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

To: hcirteg who wrote (3821)	8/19/1998 2:23:00 PM
From: kolo55	1 Recommendation Read Replies (1) \| Respond to of 27311

If selling is margin forced selling- then what's next? If the recent wave of selling this week is due to margin calls, what happens next? Presumably these are Valence bulls selling, and only because they are forced to. The MMs are standing out of the way until the selling abates. When its over, then the stock could snap back as the motivated sellers are gone. Already we are seeing signs that short term traders who follow the stock are looking for an entry point (see some posts on the Yahoo thread). As for questions why somebody isn't looking to buy the company at these prices; the fact is that two knowledgeable companies are investing money in Valence. Hanil Telecom is investing $50M into their joint venture with Valence, and Castle Creek is committed to investing $15M. These companies have access to information on Valence that we don't, and which potential acquirers don't. Since I don't believe that management and large shareholders don't want to sell the company at this point, its unlikely that a potential acquirer has access to enough information to buy Valence. This is especially true considering it could take 3-6 months to complete a hostile takeover, and who knows what the shareholders would demand in that timeframe. I think the company will eventually be taken out after it has proven the market and the product. Of course, at that time, the price will be much higher than the current price. Paul