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

To: mooter775 who wrote (7550)	1/26/1999 1:16:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

mooter, a wise comment about Zeev. Zeev is well-respected throughout the SI community. By the way, the 1/25/99 issue of the Wall Street Journal has an article describing that NASDAQ issued an interpretive release last week "outlining the risks of securities known as 'convertible preferred.'" The interpretive release is aimed at companies who may be considering such financing but may not know what they are getting into. The release is found at the following site, click on "Future Priced Securities" nasdaqnews.com You say you know of many firms who are eager to finance VLNC's future. I have to think if so many firms are eager to provide financing to VLNC, they should have been able to remove the floorless terms from their financing completely, not just the first tranche. If you are right and VLNC is able to secure other financing and eliminate the floorless provisions from their currrent financing, I would probably buy the stock tomorrow. Until then, I have to consider your comment as just another rumour. Similar to your comments last year that VLNC would have no problem securing debt financing.

To: mooter775 who wrote (7550)	1/26/1999 4:07:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Mooter, actually for a short two months there (when the GATE went from $.5 to $2.5) we were on the same side, then I turned bearish again. Now it is back at $5/8 or so (after a swoon to $.25), and I am starting to watch it again as a potential bottom fish. Of course, at the time I had a max bullish potential of $5 to $7, now I have to reduce that by a factor of 3 to 4 (more stock and only half the potential profits since they will share with Actel). There as here, we had some very knowledgeable people making sizeable investments, but somehow, the negative technical action of the stock indicated to me, after the run, that the big boys found a way to leave the little guys at the door. While not exactly the same parallel situation here (they never are the same), I am waiting in VLNC for a clear technical signal that the fundamentals are indeed improving. If that requires a washout (like we had at GATE at the $.5 level) or a breakout to new highs, I am not particularly concerned about (I would prefer bottom fishing, but have bought many times on breakout, just like PROG recently). Zeev