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: Tumbleweed who wrote (684)	11/7/1997 12:07:00 PM
From: uu	Read Replies (2) of 1936

If they want to treat SPNSF like any other Y2K company (despite the fact that Y2K is only one of SPNSF's businesses) then so be it. This is from briefing.com just came out this morning: Year 2000 Spending: according to the president of the Securities Industry Association, expects financial service industry to spend between $3 to $4 billion over the next three years to resolve Year 2000 software problem..... Now if Sapiens can get even 5% of that business (which I am confident it can with its unique way of solving the Y2K problem via its Falcon 2000 product), we are looking at a $50 million year over year in revenue (just from the Y2K business)! This alone translates into appx. $2.5/shr in revenue for SPNSF (again only from the Y2K busniess alone and assuming 20 million outstanding shares which is in fact more than the actual 16 or 17 million outstanding shares at this time). The profit margins in this area are running at around 80% therefor the earnings per share for SPNSF will be somewhere around $2/shr. With $2/shr in earnings the current and forward P/E is 3 (based on its current price of $7.5/shr)!!! (and again this is just from the Y2K sector. The core business of SPNSF which is client-server will generate far more revenue and earnings.). Anyway for now SPNSF is going along with the overall marke's idiotic mentality of selling high quality stocks for absolutely no fundamental reasons. One thing market keeps forgetting is that the general prosperity of the economy (as was once more proven today by the latest low unemployment report and wage increase) will not translate into inflation in an environment where the saving and investment mentality rules. People are more into saving and investment and thinking of retirement than spending their hard earned money causing inflation! Also thanks to the thecnology the unbelievable growth rate in the productivity will offset any inflation and cost rise. But oh well, for now fear is directing the overall market (and SPNSF!). Eventhough fear is a stronger emotion, it is short lived, while greed will last much much longer! Take advantage of market's fears in order to gain from its greed later! As always just my humble opinion only. Regards, Addi Jamshidi

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