pamc Message Board - Msg: 10453775

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Non-Tech : pamc

PAMC 46.82

+2.4%

Nov 5 4:00 PM EST

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To: pat w. who wrote ()	7/10/1999 10:33:00 AM
From: Steven M. Kaplan	Read Replies (1) of 570

Opportunistic Stock Buyback by HealthAxis Gary R. Craft, CFA (415) 835-1503 gcraft@eoffering.com eoffering.com HealthAxis just transacted the cheapest stock buyback we?ve seen. The subsidiary of Provident American Corp. (PAMC ! Buy) bought 1.4 of the 2.3 million shares held by Health Plan Services, a third party processing partner of HealthAxis, at a mere $4.96 per share. We had previously estimated the HealthAxis share value at roughly $43 ($30 per share market value divided by a 70% pre-transaction ownership stake in HealthAxis). Sounds like a pretty good deal to us. According to the public filing, it seems HealthAxis took some exception to the performance of the HPS contract and was able to repurchase its shares at an approximate 90% discount to the market value. We were not even made aware of this incredibly intelligent repurchase by management, and just happened to notice the 8-K filing documenting the transaction. This is representative of HealthAxis? operating philosophy?execute first, accept credit later. This doesn?t sound like a traditional Internet company, but share valuation will eventually reflect the enormous addressable market, management quality, and speed and intensity of execution.

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