Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

Cover All May Be Set To Recover

Inside Wall Street


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).

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.BY GENE G. MARCIALReturn to top

Return to top

blog comments powered by Disqus