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

To: John Arnopp who wrote (1404)	5/21/1998 1:54:00 AM
From: michael r potter	Read Replies (1) \| Respond to of 4467

From time to time the temptation emerges to trade out of SFE because it has a good run and/or because it seems to be trading at a high premium to NAV. (at least compared to the recent past). The problem with that is that yes, it will have a 10% pullback, but from where? If one got out at $40, now one is praying for a 10% pullback to get back in where the position was exited. Will it occur now, or at $50, or higher? Difficult to know, and even more difficult to execute. I do think that the downside from here over the next couple of years is $5 to $7 and the upside is more like $40 plus. I also think it will trade at a premium to NAV for a long time to come. Part of the reason is the increasing sponsorship they are getting from firms such as Salomon/Smith Barney and their legion of brokers, the spreading awareness of SFE among mutual funds, and the tie in that SFE has with the internet through private companies that will become public. When I first bought SFE it was so inefficiently priced and unknown that sometimes there would not be a trade for three hours. It is just starting to become known, but just wait, the day is coming when it will trade 500,000+ shares on a good day and jump 4 or more points. That is when the decision to lighten up will be much more of an issue