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

To: Bill Holton who wrote (3230)	6/30/1998 10:48:00 PM
From: Mark Johnson	Read Replies (1) \| Respond to of 27311

One of Valence's weaknesses, which I hope Lev Dawson will begin to focus in on, is the way they handle Public Relations and press releases. The abrupt sell off this morning and break in the upward momentum we were experiencing over the prior days could have been avoided by factoring in the way markets react to information. Because Valence has been so secretive regarding updates on their progress, the 10-K with all it's ugly but mandatory risk disclosures, became a focal point for shareholders who were starved for new information. Message board posters took these disclosures out of context, posted them, and created a panic which resulted in the gap down at the opening this morning. Valence PR should have anticipated this outcome and put out a press release simultaneous with the filing of the 10-K updating the market on their progress. This could have been a simple one paragraph synopsis of the info presented at the conference call this morning which subsequently reversed the downside gap. If the upward trend had not been derailed by the 10-K we might have seen the 7s instead of the 4s in today's trading. We are in this stock as investors to make money, and management needs to be sensitive to this fact. We have endured a lot of pain over the last 7 months from the departure of Reed and others, their dumping of stock on the open market, and the seemingly unending delays in automating production. We don't want any hype from management, but a little careful planning as regards the substance and sequence of communications could go a long way towards building confidence in this company. --