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

To: Dennis who wrote (25761)	12/2/2002 5:21:14 PM
From: P. Ramamoorthy	Respond to of 27311

Today's close above $2 (bid 1.91/ask 2.20) on 558K share volume appears to be turning the trading pattern into a moderately bullish for this stock as I speculated. Message 18228583 Price move to $1.35 after the November conference call (Nov 15 trading), showed me a signal of cautious optimism, understandable after many disappointments. Investor interest has been building gradually since November, but not strong enough for a breakthrough until today. VP Finance indicated they'll spend $8 Million this quarter due to one-time end-of-the-year insurance payment expenses, that they have $5-8 Million cash and expects more revenues from Tablet PC and N-charge to "kick in" in the next 1-2 quarters. According to him, 47% of the $260,000 revenue reported for the last quarter was due to N-Charge sales, approximately $122,200. They started to sell the N-Charge for a few days in July time frame before running into a glitch, stopped N-Charge in August and resumed sales as of September 26 (news release). Probably they had no N-Charge sales in August and September. If N-Charge sales resumed at the same pace as in July, one would expect approximately N-Charge revenue of $366K for the current quarter (=3 months x $122K). The revenue for the current quarter may be less than $600K. This revenue estimate could go up if VLNC announces a PO from Wistron soon. If VLNC can perform according to the time line or exceed performance expectations, I expect a positive uptrend, with new investor interest when it consolidates above $5. jmo. time line - Message 18251416 As the price moves up, the share dilution due to Berg financing decreases. This quarter Berg got 4.4 million vs. 9.5 million shares, according to today's news release. Press Release Source: Valence Technology Inc. Valence Technology Accesses $5 Million of Equity Capital Monday December 2, 4:00 pm ET