Cascadia Investments (CDIV)

[Ron456785]

Here's the problem with flipping in and out, even if your share count is the same or more when you get back in. Do you know how G was on the regsho list recently? It was there because the volume was more than the MMs could successfully trade off among each other to keep themselves out of trouble, so they were frantically trading back and forth on day 13. Flipping in and out gives them the out that they would normally have only by trading back and forth like that. It resets the clock for them. Instead of having a burning cake in the oven that needs to be dealt with, they effectively have a brand new one when you buy back in, which they can let simmer awhile and not worry about it. Those FTDs are all still out there, but they get swapped around enough that for regulatory purposes it seems like they are all new ones, so the clock gets reset every time. Eventually, if the amassed volume of these aged FTDs gets too great, there will be a cover, but only then. What you do by flipping out and then back in is reduce their old debt volume and delay the squeeze.

Just wanted to clarify for everyone why this is a bad idea, especially for CDIV, because many of those FTDs are getting pretty old right now, and there are a lot of them. When we get volume pouring in one day, it will probably push us over the edge. If you get off the train to get a Pepsi, you might find that it has left the station before you can get back.