VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Zeev Hed who wrote (14216)	9/3/1999 11:07:00 AM
From: MGV	Read Replies (1) of 27311

"I must say, however, that VLNC got itself a sharp new CFO. So far he got into the kitty some $9 MM under fixed terms, in what should be considered a tough environment." I disagree unless he was unable to sell more than $3M each month. Otherwise, month to month financing is debilitating to corporate planning and exacerbates market uncertainty. One could argue that he is expecting the price to rise any month now and therefore is seeking to keep dilution at such a low share price to a minimum. If so, his expectations have proven to be far off the mark, when you consider the share price was 11 in December when the funding issues were no less visible and they could have offered a substantial discount to any institutional buyer (with a good story) and still have sold at prices that are 50%+ higher than the present price. The judgement, unless you assume they could have not sold any more than they have, was very poor. Of course, if they could only unload no more than $3M, then though the CFO would be exonerated, the assessment of the company's plight would be all the more poor.

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