Geoffrey Moore's Crossing the Chasm and The Gorilla Game are tech investing classics.
The Gorilla Game asserts software niches with a fragmented vendor landscape tend to consolidate around market leading vendors until "gorillas" emerge. Wall Street has recognized Guidewire is now a gorilla in the NA P&C software space... and rewarded the still losing money GWRE with "wow" financial multiples. In Europe there are three P&C leaders, Guidewire, Accenture/DuckCreek and Sapiens.
Wall Street is just waking to the fact Sapiens is emerging as an L&P gorilla in NA and Europe. Reports from Celent, Ovum and high RFP win rates all confirm that leadership position. P&C and L&P market demand is in the early stages of a long, sustained updraft as insurers need to replace inefficient and inflexible legacy systems they patched together over the past three decades. And once implemented (never an easy or fast task) these next generation packaged enterprise systems are "sticky" for 10 to 20 years.
In Crossing the Chasm Moore describes how innovative/disruptive new technologies start with visionaries, enthusiasts and few early adopters. With Decision, Barbara Van Halle and Larry Goldberg were the visionaries and Freddie Mac the first enthusiast. In 2013 five huge financial institutions jumped on board as early adopters.
According to Moore, the question now is whether Decision will successfully "cross the chasm" and be adopted by the early majority in the financial services industry... or drop into tech oblivion. Financial services company executives are instinctively and notoriously conservative. The fact at least five large banks signed Decision contracts indicates the ground breaking solution fills a key unmet need in their IT program.
This could certainly help explain why it feels and looks like some upward magnetic force has gotten ahold of SPNS. Even after the secondary the dip was small and never down to the $6.25 price and there was what, one dip, after to maybe $6.50. Very, very strong and the increase in adv is encouraging as well. Do I dare say, we have Mr. Mo, going for us here?