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


To: Razorbak who wrote (10348)4/11/1999 1:59:00 PM
From: Tickertype  Respond to of 27311
 
Thanks for your response, Razorback. Choosing to short the stock is really not bashing, in my view, just a very risky strategy. It has been done successfully for the past few years while the stock has swung between $5 and $10, but the possible gains are fairly limited compared to the potential gains on the long side.

The risk of shorting a stock like this, it seems to me, is very high because it has the potential of suddenly rocketing up as the result of a contract announcement. Unless you catch it within minutes, you may have to pay a lot to cover. Very risky, I think.

- T -