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

To: hcirteg who wrote (17217)	12/23/1999 9:53:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

HC, I think that you nailed it, I have been saying for few months that the CFO has been handling the financial side more like Rutkoski of MVIS then the prior guy at the financial helm. This is very positive and I agree with mooter that it should provide enough cash to breakeven. I believe that the IDB infusion is around $40 MM, thus we should have close to $75 MM on hand. Assuming that $about $35 MM will be needed until the cash flow turn positive, that leaves $40 MM that could support working capital for sales rate of about $100 to $120 MM. The next milestone would be to see what gross margins the operation yields and what kind of inventory levels are required. I think that due to the "aging" of products for 30 days post production, (if that will still needed), inventory levels may be higher than in traditional manufacturing outfits. Having said all this, I personally, will be looking here for an exit point, since I'll be getting out of most trading positions by the end of the second week in January. This release should cause trading to move to the $23 to $27.5 level, IMHO, and if that happens this week, I'll be stepping aside for a time. Zeev

To: hcirteg who wrote (17217)	12/23/1999 11:50:00 AM
From: P. Ramamoorthy	Respond to of 27311

HC, Equity financing for $32MM is Great news! Noted: "...approximately 2.1 million shares of registered Valence common stock at a price of $15 per share as determined by an average of the closing stock price for the 20 calendar days prior to the execution of the agreement..." Adding about 2.1Million more shares is not too bad. With the IDB funding and incoming revenues from customers, VLNC is well-positioned to plan a realistic run rate targets for year 2000. Next SH meeting may provide some clues to these questions. Next stop at 27? (based on the chart pattern so far) The momentum and price trend lines are much steeper now than ever. The next two 10Q's will tell us the real story, - in support of (OR) lack of support for the current price momentum. VLNC seems to be valued like Internet stocks - i. e., discounted future cashflow model. If it holds true, some analysts may push the price up even further, before the 10Q's report reveal the actual revenues. Crazy, but...? Ram