My thoughts on your points:
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.
-- I'm mostly concerned because Xerox has not done very well with document management/workflow companies in the past, and since this was a company formed by merging with the Xerox unit, I'm sceptical as to how well it'll do.
Re NAV:
1. The stock price should reflect the dividend yield value of three rights offerings a
year.
- Usually it doesn't get priced in in advance -- only upon announcement or imminent announcement.
2. The upcoming rights offering at the end of Sept. Rights offerings frequently cause
a premium prior to their issuance.
-- Yes, the stock goes up at offering time, but still not usually a premium to NAV, and certainly not this much of one.
3. The general recovery of small caps has started and SFE is considered a small
cap startup company.
-- My small cap stocks haven't recovered yet, though they'restarting to show some strength.
4. The current offering is associated with a technology that may cause a lot of
investor interest.
-- Usually SFE doesn't move until the WI/RTs are on the street.
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.
-- Maybe, maybe not, dependsd on the mkt. Certainly they'll come back, but usually SFE doesn't come up in advance of the NAV.
Good luck to all,
Robert D. |
