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

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To: uu who wrote (4)1/19/1997 8:06:00 PM
From: Benadam   of 1936
 
I believe the usual basic info is available from the WSJ interactive edition if you are a subscriber.
SPNSF's technology is still interesting despite a competitive environment but with very few comparable products.
SPNSF is original in the mainframe niche which still carries an important potential.
Some factors in their favor are:
(1) they have good reference sites with Insurance companies in Europe and in the USA;
(2) Insurance is still very much mainframe world and not moving fast out of it, if moving at all
(3) Year 2000 issue will request major development effort and Sapiens is a very effective environment for high-productivity development
(4) in Europe the 2KYr issue is compounded by the emergence of the single EURO currency that also has an ineluctable deadline

If SPNSF becomes commercially effective they may turn very healthy profits out. I know that some kind of high-level consultancy (looks and tastes like Mckinsey but was not McK) did a job for them last year and I suppose that they emphasised the importance of finding/developing the right distribution strategy and channels.
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