Tuesday, July 03, 2007

Worldwide Disaster

Sucks for me to have to write this, but there's no reason to cry over spilt milk.

A Trading Portfolio holding, Penson Worldwide (PNSN), announced a significant earnings shortfall today. Shares tumbled nearly 20% in afterhours trading. There's been a lot of talk about the potential loss of a major customer. From the release, it does not look like the reduction in earnings is being attributed to that. The company also authorized a share buyback of up to $25MM, but I read it more as a sign of desperation. As a result, I will be looking to exit the position soon. The loss to be taken is substantial, but not devastating... BLECH!

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