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

To: Tmoore who wrote (3176)	6/29/1998 6:11:00 PM
From: MGV	Respond to of 27311

Looks very bad - This is taken from the 10K filed today: "However, the Company's fiscal 1999 operations plan places significant reliance on obtaining outside financing. There can be no assurance that any new debt or equity issuances could be successfully consummated. These factors raise substantial doubt about the Company's ability to continue as a going concern."

To: Tmoore who wrote (3176)	6/29/1998 6:22:00 PM
From: MGV	Respond to of 27311

More evidence of serious trouble - "its program is in the preproduction phase ... substantial uncertainties exist, including whether the Company will be able to market a commercial product." "The Company believes that its lithium polymer battery technology constitutes an advance over most rechargeable battery technologies currently available in the market, although its program is still in the preproduction phase and therefore substantial uncertainties exist, including whether the Company will be able to market a commercial product."

To: Tmoore who wrote (3176)	6/29/1998 6:30:00 PM
From: MGV	Respond to of 27311

More from today's 10K follows. The credibility of the statements made by promoters of this company on this thread and in the finance media is dead based on this 10K. There is no other rational conclusion. "In light of the Company's refocus on research and development, the Company and Goldtron have put the joint venture on hold, awaiting development of a viable battery technology that Valtron may be able to manufacture. Since the joint venture was on hold, Goldtron has licensed a liquid lithium-ion technology and is in the process of commercializing that technology. There can be no assurance that when the Company desires to reactivate the joint venture, that Goldtron will still be interested in pursuing the Company's technology." "The Company, with its equipment suppliers, has designed and constructed a high volume, automated assembly and packaging lines for the Northern Ireland facility. The Company's high volume manufacturing equipment was specifically designed for use with the Company's prior metallic lithium anode technology. The Company is working with its equipment suppliers to redesign and modify this equipment to work with the Company's newest battery technology. The amount of redesign and modification that is required is substantial and there can be no assurance that such redesign and modifications will work or will be cost effective. "If all or some of the equipment in Northern Ireland cannot be effectively redesigned and modified, the Company will have to procure new equipment at considerable expense and loss of time." The first automated assembly lines have been delivered to the Northern Ireland facility. De-bugging of the lines has gone much slower than expected. Thelines' reliability and yield are predictably low, although the Company believesthat it will eventually reach its production goals. The Company expects this line to be qualified in the second half of calendar 1998, but there can be no assurance as to the timing or even the success of this qualification process. Upon qualification of the lines, product samples are expected to be sent to potential customers for evaluation. The first line is initially slated to produce the Company's larger portable-computer cell format (approximately four inches by four inches) battery. The Company has been unable to meet its prior schedules regarding delivery, installation, de-bugging and qualification of the Northern Ireland production equipment, due to unforeseen problems. As most of the production equipment is being custom manufactured for the Company, it is possible that further unforeseen problems will develop and cause delay in the Company's current schedules."

To: Tmoore who wrote (3176)	6/29/1998 6:35:00 PM
From: MGV	Read Replies (2) \| Respond to of 27311

The 10k is incredible. The company is nowhere near being ready to manufacture, let alone obtain a contract. I would not be surprised if you never hear from FMK again. "From its discussion with potential customers, the Company expects that customers will require an extensive qualification period once the customer receives its first commercial product off a production line. To date, the Company has not provided any such commercial product to any potential customer, and therefore, has not started any product qualification period." "In December 1997, the resignation of Calvin L. Reed, the Company's former Chairman of the Board, Chief Executive Officer, and President became effective. As had been previously announced, Mr. Lev M. Dawson then became the Chairman of the Board, Chief Executive Officer and President. In January 1998, the Company's former Executive Vice President, Worldwide Operations resigned and Joseph P. Hendrickson, who originally was hired as Vice President of Administration, became Senior Vice President, Operations. In January 1998, the Company's Vice President General Counsel, resigned. In June 1998, the Company's former Chief Technical Officer, Tibor Kalnoki-Kis, resigned, and Mr. Dawson assumed his responsibilities."