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

To: Larry Brubaker who wrote (6649)	1/3/1999 1:03:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

Larry, You argue "No company would deliberately face bankruptcy..." Have you spoken with Carl Berg? I was told last year that in addition to his $10 mln credit line, he was good for at least another $20 million if needed. He encouraged Valence to check some alternatives. Castle Creek's top to bottom evaluation and decision to lend provided Carl with an independent audit of Valence's outlook, thereby boosting his confidence. Your statement about "facing bankruptcy" seems to be no more than empty conjecture on your part for the basis of argument. As I have stated many times, we shouldn't be worrying about the financing. If that's all you can find to argue about, your position has weakened substantially. I haven't paid close attention to yours or Zeev's math because I am sure you far from reality. If you add 7.5 from CC plus 7.5 from CC plus 7.5 remaining on Carl's $10 million credit line plus $3 to $6 mln from insider options exercise plus laminate shipments to Delpi, Alliant and Hanil and subtract maybe 8 or 10 mln burned since the first 7.5 from CC, don't you come up with between $10 and $20 million working capital? I think you should throw out your calculator or re-train its operator! After all, the revised financing was a very positive event. The stock should be up, rather than down since it was announced. IMO you should get out there with John and pick up some of that dropped candy anyway. Many of the scared kids might be back and others tougher to scare!