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: jean1057 who wrote (2424)	3/17/1998 8:36:00 PM
From: Jeff S.	Read Replies (2) \| Respond to of 27311

Jean, Why don't you call VLNC and ask them for a loan, and maybe you can hit 100,000 shares instead of just 10,000. (And maybe they will forgive the debt if the company goes belly up.) Hey guys, lets just go thru LD tax return if the loan is forgiven because the company tanked. There is the forgiveness of debt, that is a capital gain, and then there is a capital loss for whatever his basis is in the 1,000,000 shares. So, I don't think he is going to pay much in the way of taxes if the debt is forgiven because the company tanked. By the way, the reason as discussed on this thread that LD excercised the option was so that he would not have to pay tax if the stock increases in value. Therefore, the reasoning goes, he saves tax dollars if the stock goes up, gains the increase in value if the stock goes up, but has very little down side if the company goes bye bye. Last but not least, his sunk cost in the 1,000,000 shares for whatever his basis is, is old history and has nothing to do with this current transaction.

To: jean1057 who wrote (2424)	3/17/1998 10:46:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

Jean Claude, Here is some quality TA I received this E-mail yesterday. I have permission to post it: "Hi Fred. Thanks for the update. Here's my opinion on VLNC stock. VLNC has been trading laterally for about 3wks and is consolidated between $5 and $5 1/2. Volume is light, but the Money Flow Index is moving up rapidly. In my opinion the conditions are ripe for a move, similar to that on 2/11 of this year, in the next few days. As such, one should also expect any upside gain to be capped by the 200day MA (moving average), which sits a little above $7. Risk to the downside is also limited, around $4 1/4. On the expectation of some sort of breakout the stock is a short term buy. However with heavy resistance at the 200day MA, at around $6 1/2 - $7, there would be little gain. Long term the stock has to decisively break above the 200day MA and then find some support above that level. The stock will need some really good news release, citing some type of technical breakthrough or significant milestone achievement. Regards Chris Thornton"