Hi, Darkgreen,
A couple of responses to your responses:
1. Vis basis of comparison: I was hoping for an apple-to-apple comparison. There are a dozen or more Bellcore licensees. Which has executed? Which has executed better than Valence?
2. Vis investment community, execution and "sufficient interest...to invest time in following it:" There does seem to be some institutional interest in following Valence: I recall hearing both buy and sell-side firms asking questions at the conference calls, and I note the institutional holders of Valence stock. Knowing that the firm has not yet executed is not also to know the firm will never execute. The street evidently makes the distinction.
3. Vis tulip bulb: In light of the internet phenomena (and for other reasons), I agree that "the appearance of value should not be viewed as a confirmation of ultimate, legitimate value." However, taking this line of argument in the present case subtly undermines your usual "rational market" assumption and gives comfort to those who think you're capable of manipulating the stock price with your criticisms. Given that holding a stock at a given price is tantamount to a decision to buy it at that price, and that a large number of institutions continue to hold it after a long time, it seems that some members of the street find value in the stock that is more substantial than tulip-bulb mania. Indeed, I think there are sources of value that do not show up on the books -- e.g., the patent portfolio and the institutional experience of the research team. Different valuations may be placed on the company quite legitimately.
Regards, lws |
