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

To: Larry Brubaker who wrote (6120)	12/19/1998 4:55:00 PM
From: FMK	Read Replies (2) \| Respond to of 27311

Hi Larry, you must have decided that in spite of all the insider buying, better financing terms, production equipment shown to analysts, employee increase to 270 etc that the outlook for Valence has deteriorated since last October. Remember when you owned some shares and these were your words? --------------------------------------------------------------- To: +Monty Friesen (342 ) From: +Larry Brubaker Saturday, Oct 24 1998 11:48AM ET Reply # of 346 Valence Technology (VLNC). Developing advanced lithium polymer batteries for laptops and cell phones. Chart is very strong. Stock is starting to clear out overhead in the $5 to $5.50 range. Once clear of that range, could go much higher. Timer's Digest Timer of the Year Don Wolanchuck calls it a $100 stock. Could be a traders' dream come true. exchange2000.com ------------------------------------------------------------------ Was that you Larry? You just posted "I agree that $100 is years away for this stock, if ever. But I also agree a 2-3 bagger from here over the course of the next year is not out of the question." BTW, Don Wolanchuk has won several awards including timer of the year for several years. It appears he's the best in the country at what he does and has impressive credentials. I remember his $100 target was within a 12 to 24 month time period. If he is correct, we should see $100 by October '99.

To: Larry Brubaker who wrote (6120)	12/19/1998 8:23:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Larry you have to forgive this English challenged turnip farmer, but I read: "warrant to purchase the of shares of its common stock at the same exercise price ", to me that means that if the stock is let say at $5 (for rounding) they can convert their existing $7.5 MM to 1.5 MM shares and have a warrant to buy an additional 1.5 MM at the same price. If the price is halved to $2.5/share their paper would cover 6 MM shares. Right now, for instance, if they so wanted, they can short at $7.5/share a total of 2.5 MM shares (if they can find these) since they can always cover these by conversion at $6.03 (the ceiling for both the preferred and warrant). All that is not so bad if the stock holds above $6 (the company does get another $7.5 MM after all). But, if they indeed engage in hedging (and why the hell not, the receipt from hedging will cover their obligation under the preferred the warrant and then some), the price may start and deteriorate, and once it goes under the ceiling, the number of underlying shares will increase. Furthermore, the floorless feature cannot be removed by VLNC (the July 1999 date) because the floorlessness is no longer dependent on VLNC achieving or not specific milestones. I am not saying it will go into a spiral, bu IMHO, the chance of such an occurrence are better then 50% in view of the uncertain markets ahead and the fact that it appears that we will not have a material order by January 1999. I think that a breach of the current, still bullish, pattern would be quite dangerous. Zeev