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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (848)7/26/1997 11:22:00 AM
From: gvander   of 27311
 
Reason for the run up. The current run up is not from the IBD article (that is from over 6 months ago). The run-up started exaclty when this article was released on Individual Investor's web page:

7/23/97 VALENCE TECHNOLOGY: Valance Stock Crackles With Energy

The article is an overview type: Bullish

To put to rest speculation on whether the run up is due to me purchasing the shares I think another opinoin will help. In my opinion, individual investor articles are a good indication of when a little stock has become too well known. See the MAGIC 25 performance over the last year.

Once a stock starts appearing in publications like this it is ussually a good indicator that it is about to fall.

I think it is clear this stock is well promoted: It has been:

1. Picked in 6 month Dart Board Contest (Coming to an end pretty soon)
techstocks.com

2. Mentioned 5 times (on two appearances of a Market Monitor guest) on NBR over the last year

3. Promoted heavily on-line

4. Promoted in unsolisited e-mails See Matt Leo's post to Paul:
techstocks.com

5. Written about in IBD

6. Written about twice in Individual Investor and in I.I.'s Hot Stocks

7. Wolunchuck, Cohen, Ney, etc

8. Been on radio and CNBC

I think most know what this pattern indicates and it is not good for the longs --
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