MGV, right now, VLNC is probably under the cloud of that negative mention about susceptibility to interest rates. The truth is that VLNC has and had before much greater susceptibilities to other factors (they do not use much "bank debt", since right now, their credit rating would not allow many banks to loan them anything), so their exposure to interest rate increases is more a market risk (the whole market may dive) than a specific risk.
Actually, you should be surprised at the strength rather than the weakness of the stock, great companies like CSCO, QCOM, AMAT, LRCX, BRXS and SNDK, just to mention a small portion of those I follow, have registered new reaction lows (lower that the April lows) while VLNC has held well above these. This should be considered technical strength, as long as $14 hold, and it seems to have held today despite that piece of erroneous bad publicity.
Zeev |
