Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Cathi Wierzbicki who wrote (15987)	11/11/1999 10:36:00 PM
From: Mark Johnson	Respond to of 27311

<<That's what I am doing, Mooter....looking for the reason why.>> Cathi: If the above statement is genuine then go back the past six months and read, Paul Klemencic, mooter, Rich Wolf, IN Investor and others. You'll find the reason "why" if you research and listen.....that is if you're "genuine"!

To: Cathi Wierzbicki who wrote (15987)	11/12/1999 2:05:00 PM
From: mooter775	Read Replies (2) \| Respond to of 27311

Cathi, Glad you are long the stock. I think you will be richly rewarded. Re: response to the conference call. I can only say that in my opinion the market action on the announcement reflected: (1) continued effort at containment on the price by CC and its compadres who have shorted the stock; (2) perception that the order was not a "material" order - the actual OEM was not named and the order itself was not large, ie > $ 2.0 mm,(although I am convinced that this was just the initial stage of a substantially larger order, probably conditional on satisfactory early delivery) and (3) some questions raised as a result of the conference call re current run rates, capacities, and potential fiscal 2000 revenues; and (4) the deleterious effect of Valence having, in many instances, worn out its credibility due to past performance failures, causing many to be skeptical of any kind of announcement they would make. These, in my opinion, do not change the fact that an independent, qualified order was received from, according to the management, a "household name" in the telecommunications industry. Paul Klemencic has postulated that the customer is Qualcomm, since they have been the only principal US manufacturer to state that they are in the satellite cellphone business- I think he is correct. I think, furthermore, that the announcement of a contract represents a major shift in risk/reward for the company and the stock. Lev indicated that the company may have to undertake one more interim financing. And I underscore the "may" - this depends, I am quite sure, on the emergence of a second or third purchase order. My view is that the company will announce, over the next 60 days, one or more additional purchase orders. And that these will awaken the investment community to the stock - those 40+ institutions that own positions in token amounts. And I think the stock will appreciate accordingly. Meanwhile, Castle Creek, I expect, will continue to sell or hedge the remaining shares in their B tranche. But soon they will be finished - and good riddanced. And even if they have shown themselves to have attained a 30-40% return in the past 1 1/2 years on Valence, in my opinion, they have been really stupid, since they have very likely missed the opportunity to participate in the 'real appreciation' of the stock over the coming months. So my advice to you, and other longs, is to hold your position, at least until the end of the year, to see of follow-on orders for Valence batteries are attained. To fail to do this would have been to have held the stock for weeks or months in its 'high risk' condition, yet have failed to hold the stock for its substantial appreciation in its current 'lower risk' condition. Good luck to you.