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Non-Tech : SMARTFLEX ALSO MEMBER OF THE IOMG FAMILY

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To: Paul A who wrote (358)8/6/1997 12:59:00 AM
From: Douglas V. Fant   of 558
 
Paul A.,

Also do not underestimate the impact of the Balanced Budget Accord signed into law today. The reduced capital gains tax makes for three effects I believe. First institutions which have been sitting on profits in large cap stocks will now start to sell some of those stocks. A healthy portion of that money will likely end up in small/mid cap stocks.

Second it is easier for large shareholders (like the 20% holder in SFLX) now to sell their ownership interests; and third since real estate capital gains taxes have fallen too it makes it easier for companies to buy, sell, and move assets. Thus I believe that acquisitions and consolidations in small cap companies will accelerate. SFLX just may be the beneficiary of one of these trends. I'm betting that it will be...

Sincerely,

Doug F.
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