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: Sam Golden who wrote (440)	9/19/1997 12:35:00 AM
From: uu	of 1936

Sam: > Don"t you think this pullback has more to do with the coversion > than anything else... I dont think so because if the pullback is due to conversion then it should have happened when it was announced, instead at the time it was announced the stock actually went from $8 to $10.5! No I dont think the pullback has any fundamental reasons behind it, and is all based on momentum players becoming board with the stock! Unfortunately (or perhaps fortunately) SPNSF has become a momentum stock. Because the stock has only been getting the attention for the past 3-4 months (after almost 4 years of being in sleep), it attracts a lot of momentum players. These are the types who dont buy a stock because of its fundamentals, but rather because of the hype that exists with the stock! Momentum players think of stocks as lottery tickets. They buy a lot of tickets hoping to win within 2 days, if they dont, they either buy more lotto tickets or go and play somewhere else. Its that simple! Right now SPNSF is classified as a semi hype stock and because of that we will see a lot of volatility for sometime (perhaps another month or so). This volatility will end till the next earnings report comes out which would cause SPNSF to receive a high degree of respect based on its valid unique merits, rather than just the hype that is associated with the stock at this time. Other possible reasons for price volatility can also be associated with the fact that investors on a very short time basis have gotten the temptation to pay 100% of their attention to the big cap stocks again and stop putting their money into the small cap. However I believe their love affair with small caps will come back to them because of the extreme cheap valuations that small caps (such as SPNSF) have compare to big nifty fifity stocks! Another reason may also be due to the strong dollar oversees and since SPNSF has a strong international presence it, like many other multi national corporations, is currently being punished. However as the earnings will show, the demands for SPNSF's products and services are very strong thus offsetting any currency fluctuations. As hard as it is (and I know it is easy to say but very difficult to actually act upon it!), I suggest not to pay any attention to the stock price movement on a daily basis for another 4 weeks or so at which time SPNSF will report its earnings (I believe it is sometime toward the end of October/Early November). I have no idea how the earnings will be since I dont even know if there is actually an estimate for it, but I am almost confident, (well lets say I have extreme high hopes) that the earnings report will look extremely good. But most importantly what matters is how the top management will forcast the company's future outlook and revenue as wells as earnings rate of growth. And that I can almost guarantee will be very bright and impressive. As always just my humble opinion. Regards, Addi Jamshidi

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