Regarding the private placement-
Could you provide a link to that? I'd like to read it.
In my experience, when I've been hoping for run-ups on underdog stocks like this, private placements have not been uncommon. And they are always brought up in discussions like this one. In the beginning, they used to worry me, but not so much any more. To take a recent example, I bought IFCI last April at $1 1/2. There were some, notably Mike Kugler, on that thread who brought up IFCI's private placement as a reason the stock wasn't going to go anywhere. It then more than doubled up to $3 3/4. Apparently, private placements do not present much of a stumbling block to cheap stocks with real positive outlooks/momentum behind them. You have to keep in mind that the holders of the placement will benefit from any increase in stock price as well. To sell out now would be obviously premature. The contacts have just begun to roll in, decent profits are right around the corner, and this company is expected by analysts to have a tremendous growth rate over the next two years. Any way I slice it, I cannot become concerned over my sizable investment in this stock. It has all the hallmarks of a winner. If management holds 47% of the shares, what do you think the float is? Perhaps 4-6 million shares. How many people follow Stan Weinstien? If 1,000 of his followers decide to jump in for 4-6,000 shares apiece, the entire float will have to turn over. That's some serious buying pressure. I know that hypothetical scenarios like that don't mean much, but the general point is valid - this stock has a small float relative to the amount of attention it has been getting and will get in the future. It won't take much to send it to the price levels we've seen the other Y2K players reach. I see Sapiens as a chance for myself, who missed the first round of big Y2K run-ups, to participate in one fresh - as SPNSF was not really considered a player until they proved themselves to be this week.
i.e. - Don't worry, be happy! I only feel this confident about a stock perhaps twice a year, and when I feel this sure I've never been wrong (knock on wood). |
