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

To: FMK who wrote (6631)	1/2/1999 9:32:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Fred, if they really were "ready to go with a previous version" as you suggest, I would submit it was a major blunder to not go with it over a year ago rather than run the company out of money and have to sign a floorless financing deal at a time when the company was on the verge of bankruptcy. After all, by your own statements of a year ago, this "previous version" was far superior to anything else on the market. If this company would have gone into production a year ago (at the same time they were developing the supposed "new and improved" version you say they have now), they could have avoided at least 3 million shares of dilution, tapped into IDB financing, financed expansion of capacity through revenue and IDB grants rather than further dilution, saved their shareholders (including yourself) from forced margin selling, and would probably already have reached my 1-year target stock price of $25 (assuming they do, in fact, go into production). My guess is they didn't go into production because they weren't ready, not because they simply chose not to. It makes no sense for a company with no money to chose not to produce a profitable product because they think they can come up with an even better product in another year's time.