Left Shark Investing
Long/short equity, value, Growth

Independence Holding: The Stock That Math Forgot

After the close on January 5th, American Independence Corp. (NASDAQ:AMIC) announced its intention to sell its stop-loss business, IHC Risk Solutions, along with the in-force stop-loss business of Standard Security Life Insurance Company and Independence American Insurance Company, for an aggregate consideration of $152.5 million. Swiss Re (OTCPK:SSREF) is the acquirer. AMIC is slated to receive approximately 89% of this consideration. Its closing price on January 5th was $8.77, or an implied market capitalization of $71 million, with 8.1 million shares outstanding. Given that (1) AMIC was only selling part of its business, and (2) this part of the business was valued by the acquirer at nearly 2x its then-current market capitalization, the shares have appreciated

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
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