Because I believe Sapien's shares are still intrinsically undervalued, the dilution from issuing another 5 million at the $6+ level is not my first choice.
That said, there are several positives in Sapien's moving forward with the secondary.
a). One factor handicapping Sapien's share price is the company is still flying well below Wall Streets's radar screen. Having Barclays, William Blair, Needham and Roth involved in this offering should raise SPNS awareness in those firms and their customer bases. Whether value or growth investors, the closer they look, the more they are going to like.
b). Another challenge is Sapien's small float and daily volume discouraged interest from many institutional investors. The secondary will help both metrics.
c). Secondary funds will push Sapien's acquisition war chest above the $50 million level. The FIS and IDIC acquisitions in 2011 proved to be very successful, positive and accretive. Adding another solid acquisition in 2014 will accelerate Sapiens ramp to Roni Al Dor's goal of $200 million in revenue by 2015.
I think if you got a stain on one of your cherished shirts you would briefly acknowledge that it isn't the best thing to happen but then you would come up with several ways in which it may turn out for the good
a) opportunity to get noticed by others -- nothing quite grabs attention like a stain on an otherwise pristine shirt.
To be an apple grower (think hail storms, windstorms, freezes, market collapses, competing against Chinese growers with $2/day labor, etc.) requires being inherently optimistic and a little crazy. The same with an investor rummaging through the bottom of the NASDAQ dumpster. I rank high on both metrics : )