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<SEC-DOCUMENT>0000930413-10-000890.txt : 20100602
<SEC-HEADER>0000930413-10-000890.hdr.sgml : 20100602
<ACCEPTANCE-DATETIME>20100219140330
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000930413-10-000890
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REX STORES CORP
		CENTRAL INDEX KEY:			0000744187
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731]
		IRS NUMBER:				311095548
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2875 NEEDMORE RD
		CITY:			DAYTON
		STATE:			OH
		ZIP:			45414
		BUSINESS PHONE:		5132763931

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUDIO VIDEO AFFILIATES INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD><TITLE></TITLE></HEAD>
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<P ALIGN=CENTER><FONT SIZE=2>REX Stores Corporation<BR>
2875 Needmore Road<BR>
Dayton, Ohio 45414<BR>
(937) 276-3931</FONT></P>

<P><FONT SIZE=2>February 19,
2010</FONT></P>

<P><FONT SIZE=2>Mr. Scott
Anderegg<BR>
Staff Attorney<BR>
United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549</FONT></P>

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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>RE:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>REX Stores
 Corporation</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Form 10-K
 for Fiscal Year Ended January 31, 2009,</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Filed April
 16, 2009</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Form 10-Q
 for Fiscal Quarter Ended October 31, 2009</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Filed
 December 3, 2009</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Definitive
 Proxy Statement filed on Schedule 14A Filed April 28, 2009</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>File No.
 001-09097</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Dear Mr.
Anderegg:</FONT></P>

<P><FONT SIZE=2>The following
letter sets forth below the responses of REX Stores Corporation (the &#147;Company&#148;)
to the comments of the Staff of the Division of Corporation Finance in its
letter to the Company dated January 27, 2010, with respect to the above
referenced filings. In responding to the Staff&#146;s comments, we have utilized the
headings and numbering system in the Staff&#146;s letter. This letter has been filed
with the Commission as correspondence through EDGAR. We will include the
content of our responses in all appropriate future filings, beginning with the
Form 10-K for the year ended January 31, 2010. The Staff&#146;s comments, indicated
in bold, are followed by the Company&#146;s responses. Modifications to disclosures
in previous filings are underlined.</FONT></P>

<P><FONT SIZE=2><U><B>Form 10-K</B></U></FONT></P>

<P><FONT SIZE=2><U><B>General</B></U></FONT></P>

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 </TD>
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 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>1.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>We note that you disclose in your Form 10-K that you anticipate that
 you will exit your retail operations during fiscal 2009. We further note that
 in your Form 8-K filed on September 9, 2009 you disclose that you had closed
 your remaining retail locations. In this regard, we note that while you have
 some real estate activity, investing in the ethanol business has become your
 primary business. Consequently, it appears that your company may be an
 &#147;investment company&#148; within the meaning of the Investment Company Act. Please
 give us your analysis of the applicability of the Act to your company. We may
 have additional comments after we review your responses.</B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>We believe the
Company is not an &#147;investment company&#148; within the meaning of the Investment
Company Act. </FONT></P>

<P><FONT SIZE=2>There are two
basic definitions of investment company under the Act:</FONT></P>

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 </TD>
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 </TD>
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 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3(a)(1)(A) &#150; A company which is, or holds itself out as being, engaged
 primarily in the business of investing, reinvesting or trading in securities.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3(a)(1)(C) &#150; A company which is engaged in the business of investing,
 reinvesting, owning, holding or trading in securities, and owns investment
 securities<SUP>1</SUP> having a value exceeding 40% of the value of the company&#146;s
 total assets (exclusive of Government securities and cash items) on an
 unconsolidated basis.</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In determining
whether a company is &#147;engaged primarily&#148; in an investment company business for
purposes of Section 3(a)(1)(A), the courts and the Commission staff have looked
to the following five factors<SUP>2</SUP>:</FONT></P>

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 </TD>
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 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>1.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>the issuer&#146;s
 historical development;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
</tr>
 <TR>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>the issuer&#146;s
 public representations of policy;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
</tr>

 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>3.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>the
 activities of the issuer&#146;s officers and directors;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
</tr>

 <TR>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>4.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>the nature
 of the issuer&#146;s present assets; and</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
</tr>

 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>5.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>the sources
 of the issuer&#146;s present income.</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Historically,
we were a specialty retailer in the consumer electronics/appliance industry. We
began investing in various alternative energy entities beginning with synthetic
fuel partnerships in 1998 and later with ethanol production facilities in 2006.
Following an evaluation of strategic alternatives for our retail segment in
fiscal 2007, we began closing unprofitable and marginally profitable stores and
monetizing our retail-related assets, eventually winding down our retail
operations during 2008 and closing our remaining retail locations in fiscal
year 2009. </FONT></P>

<P><FONT SIZE=2>We currently
have invested approximately $115 million in four entities that own and operate
ethanol production facilities. We have majority ownership interests in
Levelland Hockley County Ethanol, LLC (56%) and One Earth Energy, LLC (74%); we
are the largest percentage owner of voting securities in Patriot Renewable
Fuels, LLC (23%) and hold a convertible note enabling us to increase our
ownership interest; and we have a minority interest in Big River Resources, LLC
(10%).</FONT></P>

<P><FONT SIZE=2>We have
publicly represented that we will continue to consider additional investments
in the alternative energy segment. We anticipate that the investments will
constitute majority,</FONT></P>

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 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>

 <HR SIZE=1 WIDTH="20%" NOSHADE COLOR="#ACA899" ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P style="margin-top:-3px"><FONT SIZE="2"><SUP>1</SUP> </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P style="margin-top:3px"><FONT SIZE=2>&#147;Investment
 securities&#148; are defined to include all securities except Government
 securities and securities issued by majority-owned subsidiaries which are not
 themselves investment companies or relying on an exemption for private
 investment companies.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P style="margin-top:-3px"><FONT SIZE="2"><SUP>2</SUP> </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P style="margin-top:3px"><FONT SIZE=2><I>See</I> Tonopath
 Mining Company of Nevada, 26 S.E.C. 426 (1947).</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>controlling or
minority ownership positions, depending upon the opportunities presented,
tailored to the specific needs and goals of each plant project and the local
farmer group or investor with whom we are partnering.</FONT></P>

<P><FONT SIZE=2>Our
alternative energy business strategy focuses on partnering with farmer groups,
local groups, or farmer-controlled cooperatives to develop ethanol production
plants. Our partnership model generally enables farmer groups to retain local
management of the project, including control of their crops as a supplier to
the project, while we provide capital and business administration experience.
Our officers actively participate in the development and management of the ethanol
projects through membership on the board of managers of the limited liability
companies that own the plants. Our officers advise and assist our ethanol
partners in operational and financial matters, including risk management,
feedstock procurement, plant management, and ethanol and co-products marketing.
We make &#147;hands on&#148; investments in ethanol entities, not passive investments
typical of an investment company business.</FONT></P>

<P><FONT SIZE=2>The most
important of the <I>Tonopath</I> factors are the nature of the issuer&#146;s present
assets and the sources of its present income. The Commission staff has stated
that, as a general rule, if a company has no more than 45% of its assets
invested in, and derives no more than 45% of its income from, investment
securities, it will not be regarded as being primarily engaged in investing in
securities. This 45% assets and income level is also the test adopted in Rule
3a-1 which excepts certain companies under the Section 3(a)(1)(C) definition.</FONT></P>

<P><FONT SIZE=2>As of October
31, 2009, 21.0% of the value of our total assets (exclusive of Government
securities and cash items) consisted of, and 14.7% of our net loss for the
previous four fiscal quarters then ended was derived from, investments in
minority-owned ethanol entities and other investment securities.<SUP>3</SUP> <I>See</I>
Annex 1 attached hereto. </FONT></P>

<P><FONT SIZE=2>The Staff has
taken the position that if a company has both a net investment loss and a total
net loss for the measuring period, the income test in Rule 3a-1 is satisfied if
no more than 45% of the company&#146;s net loss is derived from investment
securities.<SUP>4</SUP></FONT></P>

<P><FONT SIZE=2>For the
reasons discussed above, we believe we are not &#147;engaged primarily&#148; in the
business of investing in securities under Section 3(a)(1)(A) and we do not meet
the definition of <I>prima facie</I> investment company in Section 3(a)(1)(C) or Rule
3a-1.</FONT></P>

<P><FONT SIZE=2><U><B>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations, page 21</B></U></FONT></P>

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 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>

 <HR SIZE=1 WIDTH="20%" NOSHADE COLOR="#ACA899" ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P style="margin-top:-3px"><FONT SIZE="2"><SUP>3</SUP> </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P style="margin-top:3px"><FONT SIZE=2>These
 percentages were determined on an unconsolidated basis, except that
 wholly-owned subsidiaries were consolidated.
 <I>See</I>
 Rule 3a-1(c).</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P style="margin-top:-3px"><FONT SIZE="2"><SUP>4</SUP> </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P style="margin-top:3px"><FONT SIZE=2><I>See</I> DRX, Inc., SEC
 No-Action Letter (Jan. 28, 1988)</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

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 <TR STYLE="FONT-SIZE:1PX">
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 </TD>
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 </TD>
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 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>We note that following a comprehensive
 analysis, you decided to exit from your retail operations. Please expand your
 discussion to provide further details of your analysis that lead to your
 decision to exit your retail business. In this regard, your discussion should
 address why you decided to exit your retail business, why you are exiting in
 this manner and what, if any, alternatives you considered. We note that you
 provided some of this disclosure in your Form 10-K for the period ended
 January 31, 2008 in response to prior comments issued by the staff, however,
 it is not clear why you have omitted this disclosure for this year or whether
 you plan to provide such disclosure for the upcoming year. Please advise.</B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In response to the staff&#146;s comments, we propose to revise future
filings to enhance the discussion of our business. We have modified the
&#147;Overview&#148; disclosure from the January 31, 2009 Form 10-K to illustrate the
enhanced disclosure we are contemplating. See the second paragraph of our
response to comment 3 below. </FONT></P>

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 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>3.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>As we previously requested, please expand
 this section to discuss known material trends and uncertainties that will
 have, or are reasonably likely to have, a material impact on your revenues or
 income or result in your liquidity decreasing or increasing in any material
 way. Refer to our comment letters dated January 31, 2008 and March 12, 2008
 and your response letters dated February 21, 2008 and March 19, 2008. In this
 regard, we note that you had a net loss of approximately $9 million from your
 alternative energy segment for the fiscal year ended January 31, 2009. In
 light of your disclosure that you are exiting your retail segment, please
 discuss whether you expect the trend of net losses to continue. Please
 provide additional analysis concerning the quality and variability of your
 earnings and cash flows so that investors can ascertain the likelihood of the
 extent past performance is indicative of future performance. Please discuss
 whether you expect levels to remain at this level or to increase or decrease.
 Further, please discuss in reasonable detail:</B></FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

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 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="8%" VALIGN=TOP>
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 </TD>
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 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>&#149;</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Economic or industry-wide factors relevant
 to your company, and</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
</tr>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>&#149;</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Material opportunities, challenges, and</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
</tr>

 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>&#149;</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Risk in short and long term and the actions
 you are taking to address them.</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2><B>See Item 303 of Regulation S-K and SEC
 release No. 33-8350. To the extent applicable, please also consider these
 factors in preparing your Management&#146;s Discussion and Analysis of Financial
 Condition and Results of Operations for your Form 10-Qs.</B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>In response to the staff&#146;s comments, we propose to revise future filings
to enhance the discussion of our business. We have modified the disclosure from
the January 31, 2009 Form 10-K to illustrate the enhanced disclosure we are
contemplating. </FONT></P>

<P><FONT SIZE=2><B>Overview</B></FONT></P>

<P><FONT SIZE=2>Historically,
we were a specialty retailer in the consumer electronics and appliance industry
serving small to medium-sized towns and communities. In addition, we have been
an investor in various alternative energy entities beginning with synthetic fuel partnerships in 1998 and later
ethanol production facilities beginning in 2006. </FONT></P>

<P><FONT SIZE=2>In fiscal year 2007, we began to evaluate strategic alternatives for
our retail segment with a focus on closing unprofitable or marginally
profitable retail stores and monetizing our retail-related real estate assets. <U>We
did not believe that we were generating an adequate return from our retail
business due to the competitive nature of the consumer electronics and
appliance industry and the overall economic conditions in the United States.</U> Reflecting this focus, we sold approximately
60% of our owned retail and vacant stores in fiscal year 2007 <U>and
leased back a portion of the stores which had been operating as electronics and
appliance retail stores.</U> <U>In</U> <U>fiscal
year 2008, we commenced an evaluation of a broad range of alternatives intended
to derive value from the remaining retail operations and our remaining real
estate portfolio. We engaged an investment banking firm to assist us in
analyzing and ultimately marketing our retail operations. As part of those
marketing efforts, </U>late in fiscal
year 2008, we leased 37 owned store locations to a third party for an initial
term of 6.25 years. We also provided the lessee an option to purchase all of
the properties being leased from REX during the first two years of the lease
term. The lessee also reached an agreement to lease or sub lease two of our
leased locations. We anticipate closing, in fiscal year 2009, the remainder of
the retail locations the lessee does not take over from REX. <U>We
intend to market for sale or lease those remaining store locations and our
related distribution warehouses which we own. Should our marketing efforts result in additional tenants to whom we
lease property to, we would expect the leasing activities to continue for the
next three to ten years, depending on the terms of the leases we execute.</U></FONT></P>

<P><FONT SIZE=2>We currently have invested approximately $115 million in
four ethanol production entities, two of which we have a majority ownership
interest in. We have no definitive
plans, beyond our existing commitments of approximately $3 million, but will
continue to consider additional investments in the alternative energy segment.</FONT></P>

<P><FONT SIZE=2><U>Our ethanol operations are highly dependent on commodity prices,
especially prices for corn, sorghum, ethanol, distillers grains and natural
gas. As a result of price volatility for these commodities, our operating
results can fluctuate substantially. The price and availability of corn and
sorghum are subject to significant fluctuations depending upon a number of
factors that affect commodity prices in general, including crop conditions,
weather, federal policy and foreign trade. Because the market price of ethanol
is not always directly related to corn and sorghum prices, at times ethanol
prices may lag movements in corn prices and, in an environment of higher
prices, reduce the overall margin structure at the plants. As a result, at
times, we may operate our plants at negative or marginally positive operating
margins. </U></FONT></P>

<P><FONT SIZE=2><U>We expect our ethanol plants to produce approximately 2.8 gallons of
ethanol for each bushel of grain processed in the production cycle. We refer to
the difference between the price per gallon of ethanol and the price per bushel
of grain (divided by 2.8) as the &#147;crush spread.&#148;
Should the crush </U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U>spread decline or remain at current levels, our ethanol plants are
likely to continue generating operating results that do not provide cash flow
for sustained periods of time. In such cases, production at the ethanol plants
may be reduced or stopped altogether in order to minimize variable costs at
individual plants. We expect these decisions to be made on an individual plant
basis, as there are different market conditions at each of our ethanol plants.</U></FONT></P>

<P><FONT SIZE=2><U>We attempt to manage the risk related to the volatility of grain and
ethanol prices by utilizing forward grain purchase and ethanol and distillers
grain sale contracts. We attempt to match quantities of ethanol and distillers
grains sale contracts with an appropriate quantity of grain purchase contracts
over a given period of time when we can obtain an adequate gross margin
resulting from the crush spread inherent in the contracts we have executed.
However, the market for future ethanol sales contracts is not a mature market.
Consequently, we generally execute contracts for no more than three months into
the future at any given time. As a result of the relatively short period of
time our contracts cover, we generally cannot predict the future movements in
the crush spread for more than three months;
we are unable to determine the likelihood or amounts of future income or loss
from the operations of our ethanol facilities.</U></FONT></P>

<P><FONT SIZE=2><U>We believe the crush spread realized in 2008 is the direct result of
significant volatility in the pricing of corn and sorghum which closely follows
corn pricing. For example, for calendar year 2008, the average Chicago Board of
Trade (&#147;CBOT&#148;) near-month corn price was approximately $5.25 per bushel, with
highs reaching nearly $8.00 per bushel and retreating to approximately $4.00
per bushel as of year end. We believe this market volatility was attributable
to a number of factors, including but not limited to export demand,
speculation, currency valuation, global economic conditions, ethanol demand and
current production concerns. During 2008, the pricing of ethanol decreased
consistent with pricing for gasoline which tightened the crush spreads for our
plants and many others in the ethanol industry. Throughout 2008, ethanol
pricing lagged gasoline pricing by approximately $.15 to $.20 on a per gallon
basis. We believe that gasoline and ultimately ethanol pricing was impacted by
the overall economic recession experienced in 2008 which reduced demand for
these fuel products. </U></FONT></P>

<P><FONT SIZE=2><U>We reported a loss (before income taxes and minority interest) from our
alternative energy segment of approximately $9.0 million in fiscal year 2008.
Of this loss, approximately $4.9 million relates to interest rate swaps held by
Levelland Hockley, One Earth and Patriot. In general, declining interest rates
have a negative effect on our interest rate swaps as our swaps fixed the interest
rate of variable rate debt. As interest rates declined during fiscal year 2008,
we incurred large losses on the interest rate swaps. Should interest rates
continue to decline, we would expect to experience continued losses on the
interest rate swaps. We would expect to incur gains on the interest rate swaps
should interest rates increase. We cannot predict the future movements in
interest rates; thus, we are unable to determine the likelihood or amounts of
future gains or losses related to interest rate swaps. Levelland Hockley began
production operations during fiscal year 2008. We typically expect our ethanol
plants to operate at less than peak efficiency during the first two to three
months of initial production operations. We expect One Earth to experience
similar production inefficiencies during its anticipated commencement of
production operations in fiscal year 2009. In addition, Levelland Hockley
incurred a loss, excluding the loss on the interest rate swap, of approximately
$4.4 million in fiscal year 2008. </U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><U>Levelland Hockley experienced lower than expected gross profit in
fiscal year 2008, primarily a result of the unfavorable spread between ethanol
and grain prices experienced while Levelland commenced initial production. </U></FONT></P>

<P><FONT SIZE=2>We plan to
seek and evaluate various investment opportunities including energy related,
agricultural and real estate. We can make no assurances that we will be
successful in our efforts to find such opportunities. </FONT></P>

<P><FONT SIZE=2><B>Investments in Alternative Energy </B></FONT></P>

<P><FONT SIZE=2>In fiscal year
2006, we entered the alternative energy industry by investing in several
entities organized to construct and, subsequently operate, ethanol producing
plants. We have invested in five entities, four of which we remain invested in
as of January 31, 2009, utilizing both debt and equity investments. We sold our
investment in Millennium during fiscal year 2007. </FONT></P>

<P><FONT SIZE=2>The following
table is a summary of our ethanol investments (amounts in thousands, except
operating capacity and ownership percentages): </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="35%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD NOWRAP VALIGN=BOTTOM>
 <P><FONT SIZE=1><B>Entity</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Initial<BR>
 Equity<BR>
 Investment</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Operating<BR>
 Capacity<BR>
 Million<BR>
 Gallons<BR>
 Per Year</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Ownership<BR>
 Percentage</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Debt<BR>
 Investment</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Contingent<BR>
 Commitment</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
<tr>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>

 <TR bgcolor=#e6e6e6>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Levelland Hockley County Ethanol, LLC</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>16,500</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>40</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>56</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>%</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>5,516</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>3,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Big River Resources, LLC</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>20,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>192</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>%</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR bgcolor=#e6e6e6>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Patriot Renewable Fuels,
 LLC</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>16,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>100</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>%</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>933</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>One Earth Energy, LLC</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>50,765</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>100</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>74</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>%</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR bgcolor=#e6e6e6>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Total</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>103,265</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>6,449</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>3,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Big River has
begun construction of its second plant which has a design capacity of 100
million gallons of and 320,000 tons of DDG per year. The plant is located in
Galva, Illinois and construction of the plant is expected to be completed by
June 2009. </FONT></P>

<P><FONT SIZE=2>The Levelland
Hockley and Patriot facilities became operational during fiscal year 2008. We
expect the construction of the One Earth facility to be completed by mid-year
2009. </FONT></P>

<P><FONT SIZE=2><U><B>Overview, page 21 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>4.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please discuss the key driver(s) of operating performance in your
 alternative energy business; for example, the spread between ethanol and corn
 or sorghum prices. Discuss the reasons for the recent declines in the spread
 and whether the declines are a trend that you expect to continue into the
 future and why or why not. Indicate the likely impacts on your business if
 the spread does not improve and what actions management expects to take in
 that situation. Refer to Item 303(a) of Regulations S-K and Commission
 Guidance Regarding Management&#146;s </B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Discussion and Analysis of Financial Condition and Results of
 Operations, Interpretive Release No. 34-48960.</B> </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>See response
to comment 3. </FONT></P>

<P><FONT SIZE=2><U><B>Retail, page 21 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>5.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please discuss with reasonable specificity your expectations
 regarding the continuing/future impact on your results of operations of your
 extended warranty operations upon completing your exit from the retail
 business. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In response to
the staff&#146;s comments, we propose to revise future filings to enhance the
discussion of our extended warranty operations. We have modified the disclosure
from the January 31, 2009 Form 10-K to illustrate the enhanced disclosure we
are contemplating. </FONT></P>

<P><FONT SIZE=2><B>Retail </B></FONT></P>

<P><FONT SIZE=2>As of January
31, 2009, we operated 90 stores in 30 states under the &#147;REX&#148; trade name. Our
comparable store sales decreased 10.3% for fiscal year 2008, decreased 6.7% for
fiscal year 2007, and increased 5.0% for fiscal year 2006. We believe our
comparable store sales have recently been negatively affected by overall
economic conditions, increased competition and rapid change in television
technology, resulting in the loss of CRT, light engine and projection
television sales. We consider a store to be comparable after it has been open
six full fiscal quarters. Comparable store sales comparisons do not include
sales of extended service contracts. </FONT></P>

<P><FONT SIZE=2>Our extended
service contract revenues and sales commissions are deferred and amortized on a
straight-line basis over the life of the contracts after the expiration of
applicable manufacturers&#146; warranty periods. Terms of coverage, including the
manufacturers&#146; warranty periods, are usually for periods of 12 to 60 months.
Extended service contract revenues represented 5.6% of net sales and revenue
for fiscal year 2008, 7.0% of net sales and revenue for fiscal year 2007 and
6.1% of net sales and revenue for fiscal year 2006. Service contract repair
costs are charged to operations as incurred. <U>We expect to continue
recognizing extended service contract revenues through January 2014, although
the revenues will decline annually as we are no longer selling new contracts.
We typically service a warranty claim through a network of third party repair
and service providers. Warranty repair costs have been in the range of 19% to
25% of extended service contract revenue over the last three years; we expect these
costs to average approximately 25% of extended service contract revenue in
future years.</U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U>Future expected amortization of deferred revenue and commission are as
follows (amounts in thousands): </U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="48%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="30%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="20%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1><B>Years<BR>
 Ended<BR>
 January 31,</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Deferred<BR>
 Revenue</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Deferred<BR>
 Commission<BR>
 Expense</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="48%" NOSHADE COLOR=BLACK ALIGN=left>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
<tr>
<TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR bgcolor=#e6e6e6>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE="2"><U>2010</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM colspan=2>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,632</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM colspan=2>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,243</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE="2"><U>2011</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>7,816</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>2,396</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR bgcolor=#e6e6e6>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE="2"><U>2012</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>3,983</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>1,195</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE="2"><U>2013</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>1,864</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>565</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR bgcolor=#e6e6e6>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE="2"><U>2014</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>552</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>164</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE="2"><U>Total</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM colspan=2>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,847</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM colspan=2>
 <P ALIGN=RIGHT><FONT SIZE="2"><U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,563</U> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 </TABLE>

<P><FONT SIZE=2><U><B>Results of Operations, page 23 </B></U></FONT></P>

<P><FONT SIZE=2><U><B>Comparison of Fiscal Years Ended January 31,
2009 and 2008, page 23 </B></U></FONT></P>

<P><FONT SIZE=2><U><B>Equity in Income of Unconsolidated Ethanol
Affiliates, page 26 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>6.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>In light of the significance of equity method income (loss)
 attributable to each of your equity method investees, please expand your
 disclosure to explain the period to period changes in your proportionate
 share of income and losses of each of these entities. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In response to
the staff&#146;s comments, we propose to revise future filings to enhance the
discussion of our equity method investments. We have modified the disclosure
from the January 31, 2009 Form 10-K to illustrate the enhanced disclosure we
are contemplating. </FONT></P>

<P><FONT SIZE=2><I><B>Equity in Income of
Unconsolidated Ethanol Affiliates</B></I> &#150; During fiscal
years 2008 and 2007, we recognized income of $849,000 and $1,601,000,
respectively from our equity investments in Big River and Patriot. Big River
operates an ethanol facility with annual capacity of 92 million gallons.
Patriot completed construction of its ethanol facility with annual capacity of
100 million gallons during the second quarter of fiscal year 2008. Income from
Big River was $2,397,000 and $2,379,000 in fiscal years 2008 and 2007,
respectively. We recorded a loss of $1,548,000 and $778,000 from Patriot in
fiscal years 2008 and 2007, respectively. </FONT></P>

<P><FONT SIZE=2><U>Although our proportionate 10% share of income from Big River has been
consistent over the past two years, we expect this to change as Big River is
presently constructing its second ethanol plant with a design capacity of 100
million gallons of ethanol. Future results will depend greatly on the crush
spread, the future movement of which we are unable to predict. Thus, we are
unable to predict whether results from Big River will continue to remain
consistent with results from the last two years. </U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U>We also expect our proportionate 23% share of income from Patriot to
change in future years. Fiscal year 2008 was the first year that Patriot was in
operation as Patriot commenced production operations in the second quarter of
fiscal year 2008. During fiscal year 2008, we reported an equity method loss in
operations of $1.5 million, of which $0.5 million related to the effects of an
interest rate swap. Also during fiscal year 2008, Patriot began production at a
time when the crush spread did not provide for gross margins sufficient to
cover interest expense and other general and administrative expenses. Future
results will depend greatly on the crush spread, the future movement of which
we are unable to predict. Thus, we are unable to predict whether results from
Patriot will improve compared to the results from the last two years. However,
we do expect revenues to increase as we expect Patriot to operate at or near
design capacity in future years. </U></FONT></P>

<P><FONT SIZE=2><U>Overall, we expect the trends in crush spread margins experienced by
our Levelland facility and described in the &#147;Overview&#148; section to be generally
consistent with the operating experience of Big River and Patriot as their
results are dependent on the same key drivers (corn and natural gas pricing as
well ethanol pricing, all of which are commodities.) </U></FONT></P>

<P><FONT SIZE=2><U><B>Critical Accounting Policies, page 38 </B></U></FONT></P>

<P><FONT SIZE=2><U><B>Income Taxes, page 40 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>7.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please expand your disclosures to provide information for investors
 to assess the probability of a future material increase in your deferred tax
 asset valuation allowance. Disclose how you determined it is more likely than
 not that you will be able to generate sufficient taxable income in future
 years to allow for the full utilization of the AMT credit carryforward and
 other deferred tax assets, including the key assumptions involved in your
 determination. Discuss the degree of uncertainty associated with the key
 assumptions, providing specifics to the extent possible; e.g, you assumed
 each ethanol business would begin generating income within what period of
 time. Discuss the potential events and/or changes in circumstances that could
 reasonably be expected to negatively affect the key assumptions. Refer to
 Item 303(a)(3)(ii) of Regulations S-K and Section V of the SEC&#146;s Interpretive
 Release No. 34-48960. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In response to
the staff&#146;s comments, we propose to revise future filings to enhance the
discussion of our analysis of deferred income taxes and the related valuation
allowance. We have modified the disclosure from the January 31, 2009 Form 10-K
to illustrate the enhanced disclosure we are contemplating. </FONT></P>

<P><FONT SIZE=2><I><B>Income Taxes</B></I>
&#150; Income taxes are recorded based on the current year amounts payable or
refundable, as well as the consequences of events that give rise to deferred
tax assets and liabilities based on differences in how those events are treated
for tax purposes, net of valuation allowances. We base our estimate of deferred
tax assets and liabilities on current tax laws and rates and other expectations
about future outcomes. Changes in existing regulatory tax laws and rates and
future business results may affect the amount of deferred tax liabilities or
the valuation of deferred tax assets over time. We have established valuation
allowances for certain state net operating loss </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>carryforwards
and other deferred tax assets. <U>We determined that it is more likely than not
that we will be able to generate sufficient taxable income in future years to
allow for the full utilization of the AMT credit carryforward and other
deferred tax assets other than those reserved. In determining the need for a
valuation allowance, we have assumed that our ethanol plants and real estate
assets will begin generating income in fiscal year 2009. We are projecting that
the operations of One Earth that begin in fiscal year 2009 will also be profitable
and that in future years, Levelland Hockley will show improved financial
results over the current year. We are assuming that we will be relatively
successful in our real estate marketing efforts. In addition, we have
considered the fact that our AMT credit carryforward has an indefinite life. In
general, we have used approximately $16.0 million as the assumed average of
future years&#146; pre-tax income. We believe our assumed target level of earnings
is reasonable based upon expectations of real estate rental income and ethanol
plant operating income. In addition, we considered other positive factors in
our assessment. Although during fiscal year 2008 we realized a loss,
historically, we have generated cumulative profitability over the past several
years and expect a return to producing income during fiscal year 2009 through
our ethanol and real estate operations. In addition, we have significant
financial resources to deploy in future income producing activities.</U></FONT></P>

<P><FONT SIZE=2>The valuation
allowance was approximately $0.6 million and $0.8 million at January 31, 2009
and January 31, 2008, respectively. Should estimates of future income differ
significantly from our prior estimates, we could be required to make a material
change to our deferred tax valuation allowance. The primary assumption used to
estimate the valuation allowance has been estimates of future taxable income.
Such estimates can have material variations from year to year based upon
expected levels of retail income, leasing income and income from our ethanol plants.
<U>Factors that could negatively affect future taxable income include adverse
changes in the commercial real estate market and the ethanol crush spread.</U>
Our accounting for deferred tax consequences represents management&#146;s best
estimate of future events that can be appropriately reflected in the accounting
estimates. </FONT></P>

<P><FONT SIZE=2><U><B>Financial Statements </B></U></FONT></P>

<P><FONT SIZE=2><U><B>Note 1. Summary of Significant Accounting
Policies, page 50 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>8.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please provide accounting policy disclosure with respect to
 restructuring costs and other costs associated with the exit of your retail
 business. For example, disclose how you account for lease termination costs,
 severance and other employee termination benefits, and other associated
 costs. In addition, please provide the disclosures required by SFAS 146 (ASC
 420).</B> </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In response to
the staff&#146;s comments, we propose to revise future filings to enhance the
accounting policy disclosure as it relates to restructuring costs, we will
modify our disclosure in future filings to include the following language. </FONT></P>

<P><FONT SIZE=2><I><B>Restructuring Costs </B></I>&#150;
<U>Restructuring charges include severance and associated employee termination
costs, lease termination fees and other costs associated with the Appliance
Direct transaction and the planned exit of the Company&#146;s retail business. The
Company records severance and associated employee termination costs pursuant to
ASC 712, ASC 715 and ASC </U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U>420 (formerly, Statement of Financial Accounting Standard SFAS No. 112,
&#147;<I>Employer&#146;s Accounting for Postemployment
Benefits-an Amendment of FASB Statements No. 5 and 43</I>&#148;, SFAS No. 88,
&#147;<I>Employers&#146; Accounting for Settlements and
Curtailments of Defined Benefit Pension Plans and for Termination Benefits&#148;</I>,
and lease termination fees pursuant to SFAS No. 146, &#147;<I>Accounting for Costs Associated with Exit or Disposal
Activities</I>&#148; (&#147;SFAS 146&#148;)). ASC 420 (formerly SFAS 146) requires that
lease termination fees, net of expected sublease rental income, be recorded
once the leased facility is no longer actively used in a revenue producing
manner. Future changes to the Company&#146;s estimates of employee layoffs or leased
stores abandoned could have a material impact on our restructuring accrual. </U></FONT></P>

<P><FONT SIZE=2><U><B>Property and Equipment, page 51 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>9.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>You disclose that impairment changes represent management&#146;s estimate
 of the excess of net book value over estimated future cash flows. We assume
 that impairment charges are measured as the amount by which net book value
 exceeds fair value, where fair value is estimated using expected future cash
 flows on a discounted basis. If this is the case, please revise your
 disclosure to clarify. Otherwise, please advise. Refer to SFAS 144 (ASC360). </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>We acknowledge
the comment and confirm that impairment charges are measured as the amount by
which net book value exceeds fair value, where fair value is estimated using
expected future cash flows on a discounted basis. In future filings, will
revise the disclosure. We have modified the disclosure from the January 31,
2009 Form 10-K to illustrate the revised disclosure we are contemplating.
We anticipate that our disclosure will be similar to the following. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>In
 accordance with ASC 360, formerly SFAS No. 144, &#147;<I>Accounting</I> <I>for the
 Impairment or Disposal of Long-Lived Assets</I>&#148;, the carrying value
 of long-lived assets is assessed for recoverability by management when
 changes in circumstances indicate that the carrying amount may not be
 recoverable, based on an analysis of undiscounted future expected cash flows
 from the use and ultimate disposition of the asset. The Company recorded an
 impairment charge included in selling, general and administrative expenses in
 the consolidated statements of operations of $639,000, $158,000 and $346,000
 in the fiscal years ended January 31, 2009, 2008 and 2007, respectively. The
 impairment charges all relate to individual stores in the Company&#146;s retail
 segment. These impairment charges are primarily related to increased
 competition in local markets and/or unfavorable changes in real estate
 conditions in local markets. Impairment charges result from the Company&#146;s
 management performing cash flow analysis and represent management&#146;s estimate
 of the excess of net book value over <U>fair value. Fair value is estimated
 using expected future cash flows on a discounted basis or appraisals of
 specific properties as appropriate.</U> Long-lived assets are tested for
 recoverability whenever events or changes in circumstances indicate that its
 carrying amount may not be recoverable. Generally, declining cash flows from
 a retail store or ethanol plant or deterioration in local real estate market
 conditions are indicators of possible impairment. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U><B>Note 2. Investments, page 57 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>10.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please tell us why you are not required to provide separate financial
 statements of Big River Resources, LLC and Patriot Renewable Fuels, LLC
 pursuant to Rule 3-09 of Regulation S-X. Include your significance tests for
 each of the investees for the most recent fiscal year. Please ensure that any
 impairment write-down or other activity related to each investment is
 included in your significance computations and is clearly identified. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>We advise the
Staff that we considered whether separate audited financial statements of our
equity method investments, Big River Resources, LLC (&#147;Big River&#148;) and Patriot
Renewable Fuels, LLC (&#147;Patriot&#148;) were required to be filed under Rule 3-09 of
Regulation S-X and concluded at the time that they should not be. Our
calculations were performed based on our interpretation of the requirements of
Rule 3-09 and Rule 1-02(w)(3) of Regulation S-X. For the investment test,
neither of our equity method investments exceeded 20%, or even 10%, of our
total consolidated assets (see calculations below). </FONT></P>

<P><FONT SIZE=2>For purposes
of the income test the Company utilized the average income for the last five
fiscal years, exclusive of any loss. The calculation indicated that the equity
method investments accounted for less than 20% of the Company&#146;s average income.
When determining what disclosures, if any, should be included in the Company&#146;s
Annual Report on Form 10-K for the year ended January 31, 2009, our &#147;fiscal 2008
year&#148;, the Company also considered the relevant GAAP and SEC guidance,
including APB 18 and S-X Rule 4-08(g). The significance tests did not exceed
the 10% threshold, individually or in the aggregate, thus no Rule 4-08(g)
disclosures were deemed required. The Company also concluded that disclosures
under APB 18 were not material to the financial statements taken as a whole. </FONT></P>

<P><FONT SIZE=2>The Company
recently became aware of the Staff&#146;s position that 5 year income averaging
should not be used if the registrant reported a loss for the most recent year.
The 2008 fiscal year, one of transition for the Company, experienced a loss
from continuing operations before income taxes, exclusive of minority interest.
When the absolute value of our fiscal 2008 consolidated loss is compared to the
equity in income (loss) of our investments in Big River, $2,397,000 of income,
and Patriot, $1,548,000 of loss, it becomes clear the 20% significance
thresholds are met. Set forth below is a schedule analyzing by investee, the
Rule 3-09 investment and income test calculations: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="62%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="9%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>January 31, 2009</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD NOWRAP VALIGN=BOTTOM>
 <P><FONT SIZE=1><B>Investment
 Test</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Big River</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Patriot</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
<tr>
<TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Equity method investment
 balance</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>23,850,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>15,011,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Advancements to equity
 method investment</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>933,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Subtotal - numerator</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>23,850,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>15,944,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Total consolidated assets
 of REX and subsidiaries - denominator</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>451,288,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>451,288,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Significance %</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2><B>5.3</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2><B>%</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2><B>3.5</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2><B>%</B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="66%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="9%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="9%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD NOWRAP VALIGN=BOTTOM>
 <P><FONT SIZE=1><B>Income Test</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Year Ended January 31, 2009</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Big River</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Patriot</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Equity in income (loss) of
 investee, before tax &#150; numerator*</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>2,397,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(1,548,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>REX loss before taxes and
 minority interest</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(7,814,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(7,814,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Minority interest in loss
 of consolidated subsidiaries</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>3,156,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>3,156,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Less - Computational Note 1
 adjustment**</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(2,397,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>REX loss before taxes,
 exclusive of minority interest - denominator</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(7,055,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(4,658,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Significance %</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2><B>34.0</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>%</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2><B>33.2</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>%</B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>* Note there was no
impairment write-down or other activity related to each investment required to
be considered for purposes of the numerator. </FONT></P>

<P><FONT SIZE=2>** When a loss exclusive of
amounts attributable to any noncontrolling interests has been incurred by
either the parent and its subsidiaries consolidated or the tested subsidiary,
but not both, the equity in the income or loss of the tested subsidiary
exclusive of amounts attributable to any noncontrolling interests should be
excluded from such income of the registrant and its subsidiaries consolidated
for purposes of the computation. </FONT></P>

<P><FONT SIZE=2>As a result of
the Rule 3-09 income test calculation above, driven by lower-than-average
consolidated results of REX, we believe separate fiscal year 2008 audited
financial statements of both Big River and Patriot are required, and we intend
to file on Form 10-K/A as soon as practicable. We also intend to provide
financial statements for all comparative periods required (i.e. two years of
balance sheets and three years of statements of operations, statements of
changes in stockholders&#146; equity, and statements of cash flows) in accordance
with Regulation S-X, Rule 3-09(b). </FONT></P>

<P><FONT SIZE=2>With respect
to the inclusion of the financial statements of Patriot, we intend to provide
comparative audited financial statements for fiscal years 2008 and 2007 as such
are readily available. For fiscal year 2006, we will provide unaudited
financial statements to satisfy the requirement for presenting three years statement
of operations (consistent with periods presented by the registrant). With
respect to the inclusion of financial statements for Big River, we intend to
provide two sets of audited financial statements, comparative fiscal years
ended 2008 and 2007 and comparative fiscal years ended 2007 and 2006. We note
that audited financial statements for fiscal years 2007 and 2006 are not
required, but will provide such, along with the independent auditors&#146; required
consents, due to ease of the availability of such financial statements. Please
note management performed the Rule 3-09 tests for fiscal years ended 2007 and
2006, noting a combination of higher consolidated income from continuing
operations of REX, the ability to use five-year averaging, and lower equity
method income (loss) of investees, led to significance thresholds below 20%. </FONT></P>

<P><FONT SIZE=2>We will
perform the Rule 3-09 significance tests in connection with our fiscal year
2009 financial results and in connection with the upcoming filing our Annual
Report on Form 10-K. We will provide audited financial statements, as deemed
required, on a timely basis. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>11.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Notwithstanding the preceding comment, please tell us the
 consideration you gave to providing the disclosures required by Rule 4-08 (g)
 of Regulation S-X with respect to your equity method investments. Refer also
 to Rule 10-01(b)(1) of Regulation S-X and address whether the presentation of
 summarized financial information for your equity method investments is
 required in your interim filings</B>. </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Please see
response above as related to Rule 3-09 of Regulation S-X with respect to our
equity method investments. We intend to file separate audited financial
statements on Form 10-K/A for both Big River and Patriot. By including the
fiscal year 2008 audited financial statements in an SEC filing, this provides
more than the minimum level of information required under Rule 4-08(g) for our
annual filing, and we believe further disclosures are not necessary. This
conclusion is supported by SEC Staff Accounting Bulletin (SAB) Topic 6.K.4(b),
&#147;Summarized Financial Statement Requirements&#148;. </FONT></P>

<P><FONT SIZE=2>In terms of
Rule 10-01(b)(1) regarding interim disclosures, we considered both the
investment and income tests and calculated significance for each equity method
investee using the year-to-date periods ended April 30, 2009, July 31, 2009 and
October 31, 2009. We noted that none of the investment test significance
calculations exceeded 20%, nor did the income test calculations for periods
ended April 30, 2009 or October 31, 2009. Due to unusually low registrant
income before taxes, exclusive of non controlling interest, for the six-month
period ended July 31, 2009; the 20% threshold was met on an individual equity
method basis (without aggregation). The equity in income for this period was
$174,000 for Big River and equity in loss of Patriot was $252,000. Such
amounts, which net to $78,000, were not deemed material, and summarized
information was concluded not to be material for the quarterly financial
statements. We will perform these calculations on a prospective basis during
interim periods in fiscal year 2010, and will include all required summarized
financial information as prescribed under Rule 10-01(b). We will consider Rule
4-08 (g) of Regulation S-X, as applicable, in future filings. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>12.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please disclose the reasons why the equity method is appropriate for
 Big River Resources, LLC despite holding less than a 20% ownership interest
 and the difference, if any, between the amount at which each investment is
 carried and the amount of underlying equity in net assets and the accounting
 treatment of the difference. Refer to paragraph 20.a. of APB 18 (ASC
 323-10-50-3). </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>ASC
323-10-50-3 (formerly ABP 18) represents accounting for investments in voting
stock of a corporation. Our investments in Big River represent membership
interests in a limited liability company (LLC). Paragraph 17 of APB 18 states,
in part, that in order to achieve a reasonable degree of uniformity in
application, the Board concludes that an investment of 20% or more of the
voting stock of an investee should lead to a presumption that in the absence of
evidence to the contrary an investor has the ability to exercise significant
influence over an investee. Conversely, an investment of less than 20% of the
voting stock of an investee should lead to a presumption that an investor does
not have the ability to exercise significant influence unless such ability can
be demonstrated. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>We believe
that our investments in these LLC entities are more akin to partnership interests
given the structure of the investments and our influence over the underlying
businesses. Accordingly, management believes the appropriate guidance to
address our investments in these LLCs is EITF 03-16, EITF D-46 and SOP 78-9. </FONT></P>

<P><FONT SIZE=2>EITF 03-16
discusses the accounting for investments in LLCs. LLCs have characteristics of
both corporations and partnerships but are dissimilar from both in certain
respects. The issue is whether an LLC should be viewed as similar to a
corporation or similar to a partnership for purposes of determining whether
noncontrolling investments in an LLC should be accounted for using the cost
method or the equity method. The Task Force reached a consensus that an
investment in an LLC that maintains a &#147;specific ownership account&#148; for each investor-similar
to a partnership capital structure-should be viewed as similar to an investment
in a limited partnership for purposes of determining whether a noncontrolling
investment in an LLC should be accounted for using the cost method or the equity
method. Therefore, the provisions of SOP78-9 and related guidance, including
Topic D-46, may also apply to such LLCs. </FONT></P>

<P><FONT SIZE=2>EITF Topic
D-46, in which the SEC acknowledged that investments in limited partnerships of
between 3% and 5% are more than minor and thus, would be subject to the equity
method (by drawing a parallel between a partnership and an LLC with specific
ownership accounts using EITF 03-16 as discussed above). </FONT></P>

<P><FONT SIZE=2>Big River
maintains specific ownership accounts in order to properly allocate earnings. Since
Big River maintains specific ownership accounts and we have an ownership
interest of approximately 10%, we believe it is appropriate to use the equity
method to account for our investment in Big River. Furthermore, we have one
board seat and are a member of the audit committee which we believe also allows
us to influence the financial and operating policies of Big River. </FONT></P>

<P><FONT SIZE=2>At January 31,
2009, the carrying value of the investment in Big River is $23,850,000; the
amount of underlying equity in the net assets of Big River is $21,522,000. The
excess of the carrying value of the investment over the underlying equity in
the net assets is accounted for as goodwill and is recorded within equity
method investments on the accompanying Consolidated Balance Sheets. </FONT></P>

<P><FONT SIZE=2>At January 31,
2009, the carrying value of the investment in Patriot is $15,011,000; the
amount of underlying equity in the net assets of Patriot is $12,867,000. The
excess of the carrying value of the investment over the underlying equity in
the net assets represents goodwill and capitalized interest pursuant to SFAS 34
and is recorded within equity method investments on the accompanying
Consolidated Balance Sheets. </FONT></P>

<P><FONT SIZE=2>We acknowledge
the comment and, in future filings, will revise the disclosure. We have modified
the disclosure from the January 31, 2009 Form 10-K to illustrate the revised
disclosure we are contemplating. We anticipate that our
disclosure will be similar to the following. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Investments
 &#150; Restricted investments, which are principally marketable debt securities of
 a federal government agency, are stated at cost plus accrued interest, which
 approximates market. Restricted investments at January 31, 2009 and 2008 are
 required by two states to</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>cover
 possible future claims under product service contracts. In accordance with
 SFAS No. 115, &#147;Accounting for Certain Investments in Debt and Equity
 Securities&#148; (&#147;SFAS 115&#148;), the Company has classified these investments as
 held-to-maturity. The investments had maturity dates of less than one year at
 January 31, 2009 and 2008. The Company has the intent and ability to hold
 these securities to maturity. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>The method
 of accounting applied to long-term investments, whether consolidated, equity
 or cost, involves an evaluation of the significant terms of each investment
 that explicitly grant or suggest evidence of control or influence over the
 operations of the investee and also includes the identification of any
 variable interests in which the Company is the primary beneficiary. The
 Company consolidates the results of two majority owned subsidiaries,
 Levelland Hockley and One Earth, with a one month lag. See Note 5 for a
 further discussion of the acquisitions of Levelland Hockley and One Earth.
 Investments in businesses that the Company does not control but for which it
 has the ability to exercise significant influence over operating and
 financial matters are accounted for using the equity method with a one month
 lag. <U>The Company accounts for investments in LLCs in which it may have a
 less than 20% ownership interest, using the equity method of accounting when
 the factors discussed in EITF 03-16, EITF Topic D-46 and SOP 78-9 are met.
 The excess of the carrying value over the underlying equity in the net assets
 of equity method investees is allocated to specific assets and liabilities.
 Any unallocated excess is treated as goodwill and is recorded as a component
 of the carrying value of the equity method investee.</U> Investments in which
 the Company does not have the ability to exercise significant influence over
 operating and financial matters are accounted for using the cost method. </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><U><B>Note 13. Restructuring and Other, Page 74 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>13.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please disclose the line item(s) in the statements of operations
       in which the restructuring charges are aggregated. Refer to paragraph
       20.c. of SFAS 146 (ASC 420-10-50-1). Explain why restructuring charges
       are included in results of continuing operations or in results of discontinued
       operations, as applicable. These disclosures should be updated in your
       interim filings to the extent there are material revisions to restructuring
       charges</B>.
 </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Restructuring
charges are included in results of continuing operations as none of the costs
were associated with a component that has been disposed of or classified as
held for sale and met the criteria for discontinued operations as discussed in
ASC 205-20. </FONT></P>

<P><FONT SIZE=2>We acknowledge
the comment and, in future filings, will revise the disclosure. We have
modified the disclosure from the January 31, 2009 Form 10-K to illustrate the
revised disclosure we are contemplating. We anticipate that our
disclosure will be similar to the following. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>RESTRUCTURING AND OTHER </B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>During the
 fourth quarter of fiscal year 2008, the Company entered into an agreement
 with Appliance Direct, Inc. (&#147;Appliance Direct&#148;) pursuant to which (i) the
 Company agreed to sell certain appliance inventory, furniture, fixtures and
 equipment at the store locations to be taken </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>over by
Appliance Direct and (ii) subsidiaries of Appliance Direct leased 37 retail
store locations owned by the Company. The Company plans to exit the retail
business during fiscal year 2009. </FONT></P>

<P><FONT SIZE=2>The Company
agreed to pay Appliance Direct, as of the implementation date defined in the
agreement, an amount equal to the adjusted book value liability of the
Company&#146;s customer extended service plans for certain appliances previously
sold at locations that Appliance Direct takes over from the Company (the &#147;ESP
Credit&#148;). </FONT></P>

<P><FONT SIZE=2>During the
fourth quarter of fiscal year 2008, the Company recorded a restructuring charge
of approximately $4.2 million related to (i) a workforce reduction of a
majority of employees located at its corporate headquarters, retail stores and
distribution facilities and (ii) certain costs associated with the transition
of the Company&#146;s retail business to Appliance Direct. The following is a
summary of restructuring charges (in thousands): </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="42%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Employee<BR>
 Severance and<BR>
 Bonus Costs</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Investment<BR>
 Banker Fees</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>ESP Credit</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Total<BR>
 Restructuring<BR>
 Accrual</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Balance, January 31, 2008</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Restructuring charges</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2,839</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>834</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>498</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>4,171</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Balance, January 31, 2009</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>2,839</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>834</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>498</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>4,171</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The
restructuring charges are all included in the Company&#146;s retail segment and are
included in selling, general and administrative expense. The Company believes
that the accrued balances at January 31, 2009 are management&#146;s best estimate of
the amounts to be incurred for the related categories. The Company expects to
incur lease termination costs in fiscal year 2009, although such costs cannot
be estimated currently. </U></FONT></P>

<P><FONT SIZE=2><U><B>Note 16. Discontinued Operations and Assets
Held for Sale, page 78 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>14.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please disclose the number of closed stores whose historical results
 continue to be classified within continuing operations. For each closed store
 included in continuing operations, explain to us in detail and disclose why
 such classification is appropriate under GAAP. Please also address this
 comment as it relates to your interim filing on Form 10-Q for the fiscal
 period ended October 31, 2009 as we are particularly interested in
 understanding why the results of operations of the retail segment reported in
 continuing operations remain so significant given that you closed all
 remaining retail store operations during the first nine months of fiscal year
 2009. Refer to SFAS 144 (ASC 205) and EITF 03-13 (ASC 205-20-55), as applicable.
 </B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>As noted
above, the Company entered into a transaction with Appliance Direct in 2008. In
2009 we decided to exit the retail business entirely. In many cases, we own the
real estate and in some cases we leased the property under long term leases. We
are marketing the remaining vacant real estate properties to lease or sell.
Pursuant to the guidance in ASC 205-20, each of our real estate assets (e.g.
stores) represents a component, with the real estate asset being the primary
long-lived asset within the component. We do not believe that sale or
abandonment of the real estate is probable within one year. Based on our
significant experience leasing our properties and, given the current economic
environment, we believe leasing or subleasing the real estate may provide
greater value than the sale of such property. </FONT></P>

<P><FONT SIZE=2>Prior to
making the decision to exit the retail business entirely, when we closed a
store, we evaluated whether customers would migrate to our other open and
operating retail stores. If so, as discussed in ASC 205-20, the closed stores
were not reported as discontinued operations since we believed the direct cash
flows would continue. As mentioned above, when we closed a store, we made a
case-by-case decision whether to sell or sublease the store property. Once a
store property was sold, or met the criteria in ASC 360-10-45-9 to be
classified as held for sale and no migration of cash flows to other stores was
expected, the Company classified the results of that store&#146;s operations as
discontinued operations. </FONT></P>

<P><FONT SIZE=2>As noted
above, with the Appliance Direct transaction and the decision to exit the
retail business, we concluded that, given the current economic environment,
leasing the real estate may provide greater value than the sale of such property.
Accordingly, we believe that we will have continuing cash flows in the form of
lease revenue from the properties we lease to tenants. Typically, our leases
are short term in nature (3-10 years) as compared to the life of the related
real estate. Upon expiration of our normal tenant lease, the tenant has the
option to renew or terminate the lease. While the cash inflows from leases are
different in nature than those of retail operations, they are direct cash flows
associated with the revenue producing activities of the primary long-lived
asset of the component (the real estate). The Company remains responsible for
outflows associated with maintaining and financing the properties under lease.
Further, while the store may have closed, the primary long-lived asset has not
met the criteria to be classified as held for sale. The Company also retains
substantially all of the risk and rewards of ownership related to the real
estate leased to third parties. </FONT></P>

<P><FONT SIZE=2>As disclosed
in our 2nd quarter 10-Q filing, management has begun presenting its real estate
activities in a new segment. With the change, we realigned our reportable
business segments to be consistent with changes to our management structure and
reporting. The company now has three segments: alternative energy, real estate
and consumer electronics and appliance retailing (&#147;retail&#148;). The real estate
segment was formerly included in the retail segment and prior year amounts have
been reclassified to conform to the current year segment reporting. For stores
and warehouses closed for which we have a retained interest in the related real
estate and expect continuing cash flows through leasing, operations are
presented in the real estate segment when retail operations cease. The
operating results for prior periods continue to be reported in the retail
segment which is consistent with our internal management reporting. The retail
segment also includes the operations of our warranty business, which we
continue to manage on contracts that were sold through our retail operations.
Management believes the comparison of former retail operations and the real
estate leasing operations is not meaningful, and presentation as shown </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>19</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>better
reflects the change in the operating activities of the Company (i.e. transition
from retail to real estate operations). </FONT></P>

<P><FONT SIZE=2>At January 31,
2009, there were 108 stores whose historical results continued to be classified
in continuing operations within our retail segment. Of the 108 stores, 18 were
closed stores and 90 were open retail stores. Eleven of 18 closed stores were
in properties that we own and six of these owned properties were leased to
tenants. Seven of the 18 closed stores were in properties that we leased as
tenant which we continued to classify the stores in continuing operations as we
believed that customers from such stores would migrate to other retail stores
we operated in geographical proximity to the closed stores, therefore we
believed that direct cash flows from the closed stores would continue. Although
five of the 18 closed stores were marketed for sale or lease, we do not believe
that they met the criteria in ASC 205 to be classified as held for sale. Thus,
none of the closed stores should be reported as discontinued operations since
the properties did not meet the criteria to be classified as held for sale and
we believed the direct cash flows would migrate or continue in the form of
lease revenue. </FONT></P>

<P><FONT SIZE=2>Historically,
once a store property has been sold, and no migration of cash flows to other
stores is expected, the Company classified the results of that store&#146;s
operations as discontinued operations. </FONT></P>

<P><FONT SIZE=2>At October 31,
2009, there are 44 closed retail stores and several related distribution
warehouses whose historical results continue to be classified in continuing
operations, now within our real estate segment. The net book value of our real
estate portfolio is approximately $35 million. Of these 44 stores, six of the
properties were leased to tenants. The remaining real estate is being marketed
for lease or sale. We believe that we will have continuing cash flows and
continuing involvement in the properties from managing this real estate
portfolio. </FONT></P>

<P><FONT SIZE=2>In order for
assets to be classified as held for sale, all of the criteria in ASC
360-10-45-9 must be met which we do not believe has occurred. </FONT></P>

<P><FONT SIZE=2>We acknowledge
the comment and, in future filings, will revise the disclosure. We have
modified the disclosure from the October 31, 2009 Form 10-Q to illustrate the
revised disclosure we are contemplating. We anticipate that our
disclosure will be similar to the following. </FONT></P>

<P><FONT SIZE=2><B>Note 15. <I>Discontinued
Operations </I></B></FONT></P>

<P><FONT SIZE=2>During the
first nine months of fiscal year 2009, the Company closed <U>and divested</U>
53 retail stores in which the Company vacated the market or will not have a
further continuing involvement with the related property. <U>Once a store
property has been sold, and no migration of cash flows or continuing
involvement is expected, the Company classifies the results of that store&#146;s
operations as discontinued operations.</U> Accordingly, these stores and certain
other retail stores closed in previous periods were classified as discontinued
operations for all periods presented. <U>The results of operations were
previously reported in our retail segment or our real estate segment, depending
on when the store ceased operations.</U> Below is a table reflecting certain
items of the Consolidated Condensed Statements of Operations that were
reclassified as discontinued operations for the </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>20</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>periods indicated:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="58%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="5%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="6%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="6%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="6%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Three Months Ended</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>Nine Months Ended</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>October 31,</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>October 31,</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=5 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>2009</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>2008</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>2009</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>2008</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=11 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B> (In Thousands)</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Net sales
 and revenue</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>25,515</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>14,398</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>80,357</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Cost of
 sales</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>19,595</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>13,225</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>60,310</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Loss before
 income taxes</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(32</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(556</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(1,317</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(173</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Benefit for
 income taxes</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>212</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>444</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>70</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Gain on
 disposal</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>194</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>305</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Provision
 for income taxes</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(67</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(115</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Net (loss)
 income</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(22</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(344</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(746</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>87</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><U>At October 31, 2009, there are 44 closed retail stores and several
related distribution warehouses whose historical results continue to be
classified in continuing operations, within our real estate segment. The net
book value of our real estate portfolio is approximately $35 million. Of these
44 stores, six of the properties were leased to tenants. The remaining real
estate is being marketed for lease or sale. We believe that we will have
continuing cash flows and continuing involvement in these properties from our
active management and financing of this real estate portfolio. </U></FONT></P>

<P><FONT SIZE=2><U><B>Schedule II Valuation and Qualifying
Accounts, Page 84 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>15.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please tell us what the inventory reserves represent. A reduction in
 the carrying amount of an inventory item from cost to market value represents
 a new cost basis for that item. The write-down can be recovered only through
 sale or disposition of the item and cannot be restored if the market value
 recovers prior to sale or disposition. Thus, it is unclear what your
 inventory reserves relate to and why you have utilized a contra-asset account
 to capture the credit balance. Please explain in detail. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Our inventory
reserves represent management&#146;s estimate, at a point in time, of the reserve
necessary resulting from inventory obsolescence and from slow moving inventory
items. The reserve is established for types of inventory items, not on specific
or individual inventory items. We note that with the closing of our retail
business, we would not expect this schedule in future filings. The reserve
established was consistent with the results of our final inventory liquidation
efforts. We treat the reserve as a permanent write-down of inventory. As a
result, the reserve was only recovered through sale or disposition of the
inventory and has been not restored if the market value recovers prior to sale
or disposition of the inventory. </FONT></P>

<P><FONT SIZE=2><U><B>Form 10-Q for Fiscal Quarter Ended October
31, 2009 </B></U></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
Please address the comments above in your interim filings to the extent
applicable. </B></FONT></P>

<P><FONT SIZE=2>We acknowledge
the comment and will ensure that our future interim filings address the above
comments. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>21</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U><B>Item 1. Financial Statements </B></U></FONT></P>

<P><FONT SIZE=2><B>Consolidated Condensed Statements of Cash
Flows, page 6 </B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>17.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>With reference to the authoritative guidance that supports your
 position, please tell us why realized losses on interest rate swaps are
 recorded in cash flows from financing activities rather than cash flows from
 operating activities. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>We acknowledge
the Staff&#146;s comment and believe the appropriate treatment is classification as
an operating activity. In accordance with applying the guidance in ASC
230-10-45-27 (formerly FAS 95), &#147;Generally, each cash receipt or payment is to
be classified according to its nature without regard to whether it stems from
an item intended as a hedge of another item&#148;. The realized losses on interest
rate swaps are essentially settlements on the Company&#146;s variable-to-fixed rate
derivatives, which are economic cash flow hedges on the Company&#146;s
subsidiary-level debt. Management originally deemed the &#147;nature&#148; of the cash
payment to be debt-related, rather than interest expense related, which led to
the presentation error. The incorrect presentation of the realized losses on
the interest rate swaps relates to the 2<SUP>nd</SUP> and 3<SUP>rd</SUP>
quarter Form 10-Q filings only. In the Form 10-K for fiscal year ended 2008 and
the 1<SUP>st</SUP> quarter Form 10-Q of 2009, the amount of the realized losses
on the interest rate swaps were appropriately presented in operating cash
flows. We have evaluated the impact of the incorrect presentation under SAB 99
and concluded that it is immaterial to the financial statements taken as a
whole for each of the periods affected. We noted that the trends in operating
cash flows have not been materially impacted. Further, the change does not
materially impact our liquidity as the change in operating cash flows is less
than 2% of our cash and cash equivalent balances for all periods affected. We
intend to correct presentation in the Form 10-K for the year ended January 31,
2010 and going forward. </FONT></P>

<P><FONT SIZE=2><U><B>Note 15. Discontinued Operations, page 23 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>18.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Reference is made to your disclosures on page 34 regarding the
 various real estate assets reported in the real estate segment. Please tell
 us whether the subleased property was previously used or obtained for use in
 retail store and/or distribution center operations. If so, tell us why the
 subleased real estate is properly reported within results of continuing
 operations, rather than recording the lease termination costs, net of
 sublease rentals, as an exit cost to discontinued operations. Also discuss the
 how you generally account for real estate related to closed stores that are
 included in the real estate segment. Cite the applicable authoritative
 guidance that supports your presentation. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Beginning in
the second quarter of fiscal year 2009, we realigned our reportable business
segments to be consistent with changes to our management structure and
reporting. We now have three segments: alternative energy, real estate and
consumer electronics and appliance retailing (&#147;retail&#148;). The real estate
segment was formerly included in the retail segment and prior year amounts have
been reclassified to conform to the current year segment reporting. For stores
and warehouses closed for which we have a retained interest in the related real
estate, operations are presented in the real estate segment when retail
operations cease. The operating results for prior periods continue to be
reported in the retail segment which is consistent with our internal </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>22</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>management
reporting. Management believes the comparison of former retail operations and
the real estate leasing operations is not meaningful. </FONT></P>

<P><FONT SIZE=2>Within our
real estate segment, there is one subleased property that has been subleased to
a tenant for over ten years. We originally operated a retail store in the
leased property. </FONT></P>

<P><FONT SIZE=2>In addition to
this one subleased property, we include our owned real estate portfolio in our
real estate segment. Presently, all such real estate was previously used as a
retail store. As noted above, we account for the activities of our owned real
estate related to closed retail stores in our real estate segment once the
retail store closes. If the owned real estate is sold or otherwise disposed,
then we reclassify historical and current financial results from the respective
asset as discontinued operations in accordance with ASC 360. </FONT></P>

<P><FONT SIZE=2>Historical
financial results (to include results when the real estate was utilized in the
retail segment) from owned real estate are presented in continuing operations.
We believe to classify assets as held for sale and discontinued operations, all
of the criteria in ASC 360 must be met. As noted above, we believe that it is
incorrect to classify the owned real estate assets (and the corresponding
historical financial results) as held for sale, and thus, in discontinued
operations based upon the following: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>We cannot
 determine that sale of the real estate asset (the primary long-lived asset
 each stores asset group) is probable and will occur within one year. We are
 marketing the 38 vacant real estate properties to lease or sell. We have
 significant experience leasing our properties and, given the current economic
 environment, believe leasing the real estate may provide greater value than
 the sale of such property. Based upon our experience with commercial real
 estate, we cannot predict the likelihood of an individual property being sold
 rather than leased. </FONT></P>
 </TD>
 </TR>
<tr>
<TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>We believe
 that we will have continuing cash flows in the form of lease revenue to us
 from the six properties we lease to tenants at October 31, 2009. </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><U><B>Liquidity and Capital Resources, page 34 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>19.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>We note that you have repurchased a significant amount of your stock
 pursuant to previous authorizations from your Board of Directors and that you
 plan to continue to do so in the future. We believe that your discussion of
 material changes in your capital structure should not only explain what
 changed, but should also analyze the underlying factors behind these changes,
 including how these changes fit into management&#146;s overall business plan and
 the current economic environment. See our Release No. 33-8350. Please revise
 your disclosure accordingly. </B></FONT></P>

<P><FONT SIZE=2>We acknowledge
the comment and, in future filings, will revise the disclosure. We have
modified the disclosure from the January 31, 2009 Form 10-K to illustrate the
revised disclosure we are contemplating. We anticipate that our
disclosure will be similar to the following. </FONT></P>


 </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT SIZE=2>23</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><I><B>Outlook</B></I>
&#150; As we wind down our retail business, we expect to liquidate our retail
inventory of $22.3 million at January 31, 2009. <U>While we expect our
unfavorable results from operations will continue as we wind down our retail
business in early 2009, we then expect to return to profitable operations as
our ethanol business matures and the operations at our One Earth facility
commences.</U> Our cash balance of $92.0 million includes $2.0 million held by
Levelland Hockley which we expect to use for working capital needs at Levelland
Hockley. In addition, One Earth intends to borrow up to $54 million over the
next year to fund construction costs and provide working capital as it
anticipates opening its ethanol plant in May of 2009. Currently, we do not have
definitive plans to make additional investments in the alternative energy
segment during fiscal year 2009 and have not identified specific uses of our
excess cash. Possible uses of the cash are to pay down long term mortgage debt
and repurchase our common stock. <U>In general, we will pay down long term
mortgage debt when the interest rate environment is unfavorable as it relates
to the type of debt (fixed rate versus variable rate) and if the specific debt
does not contain prepayment penalties. Such pay downs are carried out at levels
that do not impeded on other cash requirements we may have, such as investments
in entities we are investigating. We typically repurchase our common stock when
our stock price is trading at prices we deem to be a discount to the underlying
value of our net assets. Such purchases are carried out at levels that do not
impede on other cash requirements we may have, such as investments in entities
we are investigating. Historically, we have not incurred additional borrowings
under debt agreements to fund repurchases of our common stock.</U> We also plan
to seek and evaluate various investment opportunities including energy related,
agricultural and real estate. We can make no assurances that we will be
successful in our efforts to find such opportunities.</FONT></P>

<P><FONT SIZE=2><U><B>Exhibit 32 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>20.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please ensure that your certifications identify the respective
 offices held by the persons executing the certifications</B>.
 </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>We acknowledge
the comment and will identify the respective offices held by the persons
executing the certifications in our future filings. </FONT></P>

<P><FONT SIZE=2><U><B>Form 10-Q for Fiscal Quarter Ended October
31, 2009 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>21.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please address the comments above in your interim filings to the
 extent applicable</B>. </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>We acknowledge
the comment and will ensure that our future interim filings address the above
comments. </FONT></P>

<P><FONT SIZE=2><U><B>Item 1. Financial Statements </B></U></FONT></P>

<P><FONT SIZE=2><U><B>Consolidated Condensed Statements of Cash
Flows, page 6 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>22.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>With reference to the authoritative guidance that supports your
 position, please tell us why realized losses on interest rate swaps are
 recorded in cash flows from financing activities rather than cash flows from
 operating activities. </B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>24</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>See response
to comment 17. </FONT></P>

<P><FONT SIZE=2><U><B>Note 15. Discontinued Operations, page 23 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><b>23.</b></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Reference is made to your disclosures on page 34 regarding the
 various real estate assets reported in the real estate segment. Please tell
 us whether the subleased property was previously used or obtained for use in
 retail store and/or distribution center operations. If so, tell us why the
 subleased real estate is properly reported within results of continuing
 operations, rather than recording the lease termination costs, net of
 sublease rentals, as an exit cost to discontinued operations. Also discuss
 the how you generally account for real estate related to closed stores that
 are included in the real estate segment. Cite the applicable authoritative
 guidance that supports your presentation.</B> </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>See response
to comment 18. </FONT></P>

<P><FONT SIZE=2><U><B>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations, page 27 </B></U></FONT></P>

<P><FONT SIZE=2><U><B>Comparison of Three Months and Nine Months
Ended October 31, 2009 and 2008, page 28 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>24.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Where the financial statements reveal material changes from period to
 period in line items, please disclose the causes for the changes to the
 extent necessary to an understanding of your business as a whole. For
 example, explain the reasons for the increase or decrease in sales of your
 alternative energy segment and lower sales at retail stores, including the
 amount of deferred income amortized into income. Also disclose the reasons
 for the significant period to period changes in selling, general and
 administrative expenses and equity in income of unconsolidated ethanol
 affiliates. To the extent possible, you should indicate to what extent
 historical results are expected to be indicative of future operating results
 or of future financial condition. Refer to Item 303(b) of Regulation S-K. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>We acknowledge
the comment and, in future filings, will revise the disclosure. We intend to
modify the specific disclosures contained in our discussion of business segment
results. We believe that this discussion explains the causes for the changes to
the extent necessary for a reader to gain an understanding of our business as a
whole. We have modified the disclosure from the October 31, 2009 Form 10-Q to
illustrate the revised disclosure we
are contemplating. We anticipate
that our disclosure will be similar to the following. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>25</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Alternative Energy Segment Results &#150; Third
Quarter Fiscal Year 2009 Compared to Third Quarter Fiscal Year 2008 </B></FONT></P>

<P><FONT SIZE=2>Net sales and
revenue for the current year increased $38.9 million to $61.4 million,
primarily a result of One Earth becoming fully operational during the third
quarter of fiscal year 2009. The average selling price per gallon of ethanol
declined from $2.32 in the prior year 2008 to $1.59 in the current year. Our
sales were based upon 32.4 million gallons of ethanol in the current year
compared to 8.1 million gallons in the prior year. <U>We expect that net sales
and revenue in future periods will be similar to the trend of the current year
third quarter. This expectation assumes that One Earth and Levelland will
continue to operate at or near design capacity, which we believe is a
reasonable assumption given the current operating environment at the respective
plants. </U></FONT></P>

<P><FONT SIZE=2>Gross profit
from these sales was approximately $5.8 million during the current year
compared to a gross loss of $2.4 million during the prior year. Gross profit
improved primarily as a result of an improved spread between ethanol and grain
prices compared to the prior year. <U>The crush spread realized has improved as
compared to the same period in the prior year, due to the favorable current
year harvest and the start up costs incurred by Levelland in the prior year. As
a result, we have realized improved pricing for our corn/sorghum purchases
which are currently down approximately 40%. Given the inherent volatility in
ethanol and grain prices, we cannot determine the likelihood that the spread
between ethanol and grain prices in future periods will remain favorable
compared to historical periods. </U></FONT></P>

<P><FONT SIZE=2><U>We attempt to match quantities of ethanol and distillers grains sale
contracts with an appropriate quantity of grain purchase contracts over a given
period of time when we can obtain an adequate gross margin resulting from the
crush spread inherent in the contracts we have executed. However, the market
for future ethanol sales contracts is not a mature market. Consequently, we
generally execute contracts for no more than three months into the future at
any given time. As a result of the relatively short period of time our
contracts cover, we generally cannot predict the future movements in the crush
spread for more than three months. Approximately 10-15% of our forecasted
ethanol production during the next 12 months has been sold under fixed-price
contracts. As a result of these positions, the effect of a 10% adverse move in
the price of ethanol from the current pricing would result in a decrease in
revenues of $18.6 million. Similarly, approximately 10-15% of our estimated
corn/sorghum usage for the next 12 months was subject to fixed-price contracts.
As a result of these positions, the effect of a 10% adverse move in the price
of corn/sorghum from current pricing would result in an increase in cost of
goods of approximately $14.7 million. </U></FONT></P>

<P><FONT SIZE=2>Segment profit
was $4.6 million in the current year compared to segment loss of $5.0 million
in the prior year. The increase in segment performance was primarily related to
the increase in gross profit discussed above. In addition, selling, general and
administrative expenses decreased by $0.9 million in the current year compared
to the prior year 2008. An impairment charge of $1.3 million related to the
write off of goodwill associated with the Levelland Hockley acquisition caused
a majority of this fluctuation. <U>We expect selling, general and
administrative expenses in future </U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>26</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U>periods to remain consistent with comparable historical periods.</U>
Interest expense increased $0.6 million in the current year over the prior
year, as we no longer capitalize interest on the One Earth credit facility
subsequent to the commencement of operations at the plant. Other income increased
$0.8 million in the current year compared to the prior year. The increase is a
result of recognizing a legal settlement of $0.3 million and grant income of
$0.5 million in fiscal year 2009. <U>We do not expect other income to be
significant to our financial results in future periods. </U></FONT></P>

<P><FONT SIZE=2><B>Alternative Energy Segment Results &#150; Nine
Months Ended October 31, 2009 Compared to Nine Months Ended October 31, 2008 </B></FONT></P>

<P><FONT SIZE=2>Net sales and
revenue for the current year were $92.3 million compared to $48.5 million for
the prior year. The increase in sales is primarily a result of One Earth
becoming fully operational during the third quarter of fiscal year 2009. The
average selling price per gallon of ethanol declined from $2.31 in the prior
year 2008 to $1.59 in the current year. Our sales were based upon 47.3 million
gallons of ethanol in the current year compared to 17.5 million gallons in the
prior year. <U>We expect that net sales and revenue in future periods will be
similar to the trend of the current fiscal year. This expectation assumes that
One Earth and Levelland will continue to operate at or near design capacity,
which we believe is a reasonable assumption given the current operating
environment at the respective plants. </U></FONT></P>

<P><FONT SIZE=2>Gross profit
from these sales was approximately $6.7 million during the current year
compared to a gross loss of $1.8 million during the prior year. Gross profit
improved primarily as a result of an improved spread between ethanol and grain
prices compared to the prior year. <U>Given the inherent volatility in ethanol
and grain prices, we cannot determine the likelihood that the spread between
ethanol and grain prices in future periods will remain favorable compared to
historical periods. </U></FONT></P>

<P><FONT SIZE=2>Segment profit
was $2.2 million in the current year compared to segment loss of $3.5 million
in the prior year. The increase in segment performance was primarily related to
the increase in gross profit discussed above. In addition, selling general and
administrative expenses decreased by $1.7 million in the current year compared
to the prior year. An impairment charge of $1.3 million recognized in the prior
year that related to the write off of goodwill associated with the Levelland
Hockley acquisition caused a majority of this fluctuation. <U>We expect
selling, general and administrative expenses in future periods to remain
consistent with comparable historical periods.</U> Interest expense increased
$1.3 million in the current year over the prior year, as we no longer
capitalize interest on the One Earth credit facility subsequent to the
commencement of operations at the plant. Income from equity method investments
in Big River and Patriot declined from $3.0 million in the prior year to $1.1
million in the current year. <U>Big River reported significantly higher gains
on derivative financial instruments in the prior year compared to the current
year. In addition, Big River experienced higher spreads between ethanol and
grain prices during the prior year compared to the current year, partially a
result of their hedging efforts. Given the inherent volatility in such
derivative financial instruments, we cannot determine the likelihood that the
trend with respect to income from equity method</U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>27</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><U>investments will continue in future periods.</U>
Losses on derivative financial instruments held by One Earth and Levelland were
$1.6 million in the current year compared to gains of $0.5 million in the prior
year. <U>Since the gains or losses on these derivative financial instruments
are primarily a function of the movement in interest rates, we cannot determine
the likelihood that such gains or losses in future periods will be consistent
with current year results. </U></FONT></P>

<P><FONT SIZE=2><B>Retail Segment Results &#150; Third Quarter Fiscal
Year 2009 Compared to Third Quarter Fiscal Year 2008 </B></FONT></P>

<P><FONT SIZE=2>Net sales and
revenue for the current year decreased to approximately $2.7 million from
approximately $16.6 million, primarily a result of the winding down of our
retail business. Income from extended service contracts was approximately $2.7
million in the current year compared to approximately $3.2 million in the prior
year. <U>We expect income from extended service contracts in future periods to
decline from comparable historical periods as we no longer sell such extended
service contracts.</U> Gross profit was approximately $2.2 million in the
current year compared to approximately $6.0 million in the prior year. The
decrease in gross profit is primarily attributable to the decline in retail
sales. However, gross profit margin as a percentage of sales increased in the
current year as gross profit from extended service plans was a higher
percentage of retail gross profit in the current year compared to the prior
year. <U>We expect gross profit in future periods to decline from comparable
historical periods as we no longer sell extended service contracts. </U></FONT></P>

<P><FONT SIZE=2><B>Retail Segment Results &#150; Nine Months Ended
October 31, 2009 Compared to Nine Months Ended October 31, 2008 </B></FONT></P>

<P><FONT SIZE=2>Net sales and
revenue for the current year decreased to approximately $18.1 million from
approximately $50.9 million, primarily a result of the winding down of our
retail business. Income from extended service contracts was approximately $8.5
million in the current year compared to approximately $9.8 million in the prior
year. <U>We expect income from extended service contracts in future periods to
decline from comparable historical periods as we no longer sell such extended
service contracts.</U> Gross profit was approximately $8.4 million in the
current year compared to approximately $17.8 million in the prior year. The
decrease in gross profit is primarily attributable to the decline in retail
sales. However, gross profit margin as a percentage of sales increased in the
current year as gross profit from extended service plans was a higher
percentage of retail gross profit in the current year compared to the prior
year. <U>We expect gross profit in future periods to decline from comparable
historical periods as we no longer sell extended service contracts. </U></FONT></P>

<P><FONT SIZE=2><U><B>Definitive Proxy Statement filed on Schedule
14A</B></U></FONT></P>

<P><FONT SIZE=2><U><B>Executive Compensation, page 7</B></U></FONT></P>

<P><FONT SIZE=2><U><B>Elements of Executive Compensation, Page 7 </B></U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>28</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>25.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>We presume that due to your exit from the retail industry you will be
 revisiting the &#147;similarly-sized companies in the industry&#148; that you assess
 for purposes of setting base salary. Please tell us how this disclosure will
 be altered in future filings. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Per the
Staff&#146;s comment, we will revise future disclosure under &#147;Elements of Executive
Compensation&#148; regarding base salary to read as follows: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><I><B>Base Salary.</B></I>
 Base salaries of our executive officers are set at a level to provide basic
 economic security, <U>with consideration given for past contributions and
 length of service.</U> Base salary levels also reflect individual cash bonus
 opportunities, with salaries set lower where cash bonus opportunities are
 higher. The base salary of our CEO is set at a level below that of salaries
 paid to CEOs <U>of other public companies in the ethanol industry</U> in
 recognition of his annual cash bonus opportunities and prior stock option
 awards. Base salaries are reviewed annually and adjusted from time to time to
 reflect individual responsibilities and corporate performance. <U>For
 comparative purposes, we review base salaries paid by companies in our
 industry peer group, including Pacific Ethanol, Inc. and BioFuel Energy
 Corp.,</U> recognizing that our executive officers&#146; base salaries generally
 are below those level<U>s.</U> We do not engage in benchmarking in setting or
 adjusting base salaries. Executive salaries were not increased for fiscal
 2009 in light of our financial performance in fiscal 2008. </FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><U><B>Change in Control Payment, page 9 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>26.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>Please revise, if applicable, to disclose if the change in control
 provision of any of your stock options will be triggered by the transaction
 with Appliance Direct, Inc. or your exit from your retail business. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>The change in
control provision of our stock option agreements will not be triggered by the
transaction with Appliance Direct, Inc. or our exit from the retail business. A
&#147;change in control&#148; is defined in our stock option plans as a change in control
of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Exchange Act, including
any person acquiring beneficial ownership of 25% or more of our outstanding
common stock, the incumbent directors cease to constitute a majority of the
board, a merger or other business combination transaction resulting in less
than 50% of the surviving corporation being owned by stockholders of the
Company, or a liquidation, dissolution or sale of substantially all of our
business or assets as an entirety. None of these events occurred as a result of
the Appliance Direct, Inc. transaction or our exit from retail operations. </FONT></P>

<P><FONT SIZE=2><U><B>Annual Cash Bonus Program, page 12 </B></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>27.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>We note that you have disclosed the targets that must be met in order
 for annual cash bonuses to be earned, however, you have not disclosed at what
 level these targets were achieved in order to arrive at the total bonus
 amount disclosed in the Bonus column of the Summary Compensation Table.
 Please revise to disclose at </B></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>29</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="12%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>what level each of the targets were achieved with respect to Messrs.
 Rose, Bruggeman, Fuchs, and Magby. </B></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Per the
Staff&#146;s comment, we will revise future disclosure under &#147;Annual Cash Bonus
Program&#148; to add disclosure similar to the following: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="8%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><U>Mr. Rose
 earned a bonus of $26,507 for fiscal 2008 based on achieving $5,301,000
 retail pre-tax income and gains on sale of real estate and interest
 investment income. Mr. Bruggeman earned a bonus of $39,760 based on achieving
 $5,301,000 retail pre-tax income and gains on sale of real estate and
 interest investment income. Mr. Rizvi&#146;s cash bonus of $45,451 for fiscal 2008
 was based on achieving $2,065,000 retail pre-tax operating income and
 inventory shrinkage of 0.585% of net sales calculated three times during the
 year. Mr. Fuchs and Mr. Magby earned bonuses of $10,328 and $15,492,
 respectively, based on $2,065,000 retail pre-tax operating income. Ethanol
 pre-tax income targets were not met as our energy segment had a loss in
 fiscal 2008. </U></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>In connection
with responding to the Staff&#146;s comments, we acknowledge that: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="88%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>The Company
 is responsible for the adequacy and accuracy of the disclosure in the filing;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Staff
 comments or changes to disclosures in response to staff comments do not
 foreclose the Commission from taking any action with respect to the filing;
 and</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>The Company
 may not assert staff comments as a defense in any proceeding initiated by the
 Commission or any person under the federal securities laws of the United
 States.</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Should you
require further clarification of any of the issues raised in this letter,
please contact Douglas L. Bruggeman at (937) 276-3931 (or by fax at (937)
276-8643). We respectfully request that the Staff let us know at its earliest convenience
if we can be of any further assistance. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="85%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Sincerely, </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP nowrap>
 <P><FONT SIZE=2>/s/ Douglas
 L. Bruggeman</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR="#ACA899" ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Douglas L.
 Bruggeman </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Vice
 President-Finance, Chief Financial Officer and Treasurer </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>30</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=RIGHT><FONT SIZE=2>Annex 1 </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>REX Stores Corporation<BR>
Rule 3a-1 Calculation<BR>
(Unaudited)</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="6%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="91%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=4 VALIGN=BOTTOM>
 <P><FONT SIZE=2><U>Investment Securities at
 October 31, 2009</U> (in
 thousands)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>24,563</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Big River Resources, LLC
 equity</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>14,130</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Patriot Renewable Fuels,
 LLC equity</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>1,014</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Patriot Renewable Fuels, LLC
 convertible note</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,386</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Repurchase agreement</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>41,093</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=4 VALIGN=BOTTOM>
 <P><FONT SIZE=2><U>Total Assets at October 31,
 2009</U>
 (unconsolidated)(in thousands)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>272,925</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>-</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>74,376</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Cash and cash items (money
 market funds)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>-</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>2,100</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Restricted investments
 (cash and money market funds)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>-</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,005</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Restricted cash</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>195,444</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>41,093</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>195,444</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>&nbsp;=
 21.0%</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=4 VALIGN=BOTTOM>
 <P><FONT SIZE=2><U>Net Income (Loss) from
 Investment Securities &#150; November 1, 2008-October 31, 2009</U> (in thousands)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(320</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>Big River Resources, LLC</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(653</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Patriot Renewable Fuels,
 LLC</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(973</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(6,631</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Total Net Income (Loss)
 November 1, 2008 - October 31, 2009 (in thousands)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P ALIGN=RIGHT><FONT SIZE=2>(973</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(6,631</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>)&nbsp;= 14.7%</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>31</FONT></P>

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