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

To: Eli74 who wrote (12943)	7/8/1999 4:07:00 PM
From: Larry Brubaker	Respond to of 27311

Eli, no disagreement there. As I said when I first mentioned several weeks ago that VLNC was on the first cut for the Russell 2000, in the long run it won't make one whit of difference. If Fred is right and the stock hits 100, it will have nothing to do with the fact that it is in the index. If the company goes bankrupt, the stock will go to 0 regardless of whether it is in the index. The only significance whatsoever is the short-term price action that occurs when the index funds buy into a stock that is newly added to the index. I was expecting this to have more effect (as the Wall Street Journal indicated happened to other Russell 2000 adds). Being added to the index is a non-event long-term, and appears to have been a non-event in the short-term as well.