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

To: FMK who wrote (6687)	1/4/1999 12:31:00 AM
From: Larry Brubaker	Respond to of 27311

Fred, I'm not sure I will buy on a dip. As John Brice suggested, I'm on the fence right now. A price dip may be the last thing that would convince me to jump on your side. This is the way I see it right now. The latest $7.5 million bought them some time, but not much. After all, they most likely still have negative working capital. However it may be enough time if they really are now producing large volumes of good product. The S-3 statement about timing of providing samples (sorry Fred, but I still think it means the first line) was very worrisome in light of the financial situation. The "clarification" of the S-3 by the investor relations firm is more positive. The investor relations firm has given out unduly positive statements in the past (production "on track" for first quarter '98). The decline on heavy volume following the revised financing was worrisome. The subsequent partial recovery on light volume is less convincing. In the absence of further news regarding the fundamentals, I might be more inclined to buy at higher levels than now (assuming heavy buying volume) than I would be to buy on a dip.