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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (13371)	7/24/1999 2:55:00 AM
From: Rich Wolf	Read Replies (3) \| Respond to of 27311

Larry, with your intense desire to research SCUR, have you found why the insiders sold in March, right before the stock cut from 12 to 4 in a matter of days? Do you know why it did that? Maybe it was something else they said about future business and revenues, which you selectively CHOSE not to post about. The short position didn't change at that time. Let's see what a simple peek at their Apr-Jun quarter 10Q says: << The Company also announced that revenues from its previously announced contract with the United States Postal Service to perform a variety of security consulting services have been significantly less than expected, due primarily to budgetary constraints at the customer. The possibility exists that little or no additional future revenue may be realized from this customer. >> HEY, it looks like they lost a big customer! Let's see what else: << SAN JOSE, Calif., July 20 /PRNewswire/ -- Secure Computing Corporation (Nasdaq: SCUR - news) announced today a second quarter net loss of $19.7 million or $1.11 per share, in line with previously announced expectations. Excluding significant charges in the quarter, the loss was $7.9 million, or $0.45 per share, on revenues of $5.5 million, compared to net income of $970,000 or $0.06 per share, on revenues of $14.5 million in the same quarter last year. Products and services revenue decreased 27% sequentially to $4.8 million as compared $6.6 million in the first quarter and decreased 59 percent from $11.8 million in the year ago quarter. Government contracts revenue decreased 56% to $747 thousand from $1.7 million the first quarter, and decreased 73% from $2.8 million in the year ago quarter, as Secure continued its emphasis on higher margin products. Operating expenses, as reported, were $16.2 million, up from $8.7 million in the first quarter. Significant additional expense charges of $11.7 million in aggregate are included in the second quarter income statement. These expenses relate to product line rationalization, refocusing of the company on enabling e-commerce and streamlining the company's executive management structure. >> WELL, it looks like they had to change their business plan! Golly, laid off management, 'refocused' the company, lost a big contract previously announced (which caused the runup to $29).... LOOKS TO ME LIKE THE PRESENCE OF A FLOORLESS HAD NOTHING TO DO WITH SENDING THE STOCK TO THE TOILET. CASTLE CREEK HAD TO USE IT IF THEY WANTED TO RECOUP THEIR MONEY WITHOUT A LOSS. THAT'S WHY IT'S THERE. I'm not worried about SCUR, though. I've been thinking more about the business VLNC is in, and how slow their competitors have been to come on line. The market for li-poly is about to explode, with the expected increase in notebooks, handhelds, and various other 'information appliances.' Everyone would like to put li-poly in their product, especially Valence's, if it performs as the company is currently claiming. With the 30M cells/year capacity that Lev claimed for the current factory, Valence ought to generate ample revenue. My glass is more than half-full, why is yours mostly empty? Maybe the longs have been buying your shorts?