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

To: Larry Brubaker who wrote (4934)	11/12/1998 6:02:00 PM
From: lws	Read Replies (3) \| Respond to of 27311

Hi, Larry, I agree; I thought the question very material and Lev's answer correspondingly unsatisfying. I couldn't separate for myself how much he was evading the question, was (almost shockingly) unfamiliar with the contract provisions, and simply unconcerned with the matter for good reason or bad. I suspect he feels he has good reason for being unconcerned and hence uninformed; certainly he exhibited no concern that there were any serious short-term financing or technical problems which might trip things up for the company or the current shareholders. For me, though, it was the only sour moment in an otherwise reassuring conference call. Beyond this one point, on reflection I find myself far more reassured by this conference call than any prior Valence call or press release. It seemed to me that the upshot of all Lev's answers was to create a picture of a company coming in on the home stretch of a long race to production. Lev in effect created a kind of timetable of events for the next 6-7 weeks which, if occur, will constitute the state of readiness to produce and sell a large volume of product. By the end of December we should expect analysts' visits to NI, confirmation that the large cell line is running toward capacity with good yield, a new CFO, the installation and running of the small cell line, and one or more letters from OEM's as to acceptable test results from their sample batteries. Perhaps during this time a contract will come too, but in any case these five events should occur if Valence is on track, and Lev suggested in his answers that these events were all quite probable. We will be able to tick them off if he's right. If these events unfold in some orderly way over the next 6 weeks, I would expect the stock price to rise several points. I was encouraged by today's stock price holding the $7.50 area. It is possible that the stock will not trade down too far from here in light of the likelihood of these events being announced beginning almost any time. Regards, lws