To: William who wrote (3786 ) 8/19/1998 8:54:00 AM From: John Curtis Read Replies (1) | Respond to
William: DA DUM, "Charge out of company." Heh! Good one. Where do I think VLNC will go, given no conclusive read on the last couple of day's trading? Hmmmm.....although I'm not a seer, if you take the general Streets point of view, and I view it as one without a lot of knowledge of VLNC particulars, then you've seen VLNC drop a goodly percentage on no news with. Typically a drop on large volume with no news is a strong negative indicator, so as a general Street investor you ain't about to jump into an unknown situation, eh? Indeed, all publicly available documentation lends credence to the negative hypothesis. So you stand on the sidelines and, at best, watch. This "sidelines watching" is probably the reason why volume has returned so rapidly to normal. Last weeks large volume MAY have been because of a panicky large investor, it MAY have been general market conditions related, and then again it MAY have been MM's playing patty cake. I happen to think it's probably a combination of all three. Oh, I almost forgot, it MAY also be because something's gone drastically wrong inside VLNC and the volume sell-off was telling us something obvious. Although it's a possibility, I tend to discount it.
