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

To: FMK who wrote (6574)	1/1/1999 8:23:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

Actually Fred, the naysayers were correct in several ways. When you said last spring financing was not a concern, you said they would have no trouble borrowing the money. When it was suggested last spring that VLNC might have to go with variable rate conversion financing, that suggestion was met with the same ridicule you are now handing out here. In fact VLNC was not able to borrow money as you say, they had to sell additional equity with uncertainty concerning ultimate dilution created (read the filing). None of the naysayers predicted a death spiral. They pointed this out as a possibility. Yes, VLNC avoided that scenario on the first tranche and I have acknowledged that as a positive. I have acknowledged a real possibility exists they can get through their financial crunch relatively unscathed. On the other hand, if you had a shred of objectivity, you would acknowledge there is still a real chance the financing terms could result in significant dilution. As I asked before (and you didn't answer) if VLNC's situation is now such they can go to multiple sources for money at improved terms, why did they not eliminate floorless conversion rights altogether.

To: FMK who wrote (6574)	1/1/1999 10:19:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Fred, in the last month I have owned that stock twice already, what exactly are you talking about, and what does my ownership or lack thereof have to do with financial analysis of this situation. You are still to address the numbers with numbers rather then faith that at the last moment a White Knight appears (I am sure Bruce knows what I mean by a "White Knight", he paid dearly waiting for one). Time to learn from history, I am not saying that VLNC does not have potential, I say that passing a veil of misinformation ($10MM to $20 MM in cash appearing from nowhere), over people's eyes is wrong. People should invest in this stock knowing the upside (a ground floor position in an exploding market) and the down side (questions about financial survival before they reach the promised land). That what investment is about, assessing risk and rewards of a situation. I have seen too many situation where people bet 50% to 100% of their savings in one "foolproof" situation because the bulls paint a flawless picture, a sure win, a $100 stock etc. If they read only your soothing prayers, and the $100/share carrot dangling before their eyes, that is surely what will happen to quite some of them. The next thing I will see on this thread is the "battle Cry of CL from IMCPF: "If you are not long, you are wrong", he kept saying that from $14/share until it finally became evident that company is going broke (which it is now). Zeev