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Technology Stocks : Safeguard Scientifics SFE

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To: still learning who wrote (1678)9/18/1998 3:59:00 PM
From: llwk7051@aol.com  Read Replies (2) of 4467
 
Still Learning, you mentioned you did not like Docucorp. I listened to recent conference call and they seem to be on track with their business plan. The stock price has done poorly to date so I can understand your frustration. Have you seen news indicating business problems?
As to the premium value for sfe, I can give a number of reasons for the current premium although I am as concerned as you that it will not hold.
1. The stock price should reflect the dividend yield value of three rights offerings a year.
2. The upcoming rights offering at the end of Sept. Rights offerings frequently cause a premium prior to their issuance.
3. The general recovery of small caps has started and SFE is considered a small cap startup company.
4. The current offering is associated with a technology that may cause a lot of investor interest.
5. Tellabs, Sanchez, Diamond Tech and Catp appear to have bottomed out. The other public companies seem to be about as low as they can go so there should be less reason for further drops in net asset value.
Good luck to all,
Robert D.
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