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Technology Stocks : Safeguard Scientifics SFE

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To: John Arnopp who wrote (1719)	10/1/1998 2:28:00 AM
From: michael r potter	Read Replies (1) of 4467

If the next offering traded at the somewhat usual $10, that would only add $1 to each share of SFE owned by the public assuming the usual 5 to 1 offering ratio. It would add a small amount to the NAV of SFE of course but the bottom line is that it would account for only a fraction of the enormous premium that exists. In this environment, I think it doubtful that Who? would trade at or be worth much more than just the $5 rights price. (Assuming something like 15 MM sh. -- a guess--which would give a market cap. of $75mm. CMPC makes decent money and has a market cap. of barely more than $200mm.] In other words, even a $10 price on the next offering doesn't account for much and even that may be a dubious proposition. I hope those buying, know something I don't. Will we get any help from the general market? IMO no. If the market were to have a serious "problem" coming up shortly, I would expect the period before it to look about the way it has looked lately. Would be much relieved to get past the next week, two maximum, no worse off than today. One consolation. No one can time the market consistently short term. I still like your closing. "mercy for us all" Amen! Mike

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