Pershing Never Lose, page-2

Red, with all due respect, (for the love of our heavily depleted equity balances) please, please, please stop with the perma-ramping. I'm all for it *if* you can successfully read the swell. However, the objective evidence for this year clearly shows that you've been out of sync with the SP direction for a while now and you are now bordering on challenging our dear pet frog as the ultimate sell indicator. Best to button it, rather than tempt the angry equity gods any more than you already have. They are winning. Don't fight them.

Pershing never lose because they don't actually take any market risk at the moment. They simply launder/offload new shares for whatever the market will bear and clip the ticket in the process. Management wears the conversion-to-cash risk. We've clearly seen that, so enough with that fantasy.

It's a brave (or stu....) punter who would posit with a straight face that the small CR this qtr was because POS doesn't need any cash. Unless there is some kind of massive inbound pre-payment that is imminently due (which no-one knows about), the upcoming cash at bank balance for the June EOQ is likely to be in the order of ~$1-$1.2M. It will be the first quarter in recent years (yes, years) in which the EOQ cash balance has fallen materially below $2M. Just how close to the wind should we sail?

How can you be so confident?  I have some theories, but I'll keep them to myself, as I don't want to get mod'd. It certainly doesn't appear to be based on current reality.  

Don't forget that any rent monies will only start to flow three months after KDR exercise their option. It's always possible the they could elect to fast-track any such payment, but they haven't even exercised yet!

At some point in the future (if POS survives), the worm will turn and you will re-discover your swell-reading mojo. Sadly, however, the tide is still out.