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

To: Tickertype who wrote (1428)	11/21/1997 7:37:00 AM
From: mooter775	Read Replies (3) \| Respond to of 27311

One more comment about yesteray's trading. My own experience, more than 20 years helping to finance companies through public and private markets, tells me that seller was an institution whose sell discipline (either through a sell rule which compels selling when the stock price goes through a historical resistance point, say the 30 week or 200 day average, or when the CEO registers to sell shares regardless of his history of selling) caused the preponderance of the decline. I know of several East coast insitutions, for example, that often use such guidelines for adding or dropping positions. I personally think the seller was the same East Coast institution whose purchase helped run up the shares from $ 7 to $ 10 in May 1997, and I frankly don't think he knows any more of what is going on than we do. We'll see. What I am also quite sure of is that the market makers didn't stand in there and load up on the stock for their own inventory position. That isn't their business and rarely happens except in ancitipation of their analyst recommending the stock as a "strong buy". And I don't see any of the analysts doing that until their is more confirmation about OEM shipments, contracts, etc. So I think we had one or more other institutions, as well as individuals, stabilize the stock at $ 7 for most of the day. Finally, I would guess the stock would bounce here. I know one of my friends, a broker, who had earlier sold 50,000 shares when he learned of line 1's problems, indicated that he would probably come back in at these prices in the near future. There are probably others out there who will come to the same conclusion. Its staying power that will prevail in this situation, I believe.