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Too right rheddle....they'll be lots of that coming up I think......wish I could just get a shot of whiskey from your bottle:)
GLTA
Classic.....:)
Agree:)
The other point is that the loan closing of $740 million is just the beginning. They will have validated te BCLOC commercial loan model/ product that will have huge demand because of it's unique properties. And they have not even started the real marketing of the product.
They will then engage the PR company Gregory FCA who will help in that department.....with media negotiations and marketing.....these guys work with some very big companies......more info here:
http://investorshub.advfn.com/boards/read_msg.asp?Message_id=22841709&txt2find=gregory
When that occurs I think we will be talking about billions of dollars in loans to close......and then they are also bringing 3 other loan products on line next year.......this is the beginning of something huge imo....
GLTA
HCPC Interview (Transcription from CEO, Ms. Carol Johnson)
Longer Term Plan
"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 and get to our plan to organise a bank."
GLTA
Hey braden,
yes, she stressed loan closings as imminent twice......when they do this company will be immediately taken to the next level.....and we will look back on these days in amazement imo
GLTA
Agreed. She stressed loan closings as 'imminent' twice at the end of the interview....and that they had a funding source in place who they aim to merge with in the future.......and with the shareholders meeting on October 18th, they could well be aiming to make things happen before then imo.
But they have become very bullish of late...the shareholders letter and now this interview. It seems to suggest that things are in place and they are now on the offensive.........and what a time to be here if all that potential comes to pass:)
GLTA
Hey good to see you are still here:) This has only just begun imo........this really could be a life changer and I chose those words carefully:)
Good luck:)
GLTA
HCPC CEO Interview:
Brief notes:
Starts with background to HCPC
Discusses their loans: 4 Types. The BCLOC Commercial loan we all know about from pr and then 3 new ones they will introduce next year:
1. A more conventional Commercial Loan
2. Tuition Loan for parents of children in private svhools
3. Residential Mortgage Loan: with credit enhancement feature similar to BCLOC
Software for BCLOC loans allows real-time access to underlying loans in pool to allow investors comfort in knowing how their investment is performing. This distinguishes it from existing commercial mortgages/ funding.
Primary Goal: Close $740 million in loans which would produce 8 cents a share pre-tax earnings. Once revs begin they envisage continued growth and eventually dividends to investors.
How long until funding for these loans is secured?
They have secured a new funding source and the funding of these loans now appears to be imminent.
Longer term Goal?
Merge with funding conduit to allow greater access to capital and to facilitate the goal of becoming a bank.
Goals for 2008?
Once the primary goal above is fulfilled they plan to:
Become fully reporting
Move to a higher exchange
GLTA
Will listen again now......lots to take in
Some key points....from first listen:
HCPC merging with proposed funding conduit
Dividends to shareholders
3 New loan products for 2008
Closings of $740 MILLION BCLOC loans imminent...she stressed the word imminent
CLTA
CEO stated earnings of 8 cents a share:)
Quick calc.....
740 million loans closed yields $35 million profit
$35 million divided by $0.08 = 437.5 million shares OS.....if correct our estimate is nearly spot on.....
GLTA
My last buy set at limit of 0.0006 went through at 0.0005......
Agree....and the interview is huge.....busy buying at the moment...will write more in a bit:)
GLTA
noth shore: Think you could be right, we've been talking about September/ October being a key time for the company for months now....certainly expecting to see things beginning to unfold soon......if so, our long wait will be rewarded imo:)....good luck to you and all longs here too...
GLTA
HCPC (2 of 2): Shareholders letter (August 27th): Listing on OTCQX
http://heritagecapitalcreditcorp.com/Share_Letter_PR_82707.pdf
6. Q: OTCQX: Does the company still plan to up-list onto this exchange and what is the current anticipated timeline?
A: Yes. We are endeavoring to be up-listed by year-end 2007.
The following post gives a bit more background on the OTCQX. Interesting to note that one of the requirements of uplisting to the PremierQX is that the company holds an annual shareholders meeting. HCPC last held one in 2005, so it seems that reinstating it now may have some significance in the company's future development imo.
See post below for more detail:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=20507092
GLTA
HCPC: Shareholders letter (August 27th):
http://heritagecapitalcreditcorp.com/Share_Letter_PR_82707.pdf
Another key point from the letter above is that the current credit difficulties could actually be of benefit to HCPC, as point 9 of the letter states (extract below and emphasis is my own):
" The Turmoil has had a deep-seated and far reaching effect on capital market investors and left a huge void in their list of viable investment vehicles ............. Thus, we believe the impact of the Subprime Market Turmoil has improved the environment for marketability of the BCLOC Notes. This may be attractive to the capital market investors who are now much more cautious and tentative in their disposition."
The idea then that HCPC has the right product (i.e. BCLOC Commercial Loans funded by selling BCLOC Promissory Notes to Institutional Investors) at the right time for institutional investors (and borrowers alike) could then soon be validated imo.
GLTA
PR: I sent him a list of queries covering several issues including company financing/ RegD status, share structure, progress on closing the first of the BCLOC loans/ anticipated timeline etc, status of Audited Financials for 2006....
To their credit, he said that they would need to respond to these queries by PR and also post on their website so that the info is in the public domain. Exactly what they decide to cover in the pr, we will have to wait and see. But as I say, they tend to do things by the book and will only release info when they have also had the greenlight from their legal counsel. He also mentioned that they have been very busy of late...so delays could happen.....but I would expect some news shortly imo.
GLTA
HCPC: Head and Shoulders (Bottom) Reversal pattern Forming?
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_should....
Noticed similarities between the HCPC Chart and the one in the Stockcharts description in the link above, Neckline seems to be forming at c.0.001....if we can break that the reversal pattern would be complete and we could be off to the races.....important that the volume supports this break........
Extract:
"Neckline Break: The Head and Shoulders Bottom pattern is not complete, and the downtrend is not reversed until neckline resistance is broken. For a Head and Shoulders Bottom, this must occur in a convincing manner, with an expansion of volume."
GLTA
Boardmarks....more or less doubled in the last two weeks....good sign imo. Next target 100:)
GLTA
Good news....hopefully the RegD's are a thing of the past now and the company has secured sufficient finance/ alternative finance to get them to closing loan deal #1 now.
Expecting a pr soon based on the email I received recently from the company and likwit's conversation with them. The company has put out 2 to 3 prs a month this year. We haven't had one for September yet so expecting news soon imo.
GLTA
You probably spoke with Rick, VP of Capital Markets.....one of his responsibilties is IR for the company....I received an email response from him last Friday saying that they were working on a pr that would be out shortly. From experience, the company doesn't rush out pr's, they are quite careful running everything past their legal counsel first before issue. So it could be this week or possibly next now, but we should be hearing something shortly imo.
GLTA
Charts looking good....thanks for posting and comments....nice to see volume up today after two lower volume days.....0.0005 is a 50% correction of last run.....hopefully forms support for next leg up now.....
GLTA
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HCPC: Recap
So basically we have a stock where imo:
1. Financing requirements have brought the pps down to a triple 0 price, but which seems to be over for now and which still has a good share structure.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23012299
2. Insiders/ major shareholders who have invested c. $3 million of their own money, buying in at a much higher price and are down by $2 million on paper at present, but have elected not to sell one single share.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22942667
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22945791
3. News of proposed company developments in the pipeline, that would take it to a whole new dimension.
Recap from recent shareholders pr/ letter August 27th
They believe by year end that they can:
1. Close $740 million in loans: Which would earn them $35 million + $234k month revenue for the 35 year period of servicing the loans.
2. They aim to uplist to OTCQX.
3. Share buyback to have commenced.
4. Also new Directors to have been appointed (not mentioned in the letter but expected at shareholders meeting of October 18th)
Medium/ Longer term plan:
1. To use earnings to form a (Community) Bank.
Well nothing can be guaranteed, but the above seems like pretty good ingredients to me for big upside potential..........risk/ reward is up for each to determine......do your own DD....
GLTA
Agree DFLY, the financing needed by the company brought the stock price down, but the share structure is still reasonable imo.
Share Structure: Mid-April 2007.
[see http://investorshub.advfn.com/boards/read_msg.asp?message_id=19093983 for detail ]
OS 184,341,446 as of 19th April 2007
Float: 15, 419, 557 as of 19th April 2007 (8% of OS)
Share Structure: Present Day -Estimated
Based on T Trades the share structure is estimated as follows:
OS: 430 million
Float: 270 million (c. 60% of OS)
So basically there has been a large relative increase in the float, but importantly the OS which determines the market cap and hence share price is still looking very reasonable.
Company financing led to the pps drop. With no T trades over the last week or so it appears that the RegD issue is over at present. If HCPC can fulfil it's business plan/ goals, they will then pursue a share buyback......the share price still has huge upside potential from here imo.
GLTA
HCPC DD: Proposal to form a (Community) Bank
This earlier post gives some background on the following statement that HCPC made in the recent shareholders letter of August 27th, of their intention to form a bank:
"The Company plans to use a portion of its earnings to redeem shares and the balance to form a bank and continue to originate BCLOC loans through that bank. It should be noted that Heritage was founded in 1994 for the purpose of forming a bank."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22478843
GLTA
Agreed. The fact that the company files quarterly statements, signed off by the CEO, (even when they don't have too) is a great plus with this stock. The information is there for those who want to look for it......
The company is legit imo. I see no evidence to the contrary and I have spent months looking at everything and discussing every aspect with others here.
For three years it has been a development stage company with no revenues. Whether they can succeed now commercially with their business plan, to me, is the big question. In the shareholders letter of August 27th they appeared confident that they could follow through with the plan. Only time will tell if they can or not.
If they can and develop revs for the first time, as I have said before, then the upside potential from here is huge imo. Close one commercial loan and the business model is validated. After that they can crank them out again and again....it's the cookie cutter concept.
That is the risk reward scenario here which each must assess and make a decision on.
GLTA
HCPC: Even Further DD
This builds on my previous DD posts (see links below):
Part 1 looks at what the current value of Insiders and Major Shareholders personal investment in HCPC stands at today and
Part 2 examines how much cash has been raised in 2007 to date by the RegD Share offerings.
Previous posts:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22942667
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22943308
Part A. Insiders and Major Shareholders: Current value of their investments in HCPC
A. Gwendolyn Carol Johnson = Invested $495, 606 and received 9, 856, 506 shares: Cost basis of $0.0502 pps: Current value based on pps of 0.0006 = $5913.90 Current 'paper' loss: $489, 692.10
B. First Independent Financial Group (FIFG) = Invested $181, 935 and received 6, 500, 000 shares = Cost basis of 0.028 pps: Current value based on pps of 0.0006 = $3900.00 Current 'paper' loss: $178, 035
C. Ed Johnson = Invested $1, 465, 114 and received 38, 546, 383 shares = Revised cost basis of $0.038 pps: Current value based on pps of 0.0006 = $23 127.83 Current 'paper' loss: $ 1, 441, 986.20
Current Cumulative Paper Loss= 2,109,713.3
Note: None of the above insiders or major shareholders have sold a single share to date.
Part B. RegD Share Offering: Finance Raised by Company to Date
We know the company has had a RegD offering and sales of shares are reported in Q1 and Q2 Financials for 2007. Until the company closes their first loans this is the main source of capital at present.
1. The Mazuma Corporation received 33.5 million shares (10 million of which received in Q1, remainder in Q2)
2. TJ Management Group, LLC received 28,200,677 shares (in Q2)
From Financials:
Q1: 10 million shares issued raised $135,000: Cost basis $0.0135 share
Q2: 51,700,677 shares issued raised $205,400: Cost basis $0.00397 share
So company raised $340,400.00 by RegD share offering in first two quarters of 2007.
Q3: This can only be an estimate at this stage. It is almost certain that further RegD shares have been issued in Q3. We will know how many and to whom, when they file the Q3 statement in mid-October. Based on the T trades for this period, used as an indicator of RegD shares issued, it is estimated that the number of RegD shares issued probably does not exceed 200 million maximum, bringing the OS to c. 430 million and Float to c. 277 million. Caution though as this can only be an estimate at this stage.
Estimate: 200 million shares at say $0.001 share raises the company $200k.
So the RegD share offering may have raised the company c.$540k in 2007 to date. This is really in line with their current expenses operating expenses of $700k year.
Summary
1. Insiders and major shareholders are down (on paper) by over $2 million, but have not sold a single share to date.
2. It is estimated that they have issued somewhere in the region of 260 million shares in 2007 to date, through the RegD offering. This has probably raised them somewhere in the region of $0.5 million. This is in line with their annual operating expenses of c.$700k.
3. The RegD shares have hit the market during this period and led to the pps decline. The delay in closing the loans has led to further issue of RegD shares to date. This has also hit their own personal investments in HCPC and other longer term HCPC longs.
The timing of the closure of the first loans will determine what additional finance, if any, the company needs to raise. At present they anticipate loans to close before end 2007.
4. So based on the data available, I see no evidence of anyone in the company or major shareholders making any money to date. Quite the opposite, they are down substantially on paper.
As far as I can see, their only way out is to build the company and make a success of their business plan and in so doing bring the share price back up again.
If they do what they plan to do, they win....and so do we.
GLTA
Further DD on HCPC:
Operational costs are down to c. $700k year now (see filed Financials). Until revenues are generated they have needed to raise additional finance through a RegD offering.
So we know:
1. Directors and Major shareholders personal share investment in the company is down substantially relative to their purchase price;
2. The recent RegD share offering has raised finances to support company operations and that dilution led to a drop in the share price;
3 The CEO has opted to receive shares in the company in lieu of cash at a much higher price than current share value. Her $300k annual salary for last year was paid for by 5 million shares. At current pps that is worth just $3k. I am sure she would like to do something about that imo.
So if anyone can see how they have made lots of cash from this venture to date then please let me know.
The point is that the only way they will make money, both personally and as a company, is by getting the share price back up. They have mentioned developments in the pipeline that can do just that. I think that is why they have not sold a single share to date imo.
Recap from recent shareholders pr/ letter August 27th
They believe by year end that they can:
1. Close $740 million in loans: Which would earn them $35 million + $234k month revenue for the 35 year period of servicing the loans.
2. They aim to uplist to OTCQX.
3. Share buyback to have commenced.
4. Also new Directors to have been appointed (not mentioned in the letter but expected at shareholders meeting of October 18th)
Medium/ Longer term plan:
1. To use earnings to form a (Community) Bank.
If they achieve the above goals then the upside potential is huge from the current share price imo. It would provide the fuel to turn this one around completely imo.
That is the risk/ reward decision each has to take.
GLTA
Insider and Major Shareholder ownership (shares purchased to fund company development since 2004)
With all the activity yesterday, I thought it worth summarising my post:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22926277
Gwendolyn Carol Johnson (CEO and Chairman) cost basis of her personal shares $0.0502
FIFG (Affiliate of HCPC of which Carol Johnson is a Director) cost basis of shares $0.028
Ed Johnson (Shareholder) cost basis of personal shares $0.038
In addition Carol Johnson received 5 million shares in lieu of her 2006, $300k annual salary. Cost basis of these shares $0.06
Their cost basis is much higher than the current share price, yet they have not sold a single share to date. I think that speaks volumes about their faith in the business. They certainly have a vested interest to see the business succeed and I think we will begin to see their plan unfold in the near future, as was intimated in the recent shareholders letter of August 27th imo.
Worth reading if you have not done so already:
http://heritagecapitalcreditcorp.com/Share_Letter_PR_82707.pdf
GLTA
Excellent points Kyoshi. The fact that they have disclosed so much through their quarterly annual filing, when they didn't have to, is a breather of fresh air imo.
For those new to the stock those filings indicate all the investment made in the company by the Directors and major shareholders. The following are extracts from a detailed assessment I have made of all their filings to date. These are posted under the DD section in the I-Box.
The important point to note is the amount invested and the price at which they purchased their shares at....it is much much higher than today's price....and they have not sold one single share between them....think that says more about them and the confidence they have in HCPC's future than anything else
Part 1: Capital Investment in HCPC by Directors and Major Shareholders:For Period to December 31st 2006.
See post http://investorshub.advfn.com/boards/read_msg.asp?message_id=18103449
A. Gwendolyn Carol Johnson = Invested $495, 606 in the period until December 31st 2005 for which she received 9, 856, 506 shares = Cost basis of $0.0502 pps
B. First Independent Financial Group (FIFG) = Invested $181, 935 in the period until December 31st 2005 for which they received 6, 500, 000 shares = Cost basis of 0.028 pps
[It is worth noting that FIFG owns 63% of the OS shares of HCPC equal to 103 500 000 as of September 30th 2006. This company was bought for 100 million shares initially by HCPC. The Directors of FIFG are Gwendolyn Carol Johnson and Walter Hinchcliffe. It subsequently acquired an additional 6.5 million shares for $181, 935 as stated above]
C. Ed Johnson (Husband of Gwendolyn Carol Johnson) = Invested $1, 465, 114 in the period until December 31st 2005 for which he received 11 326 506 shares = Cost basis of $0.129 pps
[He was subsequently issued an additional 20, 000, 300 shares by the company on March 31st 2006 as stated in the Quarterly Report for the period ending June 30th 2006. This brought his total shareholding to 38, 546, 383 shares = Revised cost basis of $0.038 pps. The cost basis was therefore brought in line with the others.]
Part 2: CEO takes shares in lieu of annual compensation
In the second quarter 2007 the filing for the period ending March 31st 2007
http://investorshub.advfn.com/boards/read_msg.asp?message_id=19093983
Gwendolyn Carol Johnson received 5 million shares in lieu of her annual 2006 compensation of $300,000 (which equates to $0.06 share,when the share price was c. 0.012 suggests the confidence she has in the future of her company imo.
The point is, they are down a lot too in terms of their investment in the business. If anyone has a vested interest to see the share price rise they do....yet they have not sold any shares to date...maybe they know something...when they win...we win. Simple as that imo
GLTA
HCPC Background: Check out this post for the background to the stock..also short position on stock...around 20 million for September to date...
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22856206
GLTA
Hi likwit.....overview here....hope it helps explain the developing story....good luck:)
A. Background
The company has developed a new commercial loan product called a BCLOC loan. This has been developed over a 4 year period, mainly funded by Directors/ Shareholders finance. They are now readying themselves to launch the product commercially.....the first loans are anticipated to close before the end of the year, bringing earnings for first time.
To fund the loans HCPC intend to sell Promissory Notes to Institutional Investors. The Institutional investor is guaranteed repayment of their original capital + interest. The notes have already been given a AAA credit rating by an independent credit agency. At present they have an institutional investor lined up with 'substantially in excess' of $300 million of funding available.
The loan also incorporates a special credit enhancement feature, which builds capital for the borrower during the life of the loan. This is very different from conventional CMBS loans and again helps to protect the borrower and their payments by reducing risk of default as well protecting the payments due to the investor. If their is a cashflow problem with the borrower, the capital built with this feature can be used for repayment purposes. With current concerns within the credit market, many investors are looking for a more secure place for their money. HCPC has such a product and should gain much more attention going forward. They seem to have the right product at the right time. More on this at their affiliates website:
http://www.firstifg.com/id6.html
B. Short term Plan
The company currently has originated c. $740 million in commercial loans. They hope by year end to:
1. Close $740 million in loans: Which would earn them $35 million + $234k month revenue for the 35 year period of servicing the loans.
2. Uplist to OTCQX.
3. Share buyback to have commenced.
4. Also new Directors to have been appointed (not mentioned in the letter but expected at shareholders meeting of October 18th)
C. Medium/ Longer Term Plan
Their plan then is set out in the recent shareholders letter of 27th August. This is to form a (Community) Bank
Q: What are the plans for the Company after the BCLOC LOANS are funded?
A: The Company plans to use a portion of its earnings to redeem shares and the balance to form a bank and continue to originate BCLOC loans through that bank. It should be noted that Heritage was founded in 1994 for the purpose of forming a bank.
If they follow through with this plan the earnings (net EPS) will be tremendous. With the loan model validated they should then have no problem marketing their product to the broader market. They have Gregory FCA lined up to assist with PR work when funding is secured. These guys handle the PR for many quality companies dealing with their media and marketing needs.
http://www.gregoryfca.com/
Shortish summary, much more info in i-Box above, but basically the upside potential here is huge imo.
GLTA
Most Read Boards Today No 49......just crept into top 50....
Active Stocks No.13
GLTA
HCPC have also lined up Gregory FCA to act as PR consultants when funding is secured.......
http://www.gregoryfca.com/
Gregory FCA look after some quality companies...selection below....and exchanges where relevant
http://www.cbiz.com/ listed on NYSE
http://www.heartlandpaymentsystems.com/ listed on NYSE
http://www.hollandiaus.com/main.html TV coverage on ABC Good Morning America
http://www.foxchasebank.com/ listed on Nasdaq
http://www.fortpittcapital.com/ listed mutual fund with '4 Star' Morningstar rating
http://www.leggett.com/ listed on NYSE
http://www.allandomb.com/
http://www.willowgrovebank.com/ listed on NasdaqGS
http://www2.gmhcp.com/
http://www.ritzcarlton.com/en/RealEstate/Residences.htm in Philadelphia
http://www.oneillproperties.com/index.php?f=y
Bank Formation: Also worth noting their intention to form a (Community) Bank
From shareholders letter:
Q: What are the plans for the Company after the BCLOC LOANS
are funded?
A: The Company plans to use a portion of its earnings to redeem shares and the balance to form a bank and continue to originate BCLOC loans through that bank. It should be noted that Heritage was founded in 1994 for the purpose of forming a bank.
GLTA
Recap from recent shareholders pr/ letter August 27th
"Management believes it can deliver more than $740 million in projects for funding before year-end."
"I am pleased about the significant opportunities that we hope to announce shortly. As we do, I believe the patience and support you have shown in Heritage will be rewarded. I look forward to sharing new developments with you in the near future."
Really worth folks checking out the fundamentals behind the recent price action....
They hope by year end to:
1. Close $740 million in loans: Which would earn them $35 million + $234k month revenue for the 35 year period of servicing the loans.
2. Uplist to OTCQX.
3. Share buyback to have commenced.
4. Also new Directors to have been appointed (not mentioned in the letter but expected at shareholders meeting of October 18th)
GLTA
Great day guys....getting a lot of attention now on ihub...and still the boardmarks are only in the high 50's....this is only just the beginning...
GLTA
Well said weatherbill.....that's why most of us have been following the story here for a while......if they pull the deals off it will be life changing.....worth accumulating and being patient on this one......the numbers are really strong and insiders are not selling despite buying in at a much higher price imo.
GLTA
Good to see a lot of new interest here.....word is gradually getting out about the huge potential here.....just need to get those first loans closed.....then it will fly:)
GLTA
Pickspicks1: Agree with all your comments.......no further comment necessary.....:)