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

To: Pancho Villa who wrote (100)	12/4/1998 11:55:00 AM
From: Bob Trocchi	Read Replies (1) \| Respond to of 178

Pancho… You have so much more financial analysis knowledge than I that I am sure you have forgotten more than I will ever know. Nonetheless, I do look at some numbers that a company produces in trying to make an investment decision. I have seen your notes on SAPE and since I am long on KEA, I tried to make some comparisons of the two. I am underwater and I see that SAPE is going great guns and I am trying to figure out why. In looking at all the data, it seems to me that SAPE is the winner in past 3yr. growth which I attribute to relative size of the organizations. Their forecasted earnings and revenue growth rates are also greater than KEA but not significant. Given that KEA has been doing this for over 10 yrs. and SAPE is a much younger company I feel the analysts forecasts are perhaps more creditable for KEA. SAPE also seems to have more cash on hand than KEA but KEA is not hurting with $45M. KEA's P/E, P/S and P/B are all in favor of KEA. In fact, the P/E for SAPE of 128 is insane for a labor driven business. I happen to think that 128 is insane for anyone but that is another story. My basic conclusion is that SAPE is ripe for a fall. You have concluded this as well but based on their accounting. I now must figure out if SAPE is overpriced, is KEA about right, overpriced or ready for a rebound. I am not about to give up on KEA and maybe I should now short SAPE as well. Figures below from YHAOO, and WSRN web sites. Sorry but I cannot get the numbers to line up correctly but I am sure you can figure them out. Also thanks for the analysis of their SEC documents. Great stuff. Regards and I see BFT is starting to finally drop. Bob T. SAPE KEA (Keane) Stock Price %ch. 30wks +13% -37% Stock Price % ch, last 60 day +27% -39% Market Cap $1.2B $2.0B Revenue ttm $134.9M $963M Earnings ttm $9.31M $81.9M P/E ttm 128.5 24 P/S ttm 8.3 2 P/B ttm 8.2 5.6 Rev. % gr. Last 3 yrs 100% 35% Earn % Gr. Last 3 yrs. 52% 60% EPS last 3 yrs. 30% 62% Cash on hand mrq $87.2M $45.4M Cash/Sh. $3.34/sh $0.65 5 yr.% Gr. Earn. F'Cast . 47% 31.3%