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

To: Larry Brubaker who wrote (15941)	11/11/1999 1:06:00 PM
From: I. N. Vester	Read Replies (2) \| Respond to of 27311

Larry, this is a very high margin product and the demand for these batteries will grow more quickly than capacity. You consider yourself a stock market expert, but you ignore that the basic laws of supply and demand determine the stock price. You are so aware of CC's manipulation. They are not manipulating the demand, only adding tons of supply (while also capping the price). Take away the extra supply and the price fixing, the stock can only go up. This is economics 101. Of all people, you should be in the very best postion to appreciate the effects CC is having on the stock. You're being blinded by your mental habit of "the long's are wrong, I'm right" thinking. You are missing something that is very obvious because you are blindly repeating the same mantra over and over.

To: Larry Brubaker who wrote (15941)	11/11/1999 1:10:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 27311

Larry, you got to be careful when a floorless finally gets its floorless removed. Look at ANCR now, from a floorless bottom of around $2 to, well (I did leave a lot on the table...). Once the interim financing needs (some $25 MM) get cleared, they can follow ANCR leads, and issue shares at a higher price in a more normal fashion. This order is a start, it is not enough to even make a dent in their cash burning situation, but if it is followed with others, they may be in the clear. From a technical point of view, we are running into resistance at what used to be the bottom of the trading range for the first six months of the year. I think that even buying above $7 once this resistance is taken out, if it is taken out, would be safer than buying here into the CC and news induced rally. A better price would be either on the breakout, or a retrenchment back to the low $5, IMHO. From a fundamental point of view, I think they will not be profitable for the whole of next year (until shipping rate reach a level of about $70 MM, assuming very good gross margins of 50%) because their burn rate at about $35 is still high. Zeev