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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: StocksDATsoar who wrote (95605)	11/7/2001 8:01:44 AM
From: The Osprey	Read Replies (1) \| Respond to of 150070

NXCD-way oversold and not reflecting value at .74/share Like it or not NXCD has a loan and credit card portfolio.They have cash and they have lawsuits being started by ambulance chasing lawyers.So what?? One thing for sure is that undercapitalization was due to gaps in the banking laws and regulations in the US which were not changed until the 3rd quarter.This caused a disallownce of bad loans to be shown as fraud loans and written off.With the reversal of this the company found it's banking operation to be underfunded.How does the company react.Let's have Goldman Sachs find a buyer as they realized the capitalization injection required to conform to the newly changed regulations imposed.Were they undercapitalized before when they made statement that they were well capitalized.I think they may have been but accepted practices or lack of regulations found them showing bad loans as losses allowing them to maintain proper funding.This is applicapable to the bank side which has 2 Billion in loans out with a 30+ days delinquency rate of under 5.75%... As to the credit card business not only does the technology platform have an intrinsic value but the accounts also are to be valued.When buying the assets they could be valued as such.Cards that are UTD or rated r-1(Up to date no arrears) are valued at 100% of value.Cards that are currently rated r-2( 30 days in arrears) would be discounted to 75% of value.Cards that are rated r-3 to r-9(more than 60 days to charged off or doubtful) or worse would be rated at 50% of face and charged to bad debt as acquired by the new company. Now what is the loan portfolio worth at the bank.Same valuation methodology by the potential acquiring company.Then we have to look at the platform or the technology employed by the company.This has an undetermined value but I will suggest a goodly value none the less. I have done some rough calculations based on information shown in the last financials and will suggest a buy out figure in the range of approxiamately 2.50-3.00 would not be unreasonable.These assets of the company do not disappear even if the company were to go bankrupt.They are still contractual obligations and as such are saleable assets and any Bankruptcy Trustee has to realize the inherent value and revenue streams associated with this type of asset. As an aside having been in the business a while back I can suggest that this is the methodology employed in andy acquisition and could take a bit of time but this business will be acquired by someone.If they think they can wait for bankruptcy first.They may be mistaken.These debts still have revenue flows and yes problems but the upside is they don't disappear eben if the company does