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

To: MGV who wrote (15173)	10/10/1999 9:10:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Mark, I would not be too critical of VLNC recent financing deals. As far as I am concerned, these are actually pretty good, since they bring in equity well above book value (after all, book is negative). It is not as good as if they did a one swoop secondary at $7 or $8, but it is better than the floorless deal they did with CC. My view of this series of (essentially leaky floorless) injections is that the CFO is cashing in few chips owed him on the street, and one should hope that he has enough of these chips to carry VLNC to the promised land. If he runs out of chips before VLNC can start shipments, then you will see a real death spiral in action and possibly additional toxic financing. It is a race (and that race is reflected in the battle between the bulls and bears in Paul daily accounts of each tick <g>), to the "promised land" in which Berg and CFO chips are pitted against the timing of a "material event", and I am not smart enough to tell you who will win in that race. Zeev