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

To: michael r potter who wrote (1901)	10/29/1998 7:57:00 AM
From: robert miller	Respond to of 4467

Michael, I think you are right. I think ICG has been in operation for about two years. They should have a pretty good handle on many of the small internet stocks. SFE has the cash to make investments in this area. I believe we will see more deals like US Interactive. bob

To: michael r potter who wrote (1901)	10/29/1998 10:26:00 AM
From: John Arnopp	Read Replies (1) \| Respond to of 4467

Michael, I have to say that I am NOT comfortable with that explanation, even if it is the case. To say, in effect, that when Safeguard brings new companies public and they fail, it is an example of inability to deliver and the price should then fall; but that if they don't give rights offerings and promise the latest tulip bulb in the future, then the price should rise? I've used eBAY's service, and like it. I think it's a great idea, execution, and the Internet is a perfect medium for it. The inventors/owners should profit from their work. BUT, to say that any company can have a valuation like eBAY's or Amazon's or Excite's and that it is justified is to discount future earnings so far into the unknown that it does not appear meaningful to me. I remember at the beginning of the year saying I thought SFE was worth $10 over their NAV. This was based on a dividend discount model using 3 offerings per year, where the offering traded at $10 each, and I used a 30% discount factor! This is only 8 months later! How far into the future are you/should we be looking? And what are we really looking at? But hey, I'd love to have bought EBAY. --John