CoverAll Technologies (COVR)

[rrat02]

Some Random Thoughts:

- COVR salespeople now have a full suite of products (policy, claims, billing, business intelligence, etc.) to sell.....should hopefully lead to additional sales.

- Manish Shah discussed on the CC how there is revenue/cost mismatch as the R&D costs must be amortized over a 3 year period while the finished software product can sometimes be sold well beyond that.

- I continue to be impressed with Manish's knowledge of the marketplace and that he is willing to take a long-term approach even if it results in negative short-term results.

- the bar to success remains very low. No mistake about it they need customers to sign contracts but if they can also increase margins/reduce costs we should see a nice bump to the bottom line.

- if not for the large insider ownership (approx. 40+%) it would not surprise me if a private equity firm tried to acquire the company for $1.50-2.00 per share. Do not see any chance of that happening.