NAAC was up 25% today!!! NAAC (OTC BB) REVIEW
Recent price: 0.64
52-week Range: 0.469- 5.375
Book value: $0.80 -1.00/share
Outstanding shares: 12 M
Floating shares: 6 M (the company's management controls)
First six month earnings (ended on June 30): $0.05/share ($425,886 on 8.9 M shares)
Net profit margin: 20.4%, $425,886 net income out of revenue $2,087,232
Bad news: they issued about 3 M Reg S in order to close Conestoga deal in October and November that derived the stock down by MMs. (Conestoga's gross premiums were $49 million and net premiums were $32 million last year. The addition of these premiums would increase NAAC's gross revenues by 2,500 percent (25 times). Conestoga's total assets are $29 million and would increase NAAC's assets by 400 percent. American Sentinel's premiums were $1 million and its assets totaled $5 million). Some people lost some money on NAAC and may complain.
Good news: a reporting company, on-going earning, solid management, sound business plan, agreesive expanding, they have settled three lawsuits recently. The rumor is that they have got extra $1.5 M to close Conestoga deal.
Business Summary
National Affiliated Corp., through its subsidiaries, markets and sells life and health insurance in 17 states and the District of Columbia. For the six months ended 6/30/97, total revenues rose 55% to $2.1 million. Net income totalled $426 thousand vs. a loss of $810 thousand. Revenues reflect additional members in the New Mexico group accident and health business and higher other income. Earnings also reflect lower salaries, wages and other operating expenses due to
personnel reductions.
The Company's business plans will focus on growth through the acquisition and consolidation of other small life insurance companies. The Company plans to seek to acquire undervalued life insurance companies in the $2 million to $50 million equity range. The acquisitions are expected to be made through a joint venture with The Southern Group. This acquisition strategy will require acquisition candidates, evaluation, acquisition finance, and regulatory approvals. The Southern Group has implemented a program of identifying potential acquisition candidates and the Company intends to review acquisition opportunities presented by The Southern Group. Maryland Southern Life Insurance Company and Southern Mortgage, Inc. are under agreement to be added to the joint venture in the third quarter.
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 $1.07-1.70 per share.
For NAAC quotes and recent news release, please check the following link:
quote.yahoo.com
For more information, please check the following thread:
Subject 16886
For SEC fillings, please check the following link:
sec.yahoo.com
For company's webpage:
southerngroup.com
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%.
National Affiliated Corp. Address:
7228 England Drive, Suite 24 Alexandria, LA 71315
Phone (318) 473-4355
Officers:
Ira L. Gottshall, Pres./CEO
Benjamin P. Wall, Chmn.
T. Brent Chapel, Vice Chmn./CFO
Clayton A Carney, VP/COO
Mary K. Descant, Treas.
Dayne David Chapel, Secy.
PR firm: 1-888-984-0801 (Wayne)
NAAC 1-888-984-0800 (Jane Davis)
Have good luck to all!
James |
