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Proposal to SFE management. You are increasingly the owner of high priced currency [SFE stock]. At some point during this run, do a secondary offering of 5m. sh. If it were done at say $75- $100 sh. [you pick a number], it would raise $375M to $500M. Take $100M and target new private deals. Take $100M and use for SFE stock buybacks when the rainy day comes when you feel SFE is under-valued. Take the other $300M and buy cheap assets like SFE public portfolio companies with good fundamentals and which the market cares little about now. [DTPI, SCAI, OAOT, DOCC, TESI, FCGI-but not CMPC, 26M. sh is enough!] Take $400 and buy a new bell, as the old one is probably getting worn out from ringing by then. There would be no earnings dilution problem as quarterly EPS are irrelevant. If the market is kind enough to provide overvalued currency in a dis-inflationary world, exploit it for all it's worth. CMGI and others are very good at this. Then again, we as individuals can do the same--just not yet. Until proven otherwise, this market cares little about rewarding value. So be it. To prospective buyers-- to play now, you gonna pay. Mike |
