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Tuesday, July 29, 2008

VLNC: Valence Green Techonlogy Update

The price of oil has corrected significantly off its recent highs. One reason I liked Valence as an energy hedge is it has technology that will be required to reduce carbon emissions. That means there will be demand for its products even if gasoline returns to $20 a barrel!

Long term, I expect Valence Technology to do well (see "Products Using Valence Batteries Today" below) but it can be a great trading stock too. That means I expect to continue trading Valence around my core long position to generate cash much like an ATM!

Click charts courtesy of stockcharts.com to see full size images

Today I took profits in Valence Technology (VLNC Charts) after it surged to my "Auto Sell" profit taking level of $4.45 where I automatically sold 500 shares per the "Auto Sell" listed on the "Explore Portfolio Auto Buy and Sell Table" on page 11 of the current newsletter. These were some shares I purchased earlier in the month at $3.42 as I trade around a core position.

We made $491 or 28.5% on the buy made earlier this month (see table below) when VLNC corrected to the lower support level (dashed blue line shown on pg 27 of the August Newsletter) and we repurchased some of the profit taking shares at $3.42.
Profit = [($2213 - $1722) / $1722] x 100%
Profit = 491 / 1722 x 100% = 28.5%
A nice little gain in a bear market!

Valence Buy/Sell History in my "Explore Portfolio"
Date
Action
Shares
Price
$
Amount
$
Running
$ Total
Shares
Held
Avg $/
share
12/31/04
BUY
1,000
3.13
-3,145
-3,145 1,000
3.13
08/21/05
BUY
1,000 2.51
-2,522
-5,667
2,000 2.84
12/20/05
BUY
1,000 1.78
-1,792
-7,459
3,000 2.49
12/30/05
BUY
1,000 1.42
-1,432
-8,891
4,000 2.22
01/10/07
BUY
1,000 1.37
-1,382
-10,273
5,000 2.05
10/22/07
SELL 1,000
1.97
+1,958
-8,315
4,000
2.08
01/08/08
BUY
1,000 1.64
-1,652
-9,967
5,000 1.99
02/12/08
SELL 1,000
2.49
+2,478
-7,489
4,000
1.87
03/26/08
SELL 1,000
4.79
+4,778
-2,711
3,000
0.93
04/09/08
SELL 1,000
3.75
+3,738
+1,027 2,000
All Profit
07/02/08
BUY
500 3.42
-1,722
-695
2,500 0.28
07/29/08
SELL 500
4.45
+2,213
+1,518 2,000
All Profit

=> As of 7/29/08 I hold 2,000 shares on "house money" with $1,518 in profits

We can feel good about these gains in our "higher energy price hedge" to help pay for the more expensive gasoline.


Products Using Valence Batteries Today:

Segway Personal Transporters improved their rage from 10 miles to 24 miles with Valence Lithium Phosphate technology. The security force at Stanford Shopping Center in California (near me) use these to patrol the outdoor mall and parking lots. I've also seen "caravans" of them around the Google complex in Mountain View, CA


Enova Systems delivered California’s first plug-in hybrid school bus to the Napa Valley Unified School District. The bus cost $249,000, two-to-three times more than a conventional school bus, but it will reduce diesel engine emissions by up to 90 percent and be far more fuel efficient and save money on fuel!

EnergyCS: "Toyota Prius powered by Valence Lithium Phosphate batteries wins innovation award." You can see "Valence Technology" on the battery in the photo.


Brammo: The first first production, zero-emissions and battery powered plug-in electric motorcycle. The chassis integrates six Lithium Phosphate batteries from Valence Technology. The Enertia has a top speed of over 50 mph."


Kegel builds automatic bowling alley cleaning and conditioning machines that use Valence Lithium Phosphate Rechargeable batteries to greatly exceeded the performance and usability Lead Acid Batteries without using a power cord.



For more information, see "Valence Technology: A Green Stock with Potential ." Valence is a member of the Russell 3000 index. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Kirk Lindstrom's Investment Letter Performance

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