Access Plans Inc (fka APNC)

[MoneyMan]

Here is an interesting company for possible M&A

LifeQuotes.com (NASDAQ:QUOT) as of now a money losing company. $2.4m in rev 1st Q 2010, $789k loss .12 EPS......BUT $24M CASH ON HAND......

Life Quotes has a strong balance sheet with no debt. Cash and investments totaled $24 million at March 31, 2010. Stockholders' equity amounted to $29.8 million at March 31, 2010, or $4.41 per share. Life Quotes has a tax loss carry forward of approximately $35 million.

They sold Insure.com which brought in $16m in Oct of 2009.

So lets say, purchase price of $21m. That is basically a large equity raising deal for APNC. I think APNC's fair value is $2 minimum, that would be 10.5m shares.

At today PPS, the deal would not work for me, would double APNC's share count.

They would get $24m in cash and about 25 contracts with differnt life insurance carriers. APNC has a lot of agents, QOUT mentions fact they are looking for experienced life insurance agents to work their call centers and are down to 35...
http://www.prnewswire.com/news-releases/life-quotes-inc-reports-first-quarter-2010-financial-results-92295254.html

APNC could bring as many as they need to fill that void selling those products. Going to look into who those deals are structured and how long term they are.

This could also help with ObamaCare, giving them a much broader life insurance portfolio and sales channel, incase we do have armageddon in the commission structure as some are predicting.

Just a thought.........