Replies to post #16015 on Protective Capital Structures Corp. (fka PCSO)

[Iron Lotus]

I don't like these PRs with specific dates, that sets you up to look bad and sets a poor precedent. IMO.

i totally agree, setting a certain date means you either meet that date and look great or miss that date and look really bad and lose too much credibility, especially in the startup stages of a company. i consider this company in the beginning stages because they are just starting to get into the swing of big loans and such. JMO.

[Rasica]

Hmmm, I think the 35% buy-back will unfold before any serious considerations of an r/s, in fact an rm has some interesting possibilities.........

Posted by: neilhk
In reply to: None Date:10/19/2007 11:09:56 PM
Post #of 15585

From Latest PR:

Extract:

"Regarding the initial 21 clients who came to Heritage in 2004 and 2005, they provided a business plan and signed contracts for funding. Heritage is still waiting for signed agreements to acquire commercial asset projects, as required in Jane's part. Although none of the clients have been funded, some of them plan to honor their contracts and finish the application process to receive funding. Others do not."

Originally there were 26 clients who created the $740 million loan pool. 5 clients requested refunds of application fees ( see PR of July 30th 2007) leaving the 21 mentioned in PR of 19th October 2007. Of those, some will finish the application process, some will not. The loan pool amount to be funded must be less than $740 million now imo. Exactly how much we will find out in time. I've written to the company asking for more info on this point. They can always obtain new business, closing some loans and validating the business model is the important thing imo. We are still waiting for that.

Share structure is disappointing at present, but as gempicker said it depends who owns the shares in the difference between the float of 700-800 million and the OS of 2.3 million. Loan closure and buyback of shares would turn the structure around imo

Share value will increase here if they imo:

1. Close a loan / loans
2. Commence buyback of shares
3. Merge with Conduit Lender (RM into HCPC?) and expand business.
4. Develop new business with their new loan products.

Closing a loan(s) and obtaining revs for the first time is the key. Their improved communication of late is definitely a positive, but they need to give us earnings and show us their business model works imo.

Buyback of shares can then commence and in time the merger with Conduit Lender confirmed (we don't know as yet how big an organisation the CL is and what their other business interests are/ balance sheet looks like. This could be very significant imo). They could then expand the business with the increased capital available, introduce additional loan types etc.

But the bottom line is that they need to deliver loan closing and revs now to give us the confidence that the rest will follow imo.


GLTA