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

To: Zeev Hed who wrote (6110)	12/19/1998 1:13:00 PM
From: Larry Brubaker	Respond to of 27311

Zeev: I agree the potential resumption of the floorless scenario in July is a matter to keep in mind, but I think there is some breathing room between now and then. I look at the new terms of the financing as similar to when the original financing was signed. There is about a six month window of opportunity for VLNC to perform, as there was when the original deal was done. If you look at the stock price reaction following the original deal, there was some weakness after the announcement followed by the runup from $3.5 to $10+. The fact that it held most of these gains with no news from the company and in the face of the 1/27 floorless (before it was repealed) suggests there is something going on behind the company's silence. If the company announces some major contracts in the near future, I don't see the potential for July floorless as a big issue. A major contract announcement should drive the price up enough for Castle Creek to take profits without resorting to death sprial tactics.