The Sociology of Finance
Portfolio strategy

American Independence Corporation: Return-Free Risk

American Independence Corporation (NASDAQ:AMIC) is an insurance company that micro-cap investors should avoid. In this article, I will argue that the company's ownership structure prevents outside shareholders from realizing any value on their investment and that the recent improvement in operating results and market sentiment are transitory.

Conflicts of Interest

Independence Holding Company (NYSE:IHC), which owns a variety of different operating companies in the insurance industry, is the controlling owner of AMIC. From AMIC's latest 10-Q:

Since November 2002, AMIC has been affiliated with Independence Holding Company ("IHC"), which owned 80.6% of AMIC's stock as of March 31, 2013. The senior management of IHC provides direction to the Company through a service agreement between the Company...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details