But wait there is still yet another contract in the works! If you carefully read Kenny Securities' report it mentions (2) agreements in their final stages!
Heres a small clip of the report. I would recommend that some of you might want to read the entire 14 page report. It can be found at Kenny Securites' Website at kennysecurities.com
"To that end, the Company established the Aegis Group, a wholly owned subsidiary which is the hub of their administrative operation. The Company has invested in a highly automated administration environment, satellite video links for evaluating complex or expensive repairs, and imaging which is expected to be installed in the near future. The Company demonstrates a strong commitment to achieving the highest level of customer service, better than that of the manufacturers' programs in terms of speed and efficacy of response. Maintaining this level of customer service is vital to the success of the Company. Most of the contacts are business to business, and the dealership service departments that call into the administration center demand prompt and comprehensive service. To ensure the quality of their administrative services, the Company has installed Automated Call Distributors (ACD) and an Automated Work Distributor system (AWD). With an average speed of answer under one minute, an experienced and professional staff, and an advanced technological platform, we believe that the Company can continue to successfully market itself as an administrative solution for third parties. The Company is aggressively pursuing such opportunities and is currently in the final stages of negotiations with two different parties for whom Aegis Group will perform administrative functions, both major financial institutions. While we are confident that these agreements will be forthcoming, we have not specifically factored them into our model, as the timing and size of these deals remains unknown."
And...
"Another significant segment of APCO's customer base is comprised of third parties marketing their own private-label VSCs, but using the Aegis Group's administrative services. Currently, Honda is the only significant customer in this category. However, if the Company is successful in marketing its administrative services, as we believe it will be, this customer base could be expanded to include insurance companies, banks and other lending institutions, manufacturers,large dealer groups wishing to have their own brand name product-even other competitors looking to outsource these administrative functions."
This is WAY BIGGER THAN HUGE!!! The Honda EasyCare program currently contributes 15% to APCO's bottom line. This agreement is just as big, if not even bigger than that! And also, there is still yet one more in the works. I am excited!
Alexander |
