Traders Cooperative

[Joe Stocks]

As of there latest report there is about $880 mil in tangible and $1,225 mil with intangibles. You are assuming ALL shares will be issued. I think at an average price of 59 cents only about 419 mil shares will be issued. $112.5mil on the note, and $135 mil on the trust preferreds if all shares are tendered. ADd in the current count, 126.528 mil. Total 546mil. Current $880 tangible book

546 mil x .59 = $322mil. 36% of tangible book. 26% of book.

Again, rough calculation but cxlose to what you came up with using less tangible book for the July earnings release and less share count. Of course all depends on how many tender, and the average share price at conversion.

OH CRAP!! I forgot. The converted debt is now equity so you need to add that to the tangible book. I assume the debt and trust preferred are ON balance sheet. That's $275mil of debt coming off.

Also keep in mind, like C, once the coversion is complete the balance sheet looks better and should add value to the preferreds if one has not converted.