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: barrcuda who wrote (1763)	12/16/1997 11:00:00 PM
From: John Curtis	Read Replies (1) \| Respond to of 27311

David: Sorry you got margined out!! I believe it's that very thing, margin pressure, that has been making VLNC so relatively violatile(besides the obvious MM's highjinks that accent the margin volatility). Margin calls, when executed by the house, are typically done at 3:30 to 3:45pm of that trading day. I know, I've been there, had it done to me, it's no fun. Typically the house will call the "owner" of the account the day the margin is due(both by phone and e-mail). If you don't cover by either providing cash; or such marginable securities as can cover the call, OR CONDUCT A TRADE IN THE SECURITY THAT CAUSES THE CALL, or another security of relative value within the account, then the house, in the last 30 minutes of trading, will sell any/all relevant securities, AT MARKET, to cover the margin call. Need I say this is a MM's wet dream? And based on the trading activity that's occurred in the final half hour these past couple of days, I think this is exactly what is going on. If you buy my hypothesis, then I point back to my earlier post where I stated you can reasonably expect this kind of last minute slid to stop on, or around, the edge of the current margin "window" which would have open'ed toward the end of last week. Margin alerts generally go out 3 b-days prior to the actual day the margin is due. So, me thinks that by Wed/Thur you should see this effect begin to vanish. From there, I agree with the prior poster that we can expect a return to the $7 range, primarily because the buying that's been going on(someone's been buying these shares at this price--like ME!!), combined with reduced availability of shares......well, my guess is a rise in price. Clearly people are buying, and clearly some have gotten caught with their pants down(and at Christmas time, too..:-( ), thus being force to dump at market values. Of course, this is just my opinion. P.S. diablo--if you'd like an article on how MM's "make a market in a company stock," a euphemism for stock manipulation in my book, drop me a private e-mail. I'll be more than happy to send you an article I pulled off the Forbes web-site. It's an eye-opening read regarding the NASDAQ and how MM's do their business. Regards! John~