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

To: lws who wrote (4940)	11/12/1998 6:52:00 PM
From: Tmoore	Respond to of 27311

Here's the 10Q: freeedgar.com Tmoore

To: lws who wrote (4940)	11/12/1998 8:25:00 PM
From: Mark Johnson	Respond to of 27311

From Post # 4940 worth a re-read. Sit back and watch events unfold! <<<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 expectthe 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

To: lws who wrote (4940)	11/12/1998 10:57:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

hi lws, I agree the question was material. I was not surprised at all that Lev would not discuss the timing of purchase orders versus the 1/27 variable conversion deadline. What surprised me was he acted as if he were unaware a variable rate conversion option even exists. What worries me is that while VLNC may well be making progress toward commercialization of its product, this progress may be too late to secure a material contract prior to 1/27. I just went back and read the posts following the August CC. There was discussion that line 2 would be installed in Sept., line 3 in October, and analysts visits within 3 weeks. Now it is mid-November and none of the above has occured. Last week it was posted on this thread that VLNC was producing 5-10 batteries per minute and creating a large stockpile. Lev refused to even acknowledge in yesterday's CC they were providing OEM's with samples from the production line. What he said was that they are running every portion of the line at some speed. In contrast to the optimistic interpretations of all this by most of the posters on this thread, the evasion of the most pertinent questions (Have production samples been provided for OEM testing? What is the likelihood of a contract by 1/27?) worries me that the progress is too slow to avoid a variable rate conversion of the preferred shares. Anybody who doesn't understand the potential mechanics of a floorless variable conversion should read the following post: Message 5368910