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

To: Zeev Hed who wrote (13680)	8/12/1999 6:49:00 PM
From: Dennis V.	Respond to of 27311

To: Zeev Hed who wrote (13680)	8/12/1999 6:49:00 PM
From: Dennis V.	Respond to of 27311

Zeev, I doubt the "street" would be basing their moves on low, startup yields since available information, sparse as it is, indicates yields are very good. I think we're seeing a case of "fatigue" by retail investors who expected more, sooner, and reticence by institutional types because of the current balance sheet. The convertible preferred, Castle Creek, short attacks and summer doldrums all fit somewhere.

To: Zeev Hed who wrote (13680)	8/12/1999 9:16:00 PM
From: Mark Johnson	Read Replies (1) \| Respond to of 27311

Zeev: Sorry the call wasn't "rosy" enough for you to get all wet with your "toe wetting position". Didn't hear Lev say anything about a "death spiral" either. Heck, he may be talking to your "bandits". I don't think the waters surrounding Valence are so "murky" as you once said. Great buying opportunity here, if you care to feel the water. I don't think you'll get burned...... MJ

To: Zeev Hed who wrote (13680)	8/12/1999 10:13:00 PM
From: Larry Brubaker	Read Replies (3) \| Respond to of 27311

Zeev, VLNC is a long way from generating $76 million of annual revenue. This comment was the production capacity they expect to have within 12 months, not a projection they would generate $76 million in the next 12 months. An optimistic estimate is that they might generate half that amount, or about $38 million in revenue over the next 12 months, and possibly begin to approach profitability in a year. There are now nearly 28 million shares outstanding (26.7 million as of June 27 + @1 million more sold since June 27). Fully diluted (including the preferred shares, warrants, and stock options) adds another 7 million shares bringing the total to 35 million shares, and that assumes a fixed rate conversion of the preferred shares. So, assuming 38 million of revenue over the next year compared to 35 million shares, add in the need to raise additional capital, and the uncertainty related to the floorless convertibles, and I see a stock that is reasonably priced at its current level.