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

To: jean1057 who wrote (2069)	2/8/1998 6:19:00 PM
From: FMK	Respond to of 27311

jean claude, Since last year the company has stated that Cal has been selling for personal reasons. I was told of conversations with Cal when he explained some of them with his statement that he believes Valence will have the best batteries in the world. Since I heard this, I have not been concerned with his reasons, only the effect his resignation and selling have had on the stock price. I feel it is somewhat inappropriate to post all of his personal reasons but since they have caused such concern and in some cases hardship for many of us, I will repeat what I was told. 1-He has been working for about half of his previous salary for about 7 years and has been cash poor. 2-He went through a divorce and had agreed to pay a sum to his ex wife after the lawsuit was settled. 3-He no longer has a salary, is a "cash" person, and wanted to pay off loans including about $500,000 on his residence. 4-He is reportedly building again in another city. 5-He may have invested more in his boat. 6-The pricing of his exercisable options was an estimate based on an average. It may be more per share. 7-He probably will have taxes due on April 15 and perhaps considerable capital gains tax due if he has sold his house etc. 8-He may have had other debts that we are not aware of. 9-He may feel that it is not necessary to leave all of his funds in an investment no matter how good its prospects are. He now has some free time and he may feel like catching up on his spending. Again, I believe the company's statements that he has been selling for personal reasons that have little to do with the current status of company affairs. The effects on the share price have been worrisome, and I am relieved that we should be nearing the end of it. I will be looking forward to a good week. here are the links to two previous posts Message 3369551 Message 3357261 Regards, FMK

To: jean1057 who wrote (2069)	2/8/1998 6:51:00 PM
From: CYY	Read Replies (1) \| Respond to of 27311

Hi All, Maybe I can shed some light on the Options. When you exercise an option at $1.26 and the stock is at $4.5, the difference is considered your income and you have to pay Uncle Sam. (The tax basis of your exercised options is $4.5) So, let's say you are in the 30% bracket. What you have to pay is: $1.26 + .3 (4.5-1.26) or approximately $2.23. So, if you have 626K options to exercise, you have to come up with $2.23 626K = $1.4M. At a stock price of $4.5, you have to sell 311K shares. In my books, it's close enough to the 338K shares registered to sell. Still patiently waiting for News with my fingers crossed... Regards, CYY