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Strategies & Market Trends : Trader J's Inner Circle
NVDA 180.99+3.9%Dec 19 9:30 AM EST

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To: StockHawk who wrote (10466)3/2/1999 6:14:00 PM
From: StockHawk  Read Replies (1) of 56535
 
SFE - Anyone follow this co.? It is somewhat like CMGI. They are in the business of developing partnership companies that they eventually take public. They currently have interests in about 35 companies. When they do an IPO they give shareholders of SFE rights to buy stock of the new co. They did a chart in their last annual report that said if someone invested $10,000 on 12/31/92 over the next five years they would have gotten rights in nine other companies and have an investment worth $226,000 at 12/31/97.

A recent newspaper article said:

"Safeguard invests on several levels. It makes venture-capital investments in private companies, often appointing key managers; it offers investors "rights" to buy shares of the companies as they prepare to go public, magnifying their potential returns beyond Safeguard's own share price; and it continues to hold shares in companies it has helped take public, including CompuCom, Cambridge Technology Partners, Sanchez Computer Associates, and OAO Technology Solutions, once they are publicly traded."

In the past most of the partnership companies have been in technology fields but they have recently focused on internet companies.

Since they make announcements about investments and IPO's it can be a good daytrade and I think it is also a good long term hold.

Any opinions?

StockHawk
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