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

To: wellab1 who wrote (2558)	4/12/1999 1:26:00 PM
From: John Arnopp	Respond to of 4467

Selling TLAB won't really matter, as they mark the value of the stock to market each quarter. Selling their other "equity method" holdings would change their earnings, however, and this is exactly how they have previously managed their earnings. It is not necessarily "easy," but when it works it can produce the desired results. In fact, it is now harder for SFE, having TLAB like a millstone around their neck (albeit a very nice millstone!).

To: wellab1 who wrote (2558)	4/12/1999 2:15:00 PM
From: still learning	Respond to of 4467

Not sure why "every company is doing this" This is shortsighted in the case of TLAB, as you end up selling your best holdings and keeping your underperformers. A better path for SFE is to exit quickly from IPOs at the appropriate time (can anyone say CATP at $90 shr?) and quickly re-plow the money back into startups to keep the pipeline fresh. If there's one gripe I have with SFE it's that they've spent so much capital nurturing their IPOs that they were less able to create a huge pipeline of internet cos'. Had they sold out of CATP alone, they would have had 15-30 more pipeline companies. Instead, they're out buying shares on the open market! SFE acts like it's the underwriter of these securities.