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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: MGV who wrote (21257)8/25/2000 11:03:24 AM
From: Michael H  Read Replies (1) of 27311
 
Thanks for the altruistic warning for 'normal people' MGV.

But I don't think most of the SI members needed this introduction into stocks investment.

VLNC is not a beginners stock rather than speculative so you shouldn't put 90% of your portfolio into while VLNC is not able to produce "news". If you want to have an airtight investment go and buy 30 year bonds. Or if you like stocks buy GE or better JBL or FLEX, you can take a ruler and draw line upwards to calculate the future stock price.

If VLNC will eventually give me an return like a bond, I would still prefer the stock, because it is more fun owning a stock than having a bond (Anyway, I bought in at 4.70 a year ago, I am not concerned at the moment about my return).

What makes VLNC interesting that it is trading without news and if the news are coming, we will see a nice short squeez shifting the money towards the pockets of the longs. If not, it will be trading around 15 for some time.

Conclusion: After the shorts took their positions, the downside risk seems limited, while the upside potential is large.

I think most people on this thread understand that VLNC is NOT producing and selling substantial amounts of batteries at the moment, and the stock is trading on sentiments and hopes. If it is you major concern to let everyone know, you have made your point and its time to leave.

Michael
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