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

To: Emmo who wrote (14029)	8/30/1999 2:13:00 PM
From: MGV	Read Replies (2) \| Respond to of 27311

My view is the company is failing because: 1. It has serious cash flow problems. The cash flow situation raises serious questions about solvency and competitiveness. Solvency because they are dependent on obtaining additional financing soon to meet current obligations. They have been unable to remove financing as an issue because the record shows they have been unable to obtain sufficient financing. That fact portends greater problems. Competitiveness because, aside from meeting current obligations, it will require substantial increases in working capital simply to enter the commercial marketplace let alone additional capital for R&D. The lack of sufficient capital has been and continues to be a serious competitive weakness. 2. The competitive timeline and narrow window of opportunity for launching a battery technology that also is being developed by stronger competitors. "Stronger" being nmeasured across all phases of business: manufacturing, marketing, distribution, R&D. With no OEM sales to date and with increasing frequency of press releases from competitors regarding lith poly technology, the window is closing rapidly. 3. The market action on VLNC stock. The market appears to be confirming that VLNC is in danger of failing. The stock price is in a free fall. This factor alone in isolation would not be as important as it is when taken in combination with the first two factors. In light of them, it is very serious.