PIMCO Multi-Sector Income Fund T.PIX

conceptually in simple terms....

[clearwaters]

Conceptually, in simple terms (with some limitations of course)growth in the top line (gross revenues) needs to occur before growth in the bottom line can occur (there are exceptions though) and is usually an indicator that the market accepts some of the competitive advantages of the company/technology, as well as managements ability to penetrate same. Market pentration usually is quite expensive, (thus, why some analysts will give a non profitable company a high market cap if they have a good growth (top line/gross revenues) story while remaining in the red on their income statement) I am encouraged by the small profit that management has produced in the revenue growth stage, because it demonstrates a committment to fiscal responsiblity at this stage, and not just the naive optimism demonstrated by some managment that gross revenues will eventually turn a profit regardless of strict fiscal management, (watching your administrative/operational pennies)if the chart lines on both gross revenues and net revenues continue (with a few bumps long the way, I am sure)trending upward over the next several quarterlies, this could be one of the line entries in our own portfolio that turn into a long term investment that justifies its place regarding same-