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

To: TheInvestor who wrote (943)	1/26/1998 10:38:00 AM
From: Robert G Allen	Read Replies (1) \| Respond to of 1936

Bleichroeder (B) is a brokerage that issued a comprehensive research report on SPNSF. Friedland (F) the analyst maintains a computer model on SPNSF. They have a close association with SPNSF and many of their clients own SPNSF. You can imagine based on the last 5 months of stock performance they have answered many angry calls from clients. In the normal course of business ,F would maintain a close liason with SPNSF . Based on his personal contacts, F maintains that SPNSF mgt. believes they are on schedule to meet or exceed his estimates. F's estimates are fully diluted because of the significant increase in float conversion of the preferred would would have and more importantly, the very significant savings in interest expense conversion is having. ACTUALS EPS: 4qtr 96 1qtr97 2qtr97 3rd qtr97 Basic: .07 vs <19> .01 v .01 .02 v .01 .01 v .01 Fully diluted .07 v <19> .02 v .02 .06 v <.41> .04 v .02 ESTIMATE EPS 4qtr 97 Total 97 Fully Diluted .09 v .07 .21 v <30> The media IBD & daily graphs have compared the fully diluted estimates to the Basic eps. By reporting Basic eps it makes it look like SPNSF has no prayer of making their 4th qtr and doesn't show the strong turnaround and growth inherent in the fully diluted numbers. The fully diluted #'s would also garner superior "EPS" rank in the IBD and DG ranking system. Since compliance now requires requires fully diluted reports the "True" picture of SPNSF's turnaround success should become apparent as IBD and DG corrects their #'s. I believe SPNSF should be trading at 10+ if 3rd qtr had blown away estimates rather than meeting the estimates . For share price to turnaround the need to report a fully diluted 4q .09 or better which would put them in the $8 / share range. Given market conditions (vias, DDIM heavy corrections) over the past several months I'm sure many have bailed. Tha analyst at HG meyeras pegged 4th qtr at .14 with a lower share count. (reprint from friend of mine) Hope this helps.