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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: MGV who wrote (3895)8/26/1998 12:13:00 PM
From: MGV  Read Replies (2) of 27311
 
Posted on 8/22

Moreover, it is very possible that the effect of margin on the stock price is not significant, in spite of what you suggest. It traded as low as 2 or less before; if there is not a material contract very soon, it could easily trade at 2 or lower again. Among other manifest weaknesses you have exhibited, you have been guilty of extreme myopia in this margin analysis and in your investment analysis.

You are focussed on the wrong point. It is fundamentals and not margin that is the weight around VLNC. It is not going down because of some imagined nasty "short" monster. It is going down because of financial and competitive position.

It appears from IBD VLNC has lost the support of at least one mutual fund manager. How many more have followed? Somebody is doing some serious selling.
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