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PIMCO Covered Bond Source UCITS Message Board

  • dickeypiper1 dickeypiper1 Jun 26, 2013 6:39 AM Flag

    Scenario #4

    Treading Water

    - # of renewals/upgrades are disappointing

    - struggle to sign new customers

    Sentiment: Strong Buy

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    • Part II (of Biz Week article)

      Bensen expects the stock will more than double in six months because of upcoming contracts with blue-chip customers. "At least three contracts worth about $4 million each will probably be announced over the next few weeks," says Bensen. On Oct. 14, Cover-All signed a five-year contract with Employers Reinsurance, a unit of GE Capital Services, valued at $1.6 million.
      Bensen figures Cover-All will earn 10 cents a share this year on sales of $8 million to $10 million. Next year, Bensen expects earnings of 50 cents, based on revenues of at least $25 million.

      So, Mr. Piper -- let's hope that this article could have been written today with much more accuracy.

      • 1 Reply to space.elephant
      • Hi SE!

        Thank you for posting that article! It is pretty funny, and you had mentioned it a while back, that every once in a while Roger Benson will ask a question on the CC.

        As far as future stock performance it's pretty straightforward.......signing customers to contracts. One other possibility that I didn't mention is that perhaps the new CEO will do something that generates excitement, interest, etc.

        In any case it's definitely not a trading stock so one has to be patient and hope for the best.


        Sentiment: Strong Buy

    • Hello, Mr. Piper -

      I've been following with great interest your numerous posts. I agree with all of them. (And, speaking of the shares held by insiders, thanks to your post I found out that I own almost as many as Ms. Massey .... perhaps a lot of eggs and too few baskets). However, this "treading water" scenario that I'm the most worried about. I wrote a post 2-3 years ago about Cover-all being like a rolling snowball, gathering momentum as time went on. But it's the slowest damn snowball I've ever seen.

      I thought you might be interested in this -- it's from the Nov. 16, 1997 (!!) issue of Business Week, in which Cover-all is mentioned in the "Inside Wall Street":
      Part I
      Cover-All Technologies (COVR) is a onetime highflier that probably gave nightmares to people who bought its shares when they were at 7 in May, 1996. By Aug. 1 of that year, the stock had fallen to 2 7/8--after losing a big potential customer for its insurance software product. The stock continued to slide, hitting 1 1/4 on May 19, 1997. It has since rebounded, to 4 1/8 by Nov. 4. Some investors believe Cover-All is on its way up. What's the scoop?
      Cover-All (Warner Insurance Services until its 1996 name change) "is just starting to show real profit, with order backlogs rising," says Roger Bensen of Number One Corp., an investment firm in Norwalk, Conn.
      Cover-All specializes in insurance software. Its Classic system integrates rating and policy issuance for property and casualty insurers. A new product, TAS 2000, is a full-blown system that includes managing client claims, billing, and financial reporting. "Our Oracle-based TAS 2000 system makes it simpler for insurance companies to replace their systems to overcome any year-2000 problems," says Cover-All President Peter C. Lynch (no relation to Fidelity Investments' Peter Lynch).

0.950.00(0.00%)Jun 26 4:00 PMEDT