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

To: Rich Wolf who wrote (13372)	7/24/1999 2:42:00 AM
From: Larry Brubaker	Respond to of 27311

Rich, I'll leave it to you to dig up, my shovel is worn out for tonight. One thing I left out of my previous post regarding SCUR is that 1999 revenues are off sharply from 1998. However, the stock had already fallen from $29 to $10 before that became public. Certainly SCUR's rapid decline in its fundamentals had much to do with its big slide. However, it appears that these declining fundamentals only became known after it had lost 2/3rds of its value. And that is the point about floorless financing. A company with strong fundamentals does not have to resort to this type of financing. Maybe you are right and the fundamentals of VLNC are now substantially better than they were a year ago (although the SEC filings would dispute this). If so, it would be nice to see the company eliminate this floorless provision as well as raise some real money. Even the most bullish bull has got to admit that as long as the floorless provisions remain in place, it creates a cloud of uncertainty, as well as make it more difficult for the company to raise money. In the absence of a material purchase order, demonstrated progress in the company's finances would be tangible evidence of improvements in the fundamentals. I'd be happy to see such improvements.