A great short-term play can be NAAC (OTC BB) that was down to $0.875 today without any bas news. NAAC can be a stock of $10 within 6-12 months. The company is scheduled to close on (1) Maryland Southern Life Insurance (2) purchase a collateralized note and foreclose on 54% of Conestoga Life Assurance and American Sentinel Insurance and (3) has signed a Letter of Intent to purchase 100% of the stock of a life insurance group which has a widely licensed life insurance company with international operations, an insurance agency and a third party administrator is scheduled to close in January.
When combined with NAAC's existing 17 jurisdictions, the scheduled acquisitions would jointly hold 44 state licenses. The combined gross premiums are projected to be $79 million in the next 12 months, which is 40 times higher than National Affiliated Investors Life, NAAC's current life insurance unit. NAAC's management estimates the additional earnings from these acquisitions for the next twelve months will be $1.07 per share.
For NAAC quotes and recent news release, please check the following link:
quote.yahoo.com
For more information, please check the following threads:
Subject 16886
Subject 13296
For SEC fillings, please check the following link:
sec.yahoo.com
NATIONAL AFFILIATED CORP. (NAAC / OTC) REVIEW
National Affiliated Corporation (''NAAC'' or the ''Company'') has reported 2nd quarter earnings of $381,137 for the period ending June 30, 1997 or $0.04 per share. This compares to a loss of $423,723 or ($0.12) per share for the year ago period. Total revenues rose 106% to $1,377,172 in 1997 from $668,536 in 1996. Insurance premiums rose to $610,529 from $469,636 in 1996.
NAAC is a newly invigorated life and health insurance holding company licensed to conduct business in 17 states and the District of Columbia. Recapitalized last year by Maryland-based The Southern Group, the Company intends to emulate the remarkable success of Conseco with an aggressive program of acquiring underperforming life insurance companies.
The Company's new management has thoroughly revamped its book of business, reducing unprofitable product lines and applying to regulatory agencies for rate increases of up to 33%.
Whereas the firm's original focus was on life insurance for residents of rural areas, NAAC is looking to develop niche markets like ERISA health trust plans for small businesses. The Company has also enlisted Conseco Capital Management to support its acquisitions program and manage assets.
Additionally, management has downsized its staff by 76%, and outsourced services such as computer and policy administrations. Operating expenses and salaries have been cut with further decreases likely in 1997 after more thorough evaluation. Other income also increased due to restructuring of the New Mexico Health program. Other benefits and policy claims increased in the first half by 28% or $197,277, due to large health claims in the first four months. Management reported in June that four material lawsuits in Alabama had been settled without incurring additional charges.
The company address:
National Affiliated Corporation, 7212 Old Stage Rd., North Bethesda, MD 20852 / 301-984-0800, Fax 301-984-1626
Webpage: southerngroup.com
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Contact:
J. Freedman & Associates
800-413-1522
or
Investors Research Institute, Inc.
212-484-4747
iri@netcapital.com
or
National Affiliated Corporation
301-984-0800
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Have good luck to all!
James |
