Strategy The next ex-dividend date for LNN is expected on or around the 29th of May 2007. Traders may consider taking a long position on Monday the 21st of May leading up to the ex-dividend date and close this position approximately two weeks after the dividend on the 8th of June 2007 in anticipation that the stock may recover its dividend. We suggest members use a stop loss of $8.11. Technical Case The stock has been trending upward since 2000 and recently broke out of a long term ascending triangle pattern that had formed since 2005. Resistance lies at its all time high of $9.90, while short term support remains near $8.45. Fundamental Case Lion Nathan (LNN) announced solid results in the six months to March 2007. LNN produced a net profit of $162m, up 8.8% compared to the previous corresponding period. Revenues grew by 5.3% to $1b. In spite of higher commodity costs such as sugar and aluminum, brand growth together with successful product development were the key drivers behind the result. Planning of their Ready to Drink products has been been fairing well and LNN has revised its full year net profit guidance from $245-$260m to $250-$260m. The strategy to invest substantially into their power brands and focus strongly on targeted innovation to grow category value has kept the company in good stead. LNN is also on track to deliver a national presence in some of their products by the end of the financial year. It is still a well regarded defensive stock and management have declared an interim dividend of 19 cents per share.