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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: FMK who wrote (3314)7/11/1998 6:20:00 PM
From: MGV  Read Replies (2) of 27311
 
Here is an example of a misleading or false statement:

FMK said: "There probably were some nimble traders who sold when they determined the stock was overbought and triggered volatility."

Traders don't cause stock volatility. Volatility is a measure of risk. The riskier a stock is, the greater its volatility. On the other hand, the severe decline in price that caused substantial losses for people holding VLNC shares the last time its management represented that it was on the threshold of commercial production, was due to the extreme change in perceived fundamentals caused by the failure of management to follow through on their signals to the market. The price fell not from traders, traders are the messengers, the price fell because VLNC prospects swiftly fell.
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