I'm a little puzzled by the emphasis being put on that magic number,
$10.25. I realize it's the 52-week high, and that Don W. says the stock
"will fly" once it gets past this number, but is there some historical
precedent that says a stock will take off when it breaks the previous
high for the year? I mean if there is no particular news? It seems to
me that the news (certification announcement, for example) will drive
the price, and once that happens the stock will breeze right past $10.25
without even stopping to wave goodbye. So is $10.25 really relevant in
this case?
With respect to earlier comments about the little guys getting worried
and jumping off, I believe I saw signs of that just today. Being one of
the "1000 shares here and 1000 shares there" guys, I put in an order
yesterday for - you guessed it, 1000 shares. This morning I got 400.
I thought to myself, "some small investor like me just lost his nerve
and sold his position". Two hours later another one sold me the
remaining 600.
The fact that very few people post on any of the VLNC boards leads me
to believe that many small shareholders know even less than this group
does about where Valence is with respect to commencing production
(especially with the absence of news from the company) and may not see
any light at the end of the tunnel, so they take their profits while
they are ahead.
Well, its a risk, no doubt, but based on what I know so far (much of
it learned from those who've managed to squeeze a few tidbits from the
company and shared them with the rest of us) I see a lot of upside
potential, but can think of very few bona fide downside scenarios
- the one that comes to mind is some flaw creeping in when the line is
running full speed, but I'm sure they have an effective inspection/test
mechanism in place.
Best regards, - T - |
