You know, one has to look at this company and understand that if they had simply raised private funds under a biz plan and then gone public, the stock would trade at least above $30 and would have peaked somewhere in the 50's or 60's. The reality is that it was PAMC's money that allowed the opportunistic deal with AOL and the other portals to be struck, thus creating valuable real estate that was the foundation to build the company.
After almost a year, we have seen talent from both the web community joint the company and from the insurance community. We have also seen investors come from the web community (AOL), technology community (Intel), insurance community (HPS, UICI, First Health) and investment community (Tudor, etc,).
During this period the company has managed to build a new web site and is in the process of designing a plug and go web site for new carriers with the help of IBM (whose AS-400's and OS dominate the insurance processing business). They have put together a very solid management team and game plan. They have managed to sign 6 major carriers to the site, a feat that most insurance industry analysts and insiders would have told you to be near immpossible two years ago. They raised sufficient funding to execute their plan to date and lastly, they are in the final stages of removing all insurance operations from the company to make it a pure digital insurance broker.
We are within weeks of the company becoming Healthaxis.com, a new symbol, a whirlwind Wall Street tour to the e-commerce analyst community and the methodical layering on of new products and new insurance company deals.
The company will find itself by the first or second quarter of next year with an A) valuation at least double or triple the current price, B) Bought out by a internet based financial concern in the same market (health care, brokerage, etc).
Gary Kraft, wherever he is, was probably right about the potential price target. The stock got ahead of itself in the $35 to $40 range. But with the launch of new products and the coming out party to the street, the stock will be able to regain the high twenties or thirties. Good luck. |
