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Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: still learning who wrote (3271)	7/24/1999 4:42:00 PM
From: michael r potter	Read Replies (1) \| Respond to of 4467

SL, -OT- NITE, $48 3/4. First, have been out of NITE for some time . Have only been aware of price movement since, and am glad you asked, as it gave me an excuse to look into it once again. Sales and earnings just reported were simply phenomenal with earnings going from $.14 to $.43 p/s. Based on this and next years projected earnings and its current growth rate, the stock is very cheap. I think part of the dismal recent performance of NITE stock has to do with concern of future competition from electronic trading networks. Concern of losing recent gains in market share, and potential margin declines [currently 38% vs year ago 35%]. I think these concerns have some validity, but are probably overblown, as Knight Trimark seems to be a company evolving, and with good management. However, these concerns will likely dog the stock for quite some time and cause it to trade at a lower price than it would otherwise. It would seem that those worries are pretty fully built into NITEs price currently. There may also be some factoring in of the possibility that the overall market environment may not be so good, either from a price or volume standpoint the next few months. NITE thrives on volume. The languishing of internet stocks doesn't help. So, a mixed picture. Probably a good buy here, but not sure if it meets my criteria of around a 4 to 1 reward/risk ratio [not many stocks can meet that test nowdays], to initiate a new buy. Intriguing though and getting oversold. London office has opened. Will keep an eye on it. Mike