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Non-Tech : pamc -- Ignore unavailable to you. Want to Upgrade?

To: RON BL who wrote (93)	11/12/1998 4:52:00 PM
From: Steven M. Kaplan	Read Replies (2) \| Respond to of 570

amcity.com Philadelphia Business Journal November 9, 1998 Finance Back on board Managed-care marketer Provident American Corp. was relisted this week on the Nasdaq, just in time to catch the wave of new interest in Internet-related ventures -- when and if there is one. Since being kicked off the Nasdaq in the spring, the troubled Norristown insurer has continued to push forward with HealthAxis Inc., its Internet-based subsidiary. Trading over the counter, Provident American's stock price basked briefly in the pre-glory of its Internet venture, before being driven into the dirt during the backlash against small caps, especially small caps that are chronically in the hole, of recent days. Running in the red is not what got Provident American the boot from the Nasdaq market. At the end of last year, auditor Coopers & Lybrand pulled out suddenly, leaving the company unable to file financial reports on time with the Securities and Exchange Commission. According to the company, Coopers & Lybrand did not quit because of any impropriety or disagreement. But it took time to get Provident American's new auditors, BDO Seidman, up to speed and the proper documents on file with the SEC. The Nasdaq turned Provident American down in its first bid for relisting, but reversed its decision in early October, once again allowing the company access to what capital it can grab in a stock market unwilling to listen to small company stories. Particularly deaf ears have been turned of late to Internet stocks, especially those of the high-promise, no-profit, e-commerce variety. Tied to large Web companies like America Online Inc., e-commerce deals typically require whopping upfront payments, with a payoff sometime in the future. Provident American's HealthAxis, for example, guaranteed Lycos Inc. $6.5 million for 15 months on a co-branded Web site that sells insurance. Similar deals with AOL and with Snap, a search engine sponsored by the ultra-techie CNET, have HealthAxis on the hook for more millions. Word that Provident American was headed back on the Nasdaq perked the stock up above $5, from under $3. In the final testing stages now, the Web site is supposed to make HealthAxis the premier place to buy managed care, dental, vision and prescription coverage as well as other insurance, said Craig Gitlitz. "We're not driven by the stock market. We are going to deliver on our investment," said the HealthAxis executive. The Web site will launch with parent Provident American's products, but plans are to sign up a range of competitors. Peg Brickley can be reached at (215) 238-5136 or brickley@pbj.com.