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

To: robert miller who wrote (2033)	11/29/1998 10:51:00 PM
From: John Arnopp	Respond to of 4467

bob, I agree. I think they will exit TLAB quickly. Mainly, because it is not a strategic holding for them. It was not a rights offering, and they gain nothing by trading or holding it. They have had a great gain and can put the cash to better use, such as buying ailing rights companies, making new private investments, or buying back their own stock (if they must). Side note on that: Just read an article about companies buying back their own stock, and those that bought back at least 5% did statistically better than their non-buyback peers. However, this did not apply to companies in the Oct., 1987 crash that announced buybacks after the crash, but only those that started before (so no quick fixes for downtrodden companies, I guess). If SFE is buying back $40mm at an average price of $25, they could get 1.6mm shares, or about 5% of outstanding shares. Hmmm. We'll see. --John