1. By whatever stretch of the imagination, SAPE
is not an Internet company. Despite the hype from
the company, Internet biz is still miniscule,
relative to revenue.
2. Look at what happened to
Sape after each of the earnings releases for the last
two years (except Oct. 98 when it tanked even before
earnings). Wall St. hypes it up before earnings and it goes
into a free fall afterwards.
3. All the good
news is built into the stock. There is nothing in the
near future that can drive it up.
4. It is
trading at 76x next year earnings while growth rate is
only in the low-40%. It has already gone up 3x from
its low in Oct. last year. If you think it has more
steam, think again.
5. Do not forget that Sape
does not offer a product or a specific customized
service, its revenues depend on other companies giving it
work to do. And, it does not do Y2k (which is good in
the long-term), since companies are focusing on Y2K
now, forget giving any work to Sape except for the
6. People are sheep. A
fast-talking CEO is enuf to hype up the price.
in the end, it's your money. You gotta decide.
My guess is that you are an options seller who is
trying to drum up business by selling expensive puts. If
you have any real reasons for forecasting $60 for
SAPE before 2/28/99 please state them, or else put an
end to the non-informative posts.
I know plenty of bears who have lost great
profits from trying to time strong stocks like Sapient. I
will ride out any dip with expectations for continued
greatness. 7 years from now Sapient will be recognized as
the best performing stock for the decade. And you
will hear of great stories like if you invested $10k
in 1996 it would be worth $1 million in 2006. With a
fundamentally stong and consistent growth company like Sapient
it will happen. They still have alot of fast
manageable growth ahead of them for the next couple of years
which should cause the stock price to come close to
doubling next year and the year after. Of course this is
Now that Sapient is following the time-tested
gradually falling prices after an earnings
release, it may be
prudent to get some March 60
This can help in two ways: if you are not long, you
make some decent money; if you are long,
consider this as
a protective put especially since the
Whatever your philosophy on the
stock, this is a prudent
And, oh, buy
me a lunch when Sapient hits 60 at the end of
Notice the low share sizes on the sells.
Inidividual investors are taking profits, but no institutions
are selling. They are holding their big
There were two large trade, 10k and 15k (if you call
that large) early this morning.
SAPE will be
upgraded soon. When SAPE holds in the 80's, it will split.
SAPE is smart not to split wen the stock hovers near
70. Who wants a split stock at 35?
Those who looked for $0.24 will sell. I'd expect
a small sell off. Especially with no split
But the earnings did top a lot of
If you check out the Q4 news, SAPE
has a lot of internet related business. That shows a
good movement and focus on new technologies and into
areas of public interest. That should boost the price
and peoples belief (and trust) in SAPE continuing its
predictable and stable growth cycle.
The stock has
doubled each year since public. Offered at $10 (after
split) it is now near 80 in 3 yrs. (10 -> 20 -> 40
That's a good investment. Wan't $8,000
profit in 1 year? Buy 100 shares now.