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

To: I. N. Vester who wrote (2225)	2/17/1998 10:44:00 PM
From: DKR	Read Replies (2) \| Respond to of 27311

If you are a speculator you love the volatility; if you are an investor the only thing that matters is that they have a product which is commercially acceptable. As LD said, they will sell every battery they can make without regard to price at significant margins for at least 7 years. If you believe that then you should invest, if not speculate on the ups and downs of an irrational market... By the way today's market activity has virtually -0- impact on their future ability to raise capital. The stock rose the past 3 days on emotion with no news, and it fell today on emotion, not news....unless today was considered news.

To: I. N. Vester who wrote (2225)	2/17/1998 11:01:00 PM
From: mooter775	Read Replies (2) \| Respond to of 27311

I also listened to the conference call and was disappointed that no production contracts were announced - and while I hoped there might be some, I expected less than a 50% probability of such an announcement. I even sold a slug of March options which I had earlier legged out to later months, since I think the stock will sit until there is an announcement. What I don't understand, however, is the assumption that the shifting of "redundant" equipment to Nevada means a substantial (more than 60-90 day) delay in actual volume production. If "redundant" equipment means the original (4 year old) assembly equipment which was sitting in Ireland and to be part of the 3rd or 4th line, then perhaps it is best transferred to Nevada and hooked up with the prototype (small volume) coating and laminating equipment., And if "redundant" equipment is in fact the 2nd high speed Italian line which was sitting in the Italian factory and apparently able to assemble batteries at close to its rated capacity, then it would also make sense to ship this equipment to Nevada as well as to Ireland in order to have in place in Nevada a fully-integrated production line. I think LD implied that neither line 1 nor line 2 nor the coating/laminating equipment were part of the "redundant equipment", and he did indicate that overhead in Ireland was not going to be substantially reduced - so I am encouraged by that fact. This is not a strategy for a company refocusing or shrinking its business or production plans. And he did indicate that the company would probably be able to obtain asset-based financing - this can not be achieved without production capability or a strong, new joint venture partner. I don't know - this is speculation and I've not confirmed any of this with anyone at the company. And clearly the Ireland plant with the recently-installed coating/laminating line is not yet ready for volume production - and that delay is a bit of a disapointment. I. too,think the stock will probably sit for awhile, but I'm not ready to throw in the towel. I'm not smart enough to trade the company, I think it will ultimately be successful, so I'll hang in there.