I didn't see the McCreadie piece- but  the receivables raise a big red flag

And,  didn't realize until I heard all the comments on  this board on the fall of PSN, that no one bought this stock based on  looking at the financials at Dec 31 2011,  or  March or June, so I now see why  financial information disclosed in the last quarter did not have a devestating effect on most posters here.

There are so many red flags in those numbers- but the biggest is that no one has paid PSN bills for nine months or more and all that IBITDA is simply accounting- not cash

Since Dec 31 2012 it seems  PSN is collecting per month 10%- to   20% of its  monthly bills

They set up in accounts receivable and show as income 15 million ( and IBITDA )  a month and then  collect around 2 million and this goes on month after month after month.

means three things;


1- no one is paying as they don't know what they owe


2- management forgot to ask for the money and as they  said a day after releasing their numbers,...   it just came to their attention...... that they were only collecting 15 cents on the dollar for last  nine months and will look into it and fix it


3- the billings were based on contracts- - in effect  setting up revenue for months ahead- and part was simply not due


I am not sure which of the three is worse;


1- means  the year end audit may reveal  huge write downs trying to sort out the mess

2- means that the accounting is way over their heads - probably the best explanation as this can be fixed but write  downs could easily happen at year end as accounts are just too old.


3- means that they have already recognized future rentals- meaning if things are going down hill- the next quarter will be a disaster  as sales are already recognized in quarter three.


I am just speculating- I have no idea which of the three explanations is true  but one of them is.

Until  you can see audited numbers, buying this stock is a complete guess--just like flipping a coin - I bet all institutions have bailed as they cant own  without reliable numbers- 


I have gone from a very strong supporter of PSN  for over a year -to feeling something isn't right

i was very lucky and bailed four weeks ago  prior to seeing these numbers

I suspect there will be more to this story soon- and it wont be good