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Technology Stocks : Safeguard Scientifics SFE

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To: michael r potter who wrote (2251)2/9/1999 9:38:00 AM
From: John Arnopp  Read Replies (1) of 4467
 
Thanks, Mike.

Another point, regarding discounting and value, as well as earnings and spin-offs (versus interests owned in ICG public companies) that's being discussed on the Yahoo board.

Earnings don't matter with Safeguard, but eventually all companies go broke. What's left for the investor are the dividends, or the spin-off companies and their dividends. ICG is good for creating value for Safeguard if they either 1) start to pay dividends (doubtful) or 2) use the cash flow to invest in and spin off more companies (haven't seen one in a year)! Otherwise, who cares how overvalued SFE gets if they never distribute that value to the shareholders, and eventually end up bankrupt like all the hot companies of a century ago?

Good luck to everyone,

--John
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