FWIW- PCBC was selling for about a dollar when EI posted this and it went to $1.60 a week later. There were still alot of unknowns ...at that time we didn't know the details of the rights offering...we assumed it would be a one for one and it turned out to be a 15 to 1. He still maintained that fair market value should be in the .21 range...and he took some nasty comments for doing it. Here it is 4 months later and we closed today at .22. I don't know about anyone else but I'd say he's hit the bulls-eye!
Successful Venture Capitalists and multi-million dollar Investors pay people BIG money to get work of this magnitude. We're lucky he chooses to share his knowledge & insights here on Ihub.
Well done Cowboy! and thanx!
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Enterprising Investor Wednesday, July 28, 2010 1:17:21 AM
Re: Enterprising Investor post# 172 Post # of 496
Back of the envelope PCBC equity calculation.
The United States Treasury gets increased ownership, 11.6 percent versus 7 percent. This is the result of discounted exchange value increasing from 20 percent of par or $36.1 million to 37 percent or $66.8 million for $180.6 million of Series B stock.
Ford Financial Fund, LP will receive 225 million shares of common stock and 455,000 shares of newly created mandatorily convertible participating voting preferred stock at a purchase price of $1,000 per share (convertible into 2.275 billion shares) in exchange for its $500 million. Ford will control 2.5 billion shares or about 86.8 percent versus 91 percent in the original plan.
There were 46.9 million common shares outstanding at 6/30/10 valued at book value of $.99. It appears that current owners will own only 1.6 percent versus 2 percent as originally stated.
Based on what we know today, 1.6 percent of the equity is worth $.99 per share (current book value), which means 98.4 percent has a value of $.20 based on the price of shares converted or purchased. Thus, it appears that book value of equity will be about $.21 due to the heavy dilution.
This work should be deemed best efforts without access to a 2Q 10-Q.
AI
