Cross Roads CRSS.O
April 16, 2021 - 3:01pm EST by
chuplin1065
2021 2022
Price: 39.00 EPS 0 0
Shares Out. (in M): 6 P/E 0 0
Market Cap (in $M): 240 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV ($): 240 TEV/EBIT 0 0

Sign up for free guest access to view investment idea with a 45 days delay.

Description

 

I wrote up CRSS three years ago. While I still believe in that fundamental thesis here is what's going on now. I had to Jack the ticker to let VIC let me post this.

 

I believe CRSS is worth between $100 -$200 a share.

 

Exhibit I

 

https://www.sba.gov/sites/default/files/2021-04/PPP_Report_Public_210411-508.pdf

 

Please sage Page 7

 

Exhibit II

 

https://www.sba.gov/sites/default/files/2021-02/Procedural%20Notice%205000-20091%20-%202nd%20Updated%20PPP%20Processing%20Fee%20and%201502%20Reporting-508.pdf

 

 

It’s real simple. PPP I went to big bad private equity guys. Maxine Waters and AOC didn’t like that. PPP 2 enlisted Credit Unions and CDFI (CRSS is a CDFI) to get $$$ into LMI (Low to Moderate Income Communities) communities, and to real “small biz”

CRSS teamed with a tech company Blue Acorn to process applications. Treasury gave CDFI a headstart.

Per the above report CRSS, via their sub Capital Plus Financial, has originated 360K loans through 4/11/2021

Using Exhibit II that will generate $2,500 * 360K = 900 million dollars in fees. Assume they keep 2/3, that means 600m in fees, oh and they have a $100 m NOL.

6m shares out. 600/6 = $100/shares + $20 for business = $120/share + ?

I think SBA is very happy because Capital Plus financial has the smallest average loan and likely the highest LMI penetration. F**** U JPM, and BAC

BTW there is still 60 days left in the PPP program.

BTW Insiders own 80% of the shares outstanding

BTW I own a lot of what’s left.

BTW I still think there core biz is worth $20 a share today and $50 in a few years

BTW. They are about to close on a bank deal

BTW Even though the stock was $10 buck on Monday and $40 today, it still a 3-5X from here.

BTW My wife asked if we could get the EPIC Season Passes for next year, and she said they were expensive. I said lets get them! :)

What am I missing?

 

 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise do not hold a material investment in the issuer's securities.

Catalyst

PPP II

    show   sort by    
      Back to top