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

To: I. N. Vester who wrote (7056)	1/13/1999 8:53:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

I.N.Vestor, Customer testing and integration of Valence batteries into their products was mentioned during the August 12 conference call. I find it highly likely that certain customers have invested heavily in such programs and are at the stage of finalizing production plans with Valence batteries as integral components. It would explain the ramping up of three production lines and the workforce to 270 or so. It has been argued that Valence seems to be filling the warehouse with batteries on blind faith that someone will buy them. I find it more likely that more than one customer will be ready produce in volume about the time Valence is ready to ship them batteries in volume. If enough good batteries are ready and both parties are convinced that Valence can deliver, Valence can accept a P.O. and begin shipping shortly thereafter. What I would infer from this, is that we should feel confident that large customers already have plans to buy Valence batteries and that it may very well be understood that when Valence is ready, there are customers ready with purchase orders.

To: I. N. Vester who wrote (7056)	8/31/1999 12:12:00 AM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

IN Vestor, another one-thread wonder, I see. Let's look at one of your wonderfully prescient posts from January, 99. <<I also find FMK's numbers compelling.>> FMK's numbers, which I challenged when he put them out, have now been totally discredited. He claimed $3 billion in annual revenue from 6 production lines. Now VLNC says they hope to get to $76 million in annual revenue within 12 months. <<What I have heard from various sources lead me to believe that financing will not be very dilutive. The CC deal was execellent>> We are now seeing just how excellent this deal was. <<Of course naysayers will continue to interpret the financing in the most negative light, probably citing imminent bankrupcy even after P.O.'s are reported. The reality has been far different.>> The naysayers were right. <<I also expect a contract to be announced before the end of this quarter, or early next quarter, and I also agree that the stock now, before a contract, is much cheaper than it will be after a contract has been announced.>> No contracts yet. And the stock continues to get cheaper. <<As for the lack of spending on sales personel, that issue was raised at the last cc. Lev stated that he would like to hire a Sales VP (obviously getting the new CFO on board is a much bigger priority), but that they don't need much sales manpower because they deal with a small number of customers who will be buying in large volume. I will be very surprised if they deal in contracts under $20MM.>> Now Lev says to not expect a $4 million contract. <<Still, until customers are actually announced, this is obviously not a risk free investment.>> Well, at least you got one thing right. <<