VLNC: Valence Technology, Inc.(fka VLNCQ)

[loridans]

VLNC written up on an investment blog saying that it is a good idea for a tax loss pop in Jan. Probably is true.

http://www.worldmarketmedia.com/779/section.aspx/608/post/valence-technologies-vlncnasdaq-united-treatment-centers-utrmotcbb


Valence Technologies VLNC/NASDAQ - United Treatment Centers UTRM/OTC
Editors Desk
Date: December 22, 2009 4:10 PM
Publisher: Editors Desk
Tags: NASDAQ, OTCBB, Technology

Buy Now and Get a Gift in January: The Year End - Risk /Reward Trade
'Tis the season that many investors Love. Yes, I am talking about Tax Loss selling season which occurs each year-end where investors holding stocks below the December 31, 2008 mark to market closing price sell so they can take a write down on any investment gains up to a specified amount for their tax bracket...and not fundamental reasons.

Better to shelter any capital gains for this year and avoid paying Uncle Sam in April, 2010 is the general sentiment.

But there are investors that seek trading ideas where the stock is down big for the year, yet the prospects for the future is brighter than what the stock is currently trading in the last few sessions of the year. Savvy investors look for the beaten down stock and do their due diligence to make sure that the risk justifies the "bounce back" reward in January when tax loss selling ends on the last session of the year. In fact, the trick is to time the selling pressure...actually the trick is really just to pick a stock and average down.

One thing I can assure is that no one will be selling stock January 4, 2010 for tax reasons. So, until the end of the year, the supply of stock offered for sales is exaggerated by those investors more interested in the tax consequences than the fundamentals of the stock. To further exacerbate the situation, those investors holding the stock and tempted to average down on their position hold back buying because they think the selling is NOT over.

So, start looking for interesting stock stories near their lows and do your DD. Check out Valence Technologies (NASDAQ:VLNC), a manufacturer of rechargeable lithium iron magnesium phosphate batteries, at $0.94 (52 week trading range of $0.84-$2.73).


For those interested in the smaller stocks, look at United Treatment Centers (OTC:UTRM), a company which just introduced a waterless toothbrush to the market three weeks ago, trading at $0.036 today (52 week trading range of $.0.032-$0.97). I will re-visit these two ideas at the end of January to see how things panned out.
World Market Media owns zero shares and has no position in either name.


http://www.worldmarketmedia.com/779/section.aspx/608/post/valence-technologies-vlncnasdaq-united-treatment-centers-utrmotcbb