April 4, 2012

MORE ON PNSN

Even though PNSN is not being official held in the portfolio any longer, we will continue to provide information on PNSN at least for the time being.

The key question is if the present price discounts the dilution. The other key question is if there is more information that the company has not released.

Here is a quote from the company’s response:

Book value after dilution? Under the plan, we would eliminate approximately $176 million of debt and $30 million of annual cash interest expense, increase equity at our parent company, and potentially realize a significant one-time gain as a result of this exchange.

… Please click here or the title below to read more.

April 4, 2012

MORE INFORMATION ON PNSN

The stop hit on PNSN and the position is no longer being held. However, we recognize that some subscribers are still holding PNSN.

We asked PNSN a number of questions and also requested them to verify the authenticity of the following letter:

March 28, 2012Dear Valued Correspondent

As you have no doubt noticed, the price of our common shares has declined over the last week.

We believe this is due to the potential share dilution that is part of Penson Worldwide, Inc.’s

recently announced debt exchange offer plan, and is a sign of confidence in the ultimate

success of that plan.

… Please click here or the title below to read more.

April 4, 2012

NO QE3: GOLD, SILVER, BONDS GET CREAMED

At 11:26 a.m. today, I received an email from a well-known market guru who is an expert at technical analysis. The email declared that the pattern in gold was like a coil ready to start a new rally.

At 2:00 p.m. the Federal Reserve Board and the Federal Open Market Committee (FOMC) released the minutes of the Committee meeting held on March 13, 2012. In response to the minutes, gold fell about $35, with silver, oil, bonds and stocks all falling as well. As of this writing, the SPDR Gold Trust ETF GLD -1.29% is down $3.25, iShares Silver Trust ETF SLV -3.01% is down $0.40, the United States Oil Fund ETF USO -1.38% is down $0.38, and the iShares Trust Barclays 20+ Year Treasury Bond Fund ETF TLT +1.00% is down $1.61, S&P 500 ETFSPY -0.98% is down $0.96.… Please click here or the title below to read more.

April 4, 2012