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

To: Doug McKenzie-Mohr who wrote (11591)	5/31/1999 11:25:00 AM
From: William Epstein	Respond to of 27311

Doug; Stay away from the margin. This is too risky a stock for the margin. That is another world and you had better know exactly what your doing and what your goal is. If you have the cash to back up a margin call then you might consider it. I always believed that one should be able to pay for one's bad habits. Bill

To: Doug McKenzie-Mohr who wrote (11591)	5/31/1999 12:19:00 PM
From: Zeev Hed	Respond to of 27311

Doug, I disagree with Bill on margin, if you use it wisely and with discipline, it can work. I would say that $10 is a little high, a break above $9 would be indicative of at least a run toward the year's high. The important thing, however, is to take out your margin position if it turns out that the move was a false one, that is what is called a "whipsaw" and they happen quite often. Of course, in such an event you will have to take a loss on that margined position, but that is the kind of "risk/rewards" you face when playing with margins. You may want to consider instead to decide how much you are willing to lose on that margin game and use this money to buy either the August or, if you believe the order will come early in July, the July 10 calls. If the PO's are in and the stock breaks to new highs, you can then either cash in or use your margin to exercise the calls. Of course, if you can make an arrangements with your broker that he monitors the stock rather than set the buy stop with the market maker, you will not run the risk of the MM selling you the shares at $9.125 when the stock is at $8.25 (that is the major problem with Naz GTC orders, the MM's may go and pick you up). Just be careful, if you are on margin and the stock takes a very big dive, you'll be in "deep shit". The option route might be safer as an interim strategy until you know what really transpires. Good luck Zeev

To: Doug McKenzie-Mohr who wrote (11591)	5/31/1999 1:55:00 PM
From: mooter775	Read Replies (2) \| Respond to of 27311

Doug, I would be careful to use extensive margin on Valence. They will need to finance within the next 3 months and one can envision a scenario that there might be some pressure on the stock if the financing has to be done and there is no further contract/purchase order/relationship prior to that time. I think you should try to protect yourself against a margin call perhaps as low as the $ 5.00 - $ 5.50 range in the absence of a contract. On the other hand, if there is a contract announcement, I think there will be a significant short squeeze as the stock moves into the teens. I personally know of a number of investors who are saving margin in order to purchase additional shares at that time - and "aggravate" the squeeze. I will be one of them.