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Technology Stocks : Sapiens International Corporation (SPNSF): Turn around...? -- Ignore unavailable to you. Want to Upgrade?

To: TheInvestor who wrote (682)	11/7/1997 2:27:00 AM
From: uu	Read Replies (1) \| Respond to of 1936

SPNSF's recent decline, I think, is attributed mainly to how the Y2K companies are doing. And this is unfortunate because as I said before SPNSF is caught in the Y2K sector purely by accident and its core business is client-server. Y2K is a side effect of the core business that is growing rapidly! Anyway, CNBC reported today that Data Dimension (which is a Y2K company) reported its earnings and it was below expectations and despite the fact that company forcasted a strong future outlook, nevertheless due to its astronomical valuations (P/E of around 135!), and because of not meeting expectations the stock was punished by about 5.5-6%. Similarly because of them the entire Y2K sector was taken down (ZITL which also reported its disappointing earnings slide further today). And as this happened of course SPNSF was unjustifiably pubished too! However in the final analysis it will be the strong earnings and revenue growth and momentum that will dictate the price of SPNSF (hopefully by mid January) and will take the price into the mid teens (where the last time SPNSf was being traded above 11 was back in early 1994)! The oversees market (especially in Eastern Europe, Asia and South Africa where SPNSF has a strong presence- and despite all the talk of slow down in Asia) is thirsty for the client-server technology and to move away from their existing (or lack of) mainframe infrastructure. Client-server simply translates into much lower costs and more productivity for these countries that no longer have to worry about cold war (or for that matter hot war)! Their only concerns right now is their economic prosperity through lowering their cost and increasing their productivity. This can only be achieved through technology and automation. And Sapiens is represented internationally all over the world aggressively going after the emerging markets. As I said in the final analysis it will be the strong earnings and revenue growth that will dictate the direction of the stock price, and for Sapiens I am most confident of their continued strong revenue and earnings momentum. As always just my humble opinion and not to be taken as an investment advice! Regards, Addi Jamshidi