I am surprised it has held up and do not expect it to continue to do so. Frankly, the gap's widening between NAV and its price. I have no idea what's holding it up.
For SFE to continue to stay up, however they need to:
1. announce rts
2. announce they've sold some CATP and/or TLAB
3. show new value based on their sub-VC holdings. This is where the mkt (me included) has a hard time understanding them. How much value should we allocate to the 5-7 funds they've started. Is XLvision a VC/incubator or a holding? Shouldn't ICG be listed under their venture holdings? What's the value of PERS, Int'l, Enertech, SCP, and TL 1-3, plus Radnot Ventures? It would be EXTREMELY helpful if management could periodically value the company itself based on their best guess.
4. make an explicit case for the total value of the private holdings that supports a premium to NAV.
5. just tell us what the mgmt team thinks it's worth
6. explain why they're buying OAOT, but not (really) DOCC, SCAI or DTPI, which have undergone similar drops recently.
7. announce another offering.
OK, maybe not all of these, but at least SOME of them. ;-} |
