That's exactly how I read it: the only way preferr

That's exactly how I read it: the only way preferred gets converted is if there's room to exercise the right. Since the share structure is maxed, the only way for Preferred to be converted is a substantial buyback of the Common and then an issuance of Preferred. Over time it makes BCAP increasingly valuable without destroying the share structure.

The only way for the A/S to increase or a R/S to be effected between now and July 2014 is for Common shares to vote for it. That's a legal change to the By-Laws. Preferred have no say.

I assume the Preferred could also be bought back directly by BCAP without effecting a buyback of the Common. Same net effect though: no damage to the Common share structure.

In either buyback event, you're looking at BCAP generating revenue and profit. We have now moved on 12 months and interest on the convertible debt has accrued at 18% per year. That converts to shares at a 50% discount to market price, so there's a huge premium to be realized.

If you look back at a chart, you'll notice the date the share price collapsed 90% when the Common increased from 1.4B to 2.4B. Should have cut in half mathematically.

As I've been writing for a while, BCAP is fundamentally undervalued on a per share basis. I don't know what the real trigger will be, but BCAP should be trading much higher. I suspect by the end of September / early October 2012 that will be the case.

I will join PC and go out on a limb to say we will see revenue and profits this past quarter. We'll see that within the next 5-10 trading days based on the last PR.