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

To: FMK who wrote (4685)	11/5/1998 1:57:00 AM
From: Larry Brubaker	Respond to of 27311

Which conference call was that, FMK? At the August CC, they said they had yet to run the line as a unit. They were still completing the process of debugging individual machines after what Lev described as a major redesign of the line. I repeat, Lev clearly said they had yet to run the line as a unit. The 5 batteries per minute you refer to is what he said the line was CAPABLE of producing. There is a big difference between CAPABLE of producing and IS producing. I agree the job announcements, insider buying, etc. are all good signs. But why don't we stick to the official company statements, (the line is capable of producing 5 per minute, according to Lev) rather than embellishments of those statements (the line IS producing 5, now 10 per minute, according to FMK)? If VLNC is producing 5 batteries per minute from an automated production line, why don't they announce this via an official press release? According to SEC guidelines concerning the definition of material information, information is material if a typical investor would consider the information important in making a buy or sell decision. I can think of little that would be more material to my buy/sell decision for VLNC than whether their automated production line is producing 5 batteries per minute on a consistent basis. If they are showing analysts automated production from start to finish, and they are showing analysts stockpiles of finished product, I'd have to say at a minimum that it is insulting to existing shareholders to leave them in the dark concerning production status. At a maximum, it would seem like they are flirting with a violation of SEC insider trading regulations. On the other hand, there is also the possibility that all these rumors we hear about analyst visits and stockpiles of products off the line are not true. After all, at this time last year, some on this thread were saying that VLNC was producing wonderful batteries on several different lines. It was reported on this thread that FRB was confirming that automated production for 1st quarter '98 was on track right up until March 31. The company itself never officially announced any of this and it turned out not to be true.