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PIMCO Covered Bond Source UCITS Message Board

  • space.elephant space.elephant Sep 13, 2013 11:56 AM Flag

    CC #7

    Also in the conference call was a shockingly tone-deaf response to a private investor who asked about share price -- when is it going to go up, essentially. And, among other statements he made in reply, Shah made this either startlingly ignorant or bizarrely denial-of-reality reply, "Since I joined the share price has nothing but improved." Oh, really? Here are Shah's dates regarding his pertinent employment at Cover-All, taken from the company's website:

    Manish Shah is President and CEO at Cover-All. Mr. Shah has served as President and member of the Board of Directors since 2008.Previously, Mr. Shah served as CTO of Cover-All since 2004.

    Let's take a look at some of the (admittedly cherry-picked to make a point) historical share prices:
    Week of Sept 24, 2007: $1.50
    Week of Apr 26, 2010: $1.70
    Week of Jan. 3, 2011: $1.90
    Week of May 30, 2011: $2.70
    Week of March 26, 2012: $2.40
    Week of July 3, 2012: $1.69
    Week of May 27, 2013: $1.48
    Current price (9-13-13): $1.28

    And in late November 2012, COVR was trading at $1.08 as opposed to $2.40 in March of that year. The stock lost 55% of its value in 8 months, WITHOUT ONE WORD FROM THE COMPANY -- other than that the company doesn't comment on unusual volume of stock movement (earlier in the year there was a huge sell-off.

    So ... did anyone at the company point this out to Shah? Or does he still live in a world with lollipop trees and cotton-candy skies?

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    • Initially MS's comment about the stock price having gone up struck me as odd but I then checked the long-term chart on Yahoo and for much of the 2000's COVR was in a trading range that was below $1 so my guess is that what he meant was that the stock price is higher today than it was when he first started working there.

      I always like the CC calls by private investors because they often ask questions that an analyst wouldn't dare for fear of straining the relationship that they have with management.

      Sentiment: Strong Buy

      • 1 Reply to dickeypiper1
      • Maybe. But still, he said the price has done " *nothing* but improved." I felt that the question caught him off-guard (been a long time since a private shareholder has asked a question) and that he didn't answer very smoothly. It also sounded - with the 3-year amortization and recognition of revenue etc etc and the presentation of revenue as EBITDA that it could be a LONG time before Cover-All starts showing a profit, so a LONG time before the share price gets anywhere near back to the $2 buck level, let alone $5 - 10. But believe me -- I would LOVE to be proven wrong.

 
COVR
0.950.0000(0.00%)Jun 26 4:00 PMEDT