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

To: Paul Dubsky who wrote (1422)	11/20/1997 6:38:00 PM
From: mooter775	Read Replies (1) \| Respond to of 27311

Both Cal Reed and David Archibald stated today in separate conversations that nothing fundamentally had changed in the outlook for the company. Cal Reed pointed out that he took a 50% salary reduction 6 years ago to come to Valence, has never had a raise, and did not feel it unloyal to sell 7% of his holdings to satisfy other obligations. As was pointed out earlier, if Cal had any inkling that there was any impending adverse news at the company , he would be sued until the cows come home. I think Cal's selling was an "excuse" for some holder, probably an institutional holder who either did not want to show VLNC in his portfolio at year end, or was a momentum investor who had very specific rules about selling, eg., sell when the CEO registers sales or sell when the stock breaks through its 200 day moving average, which it did yesterday. Personally, we all wish that institutional investors would "recognize" the company and invest, but th reality is that the vast majority of them are hair-trigger short term performance investors more concerned with maintaining their yearly gains to date and hence their bonuses. In my opinion, they, much more than market makers, are creating the short term volatility in the stock. If you are worried that VLNC can deliver in Q1 1997, sell now. If not, then buy.