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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (3743)8/14/1998 2:48:00 PM
From: Gordon Quickstad   of 27311
 
In regards to the price action, I've looked for news on other battery technologies and haven't found any yet.

Other possibilities:

There may be something like inside information of a large potential contract that went the wrong way because of a competitor or product timing.

The MM may be trying to deflate a speculative run up in the price by manipulating the bid and ask. (most of the drifts down have been on relatively light volume).

A large holder could have been waiting for some relatively good news to support the price so they could switch out of VLNC into another sector.

Anyway, the conference call was very well received by me for the following reasons:

The CEO stated that they are making "good film".

The yields are going to be quite satisfactory.

The CEO feels that VLNC has patent protection on some aspect of the battery. To me, this may be a big advantage.

The CEO is looking for unique applications of say, 8" x 10" laptop batteries.

The company should have good margins if one line can cover the company's expenses.

Hanil in Korea is going forward with capabilities near term, not pie in the sky.

The CEO says that improvements are on the drawing boards that are good enough to "obsolete" their own product.

I bought more.

Gordon
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