"The prize of the week is a pen I got from Bright Trading at the expo. Hey, give me back my pen....I wondered what happened to it!! Don
I heard it was 6 million, but I am sure some (or most) was his, since he sued. But Worldco has loads of money in the bank. I heard a figure of a few hundred million. Worldco is not losing money, but their margins blow compared to yesteryear. Their biggest mistake (in my opinion) is leasing so many floors on Wall Street. I can see wanting your headquarters on Wall St. cause it sounds "cool." But Worldco is in 3 buildings on Wall. They must have like 20 floors. And the newest floors at 100 Wall(which are beautiful) are not maximizing floor space. No reason for a prop firm to be on the most expensive real estate except they were caught up in the hype.
Since you're a member of WorldCo, you should have a copy of their balance sheets.....let us know what the "cash in bank" is..... And, of course, we share ours with our traders, who wouldn't. Don
Don, I wouldn't look at "cash on hand". I would look at the owner's equity section and determine what is trader and what is owner. Cash is obscured because of the positions carried. I would also look at depreciation, leases and other potential claims against equity. Bright has 40 offices? Is that 40 leases? What is the total obligation of those leases and what are the leasehold improvements?
Good, I agree....having started out my professional life n public accounting, I try to not get too detailed in my suggestions (don't want to sound like a CPA geek) lol. Check the equity, check the capital that is placed between each trader ($10Mil in our case)...before a trader can be responsible for other trader losses. Thanks for the help!! Don
At 40 offices, and 5,000 per month rent and 3 years remaining on those leases, I figure 7.2million in lease obligations. Obviously, I am estimating these numbers, but my point is that the absolute number of $10 million you quote taken out of context of the entire balance sheet is not significant. More important than the amount of money the firm has up (even outside the rest of the balance sheet) is the firms risk policies. That is, the probbility of testing that $10 million cushion should also be considered.
If they are still going in a year then they will probably survive the bear market. If they just took some big cash hits and fired the risk manager maybe its once bitten twice shy and they will be on the straight an narrow.