Question-and-Answer Session
Operator
(Operator instructions) The first question comes from Bill Tanona from Goldman Sachs. Your line is open.
Bill Tanona – Goldman Sachs
Hey, good evening guys. Just – thanks for the details in terms of what you guys are targeting. Just want to make sure that I understand them. The $63 million is kind of what you’re looking for in terms of the breakeven revenue and as you think about the $63 million, how should I be thinking about the non-comp, just given some of the one-timers? Is the right way to look at it to say that this full year kind of non-comp should just exclude the $5 million that you talked about here in the third quarter and if we assume a similar level, you’re talking about $138 million roughly for full year 2008? And if that’s the right number, then we should be taking the $10 million off of that?
Shaugn Stanley
That’s right. You’ve got it right, exactly right.
Bill Tanona – Goldman Sachs
So in that scenario, if the $63 million is right, you guys are looking to target about a 50% comp to net revenue ratio. Is that about right as well?
Tom Weisel
I think it would be higher than that, Bill. Yes, it’d be more like $60 million, low 60s I think. Shaugn?
Shaugn Stanley
Yes, we’re right at $63 million, Bill.
Bill Tanona – Goldman Sachs
Okay, I guess I’ll just follow up to understand that one just a little bit better. The warrants, in terms of the remaining warrants, I know you said that obviously you don’t expect any type of write-downs on those as it relates to 2009, primarily because the warrants are good for, I believe, 12 months. But is it safe to assume that that $1.7 million, we should be assuming if the markets don’t recover here that that should also be written down in the near term?
Tom Weisel
Well, they’re basically mark to market, but those securities could go down further and therefore we could have further exposure. Correct.
Bill Tanona – Goldman Sachs
Okay, and then just lastly, in terms of cash earnings you guys talked about, just want to make sure I’m on the same page in understanding how you guys are thinking about cash earnings. Is it everything including non-cash compensation, as well as amortization depreciation and IPO awards? Just trying to get an understanding exactly what you guys are benchmarking as far as the cash earnings.
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