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

To: Rob Palmer who wrote (4157)	4/7/2000 9:26:00 AM
From: sPD	Respond to of 4467

Safeguard Scientifics Initiated By Lehman, Deutsche Banc (SFE) April 7, 2000 (NewsTraders.com)-- Safeguard Scientifics (SFE), a business-to-business Internet-centric holding company, was launched with a "buy" investment grade and $100 price target in new coverage initiated this morning by Lehman Brothers analyst Jeffrey Kessler. "Safeguard's network of over 200 companies and its acquisition and management 'process' will continue to drive returns by creating deal flow and accelerating partner company success," the analyst said in his first take on the company. Kessler believes that the Wayne, Pa.-based firm is uniquely positioned as the only incubation and management company focusing exclusively on the exploding Internet infrastructure market. In addition, Kessler said Safeguard has an unrivaled track record of creating shareholder value through its own stock price appreciation and its subscription programs, which allow shareholders to invest in the IPOs of the company's partner companies. The analyst cautioned that the stock might be volatile, however, Safeguard is an "excellent investment" for risk tolerant individuals. Separately, Deutsche Banc Alex Brown analyst Andrea Rice also began coverage of Safeguard, assigning the stock a "strong buy" rating and a $70 target. Of note, Merrill Lynch's closely followed Internet analyst Henry Blodget started Safeguard Scientifics yesterday at "buy" with a $100 price goal, as reported by NewsTraders. Safeguard shares closed Thursday's session lower by $2.50 at $50.50.

To: Rob Palmer who wrote (4157)	4/7/2000 5:31:00 PM
From: still learning	Read Replies (1) \| Respond to of 4467

NAV stands at $4.856 B., with the Opus dud IPO in hand (could've been worse, and may well have almost been postponed). Substantial damage from $6-7B level of only a couple weeks ago, and that was after ICGE had retreated somewhat. Now with no impending IPOs and the IPO market questionable, SFE will not likely file anything immediately, though they may announce one. Major conundrum for SFE mgmt: Bring out something strong now, to continue moving the pipeline forward? You may end up wasting one of your best offerings on a lousy market. Bring out something marginal and risk getting clobbered and/or sullying your reputation? No chance. Wait and see? Absolutely. So what will drive the stock price? 1. ICGE recovery -- maybe but don't count on it. ICGE was richly priced 3 weeks ago, even more richly priced 2 months ago, or whenever it was at $200 2. Late stage participation in an IPO that is really "hosted" by ICGE or other SFE friend -- TLV, PESP, etc. No indication this type of thing is in the works, but it could happen. 3. Stock market comeback? We may well see a continued upswing from here, but I'd rather see SFE fundamentals drive things. 4. A buyout of a holding -- say CATP or one of the most damaged partners? Entirely possible. In fact overall we may well see the strong companies picking up some bargains at today's prices. CATP, USDC, USIT, EMRG, all candiadates. But I would never invest in a stock on the hope of a buyout. 5. New spinoffs -- eMake may still move forward (USDC) XL Vision may have something up its sleeve. 6. Clever use of the $$ just raised. Could well happen, but SFE is not a rash company, and cash is king. They probably already have the $$ earmarked. Anyone else have any thoughts? Where do we go from here? I say we may drift up, but it's a shallow slope, and we just fell off a steep cliff