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

To: john t. brice who wrote (19040)	4/7/2000 1:24:00 AM
From: FMK	Read Replies (1) \| Respond to of 27311

Duckster, It sounds like the recent downturn has shaken your resolve. If I were starting again with 10k unmargined shares, I would conservatively(having experienced some tough times with margin) add at least 4k shares on margin at $20 and control 14k shares with an equity percentage of 71%. The stock would then need to drop below about 8 3/4 before I would get a margin call at 35% equity. I would invite anyone to print and record this post for future argument. Let me know if the above action would have produced a margin call. As I see it, the portfolio would be worth an extra $160,000 in a few months when the share price is $40. IMO you don't have to be a professional to benefit from use of margin, just don't be too aggressive, as I have been in the past. I see this as a great buying opportunity. Many bought on margin in the 30's and had to sell in the high teens. I am sure they all wish they could have that buying power now to pick up some of the dropped candy! BTW, my margin percentage is now lower than 77% and I am comfortable with that. I am not aware of another lawsuit that will dump 600k or 950k shares on the market. That was a one-time event. Neither do I see a percentage repeat of the Nasdaq correction from here. I also doubt if the shorts see much future in starting another attack at $20. Too many bargain hunters would snap up their shares. Hang in there and try to hang on to as many shares as you can. I am sure you will look back in a few months and wish you owned as many shares as possible at $20! Regards from FMK

To: john t. brice who wrote (19040)	4/7/2000 1:26:00 AM
From: I. N. Vester	Read Replies (1) \| Respond to of 27311

At very least, anyone who is still on margin should have the brass balls not to sell as the downward pressure increases. The weak hands who sell out only play right into the hands of the shorts and end up doing everybody else a disfavor by adding to the downward pressure. If you can't take the pressure, do yourself and everybody else the big favor of seriously lightening up your position NOW. The only one who will profit when you have to sell cheap will be the bastards manipulating the stock down and a few vultures who hang around waiting for you to drop. I myself have been there - i sold 60,000 shares at a loss at 5 9/16 december 98. if i had just had the nerve to hold on that day i would have had plenty of chance to sell the following day for 6.5 to 7. Of course, i felt that i was staring bankrupcy in the eye and had to start selling with 1/2 hour left before market close. had no idea where the bottom was..... rule number one: be proactive to strengthen your position now. if you don't have brass balls (and even if you do) now is the time to increase your margin of safety. rule number two: when the next crunch comes, don't sell. hold on and use any grace your broker gives you. when things are bad they will deal with their greatest risks first. most probably will not sell you out until you reach the end of their grace period unless you go down to 10% equity. the most severe hits have always seen a rise the next day. you can probably even gain an extra day or more if you have to send your broker a check you can't cover - they may charge you $25 for bouncing a check, but if you buy even 1 day you can save a lot of money. don't count on being able to do this more than once <VBG>, but that's one last ditch strategy. one day MIGHT be enough to save your ass (no guarantees it won't make it worse, but so far, every time we've hit a bottom we got at least a temporary reprived in the next 1-2 days). I had one broker who took 2 days to even present the check i overnighted. that's after the 1 day they gave me to overnight it to them (of course they were rude enough to demand immediate payment rather than giving me 2 or 3 or 4 working days). Each broker handles margin calls differently - know who you are dealing with and what rules they enforce. "know thy enemy". Don't panic and less will get trampled on the way out! And we will bottom out higher, too. Just my MHO. This in no way constitutes advice to use margin or to kite checks.