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

To: T-Lo Greens who wrote (2274)	2/18/1999 1:43:00 AM
From: michael r potter	Read Replies (1) \| Respond to of 4467

Frustration has been expressed elsewhere regarding SFEs lack of exposure and coverage by big name analysts and top tier brokerage firms. The implication being that if there was coverage by some big firms SFE would be trading higher and closer to what some believe is its ''true value". While there is truth to that, it may be of little consequence to long term holders. SFE tracks changes in its actual and perceived fundamentals quite well over time. There was almost no coverage or visibility between '93 and '96 but it did not stop SFE in going from $3 to $46, because fundamentals were the driving force. In contrast to that period, there was a little to much enthusiasm in the weeks leading up to VERT and the market has been working some of that off [SFE down 20% at todays low since the peak Feb. 4.] Regarding the big event planned this year, Internet Capital Group, one can speculate how much it might eventually add to the value of SFE but 1. the $value is uncertain though it will undoubtedly be large and 2. no one knows the market environment it will be coming into when brought public. Because of these two facts, the market is entitled to place a discount on what might turn out to be its eventual value to SFE in pricing SFE currently. I.E. Deserving of a higher than normal premium over NAV, but not its potential full value this far ahead. Where opinions diverge, is just how much premium should be built in at this time. Will stick with todays buy in for now. SFE quite oversold short term. Traders: Would be cautious about chasing and paying up if it does a quick spike from here. All the best, Mike