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Hey Rizzo,
Thanks to the whole HCPC crew here......and all the DD of late.....think we are on the verge of something historic in Pink Sheet stocks.....a real start up company, that actual makes it and is going places.....that's what we all dream of finding amongst the trash down here isn't it? A diamond in the rough.....
Feet on the ground still but looking better every day.
GLTA
Amazing day all, usually stick to DD here, but going to allow myself a little:
WWWWWWWWWWWWWWWEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!!!!!!!!
Well done to all the longs for keeping the faith:)
GLTA
Thanks bsandy....been monitoring throughout but some really interesting developments of late....it's getting exciting again...imo of course:)It's good to see you here too and some other stalwarts.... maybe we all will meet one day in Reno:)
GLTA
No probs:)
Well the other factor against an RS, is the fact that they commented on this in the recent shareholders letter. Bearing in mind that insiders have a significant shareholding c. 1.8 billion possibly, an RS would affect their shareholding significantly, if carried out in advance to facilitate a conversion of the preferred shares.
A major buyback on the other hand would reduce OS, increase share price and leave their (and our) total shareholdings intact.
http://heritagecapitalcreditcorp.com/Shareholder_letter_22208_2.pdf
Share buyback:
As previously announced the company intends to repurchase shares with the revenue from the funding of projects. Changes in the manner of funding, will decrease the upfront fees earned by ICCC, however, ICCC will earn additional interest income from the portfolio it will hold. ICCC will allocate up to 35%of the upfront fees earned to share
buyback and additionally will use a portion of the interest income generated monthly to repurchase stock.
Reverse Stock Split:
It is the viewpoint of management at this time that a reverse stock split without the fundamentals to support a higher price would be harmful to both the Company and our shareholders.
GLTA
Thanks heelsgo1......just found this other response to your earlier mail which I thought was worthy a repost...from UtahUranium
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27580992
"Exactly what I posted earlier Heels!
With the current A/S and O/S our pps would have to be $0.20 for them to convert all 1 billion preferred shares to common shares.
With the current A/S and IF our float was 0 then pp would have to be $0.10 for all shares to be converted, so what its saying is at MINIMUM within 12 months our share price will be at .10 one way or another IF there is no more A/S increases."
Based on current OS of 7 billion the pps would need to be 33c, I think. Obviously, a major buyback could change the OS and bring the price needed for conversion down. In any event, this is a serious pps increase from present, needed just to allow conversion with the current AS of 10 billion.
GLTA
Hi Crooner,
Don't get me wrong, at the moment I am just exploring all options (ruling nothing in or out at present). I only think an RS might be beneficial if we are trying to get to a higher exchange (AMEX etc). Otherwise, of course I'd prefer that pps increased as a result of stellar financials, a merger with a major private company and a significant buyback. In that way us longs will 'win.'
But I am open-minded and don't see any harm in exploring various scenarios at this stage to try and understand the 'gameplan,' which could unfold.
GLTA
Some further thoughts:
Assuming it was even possible or desirable to convert that many shares (which it is not....but lets leave that to one side for now):
- Market Cap of HCPC after conversion would be:
5 trillion shares x $0.0002 share = $1 billion (+ or - a bit for the other shares already outstanding).
So the Market Cap of HCPC after conversion, in my reckoning, would be $1 billion. How the share structure/pps will look is what I am trying to get my head around at the moment.
Possible tools available to HCPC/ or events that could lead to significant change are (there may be others?):
- Improving fundamentals/ great PR's showing strong financials leading to increasing share price
- Buybacks
- Reverse Splits
- Major private company going public through a (reverse) merger with HCPC. This could be the conduit lender mentioned previously by Carol in shareholders letter last year, with which she said they planned to merge.
Combination of some or all of the above.
The preferred share purchase and then conversion to common shares could be the mechanism by which this conduit lender merges and gains majority control of HCPC imo.
The last bullet-point of this following press release indicates that the merger plans with the conduit lender are in progress:
http://heritagecapitalcreditcorp.com/Pressrelease_1018_SHMeeting.pdf
The $1 billion preferreds, converted down the line into common shares, would give the entity (ies) involved, a majority stake in HCPC.
Going back to my earlier point. Anyone/ company/ investor putting a $1 billion on the table is not playing this particular pinkie for 'fun'. There must be a serious gameplan going forward. Just want an insight into what that is....:)
GLTA
hey heelsgo1, thanks for your posts, enjoyed reading through your thoughts on HCPC.
Interested in developing this thread a bit more on how on earth they will convert the preferred shares to common shares? Your message link which I have replied too here, illustrates the issue really well.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27580714
If they sell 1 billion preferred shares, they will all be converted at some point to common shares (within at least 12 months of each tranche of preferred shares sale..but could also be much sooner than that). The conversion is based on the average of the previosu 30 days closing price.
For example: If we took that average closing price as it is today, 0.0002, they would need to exchange 1 billion preferred shares into (drumroll):
5000000000000 HCPC Common shares just for the conversion alone (that's 5 followed by 12 0's.....or 5 trillion.....which by anyone's reckoning is a lot of shares...even for a pinkie:)
Someone who is willing to put $1 billion dollars into HCPC to buy preferred shares to help finance the real estate projects is probably not going to want to end up with a share structure like that...as you rightly pointed out:)
You also pointed out, that to uplist to the basic level of OTCQX, there is no minimum share price required. The mention of audit and OTCQX in the recent Florida filing suggests that they are pursuing that aim. To move forward they will need a share structure that is attractive to both new investors and to the investors who put up the $1 billion.
I have some initial thoughts which I need to work on more, but would also appreciate others input too, as to how to make sense of the above, how things may unfold down the line and what they may do in the future to get the share structure and share price to a level that makes the conversion of preferred shares 'achievable'. Thanks.
GLTA
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27678648
This was a good post from heelsgo1 imo:)
GLTA
Bit more below. From what I have read here over last day it seems they maybe using the old MRLE company/ shell to spin-off the developing RELM business. MRLE filed it's financials last June, if I remember correctly, after being dormant for several years. Suggesting something was in the works. Thought about buying some at the time but concerned about liquidity as very little trading activity there. That may change now of course. That's why I am a bit hesitant to say merger at this point in time. It maybe they decide to spin-off the various money-making related companies instead. Time will tell.
http://firstindependentfinancialgroup.com/sitebuildercontent/sitebuilderfiles/vol1issue2.pdf
Heritage Capital Credit Corporation
(“Heritage”) is a subsidiary
of First Independent Financial
Group, a Delaware private holding
company. Heritage has several
sister organizations that
work together to assist potential
buyers in obtaining their financial
goals. These companies are
listed below:
• ACCESS CHANNEL© software
company evaluates the
BCLOC loan;
• FIRST EQUITY GROWTH
TRUST, the funding conduit,
raises money to fund the
BCLOC loans;
• INDEPENDENT CAPITAL
CREDIT CORPORATION
originates the business loans
for the organization;
• FIRST LIFE FINANCIAL
CORPORATION provides the
credit enhancement component
for each BCLOC;
• INDEPENDENT CAPITAL INVESTMENT
CORPORATION
provides servicing for each
BCLOC; and,
• RELM REAL ESTATE HOLDINGS
works in tandem with
other organizations to form partnerships
for large multi-family
housing projects.
With the assistance of these companies,
Heritage expects to continue
its growth and hopes to
move from the Pink Sheets to a
national exchange by mid-year
2006.
To find out more about each company,
please visit the parent company
website at www.firstifg.com.
GLTA
hey that's my style:)
Here's some thoughts.....comments welcome....if I've lost it just let me know ok:)
HCPC needs to find funding for c.$1 billion of real estate that RELM want to purchase this coming year. We think Hotel Financial Strategies (HFS) could be the conduit lender that is able to secure that funding either directly or indirectly. This funding is achieved by HCPC by selling tranches of their 1 billion preferred shares at $1.00 share.
Purpose of Preferred Share offering by HCPC: To fund newly issued Promissory Notes for BCLOC projects (this is according to the recent Florida site filing).
Within 12 months of each transaction/ sale these preferred shares have to be converted into common shares of HCPC.
Each $1.00 Preferred Share is converted into the equivalent of $1.00 worth of commons share based on the average 30 day closing price prior to the conversion. This can happen at any point within the first 12 months. After 12 months it occurs automatically. My interpretation of this is as follows:
Example (for illustation only): Say HCPC Share price is $0.10 (...illustration for now...ok:). $1.00 preferred share would convert to 10 HCPC shares i.e. The dollar value is the same in common shares as in preferred shares. This is a good post from heelsgo1 which shows some of the restrictions on the conversion:
http://investorshub.advfn.com/boards/read_msg.asp?Message_id=27580714&txt2find=preferred
So here's some more thoughts, maybe late here but here goes:)
1. If someone buys $1 billion preferred shares in HCPC that is serious cash. They may be entitled to a dividend but they know that these shares become HCPC commons shares after 12 months. Upon conversion, those $1 billion preferred shares will be worth $1 billion in HCPC commons shares.....same dollar value.....at the time of conversion anyway. Is not the market cap of HCPC going to be worth $1 billion + at least at that point? Or have I missed something?
2. Will the investors putting up that kind of cash not want a cast iron reassurance on their initial investment? Usually when a mortgage lender arranges a mortgage, they hold the deeds/ title of that property, so that if the borrower defaults they can repossess the property. In this instance the BCLOC mechanism is different as it is set up under a Special limited-purpose corporation, however, I'd have thought the parties funding the purchase of the real estate would need to be assured of getting their money back in the event of default. So whether RELM or other borrowers are part of HCPC in the future or not, the title for those properties would be held as security against the loan is some shape or form.
3. To me it looks as though the conduit lender funding the c. $1 billion in real estate (quite possibly to be all RELM owned properties...time will tell) is not only funding the loans, but actually buying into HCPC as well. HCPC must, therefore, by some mechanism be able to hold title to those properties as security until such time as the property/ loan is paid off.
To me it looks like very serious money has been found to not only fund these loans for RELM (presumably with the reassurance that the BCLOC loans are a more secure form of commercial mortgage) but to take a major equity stake in HCPC as well. You would only take a major equity stake in HCPC worth c.$1 billion, if you were also pretty confident that it would be worth much more in future. For that to happen, you would need to be very confident that the pps would be heading north in the future imo. With that the original $1 billion would increase in value.
So at present, Current Market Cap:
7.0 billion x 0.0002 = $1.4 million
If I am right with the above assumptions, to get the market cap to $1 billion + would require a major pps move. Great to hear thoughts on how this would happen and whether an RS could be part of that scenario....or whether I have really lost it completely:)
Carol mentioned in the WallSt,net interview (Sept 20th last year):
http://heritagecapitalcreditcorp.com/Wall_St_net_Interview_GCJ.pdf
"........we plan to merge with a conduit lender to give the company direct access to more capital and different structures. This merger is expected to help us carry out our plan to organize a bank."
This preferred share issue could be the start of that merger process imo:)
GLTA
Lets hope so:)
Still catching up on my DD here but certain things jump out.
- The mention of the OTCQX in connection with the Florida filing for preferred shares.
- The mention of the audit in the interview (needed for uplisting to OTCQX)
- The preferred shares (1 billion @ $1.00 a share) to fund the Promissory notes for the BCLOC loans is exactly the funding stated in both Hotel Financial Strategies (HFS) and RELM websites. See post:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27260310
Extract:
"Also the mention by HFS of proposed $1 billion of funding this year....... and then the $1 billion in proposed acquisition this year by RELM on their recently updated website, could suggest that a more or less exclusive agreement has been reached between HCPC (and RELM) and HFS.
So it's not a huge stretch of imagination to see that HFS could be the proposed merger partner for HCPC, and by doing so enables HFS to go public in the process and for HCPC to proceed with it's plans of becoming a Bank imo. If all that happens then this will be huge for all us longs here."
and from Shareholders meeting in October 2007:
http://heritagecapitalcreditcorp.com/Pressrelease_1018_SHMeeting.pdf
"Heritage will develop an action plan to merge with its conduit lender that will provide the capital infrastructure for launching new business and funding remaining BCLOCs in the pipeline."
These are just some initial observations but things do seem to be becoming aligned.
GLTA
Great find cash:)
GLTA
The current RELM mauve website is the exact template HCPC originally used up until c. June 2007. They then changed to the current white one with the blue building. Not reading anything into that at present, but for general info.
GLTA
Well the companies are related, but currently RELM is not a subsidiary of HCPC. Would be great if they did merge from a financials perspective, but also we have to ask the question as to why they were created as separate companies in the first place? Could be for financial reasons, to limit the liability of a single company should it encounter financial difficulties, or simply because of the fact that there may be legal issues/ conflicting interests in arranging loans for your own company i.e HCPC arranging loans for HCPC. May be easier if HCPC are arranging loans for RELM...just some food for thought.
Advised that R. Lawrence Braddock, who is the Vice President of RELM, is Carol's son, presumably from an earlier marriage.
GLTA
nice..thanks:)
GLTA
Hey Sterling,
many thanks for those kind words.....I'm just hoping that all the hard work by all of us, yourself included, and not forgetting of course those at HCPC, gives us something to smile about. Things seems to be falling into place, should get fun from here on in imo:)
All the best,
Neil
GLTA
Hey guys, we've got a stock with great potential, a good little website here with some great posters. Out of respect of others, can we keep the personal stuff off here. Life is short, we don't want to waste our time reading it when we could be focussed on the positives. Thanks
GLTA
TR2 was the working name given to this loan type by HCPC, as mentioned in a press release last year.
http://heritagecapitalcreditcorp.com/Pressrelease_1018_SHMeeting.pdf
also see:
http://HeritageCapitalCreditCorp.com/HCPCPressRelease_103007.pdf
GLTA
Based on the latest info, it seems that HCPC and RELM are gearing up to do c. $1 billion of BCLOC real estate deals in the next year. Interesting that HFS is also looking to do c. $1 billion worth of business in the coming year. There could be other deals with other parties in excess of this amount. We will find out in due course.
In addition, don't forget they have developed, or are planning to roll out additional loan types in 2008:
1. A new commercial loan, named the TR2 Loan, will be rolled out. It is based on an 80% first mortgage and a 20% second mortgage that is flexible and provides an average interest rate that is lower than the current market rate.
2. A residential mortgage product to answer the sub- prime crisis, which will include a credit enhancement feature (similar the BCLOC) allowing people to save as they go and protect their asset..
3. A tuition loan product for parents who have students in private schools;
All three could add significantly to HCPC revenues.
Also, proposed merger with Conduit Lender (could it be HFS?)
Engagement of the PR firm Gregory FCA and the like.
If they close that $400 million loan they will be cash rich. They will have joined a different league and the talk of up-listing and everything else is then not so far fetched an idea imo.
If anyone has any thoughts on whether HCPC would be better off merging with RELM and their other related companies in the future, or whether they will keep them separate, or maybe reverse merge them so they too can be listed, then good to hear those views.
GLTA
Great find Cash....this just keeps getting better:)
This is huge.......if the Hedge Funds went for that deal they will go for others......the scene is set for further big deals imo
GLTA
that's funny......I just got a call from him saying he is loading up on Monday:)
GLTA
Yep, my thoughts exactly:)
RELM develop the available land with new real estate and HCPC finance those developments through the BCLOC loans and HFS raise the finance as the conduit lender through various institutional and private investors. Perfect:)
The other point is that HFS also offer advisory services with regard to real estate development and market positioning etc. Important that the proposed developments are supported by a strong business plan, which is endorsed by the very people who they seek the finance from. In that way it should be easier to secure the finance required for those projects.
http://www.hotelfinancial.com/services/advisory.html
HFS state on their website:
"We have long-standing relationships and access to institutional equity sources all over the world, and are experts at matching appropriate joint venture partners with you and your project."
The three companies go together really well imo.
GLTA
Thanks Renee.......well you mentioned Wikipedia in your post....so here's the link to GSR:)
http://en.wikipedia.org/wiki/Grand_Sierra_Resort
"The hotel tower is currently undergoing conversion of the top 11 floors into 824 hotel-condominium units[8]. In addition, construction of an approximately 150,000-square-foot (14,000 m²) indoor waterpark is planned to commence in June of 2009[9]. The plan is estimated to cost 1.8 billion dollars and is expected to take five to seven years to complete. The property is planning eight new condo-towers, a Bellagio style water feature at a newly landscaped lake an outdoor amphitheater and a new mall.
With those 8 new Condo towers planned and the new mall etc, it looks like there is huge potential for them to expand and generate additional capital in the future through real estate development imo
GLTA
and finally........ GSR from the sky:)
http://wikimapia.org/50175/?bigphoto=199360&uid=104146
Ok, that's it for now...:)
GLTA
Well I am in Hong Kong.......so you get round the clock DD:) Lets hope this turns out golden for all of us:)......it's really beginning to look like it could...
GLTA
Thanks Cash.....:)
.....this is huge imo, the link to HFS is what many of us have been looking for......a link to a third party to help verify/ substantiate HCPC claims of their portfolio. I've been following HCPC for over a year now, but today's find is probably the biggest landmark in that it has opened up a door to the conduit lender/ the missing link/ third party.
Yeah, we are dangerous bro, as are all the DD hounds here...maybe the next shareholders meeting will be in Reno?:) Thanks for your great DD and everyone else's contribution on this board:)
GLTA
1300 Market Street Wilmington.......photo:)
http://www.cbre.com/USA/US/DE/Wilmington/Case+Studies/1300+Market+Street.htm
More on Hotel Financial Strategies (HFS), the conduit lender and potential future merger partner for HCPC.
Checked the HFS Team out...some real quality here and collectively they've closed over $50 billion in deals.........
http://www.hotelfinancial.com/bio/bio_gold.html
and more on Grand Sierra Resorts, Reno, Nevada under a 'selection of recent HFS transactions':
http://www.hotelfinancial.com/recent/sierra.html
GLTA
Confirmation on Grand Sierra Resorts:)
Just checked the Relm website again:
http://relmholdingsinc.com/id1.html
If you look at the organisational chart at the bottom of the page under 'Commercial Properties' it states:
GSR LLC
I wonder what that could stand for.....Grand Sierra Resorts maybe??:)
Well done Cashflo, huge find on this one...
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27258262
The picture is really coming together now imo.
GLTA
The other point is that if the BCLOC Loan that HCPC has been developing over the last few years is so innovative, as we are advised it is, it makes sense that they would want to take advantage of it themselves for their own property acquisitions, as well as funding loans for others ........which is exactly what they are now doing with through RELM.
Think it speaks volumes about their own product, that they are willing to use it to purchase $100's of millions of real estate for themselves and have now seemingly convinced a third party conduit lender (which we think could be HFS), of the same imo.
GLTA
Cashflo's find..... $400 million Resort Hotel on the ICCC Website and also mentioned on the RELM site
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27258262
Grand Sierra Resort:
http://www.grandsierraresort.com/
On the About Us page:
http://www.grandsierraresort.com/about_us/
"Grand Sierra Resort Corporation has a spectacular vision and redevelopment plan to transform the 145-acre property into a world-class resort and casino. The master plan features many enhancements including one of the industry's most sought after hotel condominium projects and the nation's largest indoor water park.
The property currently offers 1,995 spacious guest rooms and suites, 200,000 square feet of meeting and convention space, ten outstanding dining options, unparalleled recreation and entertainment."
and:
http://relmholdingsinc.com/id2.html
RELM’s has signed a purchase contract to acquire a 68,000 square foot office building, and signed a letter of intent to acquire a 27-story 1995 room hotel which is conditioned upon financing.
and:
ICCC: mentions $400 million Resort Hotel
http://independentcapitalcreditcorp.com/id2.html
GLTA
Proposed Merger with 3rd Party/ Conduit lender:
http://www.hotelfinancial.com/index.html
So, it looks like HFS could be the company that HCPC will receive it's funding from, which in turn will be used by RELM to acquire it's property portfolio. Also the mention by HFS of proposed $1 billion of funding this year....... and then the $1 billion in proposed acquisition this year by RELM on their recently updated website, could suggest that a more or less exclusive agreement has been reached between HCPC (and RELM) and HFS.
So it's not a huge stretch of imagination to see that HFS could be the proposed merger partner for HCPC, and by doing so enables HFS to go public in the process and for HCPC to proceed with it's plans of becoming a Bank imo. If all that happens then this will be huge for all us longs here.
GLTA
1300 North Market Street is in Wilmington.
The following link is for an attorney located in the building. No conection to HCPC but proves the address imo:
http://www.uslawyermaps.com/att/wilmington/de-100.html
Boswell Paul H. Attorney
1300 North Market Street Suite 205
Wilmington, DE 19801
(302)652-3676
This building is the deal below mentioned in the last HCPC PR imo:
http://heritagecapitalcreditcorp.com/Heritage_PR_22608.pdf
"The second transaction for the commercial office building closes in two phases. The first phase closed today for $10,307,000. The second phase is for $5,500,000, which was arranged by the Company through an independent third party lender. The funding is scheduled to commence on March 7, 2008."
GLTA
Some great DD last few days, still catching up but more pieces are coming together:
http://relmholdingsinc.com/id2.html
"RELM has received a Letter of Interest from a commonly controlled company for approximately $1 billion in long term financing over the next 12 months to fund acquisitions."
The commonly controlled company being HCPC.
then
http://www.hotelfinancial.com/index.html
and then Cashflo's great find:
http://216.109.125.130/search/cache?ei=UTF-8&p=27+story+hotel+%2B+1995+rooms&fr=yfp-t-501&u=www.hotelinteractive.com/mdx.asp%3Fpage_id%3D3000%26article_id%3D340&w=27+story+stories+hotel+1995+rooms+room&d=YsWOIXDuQWCP&icp=1&.intl=us
"HFS is one of the nation’s premier financial firms exclusively focused on the hospitality industry. This year we will fund approximately $1 Billion in capital for a wide variety of projects throughout North America."
$1 billion is the same figure in both cases. HFS will fund $1 billion, HCPC will arrange loans for $1 billion, RELM will be related company that purchases these properties.
Cashflo mentioned in an earlier post, could HFS be the 3rd Party/ Conduit Lender? Well no-one can know for certain, but it looks that way to me. This certainly could be the big break through we have been looking for as to the identity of the lender.
Remember the CEO Interview on WallSt.net?
http://heritagecapitalcreditcorp.com/Wall_St_net_Interview_GCJ.pdf
Longer term Goal?
Merge with funding conduit to allow greater access to capital and to facilitate the goal of becoming a bank. Think HFS could be that company.
Final thought:
http://relmholdingsinc.com/id1.html
You'll see under Commercial Properties in organisational chart at the bottom:
1300 North Market Street. Think you'll find that is in Wilmington. Interesting, could this be a future headquarter building as well for the future merged companies and plans to become a bank and not just a commercial real estate deal? Just some thoughts......but possible imo:)
GLTA
Hey RizZo thanks for your humour and sense of perspective here, the world needs more of that...good luck to you too and all:)
GLTA
Great day for us all.......and going to be very interesting from now on, this is only just beginning....been a long wait for sure:)
GLTA
hey noth shore....yep still here....things seem to be happening behind the scenes....still hopeful.:) Good luck....
GLTA