To: John Arnopp who wrote (1631 ) 8/28/1998 6:31:00 PM From: llwk7051@aol.com Respond to
John, It is hard to say what is the right move with sfe. It has been hit with a full blast of bad news and bad market lately. Today, tlab got hammered because of the renewed bid for Ciena. In addition, there does not seem to be a market for the small caps it spins off right now and they are getting hammered. The best observation I have is to buy when the small caps seem to have no market at all and Sfe price seems to do well as they recover(I am not certain we are there yet, but we maybe close for the small caps). When you start seeing to many great articles about sfe, small caps doing great and good news about its major holdings consider lightening your position(I can't seem to do this myself). As to the rights offerings, read the prospectus and decide what you think about the market they sell to and how soon the company will improve earnings. For example, Chroma Vision had no sales and none projected for a long period. I sold because of that. Scai sold a unique product with a huge potential and without real employee problems(They used third parties to help sell & service their product). I kept that and after a weak start did great to date(by the way the recent pullback has put it back on my buy list if I ever think the market has bottomed.) As to Docucorp, the prospectus and news releases indicated sales would be down initially but that in the long run I still like it. After it releases numbers on Sept. 12, I will reevaluate whether I will add to my position or wish I had sold originally. (I should have sold initially and then bought when numbers came out if I liked what I read, but hind sight is much better.) The point I am making is study the offerings closely. You can pick the ones you believe have a chance to do well. Keep those and sell the rest. Hopefully, there won't be to many Usdata and OAO Tech. that you keep like I did. I still like what sfe does and think they are a great source of new companies. With luck, a decent market, and detailed analysis hopefully,we can all make money.
