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Sapient Corp. Message Board

  • pwert4425 pwert4425 Nov 6, 2008 11:24 PM Flag

    Anybody reading the previous posts

    on this Board needs to realize the bashing was obviously done by shorts. The stock price has been hit recently along with every other stock. However, the earnings release today (Nov. 6) was fabulous. Read the earnings release and then tell me this is a stock you want to be short. If you still want to be short, you deserve what you get. This terrible economic environment can actually help this company.

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    • Actually, I have no position whatsoever.

      Yeah, it is really those shorts that make up less than 3% of the total float.

      There are only 4.0 shares short which is 2x the amount of the average daily volume.

      I don't think shorts are the problem here at all.

      I think all their new clients that went into commodity trading extremely late in the game, all got destroyed for the most part.

      the entire face of the IT industry is going to change overnight with Virtualization and unless SAPE gets into the trend, they will go the way of the dinosaur.

      8 years from now, every Fortune 500 company will have a virtualized network and intranet.

      • 1 Reply to nikolai_the_cat
      • SAPE suffers from a plague of officers. There are so many Directors and VPs who simply do not carry their weight. If you are one of these you should either be billable all the time, successfully selling or gone. Supervisory/administrative VPs who do not directly and successfully sell are dead weight.

        The other major problem is the bench. It is polluted with "people on hold" for projects that may or may not materialize. It is just too easy to put a bunch of people on the bench to wait out a contract. The cost of this is insane.

        I think SAPE will trend lower a bit from here. Many parts of the business are still moving strong and if SAPE can remain nimble, perhaps lower its high touch rates some, will do fine.

    • well, i'm not sure if you classify me as a basher but i have been following this stock for quite a while. i have been negative and remain to be - especially in this market.

      with sapient making approx 20% of their revenue from the financial services sector, i think they have a double wammy. not only will financial services back down on even existing work but also, the marketing and strategy that sapient says is so important is actually quite irrelevant in this market. i think that they are poorly positioned.

      in listening to conference calls, i think they are kidding themselves around how companies are budgeting. budgets continue to be cut no matter the industry and again, digital marketing, while important, the appetite to take risk as it pertains to spends, it just ain't going to happen. companies will move to doing things on the cheap...

      now, particular to be shorting this stock, it really isn't worth it. given the low price, not terribly interested and there is not much of a risk / reward benefit.

      while i believe that the results are decent, i do not see it spectacular and therefore, the stock does not deserve a terribly large premium. i believe that the current price reflects a "fair" price and justifies it's current position.. but nothing more...