At December 30, 2007, the Company had no debt, and total cash, cash equivalents and investments in marketable securities of approximately $31.0 million, which included $7.8 million of auction rate securities (ARS). The Company currently holds approximately $12.4 million of ARS. Historically, these types of ARS investments have been liquid with interest rates resetting every 7 to 35 days by an auction process. As a result of the recent liquidity issues experienced in the global credit and capital markets, in February and March 2008, auctions for ARS investments held by the Company failed. The ARS continue to pay interest in accordance with the terms of the underlying security; however, liquidity will be limited until there is a successful auction or until such time as other markets for these ARS investments develop. The Company holds ARS with underlying collateral of student loans that had AAA or Aaa ratings at the time of purchase and maintain these ratings through the date of this release. The majority of these ARS are guaranteed under the Federal Family Education Loan Program (FFELP). The Company believes that the credit quality of these assets has not been impacted; therefore, no impairment charges have been recorded to date. The Company will continue to monitor the credit quality of these investments to determine if impairment charges are required. The Company does not believe that the lack of liquidity relating to ARS will have an impact on its ability to fund its operations during the next twelve months.

http://www.casinocitytimes.com/news/article.cfm?contentID=171721

Ironic that those who sold early are now losing income on the increasing interest rate escalator.

Be well