I, too, thank you for your informative posts. It's reassuring to hear such good progress being made and that, as of yet, the company is not hedging its bets about Q198 production by the fact that they're still maintaining that schedule. I'm not sure how you're able to come across such informative information, but presume it's stuff that the money manager's and large institutional investors have access too. It's especially important with a company such as VLNC for information to be distributed via discussion threads such as SI because there's not much of a following by the traditional press on these small caps.
I remain bullish and hope that my $6.50 limit order executes tomorrow to pick up some cheaper shares. If not, I'm not chasing it up as I'm already adequately loaded in VLNC shares!
A couple comments.....
1) VLNC is a Russell 2000 index component. I know this is old news, but find it particularly interesting given that the company has no material revenues (what money they do receive from their partners is offset against R&D). Tells me that the professional boys think that VLNC will one day be a formidable force in their industry.
2) The Asian market debacle is providing potential VLNC holders with an unbelievable short term buying opportunity. Sure, short term, prospects don't look good for the Hanil-Valence JV because of the South Korean market meltdown and their supposedly need for $60 Billion in IMF aid. But, this is short term. There is nothing to indicate that long term, this market will prosper, and prosper greatly. The population there is well educated, hard working, and big savers. Also, the spotligt is primarily on the financial houses, not the industries that Hanil Telecom is in. They should be reasonably ok.
3) If there was anything that was substantive behind the recent price fall (basically 30% in a month, from $9s to the $6s), then I'd presume that management would have been out with it by now. Otherwise, they'd open themselves up to more lawsuits. Think about it. If there was a material flaw in VLNCs production capabilities and the news got out, causing the price fall from $9 to $6 by those selling with access to the news, then us regular Joe Smoes would have an excellent case against VLNC for not properly informing ALL shareholders of relevent news. You think that VLNC would try to prevent against even the potential of another lawsuit after going through what they did with the last one. They certainly have not hyped their product this time around. However, just as hyping a product is cause for a lawsuit, so is failure to properly inform investors of negative news as well. So, I really don't think there's anything substantive out there.
4) It's ALWAYS darkest right before the dawn. I know that it sounds trite to use such an analogy to VLNC. But, if MM manipulation is partially to account for the recent sell off, they may be wanting to load up at the cheap and are causing this recent drift.
Again, mooter, thanks for your contributions and please update us on any new developments. I remain bullish and hope for better days ahead. |
