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

To: kolo55 who wrote (7175)	1/18/1999 8:27:00 AM
From: hcirteg	Respond to of 27311

Paul and John- Thanks guys...your deeper analysis added to my pure specualtion has further increased my short term bullishness. Then there is the Mooter factor....if he thinks 30-60 days, then so do I. Followed one of his other "favorites" and made a 3-bagger in 6 months. Mooter...you are the man! Anyway all...good day to do work at your real jobs. Tomorrow the fun starts again. Good luck to all longs. HC

To: kolo55 who wrote (7175)	1/18/1999 11:33:00 AM
From: John Curtis	Respond to of 27311

Paul: Slap me and call me stupid!! I'd forgotten about that early exercise done via non-recourse notes secured by the shares acquired upon exercise PLUS 842,650 shares(as expressed on page 15 of the annual) previously held by L.D.. A sweeet arrangement if you think the payback is gonna be large over the next year or so, eh? This kind'a sort'a telegraphs in a concrete manner how positive L.D. must be feeling, else why execute the gambit? But hey! We're all expecting great things this year, and apparently so does L.D. and the rest of the board, eh? Regards! John~

To: kolo55 who wrote (7175)	1/18/1999 11:41:00 AM
From: Sam	Read Replies (1) \| Respond to of 27311

Paul, Great post, as usual, but one minor correction. You said, "When he does sell the shares, the difference between the sales price and the exercise price will be reported as capital gains. By March 99, the holding period will exceed 12 months, and the gain will be long term." To be LT these days, you need 18 months, not 12.

To: kolo55 who wrote (7175)	1/18/1999 1:10:00 PM
From: Larry Brubaker	Respond to of 27311

Maybe Lev was prescient? When he exercised those options almost a year ago, VLNC was in the midst of dealing with their goo problem, and was probably just beginning the "major redesign" of Line 1 as described in the August conference call. They were probably also trying to raise money for operations in March, 1998 and finding their options for raising money were somewhat limited (thus they were forced to go with floorless financing in late July). It seems to be a bit of a stretch that Lev was expecting in March 98 when he was exercising these options (via a loan from the company) a major runup in the stock price. It could be that he was simply acting in his own self-interest. Either they would survive and solve the problems, in which case his options would earn him a profit someday, or they would fail and go bankrupt, in which case the collateral he put up for his loan (his additional holdings of VLNC stock) would also be worthless and he walks away.