10-28-2013, 02:52 AM
The management addressed this point on the cc in several ways as far as I know, but will probably still have to provide additional details to dispel concerns:
They said the b.s. was a "snap shot," which it is, and I guess by that implied that at other times they might have level 1 cash on hand. In addition, they explained that there's sufficient cash flow from operations to manage operational needs and that in the event they do require cash, they can readily tap into a term deposit. I also see that the schedule of term deposit maturities are staggered to come due pretty regularly, thus providing ongoing liquidity even if they couldn't be accessed, which they can. I believe "tradestar" may have also brought up the possibility of a sweeping mechanism, which would automatically divert excess cash into interest bearing term deposits in order to maximize interest income, rather than let the cash languish at virtually no return.
At any rate, I imagine they'll be supplying additional details regarding this point, along with others.
They said the b.s. was a "snap shot," which it is, and I guess by that implied that at other times they might have level 1 cash on hand. In addition, they explained that there's sufficient cash flow from operations to manage operational needs and that in the event they do require cash, they can readily tap into a term deposit. I also see that the schedule of term deposit maturities are staggered to come due pretty regularly, thus providing ongoing liquidity even if they couldn't be accessed, which they can. I believe "tradestar" may have also brought up the possibility of a sweeping mechanism, which would automatically divert excess cash into interest bearing term deposits in order to maximize interest income, rather than let the cash languish at virtually no return.
At any rate, I imagine they'll be supplying additional details regarding this point, along with others.