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

To: lws who wrote (4273)	9/26/1998 1:11:00 PM
From: DKR	Read Replies (1) \| Respond to of 27311

I think that is an excellent explanation of VLNC common, the only question is when is expiration. I feel VLNC has more time than most but since perception is quite often reality I would suggest that expiration is assumed to be 1/27/99(?), the deadline for the second closing.

To: lws who wrote (4273)	9/27/1998 12:19:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

LWS-Interesting comparison of stock and options. It's focus, however is on what results might be if Valence had no customers and little hope. I find it amazing that so many thought Valence would not be able to obtain favorable financing and when they did, good news was twisted into more scenarios of how the company might fail. If it behaves like an option and you suggest, perhaps we should explore the positive side as well. It is my contention that Valence allowed plenty of leeway and was sure enough of their progress to agree to the January 27 deadline. On August 12 Lev mentioned that samples had been going out to over 15 potential customers (now believed over 25), that line 1's production rate of good batteries alone could easily make a profit for entire company and that they were discussing delivery schedules and pricing at the time. It was since published that Valence's batteries meet or exceed customer specs. Like you, I am not a technician, but if my model is correct, we can expect relatively larger amounts of buying over the next several months as more and more shareholders want to participate in the rapid run-up after contact announcements and other developments such as license agreements, partnership agreements, GM Delphi automotive applications and further joint venture progress. Remember that the stock went briefly to double digits last year in anticipation of this same category of news. The anticipation then was not backed by several company statements we heard at the last conference call or evidence of substantial hiring of production staff at the factory. We have an even more powerful and higher temperature version of the battery now, with no competitor in sight such that our best chance of being obsoleted is by our own next version. A major factor, however, is the current market situation with share prices of so many tech stocks decimated. The incentive to get in before forthcoming developments should tend to accelerate the upward movement, and should accentuate the impact of any spikes arising from incidental good news. As you may surmise, I am remaining fully-invested with my only regret being that I learned about the Valence and its potential far too soon. With hindsight, I would have made my entire investment just recently, and would own about 5x as many shares as a result. Regards, FMK