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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: john t. brice who wrote (19040)4/7/2000 1:26:00 AM
From: I. N. Vester  Read Replies (1) of 27311
 
At very least, anyone who is still on margin should
have the brass balls not to sell as the downward
pressure increases. The weak hands who sell out
only play right into the hands
of the shorts and end up doing everybody else a
disfavor by adding to the downward pressure.

If you can't take the pressure, do
yourself and everybody else the big favor of
seriously lightening up your position NOW. The only
one who will profit when you have to sell cheap
will be the bastards manipulating the stock down
and a few vultures who hang around waiting for
you to drop.

I myself have been there - i sold 60,000 shares at
a loss at 5 9/16 december 98. if i had just had
the nerve to hold on that day i would have had plenty of
chance to sell the following day for 6.5 to 7. Of
course, i felt that i was staring bankrupcy in the
eye and had to start selling with 1/2 hour left before
market close. had no idea where the bottom was.....

rule number one: be proactive to strengthen your
position now. if you don't have
brass balls (and even if you do)
now is the time to
increase your margin of safety.

rule number two: when the next crunch comes, don't sell.
hold on and use any grace your broker
gives you. when things are bad they
will deal with their greatest risks first.
most probably will not sell you out
until you reach the end of their grace
period unless you go down to 10% equity.
the most severe hits have always seen
a rise the next day. you can probably
even gain an extra day or more if you
have to send your broker a check you
can't cover - they may charge you $25
for bouncing a check,
but if you buy even 1 day you can save
a lot of money. don't count on being
able to do this more than once <VBG>,
but that's one last ditch strategy. one
day MIGHT be enough to save your ass
(no guarantees it won't make it worse, but
so far, every time we've hit a bottom
we got at least a temporary reprived in
the next 1-2 days). I had one broker
who took 2 days to even present the
check i overnighted. that's after the
1 day they gave me to overnight it to
them (of course they were rude enough to
demand immediate payment rather than
giving me 2 or 3 or 4 working days).

Each broker handles
margin calls differently - know who
you are dealing with and what rules they
enforce. "know thy enemy".

Don't panic and less will get trampled on the way out!
And we will bottom out higher, too. Just my MHO.
This in no way constitutes advice to use margin or to
kite checks.
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