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

To: Mark Johnson who wrote (6557)	1/1/1999 7:13:00 PM
From: FMK	Read Replies (2) \| Respond to of 27311

Another good post Mark! I agree the conjecture from the sidelines can't compare with being the coach and knowing the playbook! Regarding finances, I wouldn't be surprised if Valence has $10 to $20 million in working capital and no immediate concerns. For example, there could be income from laminate sales to JV partners and Delphi that are still accounted for as reduction of inventory under R&D rules. Another source might be several million $ from by ex-employees who recently exercised stock options at below market prices. These ex-employees may have been selling lesser numbers of shares on the open market to pay the company for their stock and captital gains tax. The upside of this is more cash for the company and suddenly less stock available on the open market because they should be about finished by now. Still another source might be NI's Industrial Development Board. Knowledge of such revenue sources is obviously not available to Zeev and Larry. Valence may, in fact, have several times the available capital required to fill all the potholes Zeev and Larry think they have found (out of petty cash) and still have plenty left over to run the company! As you pointed out, Why would Lev place more equipment on order if he couldn't pay for it?