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

To: Tickertype who wrote (2085)	2/10/1998 6:24:00 AM
From: mooter775	Read Replies (2) \| Respond to of 27311

I've been traveling overseas for more than the past 2 weeks and just caught up with the SI thread, etc. It is still my understanding that production is on track for Q1 and I believe that we will have some confirmation of that directly from the company on the conference call next week. I remain fully invested in the stock.

To: Tickertype who wrote (2085)	2/10/1998 11:05:00 AM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

Ticker: This isn't all that important, but I confused a few numbers when I calculated the $1.8 million. I was assuming 400,000 shares sold by CR (in my mind had rounded up from 383,000, when the actual number posted by FMK was 338,000). Selling 338,000 shares at $4.5 would result in more like $1.5 million. Regarding your point about paying capital gains on the shares he sold, chances are he already did, if he originally acquired the shares as options and excercised the options. So, assume $1.5 million in sales. Then, if he is excercising his 636,000 options at $1.26, he needs $800,000. Then he would have to pay a capital gain on the options he excercised. Assuming a 31% tax bracket, another $638,000 would be needed to pay capital gains tax (assuming you have to pay capital gain at the time the options are excercised). Therefore, he would need $1,438,000 in order to excercise the options. Pretty close to the $1.5 million he raised by selling. Therefore, if this scenario is correct, he would sell 338,000 shares to acquire 636,000 shares, plus some spare change.