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

To: Luckyman who wrote (19701)	5/14/2000 10:35:00 PM
From: MGV	Read Replies (1) \| Respond to of 27311

Beta is a measure of risk relative to the market. If VLNC has a beta of 2, it generally means that on average, over the period in which the data resulting in a 2 was collected, VLNC would be twice as volatile as the overall market. So, if the market fell 1%, VLNC could be expected to fall 2% and if the market rose 1%, VLNC likewise could have been expected to rise 2%. Because the market generally finds tough sledding in environments of rising interest rates, a higher beta stock is considered by many to be especially dangerous in periods of rising interest rates.

To: Luckyman who wrote (19701)	5/15/2000 11:29:00 AM
From: mooter775	Read Replies (1) \| Respond to of 27311

Beta is one of the measures of volatility in a stock as compared to the overall market. Since VLNC is a speculative small capitalization company and trades with greater volatility than the market, (approximately twice as volatile) one should be prepared for greater % increases and declines as the stock moves when compared to NASDAQ or the S&P for example. Re: NKCIF I was as surprised (as was the company) regarding Mattell's decision not to distribute software in 2000. Discussions with the company indicate that the story remains instact - they expect to sign up alternative distribution channels and their revenue and income forecasts for 2000 remain as they were: ie, $ 70 mm or revenue, up from $ 22 mm or so, and eps of $ .25, up from $ .02. Personally, I would hedge these #s by 10% or so due to increased dilution from financing earlier than anticipated. I'm still long the stock.