Protective Capital Structures Corp. (fka PCSO)

[stervc]

Libra59, from my HCPC valuation perspective...

To answer you question about determining the divisor, please understand that I am not an account, but I will give it a shot with what little I know.

Please understand that the divisor evolves around the basic fundamental formula for deriving a Book Value (BV) since it is a figure that is derived in relation from the HCPC Balance Sheet. The formulas to note are below:

Assets - Liabilities = Equity
Equity ÷ Outstanding Shares (OS) = Book Value (BV)

Now, with applying this to the HCPC Balance Sheet recently filed, I would consider not using the added amount of $717,594,805 under the entry titled Total Liabilities and Shareholders' Equity to derive the Book Value of HCPC.

I see how they did that and why, but the official numbers once released through audited financials would need to be derived from having the $37,633,498 entry titled Total Liabilities subtracted from the $717,594,805 under the entry titled Total Liabilities and Shareholders' Equity to derive the Book Value of HCPC.

This is why the figure to use to divide by the Outstanding Shares (OS) would be the $679,961,307 entry titled Total Shareholder’s Equity to derive a Book Value (BV). This means that the HCPC BV is derived as follow:

$679,961,307 ÷ 10,499,761,784 (OS) = HCPC BV

0.0648 = HCPC BV

Something else to note, make sure to not get the derivation of the BV mixed up with the derivation of the Earnings Per Share (EPS). Deriving the EPS is evolved around the information from the Income Statement and uses different formulas to use for deriving the EPS such as below:

Revenues – Expenses = Income
Income ÷ Outstanding Shares (OS) = EPS

(Consider Expenses and Income to be in “net” amounts for simplicity sake when generally posted or discussed.)

This calculation for the HCPC BV is not quite the .07 per share that I have seen others post, but I think the .0648 per share would be just as fine. The bottom line key for the HCPC financials just filed will be for them to transform them from unaudited financials to audited financials. When that happens, expect for HCPC to trade at a price commensurate to its valuation for more reasons than one that should cause much more to follow suit in my opinion. These are the reasons why many are still holding and watching HCPC.

v/r
Sterling





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