDUJHUKDVDYROW
DPSRXWSXW7DOHQW&HOOFRQILUPHGP\
DVVXPSWLRQDQGDIWHUDIHZEDWWHU\GLV
FKDUJHFKDUJHF\FOHV,FDQVWDWHLW
WDNHVDURXQGKRXUVWRIXOO\FKDUJHD
QHDUO\ GLVFKDUJHG EDWWHU\ &KDUJH
WLPH IRU WKH P$K EDWWHU\ LV
DURXQGWRKRXUVDVLWVFKDUJHUKDV
DDPSRXWSXW
7KH LQVWUXFWLRQ VKHHW LQGLFDWHV WKH
EDWWHU\FKDUJHUKDVDQ/('WKDWJORZV
UHGZKHQWKHEDWWHU\LVFKDUJLQJDQG
WXUQVJUHHQZKHQWKHEDWWHU\LVIXOO\
FKDUJHG6LQFH,GRQRWZDQWWRNHHSD
ZDWFKIXOH\HRQWKH/('ZKLOHWKHEDW
WHU\LVFKDUJLQJ,DVNHG7DOHQW&HOOLIWKH
EDWWHU\FKDUJHUDXWRPDWLFDOO\VZLWFKHV
WRD³IORDW ́PRGHDIWHUWKHEDWWHU\LVIXOO\
FKDUJHG , ZDV LQIRUPHG WKDW ERWK
FKDUJHUVVZLWFKWRIORDWPRGHDIWHUWKH
EDWWHU\SDFNVDUHIXOO\FKDUJHG KRZ
HYHULWLVUHFRPPHQGHGWKDWWKHEDW
WHULHVEHGLVFRQQHFWHGIURPWKHFKDUJ
HUDIWHUUHDFKLQJFDSDFLW\$OVR,FRXOG
QRWILQGLQWKHLQVWUXFWLRQVKHHWRUWKHLU
DGYHUWLVLQJKRZPDQ\GLVFKDUJHF\FOHV
,FRXOGH[SHFWIURPHLWKHUEDWWHU\SDFN
,ZDVDQWLFLSDWLQJDERXWF\FOHVEXW
ZDVLQIRUPHGWKDW,FDQH[SHFWEHWZHHQ
DQGF\FOHV
7KHODVWTXHVWLRQ,DVNHG7DOHQW&HOO
VWHPPHG IURP P\ VNHSWLFDO PLQG ,
DVNHGLIWKHFHOOVXVHGLQWKHEDWWHU\
SDFNV DUH PDQXIDFWXUHG GLUHFWO\ E\
7DOHQW&HOORUDUHWKH\SXUFKDVHGIURP
DQRWKHUFRPSDQ\DQGWKHQDVVHPEOHG
LQWREDWWHU\SDFNV7DOHQW&HOOLQGLFDWHG
WKDWVRPHRIWKHLUSURGXFWVXVHFHOOV
PDQXIDFWXUHGLQKRXVHEXWWKH\DOVR
SXUFKDVHFHOOVIURP3DQDVRQLF/*DQG
6DPVXQJIRUXVHLQVRPHRIWKHLUSURG
XFWOLQHV,GLGQRWSUHVVWKHLVVXHRI
ZKHWKHUWKHVSHFLILFEDWWHU\SDFNV,SXU
FKDVHGZHUHPDGHIURPFHOOVPDQX
IDFWXUHGE\WKHPRURWKHUV LWZDVDP
LQ &KLQD ZKHQ , UHFHLYHG WKHLU
UHVSRQVH %DVHGRQP\REVHUYDWLRQV
,EHOLHYHWKHFHOOVLQWKHP$KEDW
WHU\SDFNPD\KDYHEHHQPDQXIDFWXUHG
E\ 7DOHQW&HOO DQG WKH FHOOV LQ WKH
P$KEDWWHU\SDFNZHUHPDQX
IDFWXUHGE\/*VLQFHWKHFRGHRQHDFK
FHOOVWDUWHGZLWK/*
Key Parameters
:KHQUHVHDUFKLQJDQGSXUFKDVLQJEDW
WHU\SDFNVLWLVLPSRUWDQWWKDW\RXNQRZ
WKHPD[LPXPFXUUHQWGUDZRIWKHORDG
LHDPRXQWRIFXUUHQWGUDZQIURPWKH
453WUDQVFHLYHUZKLOHWUDQVPLWWLQJDW
WKHKLJKHVWRXWSXWGHVLUHG DQGFRP
SDUHWKLVYDOXHWRWKHFRQWLQXRXVGLV
FKDUJHUDWHRIWKHEDWWHU\QRWWKHQRP
LQDO EDWWHU\ FDSDFLW\ 7KH QRPLQDO
EDWWHU\FDSDFLW\LVVLPSO\WKHWRWDOVWRU
DJHFDSDFLW\RIWKHEDWWHU\SDFNDQG
GRHVQRWUHSUHVHQWWKHFRQWLQXRXVGLV
FKDUJH UDWH ZKLFK LV WKH PD[LPXP
DPRXQWRIFXUUHQWWKDWFDQEHFRQWLQX
RXVO\GUDZQIURPWKHEDWWHU\SDFN)RU
H[DPSOH7DOHQW&HOO¶VYROW
P$KEDWWHU\SDFNKDVDWRWDOVWRUDJH
FDSDFLW\RIDPSVEXWLVGHVLJQHGWR
KDYHDPD[LPXPFRQWLQXRXVGLVFKDUJH
UDWHRIRQO\DPSV7KHEDWWHU\SDFN
ZLOOEHGDPDJHGLIPRUHWKDQDPSV
DUHFRQWLQXRXVO\GUDZQ/LNHZLVHWKH
YROWP$KEDWWHU\SDFNKDVD
FRQWLQXRXVGLVFKDUJHUDWHRIDPSV
QRWDPSVZKLFKLVWKHEDWWHU\¶VQRP
LQDOEDWWHU\FDSDFLW\7KLVFDQEHFRQ
IXVLQJVREHVXUHWRFORVHO\UHYLHZWKH
EDWWHU\¶VVSHFLILFDWLRQVZKHQUHVHDUFK
LQJEDWWHU\SDFNV'RQRWDVVXPHDEDW
WHU\DGYHUWLVHGDVP$KZLOOSUR
YLGHDPSVRIFRQWLQXRXVGUDZDVWKLV
LVQRWDOZD\VWKHFDVH
Do They Work?
$VRIWKLVZULWLQJ,KDYHQRWKDGDQ\
LVVXHVZLWKWKHVHEDWWHU\SDFNV KRZ
HYHU , KDYH RQO\ SXW HDFK EDWWHU\
WKURXJKDIHZGLVFKDUJHF\FOHV,ZLOO
SURYLGHDQXSGDWHLQP\2FWREHUFRO
XPQUHJDUGLQJKRZZHOOWKH\DUHSHU
IRUPLQJ,EHOLHYHWKLVLVPRQH\ZHOO
VSHQWDQGKRSHWKH\FRQWLQXHWRSHU
IRUPDVH[SHFWHGVLQFHWKHUHLVDFRQ
VLGHUDEOHGLIIHUHQFHLQZHLJKWEHWZHHQ
WKHVHEDWWHU\SDFNVDQGWKHJHOFHOO
EDWWHULHV,DPDFFXVWRPHGWRXVLQJ0\
DFK\EDFNDQGVKRXOGHUDUHDOUHDG\
WKDQNLQJ PH IRU WRWLQJ WKH OLJKWHU
ORDG ZKHQ , VHW RXW IRU D SRUWDEOH
RSHUDWLRQ 2YHUDOO WKLV DSSHDUV WR
KDYHEHHQDJRRGFKDQJHIRUP\453
SRZHUQHHGV
A Look Ahead
$QRWKHU FKDQJH , DP ZRUNLQJ RQ LV
VZDSSLQJRXWVRPHRIP\ZLUHDQWHQ
QDVERWKDWKRPHDQGWKRVH,XVHIRU
SRUWDEOHRSHUDWLRQZLWKDQWHQQDVPDGH
IURP³6DEUHWRRWK:LUH ́$IWHUUHDGLQJ
WKH -XO\ &4 DUWLFOH ³7KH
6DEUHWRRWK :LUH $Q ,QQRYDWLRQ LQ
$QWHQQD/HQJWK6KRUWHQLQJ ́E\(ULF
.QLJKW.%(+(,EHJDQWKLQNLQJKRZ
,FRXOGDSSO\WKHVDEUHWRRWKZLUHLGHD
WRVKRUWHQDQWHQQDVIRURSHUDWLRQVRQ
WKHWUDLODQGSHUKDSVEXLOGRQHIRUH[SHU
LPHQWLQJDWWKHKRPH47+,KDYHD
UHFXUULQJGUHDPDERXWFRQVWUXFWLQJD
ORRSXVLQJKRPHEUHZVDEUHWRRWKZLUH
3KRWR' ,DPKRSHIXOWKHVDEUHWRRWK
GHVLJQ ZLOO VXIILFLHQWO\ VKRUWHQ P\
SRUWDEOH ZLUH DQWHQQDV IRU WKH ORZ
EDQGV DQGPHWHUV VR,FDQPRUH
HDVLO\GHSOR\WKHP,DPSODQQLQJDIXOO
XSGDWHIRUWKH2FWREHUFROXPQWKDWFRY
HUVFRQVWUXFWLRQH[SHULPHQWDWLRQDQG
SHUIRUPDQFHRIWKHVHDQWHQQDVIRUXVH
RQWKHWUDLODQG47+DVZHOODVXSGDWH
RQRWKHU453DFWLYLWLHV
8QWLO2FWREHU
ZZZFTDPDWHXUUDGLRFRP $XJXVW &4
:6$,ZDVNQRZQIRUKLVHDV\WR
XQGHUVWDQGZULWLQJVW\OH,QNHHSLQJZLWKWKLVWUDGLWLRQWKLVERRNLVDWKRURXJKO\
UHDGDEOHWH[WIRUDQ\DQWHQQDHQWKXVLDVWMDPSDFNHGZLWKGR]HQVRI
LQH[SHQVLYHSUDFWLFDODQWHQQDSURMHFWVWKDWZRUN
; 3DSHUEDFN
&' 9HUVLRQ
%X\ERWKIRURQO\
:6$, +) $QWHQQD+DQGERRN
%<%,//255:6$,