Replies to post #51438 on Protective Capital Structures Corp. (fka PCSO)

[breharb25]

I dont think it can, even if they did an R/S nothing would keep the pps at 0.25, (most of the time when a company does an r/s the pps dives pretty soon after that) and it has to stay at .25 or above to be uplisted and keep it. They need to show strength in the company to get that high and keep it with strong shareholders by taking some shares off the table. It only makes sense to perform a buyback which will allow the pps to rise easily because of less shares in the market and then when they PR everything going on I think they will be safely above the 0.25 mark.IMO

[fwhomeboy]

There won't be an uplisting. Look at every penny stock that says that. They always say that, then R/S then file BK. Every single one.

[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.