Over the past several quarters, Alliance HealthCard’s consistent execution of its organic growth and acquisition strategy has been validated by top line growth near 20 percent, along with strong gross margin and bottom line performances.
Its March 2007 acquisition of Benefit Marketing Solutions (BMS) has made Alliance the leader in the burgeoning market for membership savings programs, and the Company has realized substantial direct cost reductions resulting from the economies of scale. The acquisition of AccessPlansUSA further validated management’s execution as it more than doubled the revenue of the company and opened new markets with new products in the insurance industry.
The Company has enjoyed consistent EBITDA and earnings growth, and an attractive P/E compared with its peer group. With the acquisition costs now behind them, those factors should become more apparent to investors in upcoming quarters...
Additionally, organic growth should be bolstered by recently signed contracts, commencing this year, with several large national companies. Alliance also is stepping up its marketing efforts targeting some of the world’s largest banking and finance institutions. With Alliance’s share price currently hovering below a dollar, it seems likely that these factors have not yet been recognized by the investment community, making Alliance HealthCard (ALHC) both a value and a growth opportunity.
