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

To: DKR who wrote (3187)	6/29/1998 10:29:00 PM
From: MGV	Read Replies (1) \| Respond to of 27311

I'm not seeking to make you defensive DKR. Your statements about testing, financing, and NI plant are superficial, true as far as they go perhaps but, they don't run very deep. The depth of the problems described in the 10k regarding financing problems (and the absence of stated prospects for correcting it), production problems, and the lack of imminent commercial acceptance of a product are in no way reconcilable with the expectations that shareholders of VLNC have expressed here based on implicit and explicit representations made by the company or other apologist posters. In the context of the significant, repeated management changes, history of false starts, and record of lost credibility with the street stemming from the comedy of errors by management in 1993-94, this 10k and the current financial condition is dire by any reasonable definition. First, though it has been clear for some time the company needs cash, the implicit representations by some, including the company, have been that production is imminent and therefore financing sources would be readily available. In contrast, based on the 10k, credit, if available at all, will be subject to expensive terms. If the company seeks equity financing instead, there will be substantial dilution of exisitng ownership. The current financial status is not consistent with prudent financial management, even for an R&D company. It is very consistent with the profile of companies that become insolvent. Though it has been clear, the NI plant has not been producing commercial (or any) product, it has not been clear that the NI plant may have to be retooled at substantial delay and expense (according to the 10K). The implicit representations have been that the NI plant was a few tweaks away from production. There have been hopes expressed that the NI plant has been ramping up hiring in preparation for imminent production. The 10k makes it clear this is in no way the case. Regarding testing, there recently were statements made here by a VLNC cheerleader that the battery was good enough to be sold commercially, prior to additional substantial improvements. The 10k indicates this is in no way accurate. Testing of a product reasonably close to commercial acceptance is one thing. That is what the shareholders here have believed. Testing of a prototype that the company cannot produce in volume quantities is another thing. There have been statemenst in this thread or at AOL about batteries close to being ready for market in Korea. The 10k statements suggest that Korea is in no way close to production. Your response tars you as being either defensive or duplicitous. Full disclosure and reconsideration of previous assumptions is necessary here. If you arent being duplicitous, you would do well to heed your own response.