Protective Capital Structures Corp. (fka PCSO)

[heelsgo1]

SeattleIT, In an attempt to answer your question, the short answer is, yes, the pps can get to 0.25 without a R/S in my opinion. Now, having said that, it will take some action on the part of the company... specifically a buy back... to accomplish this however.

I feel over time as the company builds its portfolio, sells the loans, and continues to close and fund more loans, the pps can get to 0.25 without either b/c of the sheer worth of the company. But, you did ask can the pps rise to 0.25 in 2008 without a R/S, so my opinion is yes, if the company does follow through on its buy back claims.

Even without a buy back using the current O/S, if the company has a $700mm worth (using the current loans once fully funded), it could trade at .10/share and only trading 2X earnings would get you there. Another thing to keep in mind is who holds the bulk of the O/S? Between the company and the holders it may have been selling to over the past few months, a large majority of the O/S could be in very strong hands with much larger $$ in mind. So, when the pps starts to move, if those shares are held by a group that has no intention to sell, then the retail float isn't as large as some would lead you to believe.