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

To: kolo55 who wrote (15161)	10/9/1999 2:14:00 PM
From: MGV	Read Replies (1) \| Respond to of 27311

Wrong. VLNC is insolvent and because of it, now it is being forced to sell shares at prices up to 50% lower than management said it didn't want to sell (last February). Wake up and understand the implications of that fact. This of course is extremely dilutive. Dilutive, insolvent, insolvent, dilutive, better call the whole thing off. (note: distinguish between "insolvent" and "illiquid" - VLNC is the former with negative working capital - for the moment it is not the latter, at least as long as someone continues to fail to comprehend the concept of sunk costs.)

To: kolo55 who wrote (15161)	10/9/1999 2:38:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

<<Granting options to high level new hires is usual practice in the high tech industry as part of the employment agreements.>> That's true Paul. What I find noteworthy is that VLNC did not grant these options when the new hires were hired (and the stock price was at $7 and above). Rather, they waited until the stock price was 40% lower before they granted the options. Thereby lowering the exercise price of the options and increasing the resulting dilution. By the way, once again you are putting words in the mouths of the bears. I have never said "Valence is running out of cash, and can't continue to operate." I have pointed out repeatedly that VLNC has negative working capital, and the nature of the way they raise money will provide a strong clue about the fundamentals of the company. So far, I am still not impressed with how they are raising money, and therefore, I still remain comfortably on the sidelines.