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

To: robert miller who wrote (1444)	6/9/1998 12:35:00 AM
From: Rick	Read Replies (2) \| Respond to of 4467

SFE has a very interesting dilemma: In order to protect itself from lack of diversification, it needs to sell alot of CATP (currently 1/3 of market cap). But, ironically, the same action inflicts pain in the form of pressuring CATP's price down. I don't know how it could have been avoided, though. I think they are restricted in the number of shares they can sell each quarter by SEC insider rules. It's kind of a victim of its own success type story - even if CATP falls they have made a phenomenol return. Any negative surprises or slower growth indications by CATP could be disastrous in an already weak tech market. Can anybody tell me what restrictions there are on sale of CATP ? What other methods can SFE use to protect its CATP position ? Can they short or use options ? Any ideas ? Rick. P.S. Doesn't the SFE weakness without news suggest something negative in the pipeline, or is it merely adjustment based on falling prices of the stocks in its portfolio ?