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Post# of 87366
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stervc

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stervc

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Re: hotdog1012 post# 12320

Sunday, 12/23/2007 5:45:37 AM

Sunday, December 23, 2007 5:45:37 AM

Post# of 87366
Hotdog1012, with your "HCPC Valuation" question...

The question I guess I would ask back at you is... Why not?

Why wouldn't HCPC want to pursue a higher share price? They have shares at a cost basis all the way up to .06 per share so… Why not? Still, their website states that the Insiders have not sold one share. That’s awesome in my opinion and should not get ignored.

I guess I have to put myself in management's head as far as the best way to add value back to their/our shares. Look for the HCPC management to do the following in my opinion:

1. Convert their restricted shares to preferred shares.
2. Buyback somewhere in the area of 600 Million shares.

Converting their restricted shares would be like implementing a "Poison Pill" to keep anyone from buying a 51% controlling interest on the open market to try and takeover HCPC. The preferred would have a conversion ratio to warrant an amount greater than the OS to prevent any type of takeover.

Converting their restricted shares to preferred shares allows HCPC to reduce the OS tremendously and add instant valuation as fundamental valuation is derived from the amount of the Outstanding Shares (OS) as the key denominator to the equation for deriving an Earnings Per Share (EPS).

Revenues – Expenses = Income
Income ÷ OS = EPS

It is important to lower the OS because the lower the OS, the greater the valuation of a company hence the greater the “EPS” of a company hence the greater the “share price” of a company.

With what I mentioned above, HCPC’s OS can be reduced down to around the 500 Million shares area. I’ve seen stocks do this before and this would be very easy for HCPC to do to bring instant valuation. This is why I really see such huge potential valuation with HCPC and why I think we need to focus more on the potential $740 Million valuation for HCPC. Now consider the post below:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25294444

This is going to be very easy for HCPC to do and it will immediately from the closing of this one single deal and especially as more deals are closed give significantly enhanced “potential and valuation” to the price of HCPC to where the cost basis for the amount of the Insider's shares would begin to look like a discount as opposed to a premium as they appear right now. Again, these are only my opinions as to how I see things materializing with HCPC.

v/r
Sterling


Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262

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