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

To: steve leftwich who wrote (2058)	2/8/1998 12:35:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Steve: From VLNC 1997 annual report, Cal Reed owned 658,507 shares as of March 30, 1997. He also had 626,084 exercisable and 360,000 unexercisable options at that time. It is possible that one of the "personal reasons" for Cal's selling is to raise the money to exercise his options. Somebody previously posted a requirement of the ESOP that former employees must exercise options within 90 days after leaving the company. Based on numbers provided in the report, I calculate that the average exercise price for his exercisable options to be about $1.26. He would need about $800,000 to exersise the 626,000 options that were exercisable as of March 31. I would assume he had additional exercisable options by December, when he left the company. So, he could well be selling $4.50 shares in order to acquire $1.26 shares. I would if I were him.