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Re: Steve White post# 105347

Friday, 09/28/2012 3:52:07 PM

Friday, September 28, 2012 3:52:07 PM

Post# of 160645
BCAP will be the parent company to the subsidiary that houses the brokerage firm that will have clients such as TGGI and RIGH. Here is a brief description:

Clients like TGGI, RIGH or other potential clients yet to be named will pay the subsidiary for TA and brokerage services.

The subsidiary gets the revenue from these transactions.

The subsidiary increases their book value with these revenues and potential profits from these services.

The subsidiary is owned by a parent company. As the value of the subsidiary rises, the parent companies value also rises. Why? They own the majority stake in the company (i.e. the assets are essentially owned by BCAP).

If the subsidiary is sold, BCAP will receive the asset sales based on their ownership stake.

If the subsidiary pays a dividend down the road, BCAP will receive money from those dividends based on the number of shares they own.

If BCAP liquidates some of their ownership, the cash flows back the parent company BCAP.

I could go on and on about this....$BCAP