To: Rande Is who wrote (14577 ) 11/9/1999 9:19:00 PM From: KM Read Replies (1) | Respond to of 57584
Hi, Rande: I've followed your thread but never posted. I have a low float special for you. PAMC. It's a basically unprofitable insurance company located in Philadelphia. Nothing special. BUT In the past year, it has recreated itself as HealthAxis.com They are gearing up to, and already are selling health insurance to individuals on the internet. They have some major carriers on board already, most notably, Aetna, who signed on a few weeks ago. It is not like INSW, which is basically a quote service. HealthAxis will take the application, write and administer the policy, including claims, I believe. biz.yahoo.com Their website won an award yesterday biz.yahoo.com and it has marketing deals with AOL and YHOO biz.yahoo.com Now, here's the interesting part. HealthAxis as an entity is 87% owned by PAMC. Plans originally had called for PAMC and HealthAxis to merge and roll up into a new entity called HealthAxis.com. This was put on hold last week pending talks regrarding a "business combination" with HealthAxis and a third party biz.yahoo.com Speculation is rampant on who the third party is. There are also many rumors floating around about a major investment in the company from big names, such as Microsoft. There are already investments from Intel, and private placements with Lehman Brothers and others. biz.yahoo.com This stock bottomed at 13 about four weeks ago. Since then, as you can see, it has gone straight up to 30 and then pulled back a bit. Earlier this spring, an analyst from EOffering wrote a report regarding the potential of HealthAxis, which caused the stock to go from 14 to about 42 in a few weeks. The report was premature though and over the summer, it gave back all the gains. It was added to the Russell 2000 in July. Now, regarding the float. My understanding is that the total float is 12 million shares. Of that 12 million, all but 3.5 million are allegedly in the hands of insiders and institutions. There has been EXTREMELY heavy call buying for the month of November. This is a stock which was very sleepy in the option department most of the year until about 7-8 weeks ago, when I saw heavy call buying of the November 35 calls. This was when the stock was 15-16. Since then, there has been heavy call buying at all strikes for November. I watch this stock on level 2 all day every day and have for months. The market makers try everything they can think of to get people to sell. They drop bids, they offer low, anything they can to get people to panic out. They got lucky in the past week or so because it ran straight up on that "business combination" press release and the news did not come out immediately, which caused some people to sell. The market makers took advantage of that, as you will see by looking at the chart. In the past two days, they have failed to get any sellers at all. In fact, I saw INCA in the aftermarket today trying to buy more shares. From the call buying I've seen, I have to surmise that whatever big news is coming will be coming next week before option expiration. Look into this if you wish. I've done very very well with it and I think we may be just getting started. Kerry Disclosure: Large long position