Heritage Capital Credit Corporation Closes $11.1 Million for BCLOC Program Feb 26, 2008 3:24:00 PM View Additional ProfilesWILMINGTON, Del., Feb. 26 /PRNewswire-FirstCall/ -- Heritage Capital Credit Corporation (Pink Sheets: HCPC) today announced the closing of two financings totaling $11.1 million for its BCLOC Program.
The first transaction was for $808,000.00, which closed on February 22, 2008. This included a separate $234,000 renovation loan for a small hotel. The funding for this hotel will commence upon the first construction draw for renovation.
The second transaction for the commercial office building closes in two phases. The first phase closed today for $10,307,000. The second phase is for $5,500,000, which was arranged by the Company through an independent third party lender. The funding is scheduled to commence on March 7, 2008.
Both loans were closed as part of the BCLOC Program.
The Heritage business model, which is implemented through its subsidiary, Independent Capital Credit Corporation, is to arrange financing for real property and commercial revenue producing assets.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the company, which include the ability of the company to implement its business plans, actual results may differ materially from the expectations expressed in the forward-looking statements.
Contact: Heritage Capital Credit Corporation Richard Razzeca, VP Tel: 302-778-4222 Email: info*heritagecapitalcreditcorp.com SOURCE Heritage Capital Credit Corporation
---------------------------------------------- Richard Razzeca VP of Heritage Capital Credit Corporation +1-302-778-4222 info*heritagecapitalcreditcorp.com
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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0.0003 - HOD: 0.0004 Huge volume with fake trades by the MMs.
*** Posted by: stervc In reply to: None Date:2/28/2008 5:03:21 AM Post #of 24190
HCPC “Actual” Valuation as of 28 Feb 2008…
Before you read any further within this post, please understand, the #1 reason why people buy a stock is because of its POTENTIAL. If you buy HCPC or any stock because of what I had or will post, know that you do so at your own risk as I only try to show the “potential” of a stock given certain parameters and variables created by the company’s product, business, or service that’s the topic of discussion at such time. Below, we will talk about both; actual and potential valuation.
We can now derive an “actual” valuation for HCPC. We can now expect the share price to reflect such share appreciation as depicted below:
Now with the closing of this $11.1 million, HCPC can jumpstart its program with a good chance to become self-sufficient and en route to the closing of the $861,000,000 applicants requests that are currently in the pipeline for HCPC as indicated below from the HCPC Financials filed on 18 Jan 08 on pinksheets.com below: http://www.pinksheets.com/pink/quote/quote.jsp?symbol=hcpc (Click where it says “Filings”)
** The HCPC Management has a pipeline of applicants’ requests for funding $861,000,000 as of the end of 2007.
From the PR released on 9 Oct 07: http://www.pinksheets.com/pink/quote/quote.jsp?symbol=hcpc (Click where it says “News”) ** HCPC expects to receive a 5% origination fee for each loan funded (as Income). ** HCPC plans to use 35% of its Income to buy back stock to retire back to the Treasury.
The above information is key to help us derive first the “actual” valuation for where HCPC should be fundamentally trading and then the “potential” valuation as to where HCPC could fundamentally be potentially trading given the closing/funding of all projects as a best case scenario.
HCPC “Actual” Valuation as of 28 Feb 08 Revenues (actually generated) = $11,100,000 Income = 5% of $11,100,000 = $555,000 Buyback Funds = 35% of $555,000 = $194,250
This means that HCPC will have a total of $194,250 of funds available to buyback shares from the $550,000.00 earned as Income.
Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS) $555,000 ÷ 5,852,374,517 = EPS 0.00009 = EPS
.00009 EPS x 12 Conservative PE Ratio = Current HCPC Valuation 0.0011 = Current HCPC Valuation
This means that from the loans that HCPC has already closed, we should be fundamentally sitting at no lower than .0011 per share while we continue our upward movement as we await for them to close more loans to further enhance our HCPC “actual” fundamental valuation. Given the “potential” valuation as you will see, we should be sitting much higher as ”POTENTIAL” is the #1 reason why people buy a stock.
So, while we obtain and wait at .0011 per share (or higher), the potential that HCPC intends on capturing for a total loan amount of $861,000,000 as filed in their last financials released on 11 Jan 08, is depicted below.
HCPC “Potential” Valuation as of 28 Feb 08 Revenues (potentially generated) = $861,000,000 Income = 5% of $861,000,000.00 = $43,050,000 Buyback Funds = 35% of $43,050,000.00 = $15,067,500
This means that HCPC will ”potentially” have a total of $15,067,500 of funds available to buyback shares from the $43,050,000 earned as Income.
Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS) $43,050,000 ÷ 5,852,374,517 = EPS 0.0074 = EPS
.0074 EPS x 12 Conservative PE Ratio = Current HCPC Valuation 0.089 = Current HCPC “Potential” Valuation
This means that if HCPC continues executing their business objectives as they have greatly shown that such seems to be the case with the closing of two loans already for $11.1 million, then there is a solid reason to believe that HCPC will reach this “potential” that exists from the combined $861,000,000 worth of applicants in the pipeline for closing.
The key reason as to why the HCPC valuation gets better is because of the 35% of Income that could be used to buy back shares to reduce the OS and the Float by retiring those shares back to the Treasury. The lower the OS goes, the higher the valuation increases.
The thoughts above could be considered very conservative in nature by some while on the contrary to others. One of the individuals within the forum had actually gone to the HCPC Shareholder’s Meeting a few months back. He mentioned that the company’s Underwriter believed that HCPC should be trading in the $42.00 to $45.00 per share price range. See the post below: http://investorshub.advfn.com/boards/read_msg.asp?message_id=25261604
That was very powerful with it coming from the company’s Underwriter at the company’s Shareholder Meeting. Heck, even if he will only be a fraction of a percent correct, that should land HCPC to be somewhere in the pennies. I’m definitely not saying that HCPC is the next MSFT as what others apparently has insinuated, but I am saying that it is still significantly undervalued at these levels in my opinion.
Again, this post is not to be considered the gospel as to where HCPC will definitely be heading, but instead, only a framework to use to understand the potential that could exist from HCPC if they continue executing their business objectives.
Whoelse feels the stock will go up that much due to the new loans acquired? if so, what do you think the pontential is in due time?
Posts: 2 | From: Clermont, FL | Registered: Mar 2007
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All pinks are for gamble only. Don't play with hard earned money on them. My gamble for HCPC is just lke USXP two years ago, based on the fake trades by the MMs: they move about 30 M shares from one account to another to make 1 B shres a day. They have collected tons of shares under 0.0002, and they are puching the pps up to unload them. We can not do anything about it, except play along with them. Only get in at bottom and never chase a run. Make sure you take profits at different levels. Good luck.
Posts: 3228 | From: Michigan | Registered: Aug 2005
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