Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Larry Brubaker who wrote (25559)	6/29/2002 12:20:28 AM
From: Rich Wolf	Respond to of 27311

Nah, I don't see any conspiracies here. Rather, the shorts are betting that they have time on their side, and a lot of headroom. The longer the stock stays down here, the easier it will be to induce longs to sell if the stock even only rallies above 2 and close to 3 again. Shorts are in the money up to much higher prices, and without really groundbreaking news (at best, over a year away re potentially significant royalties, and I'm being generous), the stock simply treads water in the 1-3 range for a few years. Simply no hurry to cover. OTOH, I think when we get the news next month on short positions, we'll see a lot of covering took place since the 11th. OBTW, I suspect Berg won't repeat his Castle Creek mistake again, though it gave him the 'opportunity' to load up at lower prices. But it wasn't fun, and he truly did attempt prior defenses at higher prices, without success. I see no bogeymen here. Shorts simply can't drive it lower with impunity because there really are some loitering deep pockets who play it long for a trade, assisting in defense of the stock. Forget about that 'to the moon' guy, though. That's whacked. Trade away, I say! With the dump from the Russell, the upside near term (next 12 months) is far more limited. And no 'short covering rally,' rather, when the stock moves up on light volume it's always a brief manipulation to get the action going, and has proven unlikely to stick for long. Until the story changes!