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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (12684)	7/2/1999 2:22:00 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 27311

Larry, As I think I said, I just saw better opportunities elsewhere. With the markets slightly down on Wednesday in advance of the Fed announcement, I determined that the best opportunities were to deploy my capital LONG, and LEVERAGED, into things that were likely to pop nicely after the announcement. The risk factor there was that AG might have done something really unexpected, like a .50 point tightening, while retaining the tightening bias. But that's not his way. To my mind a major market pop was virtually inevitable. I closed off a few short positions, and generally moved my portfolio to a more bullish stance. Bottom line to me is that VLNC was one of my weaker shorts, therefore one of the most expendable. I agree with you on VLNC's financial position. But that's already known and it hasn't moved the stock much. Too many people are in love with the "potential", and that won't change so long as the company is "all potential, no product." I recall another battery company, Battery Technology (BTIOF, BTI.TO). Their promise was a revolutionary new rechargable alkaline battery. The hype was incredible. Rayovac had licensed the technology for their "Renewal" rechargable batteries. The technology was finally going to make rechargables an adequate substitute for normal alakalines. They were going to take over the battery market with their superior product. Michael Jordan had been hired to do advertising for the product. Typical comments were things like "Let's assume we only get 50% of the US battery market, and the license fee is only 2% of the wholesale price of each battery...." Even after Rayovac started selling the line, it took a long time for the faithful to see how wrong all the assumptions were. quote.yahoo.com. My view is that VLNC is likely to behave similarly. Doesn't make it a great company, but doesn't make it a great short either, with the market hitting new highs every day and big gains possible from better deployment of my capital. mg