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Technology Stocks : Safeguard Scientifics SFE

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To: wellab1 who wrote (2558)4/12/1999 2:15:00 PM
From: still learning   of 4467
 
Not sure why "every company is doing this"

This is shortsighted in the case of TLAB, as you end up selling your best holdings and keeping your underperformers. A better path for SFE is to exit quickly from IPOs at the appropriate time (can anyone say CATP at $90 shr?) and quickly re-plow the money back into startups to keep the pipeline fresh. If there's one gripe I have with SFE it's that they've spent so much capital nurturing their IPOs that they were less able to create a huge pipeline of internet cos'. Had they sold out of CATP alone, they would have had 15-30 more pipeline companies.

Instead, they're out buying shares on the open market! SFE acts like it's the underwriter of these securities.
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