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: Starwalt who wrote (862)	1/21/1998 1:27:00 PM
From: uu	of 1936

A couple of people have mentioned that the recent decline in the price maybe due to the law suit settlement and the additional shares that will be given out to the plaintiffs in the case (all those share holders who bought the shares from 1/1/1993-1/1/1995 - yours truly included) and it is presumed that the price decline may be due to the assumption that once these plaintiffs receive their shares from the court they will start selling immediately. Thus putting pressure on the stock. While this may make some sense I am not so sure if this would be any reason for people to sell their shares now. First of all the shares given out to the plaintiffs will not be that many. Sapiens has set aside $8 million dollars (total), out of which $2 million dollars is in the form of cash and the remaining $6 million dollars will be in the form of stock (note: NOT 6 million shares, but rather $6 million dollars in the form of stocks). So even if every single plaintiff in the case sell his/her shares the number of shares sold is really meaningless and will not have that much effect on the stock price. Also note that this $8 million dollars has already been set aside and will not effect company's future revenue and/or earnings (the associated charges were taken in Q4 of last year if I am not mistaking - but I am not sure of the exact quarter). So all in all if people are selling based on the fear of the law suit settlement which will be by the end of April, I would say it is not serious at all. I will be more concerned with the earnings and revenue more than anything else at this time. And given the contracts announced so far, and the potentials Sapiens has with its new and old products in the client-server market (not to mention Y2K) I have no reason to believe the company will deliver anything but an impressive revenue and earnings. All said, I hope the reason for the recent decline is due only to unfounded fears of the law suit settlement and/or strong dollar overseas and/or South East Asian situation and/or small caps not performing well, etc. Because all these are asbolute hollow and unfounded reasons to sell SPNSF shares and the stock will bounce back stronger than ever once the earnings are out. Anything other than the reasons mentioned and I then will become very concerned. But so far I for one have not seen any other reasons! Regards, Addi Jamshidi

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