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

To: Rich Wolf who wrote (25628)	10/17/2002 2:21:54 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

<<One can easily tweak the charts, and the 'one year' is not hard and fast.>> I'd challenge you to find ANY relevant time period in which Valence hasn't underperformed the market by a substantial margin. It has underperformed in the last 3 months... finance.yahoo.com The last 6 months... finance.yahoo.com^ixic&a=v&p=s&t=6m&l=on&z=m&q=l The last year... finance.yahoo.com^ixic&a=v&p=s&t=1y&l=on&z=m&q=l The last 2 years... finance.yahoo.com^ixic&a=v&p=s&t=2y&l=on&z=m&q=l The last 5 years... finance.yahoo.com^ixic&a=v&p=s&t=5y&l=on&z=m&q=l And for the decade of its existence as a public company... finance.yahoo.com^ixic&a=v&p=s&t=my&l=on&z=m&q=l <<My post was based on noticing how over the period when VLNC dropped 90% (give or take), other stocks have dropped 90% twice over.>> So, when you said..."VLNC has fallen less than most other tech equities, especially in the last year," what you really meant to say was..."Although Valence has fallen by more than 98% since its peak, which is far more than most other tech equities, I can find a few stocks that have fallen even more." <<I notice you avoid commenting on how the Berg financing is not being used to drive the stock down, as it would be if it were truly a 'floorless' financing play.>> On the day the Berg floorless financing was announced, (March 13), Valence closed at $3.40 per share. At .65, it has lost over 80% of its value since the deal was announced. The first $5 million installment of the floorless line of credit resulted in well over 9 million shares of dilution. If the entire $30 million is sold at the same price, the total dilution from the Berg floorless line of credit will amount to over 56 million shares. Alternatively, if Berg had simply bought $30 million worth of shares at the price at the time the deal was announced ($3.40), the entire $30 million would have only resulted in 8.8 million additional shares. Ironically, $3.40 was about the lowest the floorless bandits from Castle Creek ever paid for their shares. The "support" (as you term it) from Berg is diluting the stock by orders of magnitude more than the floorless bandits ever did. You say the Berg financing "isn't being used to drive the stock price down." I say it matters little. The real devastation to shareholders of floorless financing isn't the manipulation by the "traditional" floorless bandits. It is the massive dilution to shareholder value that goes with it. And that is what is exactly what is happening to Valence right under your nose. Finally, if Valence was earning just 1/100th of the revenue and profit you were predicting for LAST year, this whole conversation about the massive dilution resulting from the Berg financing would be moot. Message 13077999