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CRSS - Crossroads Systems Inc.

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$1b in fees. $340m market cap.

This is a Value Investors club idea from chuplin1065, but I thought it was worth starting a discussion on it here as well.

My understanding is that CRSS through it's subsidiary Capital Plus Financial has been approving Paycheck Protection Program (PPP) loans. The government initiated this loan program to help small businesses meet their payroll. For each loan approved the lender will receive a fee of at least $2,500. Capital Plus Financial have approved 476,810 as of 23rd May, 2021. That is $1.1b in fees for a company with a market cap of $340m. 

This idea (at m.cap $340m) is not as good as when it was at $50m just a few months ago, but it still seems like there is some upside from here.

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All of the $1b is PPP. So it is a one-off event and we don’t know what the margins will be. High insider ownership, so there’s a potential for a large special dividend.

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