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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (3218)6/30/1998 3:01:00 PM
From: I. N. Vester  Read Replies (1) of 27311
 
Couple of comments on CC and action:

One thing which impressed me this time was that most
of the questioners were obviously NOT analysts.

Today's action was almost surely a combination of
inexperienced investor who read their first 10-K
yesterday, or speculators who expected to make a
few bucks pre-CC, but ended up having to bail at a
loss when the price zigged instead of zagging (my
heart just bleeds).

This reinforces my knowledge that we are way down
below the radar screens and computer screens, for
the most part. Those that know the name know the
reputation for folks getting really burned.

I agree that we probably have a big winner here.
I have a whole lot of it myself. I would advise
a ton of patience. Don't let yourself get worked
up into a frenzy of the sick type we keep seeing
around these calls.

The business may not roll out in very spectacular
fashion, and the big money may wait until very
real earnings are quite in evidence. In the meantime,
the dilutive nature of financing via prefered shares
may also help to keep the price depressed (tho the
Pro's may be happy to overlook that just to know
the money is there to keep the firm above waterline).
I got up the nerve to ask the final question of the
call, about prefered stock diluting ownership,
tho i didn't have the nerve to demand to know
just how much ownership they plan to sell off (knew
they wouldn't answer that one anyway).
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