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

To: hhertzfeldjr who wrote (19048)	4/7/2000 10:14:00 AM
From: MGV	Respond to of 27311

Yours is a prudent strategy.

To: hhertzfeldjr who wrote (19048)	4/7/2000 10:54:00 AM
From: John Curtis	Respond to of 27311

Harold, Rich, et.al.: Harold, a very wise strategy, imho, at this time....that is, one shouldn't be margining such as VLNC. Uhhh...excepting one who has a risk tolerance borderline stratospheric in nature. This is not to say margin isn't a tactic to use. It is. I've used it from time to time, but typically I go no further out than 25% of my accounts net worth. And I typically try to underpin my margin with a stock I feel is fundamentally strong. Additionally, when I do this I margin a stock other than the one forming the basis of the margin loan, because as much as there may be leverage out the wahzoo when an equity's on the rise when you employ this "double down" tactic, still, you'll take it up the wahzoo should the stock price turn against you. For instance, I'd use such as a WCOM as the basis to establish a margin holding in some other equity...say....oh......WSTL(as an example). And I'd only do this if WSTL is at what I feel screaming buy levels. Even so, should everybody rush for the exits all across the market front, then even this strategy is gonna be found wanting. Hence only going out 25% or so. You could say I HATE losing capital. ;-) Meanwhile, anyone else getting the impression VLNC's still in "cap" mode?? John~