Sapiens International Corporation (SPNSF): Turn around...? Message Board

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Technology Stocks : Sapiens International Corporation (SPNSF): Turn around...?

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To: Gerald L. Kerr who wrote (94)	8/2/1997 10:36:00 AM
From: Sam Golden	of 1936

Gerry, I was looking at same TC2000 chart. Information is scarce but here is what I found so far. Company was doing fine until somewhere in 1994 there was a class action suit against them ( havent found out what it was about yet) but stock started to tank where it hit bottom like you said at .60-1/95. They settled the suit and paid up $9 million sometime in 1996. They had a operating loss of 12.3mil in fy 1995 ( I assume this has something to do with reason for lawsuit) and in 1996 they started to turn around showing a operating income of 2.0mil excluding the expense for settlement of 8.7mil class action. Its sure seems the worst is behind them and with all the contracts they have received since Jan 97 ( about 6-8), IBM's endorsement, joint venture signed with Hewlett-Packard (2/97) and the last 2 Y2k contracts, plus with earnings yet to be released===(as the Mad One says... Looks like a moonshot,). Assuming they can make .28 for fye97 and stock only trades at 36PE (ind. Avg)=$14. 36x is low for the y2kers. The one thing I didnt like was they did a private placement of $4mil in convertible preferred stock (undisclosed price),for each share of common,investors will receive warrant to pruchase .5shares of common at 25% premium above the Co's stock at closing. Also according to the terms of placement agreement,private investors WILL purchase additional $4mil of conv. preferred depending on market cap,within a specified time period. (Lot of vague details). Off the top looks like pretty dumb deal on their part. Depending on #shares this involves(13mil outstanding now)could cause far amount of dilution. I loaded up last week at 5 1/2, and thinking about more Monday if it doesnt gap too badly (anything under 8 still looks good to me) Still digging for info. Any and all help would be appreciated. I think we may have a doubler here in short time. Want to find everything I can before Monday open. Lets get this train out of the station. All aboard!!! Sam PS: private placement was done Feb 97.

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