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

To: Pancho Villa who wrote (76)	10/1/1998 7:30:00 PM
From: space cadet	Read Replies (1) \| Respond to of 178

Pancho, I guess great minds really do think alike. I wanted to buy puts on this overpriced turkey a couple of days ago, but missed doing it so now I will have to wait for a dead cat bounce. I could see this stock in the low teens soon. I also independently decided to buy puts on mfnx which I see you also are negative on. I tried getting in today but missed by a 1/32 of a point. Possibly I should have just paid up, but since it was a very large position I didn't. Hopefully I will have a chance tomorrow. Good work spotting these lead balloons. I think the only reason these two haven't fallen that much yet is because people don't know about them. Once people find out about these two stocks they're a gonner.

To: Pancho Villa who wrote (76)	10/2/1998 2:25:00 AM
From: mchip	Read Replies (1) \| Respond to of 178

Great answers Pancho… Some more questions/comments and a wonder about if SAPE posts a great QTR on the 15th… <Growth Rate> I think some of SAPE's early large client contracts finished without new business to replace them early in the year, but new offices in LA and London and some Australian and perhaps Asian business might come into the picture this Qtr. I don't think the growth is done… certainly not <steady state>. <Cash Flows> Yeah, the past 2 Qtr's have shown Cash flows negative… but not for the first time(maybe for 2 Qtr's in a row though). It could be a transition from relying on 5 or so key clients to expanding the customer base, and opening new offices to expand business. (LA and London recently) <Cash flow in wrong category> I see your example but SAPE clearly does not do this. <Fixed Price VS options and compensation> Yes options are something to be considered. I agree with the SEC on better reporting in this area. From my understanding options are not a part or SAPE's project compensation plan. (key word there is PROJECT) Yes employees get options, but not as a part of the project bonus plan, as a part of overall compensation/bonus. My understanding of the project bonus plan is this… The employee gets to choose either a higher base salary with a low/none on-time completion bonus or a lower base with a high on-time bonus. Knowing this percentage in advance leads to pretty accurate fixed price development costs. I don't know how many employees have chosen what option.. but I think if they are working 60+ hours it is because they want the bonus! Yes… I know what a molotov cocktail is… and I would not want to actually drop one after lighting it before I threw it!! PS I'm still waiting for the 10(hedged)