I cant believe how uninformed so many posters are on this site- its really unbelievable . Trying to rationalize why PSN will go up in value, and the only reason its at 4or 5 bucks  is due to the paid bashers and short sellers etc

I am convinced that PSN will be under 3 dollars in a couple weeks and even at 3 its over valued. The 3 dollar price has nothing to do with short sellers- that is what it is worth based on future cash flows.

 

However- when it becomes apparent that a lot more of the so called accounts receivable wont ever turn into cash- the stock will drop even  further- only one poster out of 100s  and probably the only other CA on this board has picked up that they increase the cash flow by the bad debt provision in third quarter. Meaning they ADDED the 9.5 million to  get their final IBITDA number- so I suspect next quarter which will be audited will centre on getting that accounts receivable number to only represent whats exactly outstanding and collectable. Look at the numbers- receivables of 135 million gross before wrote downs and sales of 145 million for year to date- Even a non CA can figure out that almost no cash is being received. This is not just an oversight- how can you run a company with no cash??? either the receivables are way overstated and due in the future- or - they never thought to collect them for 9 months- How could the CEO and CFO let this happen???

What you can do though is down play earnings and constantly  talk of IBITDA and when You calculate IBITDA you add the receivables as part of cash flow as if they were collected- If you went by cash flow in the door , it must be a very very small number, and, all the rest of the IBITDA is sitting in receivables

 

so

anyone who thinks they will get back some of the 9.5mm is nuts- the real question is- what will write down be on audited statements-in December???  They might decide to simply write down everything thats more than 120 days old, especially if its all from contractors and not the oil companies- that number could be 30- million I don't know but it will be huge.

 

The good news for PSN is that say they  say write off 30 million at December 31 it wont effect anything!!!!!, As like this quarter. they will add back the 30 million to their IBITDA and 99% of the people on this board will say grea!!!!!!!! t didn't effect IBITDA so all is ok  stock is only down due to shorters etc etc