A Bubble In Search Of A Pin?
Is this another Andrea Electronics or Spectrum Information Technologies in the making?
The stock of SFM Corp., a tiny New York-based maker of toys and motors, has quadrupled in value since Aug. 10, when the company announced sharply higher profits. The stock price rose by 61/4 on Aug. 24 alone, to 35. The day before, SFM--which up till then had not offered any comment on the stock's activity--reaffirmed plans for a company reorganization and a 4-for-1 stock split. Details of the proposal, however, had been public for weeks. Says SFM Chairman David Segal, who holds more than 300,000 shares: "I really don't know what to make of it."