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

To: William R. Polk who wrote (1258)	3/21/1998 12:48:00 AM
From: William R. Polk	Read Replies (2) \| Respond to of 4467

Just looked it up. The number of shares used to compute "basic" 1997 earnings (12/31/97) was 31.249 million shares, whereas the number to shares used for "diluted" was 31.996 million shares. It looks to me like the potential dilutive effect of the convertible notes has not been considered. If you add 2.6 million shares to the "shares outstanding" then NAV is $35.63 per share. This makes for a "premium" of $1.87. This approach offers a possible explanation why many of us have thought that SFE has been "trading below NAV" in recent weeks. Too conservative an approach? Perhaps. But as SFE's price rises so does the likelihood of the notes being converted, IMO.