I have been following this thread for many months and want to extend thanks and complements to FMK, John Curtis, Mooter & others for valuable and insightful contributions. I sense that there is an excitement starting to build around Valence as evidenced by the pace of messages here and recent stock action. Last Monday was especially significant because of the volume reversal. The stock broke down, along with the rest of the market, trading down to 6 1/16 before reversing back up to 8 1/2 level on relatively strong volume.
I strongly agree with others who have expressed the view that with money coming out of this year's highflyers, Valence is a prime candidate to benefit from buying by those speculative investors looking to reinvest for maximum gains in 1998.
It would be nice if the stock could close the gap between current price (8 1/8) and May high (10 1/4) near term ruling out what little tax loss selling might occur as we approach year end.
The company has kept a low profile to an extreme, unwarranted in my view, because of the class action suit still yet to be resolved; however, because they have prevailed through several levels of appeal, my guess is that the final resolution will have little if any impact.
As with any stock investment, the bottom line is THE BOTTOM LINE, and regardless of whether you use Red Chip's ultra-conservative estimate based on one-shift lines at 50% capacity or optimistically project 3 shifts at 75 - 100% or anywhere in between, the stock is way undervalued at current levels. |
