Safeguard Scientifics (SFE)
Company Profile: Safeguard Scientifics provides growth capital for entrepreneurial and innovative life sciences and technology companies.Share Price: $13.28 (Sept. 26) Performance Since July 25: -27.5% Gundlach's View: Gundlach views Safeguard Scientifics not as a bank but as a cross between a venture-capital firm and a private-equity shop. What attracted Gundlach, though, was the increasing rate of revenue growth. Revenue growth of their partner companies is up substantially," he says. "In 2007, their partner companies had $100 million in aggregate revenue, which grew to $400 million in 2010." Safeguard Scientifics currently has minority stakes of 20% to 40% in 13 companies, such as pharmaceutical company NuPathe, Internet career site Beyond.com and digital media trading technology provider MediaMath. Safeguard represents a solid investment for Gundlach and his team because these 13 business have been performing very well. "Right now, the stock price of Safeguard is barely trading higher than the net cash on their balance sheet," Gundlach points out. "Effectively, you're getting their ownership stakes in 13 different companies for free, a variety of which are pretty exciting investment opportunities." >>To see these stocks in action, visit the 3 Beaten-Down Small-Cap Growth Stocks portfolio on Stockpickr. -- Written by Robert Holmes in Boston.
>To contact the writer of this article, click here: Robert Holmes. >To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV