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Financials:
Just been checking back on the previous years financial statements. It seems that the company has audited financials for years ending 2003, 2004.
The recent appointment of an independent auditor in the PR of May 9th 2007 (Webb & Company, P.A.), "to complete the 2006 financial audits during the summer of 2007," means that they will have completed audited financial for the 2003, 2004 and 2006. I am still trying to find out the status for year ending December 31st 2005.
The above PR stated that, ".....The completion of these financial audits will be the first step in the repositioning of Heritage Capital Credit Corporation as it plans to file the necessary documents to start reporting to the Securities and Exchange Commission and then move forward with an application to be quoted on a national exchange." Need to confirm whether 2005 was audited or not. My understanding is that 2 previous years need to be audited for uplisting/ achieving reporting status to SEC.
Year Ending December 31st 2003 and 2004
http://firstindependentfinancialgroup.com/sitebuildercontent/sitebuilderfiles/pressreleaseshcccicccr....
http://firstindependentfinancialgroup.com/sitebuildercontent/sitebuilderfiles/030206hcpc-correctedin....
GLTA
PR: Just been reading around the subject, looking up some basics of debt and equity financing.
Firstly, some background on Debt/ Equity financing.
http://biztaxlaw.about.com/od/financingyourbusiness/a/debtvsequity.htm
Also came across this link to an Investment Banking Company, which is also a NASD registered broker/ dealer authorized by SEC to carry out such debt/ equity financing projects. Some background info which may also be useful to you all.
http://www.bristoldirect.com/adobe/Brochure_CRC.pdf
The latest pr seems to provide an answer to the last sentence/ first para of the previous pr of Jun 20, 2007, ..."There are plans to have several avenues to sell the BCLOC Promissory Notes for funding."
There are two aspects to this pr.
A. Firstly working capital for the company. We know the previous private placement was being used to raise cash for the company. It looks as though they still require some more cash. This could be for operating costs, pre-closing loan expenses or for bridging finance to ensure they have sufficient cash to make the capital + interest payments to investors who purchase the BCLOC Promissory notes (see below).
The pr mentions both equity and/ or debt financing. In the case of equity financing some more shares would be issued by HCPC. Debt financing could be short-term loans until cash-flow becomes positive. When the fees are received from the first BCLOC Loan closings, they will be cash rich. In that respect I would imagine they would wish to minimise equity financing (further share issue) in preference for short-term debt financing, assuming this is available to the company. Until they are cash-flow positive it may be hard to secure business loans with repayments deferred (i.e. debt financing), so some equity financing may be required.
B. Secondly, funding for the BCLOC Promissory notes. We know that the selling of these notes to institutional investors is to raise the capital for financing the BCLOC loans. These notes are a form of debt financing, i.e. the BCLOC Promissory note will entitle the investor in this security to a regular monthly repayment of capital + interest. These notes will only be sold when the company is ready for closing some or all of the loans. No investor would purchase these notes unless they were assured of repayments, which can only be made when the loans are closed. The pr mentions an initial capital raise for the company needs. This could just be for working capital or it could suggest that they may have some loans ready to close. They will raise the capital for funding these loans through debt financing by selling BCLOC Promissory notes to institutional investors, as and when they are ready to close a set loan amount.
What is not clear is whether the institutional investor mentioned in an earlier PR ($300 million funding, pr of 27th February 2007) is still on board. If not, this pr could relate to a source of financing for the present loan deals through the sale of the Promissory notes. If that investor, however, is still in board it could relate to future sources of finance for the BCLOC loans up to $740 million........and beyond. Assuming the new PR company develops a marketing campaign when the business is up and running, there will be many more new loan applications coming in. As the business expands they will need an ongoing source of funding through the sale of BCLOC Promissory notes, to meet the finance of new business loans. The NASD listed company will be responsible for locating and securing that financing from institutional and high net worth private investors. The NASD company receiving % commission on total capital raised at each stage.
Finally, we still need to know whether they intend to/ have to obtain a credit rating for these Promissory notes. If yes, then we still need to get passed that hurdle before they can be sold to investors. As I see it they are preparing and gearing up for raising finance. The NASD listed company being the/ a conduit through which the required finance for the loans will be raised for HCPC.
GLTA
thanks noth shore, interesting...hopefully they are at an end now.....if as we think they did relate to RegD share sales, then perhaps that could signal an end to the downward trend we have all experienced over the last few weeks.....be interesting to see what happens for the remainder of this week and next week. Hopefully we will see some news soon....a positive pr and this turns around.
GLTA
With the low volume of the last two days, I assume there have been no T-Trades?
Interesting to see whether that pattern continues.
GLTA
PR was ok, just tidying up some loose ends such as the Insurance Company and updating us on some developments on the BCLOC financing plans.
The Directors leaving is part of the restructuring of the company for the future imo. If the new proposed Directors have a solid track record and good experience in the industry then it will serve as a firm basis with which the company can move forward. The company is in a transition stage at the moment imo. The changes we are seeing at present is just part of the process imo.
GLTA
Thanks kyoshi, if you/ others could keep an eye on the T trades and post them here it would be appreciated.
Website has been more or less completed. Will give the company a call next week and see if I can find out any more info, including current OS, will post anything I find here.
GLTA
Checked out a bit more about the OTCQX trading platforms (2 levels).
http://www.otcqx.com/otcqx/home
Both platforms require audited financials which HCPC are having carried out this summer for the year ended 2006 and which will be issued to shareholders by end of September 2007.
Prime QX is the regular listing platform, Premier QX is the level which companies upgrade to when they meet more stringent criteria. Interesting that one of these criteria for upgrade is that the company holds annual shareholders meetings. Whilst it also require a minimum share price of $1 and company meets the financial qualifications of a national stock exchange, it is interesting that HCPC has opted to reintroduce the annual shareholders meeting this year for the first time since 2005. We know that HCPC have stated in a recent PR that they aim to pursue a listing on the OTCQX. The reintroduction of the shareholders meeting, whilst not a requirement for basic listing, may indicate where they see themselves in the future.
More detail below:
The OTCQX trading platform will feature two distinct tiers, PremierQXSM and PrimeQXSM, designed to showcase solid operating companies with audited financials that can meet certain minimum requirements and provide ongoing disclosure.
PremierQX, the highest tier, identifies issuers that:
Designed to identify issuers that are of the size and quality to list on a National Stock Exchange. Listing in this tier requires:
A minimum bid price of $1;
At least 100 beneficial shareholders, each owning at least 100 shares of the company's common stock;
The company meets the financial qualifications of a national stock exchange;
Annual shareholders' meetings; and
The company meets all of the requirements of the PrimeQX Tier below.
PrimeQX identifies those issuers that:
Ongoing operations (no shells, blank check or special purpose acquisition companies);
The company may not be subject to any bankruptcy or reorganization proceedings;
The company must be duly organized, validly existing and in good standing under the laws of each juridiction in which the company is organized;
At least 50 beneficial shareholders, each owning at least 100 shares of the Company's common stock;
Proprietary quotations published in the Pink Sheets;
Ongoing quarterly and annual financial reports posted on OTCQX.com, a premier website for qualifying companies (SEC Registered issuers can use EDGAR);
Inclusion in the Standard & Poor's Corporation Records or Mergent Manuals (fka Moody's Manuals), which satisfies the Blue Sky requirements for secondary transactions in many states, together with a list of any other states in which the security is Blue Sky compliant and eligible to be sold by brokers in those states;
DAD Letter upon application and annually thereafter to Pink Sheets LLC confirming that the issuer has made adequate current information publicly available and meets the tier inclusion requirements are operating companies with audited financials, but not of sufficient size to be on PremierQX.
GLTA
Just a point of interest regarding the Private Placement Regulation (PPM) from the PR of October 4th 2006:
"The shares of common stock and debt to be issued in the
PPM have not been registered under the Securities Act of
1933 and may not be subsequently offered or sold by the
investors absent registration or an application exemption
for the registration requirements. Heritage has agreed to
file a registration statement covering re-sales of the
common stock and debt by the investors. "
Whether this clause was actually written into the final PPM documentation, however, is not known.
GLTA
Did anyone note whether there were any T trades for Thursday and Friday this week?
GLTA
Kyoshi: Well spotted.....the changes to the business description on the PR and the contact to the VP.
Will certainly be interesting to see how things develop with Gregory FCA on board now. Agree with your earlier comments that you don't go to the expense of having independent audits carried out or engage a reputable PR firm unless you have confidence in future cashflow. Gregory FCA work with high calibre clients. It gives me a lot more confidence that we should see some positive changes and developments in the near future with their input and influence imo
GLTA
Kyoshi: Agree with your comments/ thoughts.
The postponement of the shareholders meeting may have been as a result of advice from the new PR company. As mentioned previously, I am sure they will be putting a coherent strategy in place for the company. I think the new website is also as a result of that.
Insiders/ major shareholders hold most of the shares at a much higher pps. They stand to lose as well if they don't deliver.
I agree with your comments about the lack of pump pr's. If there wasn't a real business behind this they would have put out some pump prs soon after March 15th and sold shares at a much higher pps. Also, with a private placement they have to find investors who will buy the stock, albeit at a discount, based on financial statements and projections that will have been checked by these third parties. There are legal implications if they are misleading in such PPM's.
To put things in perspective, a million shares at 0.005 is just $5k. Everyone would like to see a much higher pps, but the dollar values involved at this level are really quite small. The company will certainly not make much selling at these levels. Some selling from private placement shareholders/ existing shareholders is probably occuring. News to bring in new interest/ buyers is what is needed now imo
GLTA
Certainly good to see some improvements taking place already. PR company appointment started 2 weeks ago. I am sure there is lots happening in the background at the moment imo. If the company sees itself as being on AMEX in a year or two, then it needs to present itself as though it is already there imo. I think the PR company will help in developing the corporate image and presentation of the company, so that it will be taken seriously by the type of investors/ clients that it hopes to attract in the future. The PR company works with good quality clients, many that trade on the higher exchanges. They are ideal for putting HCPC on the right track to join them. The following message highlights some of the PR company's client list. We are in good company:
http://www.investorshub.com/boards/read_msg.asp?message_id=19798175
With the correct corporate image in place the company can then reach out and be market it's products in the appropriate sectors. I am sure that there is a gameplan being put in place at present and we are just beginning to see that being implemented.
GLTA
New Website!!!!!!
http://www.heritagecapitalcreditcorp.com/
Check it out, the new PR company seems to be making some early impact. Still under construction, but great to see some changes being made already. Looks much 'cleaner' and certainly prefer the white background.
Hopefully this is the improvement to the corporate image/ identity of the company, in advance of news breaking:)
GLTA
noth shore: Would definitely be sweet and reward for all our patience here. I think we are close to a turning point too. Trends don't usually change overnight, but I think the momentum of the current downtrend is slowing as shown by the MACD, Stochastics and ADX/DMI indicators.
If the private placement shares/ RegD share sales are sold at a discount to the market price, there may have been some incentive to keep the price down as much as possible by those participants during this period, so they could buy as many as possible. This may have been assisted by the short selling that we know has occured over the last few months (on average approx. 1 million short sales a month from February 2007 to present). Just a thought, but it may have led to some downward pressure on price during this period. They will need to cover at some point. If that is the case, then those of us who have been adding during this period will have benefitted as well.
Once the RegD sales are over, however, everyone will want the price to go up.....which is good for us all:)
GLTA
Bit of background on T Trades in extract at end of message.
I am still not 100% clear on the function of T trades. I know people have their own thoughts on them (possible RegD share sales, also heard that it is exchange of shares between MM's) but if anyone has any good links it would be appreciated. The highlighted passage below shows that they are taken into account for daily volume reporting, but do not impact on the high, low or close prices.
It is known that RegD shares are often sold at a discount to the market price. That being the case I could understand then why these transactions would occur after hours and not during the trading day, as the price set for the trades is not based on the actual market price/ ask during normal market hours. The fact that the volume is included in the records however, shows that it is either a record of a buy or a sale and should be taken into consideration by us.
It could be then that these T trades do record RegD shares, but I'd like to have some more information/ confirmation on this point.
Extract as follows:
"Extended-Hours Trading
Nasdaq can now transact "after-hours" trades. These are trades that take place after the regular market close at 4:00 p.m. ET up until 6:30 p.m. ET. There is also a "premarket window" permitting Nasdaq trades before the regular trading session begins at 9:30 a.m. ET. These trades can take place as early as 8.00 a.m. ET.
Trades outside of regular trading hours are classified as "Form-T" trades. Form-T trades don't impact last, high, low or closing prices, but are reckoned in volume reporting. Nasdaq has specified that the "closing quote" of the regular session will be identified separately from extended-trading-hours quotes."
GLTA
Thanks for the comments noth shore. Agree that the RegD issue needs to be completed and share structure stabilised, if it hasn't already. RegD issue used to raise finance to complete pre-closing work for loans. Once that is achieved and loans complete, we are off to the races imo.
The fundamentals of this company as you have stated in your message look very good. Technicals seems to be improving too. When those items are closed out and the message gets out we will see a very different picture imo.
GLTA
Gempicker: You need to do some research, but the basic structure of the business model is outlined in the following (see i-box above):
http://www.isda.org/speeches/pdf/SPV-Discussion-Piece-Final-Feb01.pdf
See Appendix D for a good visual of the process.
HCPC has set up a Trust that sells notes to institutional investors (BCLOC Notes). The purchase of these notes raises the capital to provide these loans (BCLOC Loans). In return, the institutional investor receives a return of their capital + interest from the loan repayments. HCPC receive a one off payment for setting up these loans, and a regular monthly income for servicing the loans. The loans are asset-backed, the deeds of the property held as security. The loans have a feature that raises capital for the loan applicant during the life of the loan. This helps safeguard against default, as it can be used for repayments if needed if there is a cashflow problem, or the lump sum returned to the applicant at the end of the loan. This is just a quick outline, please do your own DD.
GLTA
The chart seems to have formed a Falling Wedge pattern over the last few months. This is a potential bullish reversal pattern, if confirmed by a breakout of the the upper resistance/ trendline on good volume. More info can be found on this at:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:falling_wedge
As mentioned previously, the stochastics are showing a positive divergence from the direction of the current downtrend. This is a potential indicator of a future change in trend. Currently the ADX/DMI indicator is also reading around 10 indicating a weak trend at present. I am no TA expert but very interested in it's application. The above suggests that a breakout north/ trend change is on the cards imo. The exact timing of that is another thing, but the catalyst will probably be initiated by good PR......
GLTA
Agree. We are due an update as it's been almost a month since we were informed about the appointment of the PR company. Hope that they are working closely with this new PR company (appointment commenced June 1st) to develop a co-ordinated strategy for promoting the company and for the release of PR's in the short and medium term. This new PR company should have a lot of new ideas that HCPC need to take on board, to get their message across better. Website redesign would be on my agenda, improved corporate identity, then improved marketing to both investors and the target loan market........all co-ordinated with a PR campaign to enhance and support the share price.....these are just a layman's ideas....am sure they will have their own ideas too:)
If so, then we should benefit from that in the near future imo.
GLTA
Volume picked up again after just 15k yesterday with close at high of day. Stochastics hooking up again thro' 20....if maintained it will create a higher stochastic low and continue the positive divergence of stochastics in relation to current price trend. This could be a leading indicator for a future price trend change. I have read about many examples in Technical Analysis texts that illustrate that this kind of positive divergence of stochastics indicates a slowing down of momentum of the current trend as a prelude to a trend change.
GLTA
Share Structure:
If anyone can fax the TA and obtain the current share structure it would be very useful (don't have access to a fax at present), requesting:
OS/ AS/ Public Float
Interwest Transfer Company, Inc.
1981 East Murray Holladay Road, Suite 100
P.O. Box 17136
Salt Lake City, Ut 84117
Phone: (801)272-9294
Fax: (801)277-3147
The current figures in the i-Box (which are taken from the most recent quarterly financial report) tally closely with those stated on the Pink Sheets.
There may have been some changes since if more RegD shares have been issued, if so that shouldn't come as a big surprise, but hopefully only a moderate change.
GLTA
Kyoshi: Do you subscribe to Buy-ins? If so do you have any up to date figures on any short position on HCPC? Tia
GLTA
Since mid-April, although the stock has continued in a gradual downtrend, both the slow Stochastics and MACD have shown a positive divergence (slow stochastics have indicated a series of higher lows and MACD has been in an uptrend)
Interested if anyone has any thoughts on this as I have been reading around the subject and many see this as an indication of a change in momentum and potential for a future breakout north. The following links illustrate this point and provide more background on both these indicators:
MACD
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve
Stochastics
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator
GLTA
From PR of April 20th:
"At funding of approximately $700 million of loans within the second quarter, the Company expects to receive a one-time origination fee income of approximately $35 million and servicing revenue of approximately $234 thousand per month over the 35- year life of the loans."
The above suggests that we should be getting news before the end of this month (June 30th is the end of the second quarter). Of course delays happen, but it is the only date we have to work too at present.
The way I see it is that we are at a significant point in the company's development. Once the private placement is completed/ sufficient finance raised to close out the loans, the company will be transformed financially. That being the case, it will also coincide with the share price being at an all time low and at a point where hopefully we will look back in due course as the turning point imo.
They have recently appointed a respected PR company, an accountants firm to carry out independent audits during this summer to become fully reporting/ SEC compliant and applied to the OTCQX for future uplisting. The CEO has recently received an additional 5 million shares in lieu of her annual allowance of $300k. This equates to $0.06 share. Once loans are closed the need to issue further shares/ PP's should be over (for now at least in this stage of the company's development). With this foundation in place the company's share price should be heading north imo. The company should then be positioned to obtain and close further loan applications with the BCLOC Trust in place to raise additional finance from institutional investors through the sale of BCLOC Trust notes. This being the idealised case the business model is in place to run and run.
This is just the way I see it. Hopefully in time it will come to fruition and we can all benefit from our patience and be grateful that we found this opportunity at this point in time. Certainly hope so all our sakes:)
GLTA
Final thoughts on the private placement (PP) issue (for now anyway). With the share price as it is so low, the company would surely wish to minimise the issue of further shares under the PP to an absolute minimum imo. Especially considering the price at which the insiders have bought their shares at (0.028 to c. 0.06 share).
Given the capital and revenue which will be generated by the company after the pre-closing stage is complete and the loans finally closed, the finance required is really a 'bridging' requirement to get to that point. They may, therefore, also be looking for other means by which to obtain this necessary bridging finance. I know I certainly would be:)
GLTA
Reg D/ Private Placements: Useful website below with more background info on RegD / Private Placements process
http://www.regdresources.com/faq_main.cfm
It could be that the PP is holding the share price back at present. Not sure if the shares are being sold to investors at a discount to the market price or not. Have read some posters on i-Hub saying that this is the case with PP's. Have also read that PP shares issued under RegD Rule 504 are not restricted, so some investors may be selling for a small profit margin based on difference between purchase and market price. Not certain on this point though. Once the PP is over and the company has sufficient working capital, then I think the share price/ structure will stabilise and when news hits we should be heading north imo. Certainly hope so:)
GLTA
Reg D/ Private Placements: Been doing a little more research on Reg D's
http://en.wikipedia.org/wiki/Regulation_D
Rule 504 of the Reg D provides an exemption for the offer and sale of up to $1,000,000 of securities in a 12-month period.
So basically the private placement RegD filed by HCPC is for the maximum amount allowable under this rule. It suggests imo that the company has the flexibility to offer shares via private placements (PP's) up to this maximum amount but not necessarily that they will automatically use all of this limit.
GLTA
Brad:
Well I suspect that some more shares have been issued, but how many and how much needs to be raised in total is not known. It would be worth getting up to date OS (and AS/ Float) info from the TA. I don't have access to a fax at present, so anyone who does and is able to check this, it would be appreciated.
The last quarterly financials reported that the Mazuma Corporation had been issued with 14.5 million shares and the PR of April 20th stated that $180k had been raised so far from the private placement (PP). That equates to 0.012 share. If all the shares were issued at that rate to the $1 million total, then I calculated the OS would be c. 250 million in total (same more or less as the AS). Not sure with a PP how the share transactions are handled, whether it is carried out direct with the investor and not recorded in the daily volume or not and whether it is at a fixed price or not. If anyone who has insight into the process comments would be appreciated.
Even if the OS did increase somewhat, the figures we are looking at would still give good upside potential to the share price. The other point is that these PP shares are likely to go into hands of investors who understand the potential of the company. In that sense they are likely to be in strong hands and are less likely to be sold until the shareprice reflects a fairer value imo.
GLTA
bsandy:
I think what is holding up the process is that there is an enormous amount of DD/paperwork required to take a loan application to the pre-closing stage. Both the loan applicant and the lender will have to be satisfied that all necessary checks have been carried out before proceeding to closing. The lender is the BCLOC Trust set up by HCPC and funded by selling BCLOC Trust notes to institional investors. So I should imagine that not only do HCPC have to carry out the DD, but also the institutional investor will have legal representatives to ensure that their interests are safeguarded. When you have all those parties checking and double checking all the paperwork and requesting additional information etc, I can imagine that it will take some time.
I don't think HCPC have to close all the loans at once, unless of course the institutional investor purchasing the BCLOC Trust notes has stipulated that a certain value of loans must be closed at one time (if they have then this may slow things up if the company needs to raise additional finance to cover costs of pre-closing)
If HCPC just closed loans to the value of $35 million, for example, that would raise a one off payment of $1.75 million plus the monthly revenue from the loans. So if that were to happen, they would then have sufficient cash to finance the rest of the pre-closing work for the other loans. They would also not need to issue more shares via the Reg D offering which is good for the company and good for us......
GLTA
From PR of Friday April 20th 2007:
"To cover the costs related to pre-closing loans for the BCLOC Trust Pool 2007-1, to date the company has raised $180,000 from a $1 million Regulation D Offering."
HCPC is in the pre-closing stage at present with the various steps of that highlighted in the previous post. It is not clear how much of the $1 million Reg D Offering is needed to cover the costs of the funding of this stage. If additional funds have been raised through this private placement, additional shares will have been issued and the OS increased from the figure stated in the i-Box above.
What we do know is that assuming the company is successful in raising sufficient funds to cover the costs of the pre-closing stage that (from the same PR as above):
"At funding of approximately $700 million of loans within the second quarter, the Company expects to receive a one-time origination fee income of approximately $35 million and servicing revenue of approximately $234 thousand per month over the 35-year life of the loans."
The company will then be cash rich and with a secured monthly income that more than covers their running costs for a long period into the future. The need for the issuance of more shares in future to raise finance, would seem unlikely imo.
The company would then have sufficient capital to cover costs of pre-closing of additional loans above and beyond the $700 million stated above.
If HCPC succesfully negotiates this stage and closes out these loans, then I can really see them going from strength to strength. All they would need to do is obtain additional BCLOC loan applications, to be funded by the sale of additional BCLOC Trust notes to institutional investors. The recent hiring of the PR firm I think will therefore, help them in targetting the correct audiences, to ensure that the business is able to expand further i.e. Loan applicants and institutional investors.
The recent hiring a reputable PR firm to help get this message out, therefore, seems a logical step for a company that would now be able to afford to fund such activities imo.
GLTA
The steps of the loan process are outlined in the latest quaterly financial report (page 5):
"Loan Origination Segment
We originate commercial property loans for qualified borrowers nationwide.
The Origination Segment includes:
1. Underwriting the Loan;
2. Forming the Special Limited Purpose Corporation (“SLPC”);
3. Structuring the Loan inside the SLPC;
4. Arranging the Insurance Wrap and Financial Guaranty;
5. Preparing the Pre-Closing Documents;
6. Arranging for Pre-Closing in Escrow;
7. Scheduling the delivery of all Pre-Closing Documents for funding.
Plus, others tasks as may be deemed necessary to complete the transaction, including outsourcing the loan closing and servicing activities to third-party companies and professionals.
One possibility is that the final loan closing could, therefore, be outsourced to a legal firm which specialises in the closing of real estate loans. HCPC hiring a qualified real estate closing attorney could be to act as a 'watchdog,' to oversee the process and check that all necessary DD has been carried out by the firm, rather than actually undertaking all the work inhouse themselves imo.
GLTA
Found this link giving more info on the role of the real estate closing attorney. HCPC have just advertised a vacancy for such a position.
http://www.mortgagenewsdaily.com/wiki/Real_Estate_Attorney.asp
Waiting for news and further developments but meanwhile couple of extracts from the latest quarterly financial statement giving some more background on the process involved, for those who are not so familiar with the company and it's business plan.
"We originate commercial property loans for qualified borrowers nationwide. The
Origination Segment includes: Underwriting the Loan; Forming the Special Limited
Purpose Corporation (“SLPC”); Structuring the Loan inside the SLPC; Arranging the
Insurance Wrap and Financial Guaranty; Preparing the Pre-Closing Documents;
Arranging for Pre-Closing in Escrow; Scheduling the delivery of all Pre-Closing
Documents for funding. Plus, others tasks as may be deemed necessary to complete the transaction,
including outsourcing the loan closing and servicing activities to third-party companies and professionals."
and:
"The trends in the commercial property lending business have become more
capital intensive and thus access to capital at a competitive cost is critical. As
a result of these factors, the commercial lending industry had undergone much
consolidation. (Source:www.cpnonline.com.)
The origination and delivery of loan documentation to the SPEs allow us to
access the capital markets through the use of the same vehicles and investment
instruments as our competitors listed on www.cpnonline.com.
Additionally, the Access Channel Software gives the Company a competitive
edge in pricing and structuring new products for the commercial market and
gives us the opportunity to bring new borrowers to the commercial lending
market, which will add to the industry growth. Thus, as a small company, we
will be able to compete with the top originators at a high pre-tax profit
margin. "
The website www.cpnonline.com has some useful info on the commercial real estate market and the investment/ capital funding community.
GLTA
Good luck:) Been adding down here too........agree that when the deals are closed and news starts coming, that we should get noticed. I am sure the PR companies remit is to increase exposure of the company to both future potential clients (i.e. additional loans) as well as to the investment community. You just have to look at the amount of insider ownership to know that the companies vested interests are aligned with ours.......for them to generate personal wealth requires an increase in share price. If they win, we win...it's as simple as that.
GLTA
Yep, volume picking up here. Worth checking the OS shares at some point. May be some change in relation to the private placement.
PR firm appointment commenced on June 1st. Hopefully they are on the case now and have consultants assigned to deal with the HCPC issues. Interesting to see what developments occur as a result of their involvement. Expecting news shortly imo, HCPC have been releasing 3 PR's a month for the last 2 months.
GLTA
From the latest quarterly financials, HCPC state that with regard to staffing:
"To pre-close our transactions, we expect to hire an additional 10 contract professionals each quarter as needed to meet the demands of the business."
GLTA
This advertised position is a fairly recent update on the website, previously it noted an Executive Assistant......eom
GLTA
Gregory FCA: I've received a powerpoint presentation from Gregory FCA outlining more about the company and the services they provide in IR and PR work. If anyone would like to receive a copy please PM me with your email address and I'll send it to you. Alternatively you can contact Gregory FCA direct and request this information.
GLTA
Seems to be consolidating here, noted that some people on i-Hub have it on their list now as a possible technical play.
Soon to enter the last month of the quarter (ends June 30th). New PR firm, Gregory FCA, starts on 1st June, and shareholder meeting on 28th June. I also expect to see some news on closing of some/ all of the $740 million BCLOC loans during this period.
We should also have some idea of how HCPC wishes to move the business forward with regard to the proxy for the shareholders meeting, which will be mailed out shortly (June 4th). Will be interesting to see the possible developments that they have in mind.
GLTA
noth shore: Agree with you, the developments that have been occurring this year all point towards the company putting the foundations in place for the longer term development of their business. Not the usual hype and fluff pr's we are used to in the Pink Sheet Market.
Also, the developments that have been occuring this year are as stated as company goals in the last Heritage Journal newsletter published before Xmas last year (Vol. 2 Issue 2; see website for details). The fact that they set out their goals to investors in advance and then follow through on them adds to their credibility imo.
That, coupled with the share structure and high insider ownership, the company aims are aligned with ours. There may be a further increase in the OS with regard to the Private Placement. We shouldn't be too surprised if that happens, as a recent PR stated that a proportion of the PP had been completed to date. As as long as it is within reasonable limits, we still have major upside potential here. It is certainly in the insiders interests to ensure that this is the case.
I've been adding of late too and may add a few more this week. 'Under the radar' is an often used term, but I really do think it applies in this case.
GLTA