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

To: I. N. Vester who wrote (15604)	11/1/1999 8:21:00 PM
From: MGV	Respond to of 27311

Explain why VLNC repeatedly must offer stock at discounts to already depressed prices (after all, assuming your scenario for purposes of illustration, then the current share price is substantially too low) if it weren't desperate for capital with few if any other options. If you say that it is not desperate for capital and/or it has other options, explain why it continues to offer equity at a discount that exacerbates dilution for existing shareholders. If the company were about to receive one or more material contracts, why would it sell stock at prices that clearly enable the buyer to sell to shareholders at higher prices? How does that suggest there is institutional support for the company? Do you believe such equity sales generally are consistent with a company that is in a financially secure and strong competitive position?