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

To: Zeev Hed who wrote (19037)	4/6/2000 10:15:00 PM
From: FMK	Read Replies (3) \| Respond to of 27311

Yes Zeev, I agree the market will continue to fluctuate and we cannot be certain of the direction in the short term. However, you should acknowledge two important factors that drove Valence stock price down far beyond what can be attributed to the market in general. Namely: 1- The hedging (shorting) by Bear Stearns of the lawsuit shares. (temporary effect starting in the 30s). 2- The action of an organized short coalition, complete with unfounded rumors and misinformation, who acted when the lawsuit shares hit the market to drive the price down more.(also temporary unless the shorts believe Valence does not have more contracts to announce or more analyst coverage in the near future) I therefore believe this presents a wonderful buying opportunity because Valence share price has dropped far more than other tech stocks due to above conditions 1 and 2 and that its low share price is temporary. Again, I know you would have more than a neutral opinion if you had attended the shareholders meetings, toured the facilities and done thorough research. I am sure you would agree that it's better to buy before imminent contract news and more analyst recommendations (and while there is some remaining margin selling), than after. Remember the stock was in the 30's and probably on its way back to the 40's before the lawsuit shares (temporay effect) began to hit the market.

To: Zeev Hed who wrote (19037)	4/7/2000 9:05:00 AM
From: Sam	Read Replies (1) \| Respond to of 27311

OT----> Zeev, <<Right now, margin might well be your worse enemy.>> That is why it is unbelievable that Greenspan claims that he won't recommend that the Fed raise margin rates because it would hurt the small investor! The only responsible action for this guy to take, IMHO, is to announce that margin rates (including maintenance rates) will be increased by 1/2 percent per month for the next 6 months, a gradual rise that will give people a chance to reduce their margin at least somewhat gradually. What will really happen--what has already happened to a small extent--is that the "little investor" on margin will get slaughtered in the next downdraft, and will be forced to sell his/her stocks at very low levels to market makers/specialists/others with cash. Serious bargains will be created by Mr. Greenspan's "kindness toward strangers". One part of me doesn't mind--I will have some cash to take advantage of it--but another part of me is just disgusted by it. s.