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Technology Stocks : Sapient (SAPE) -- Ignore unavailable to you. Want to Upgrade?

To: PATIENT-DISCIPLINED who wrote (158)	8/30/2000 6:37:55 PM
From: Tim Luke	Read Replies (1) \| Respond to of 178

sape...imo this is nothing more then a split selloff...sape is one of the best managed companies out there...exds also traded down for a couple weeks after it split...im expecting the dust to settle by tomorrow and we should move higher....im sure there was a lot of stops taken out in the last two days..no big deal...just part of the process..

To: PATIENT-DISCIPLINED who wrote (158)	9/1/2000 3:31:30 PM
From: Bob Trocchi	Read Replies (1) \| Respond to of 178

P-D... >>Any thoughts on why this stock has corrected below its 200 day moving average would be appreciated. Thanks. << I am not an investor in SAPE but follow this thread from time to time. I noticed your question the other day and today I came across the following article from the MSN site. IMO it has some interesting comments which may well explain the drop in SAPE. FYI >>Viant (VIAN) 13 7/8 -5/8: Twice in the past year (Feb 29 2000 and Oct 20 1999), we have written about the dichotomy between Internet software and services. It is now more clear than ever why the former offers long term value and the latter was a child of the Internet bubble. Viant's warning today marks a turning point for the Internet services sector. Though the stocks peaked long ago, the company's warning tonight confirms that there is not just a stock valuation problem at work -- there really is a long-term business problem for this industry. The Internet services sector has three strikes against it from a long-term perspective. First, the business is not scalable -- each additional job requires more workers to do the consulting and implementation. Second, the barriers to entry are nil -- a few computers, knowledge of C++, Java, XML, and HTML are about all it takes to get started. Third, the costs of switching to another provider are also close to nil -- it's just a new consultant, not a new hardware or software architecture. You might even add a fourth strike -- there was a huge initial burst of activity for these companies as bubbly dot-coms and Global 2000 companies alike jumped into the Internet fray, and while activity after that initial boom would certainly not die, it would never live up to that beginning. In its warning, Viant cited not only the dot-coms' demise, but also a slower sales cycle for Global 2000 companies that no longer felt the pressure from upstart dot-coms. This is a horrible combination for Internet services companies: increasing competition and shrinking demand across the board. Internet infrastructure software companies, meanwhile, are faring much better. While weakness in dot-com land will affect them too, the leaders such as Vignette (VIGN), Interwoven (IWOV), and software/B2B hybrid Ariba (ARBA) are establishing a technology lead and client list that will give them a sustained competitive advantage. They are scalable, they have high barriers to entry, and the costs to businesses of switching to a competitor are high. Like all Internet stocks, their valuations have suffered, but they still offer a compelling long-term story. For the overcrowded Internet services sector, the future is much more bleak. Consolidation and failures have not arrived yet, but they will be the hallmark of the next phase, and that phase will probably occur at lower valuations. Viant has already shed 4 points in after hours trading, and the whole group will be under pressure tomorrow -- respect this message from the market. - Greg Jones, Briefing.com << briefing.com Bob T.