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

To: I. N. Vester who wrote (7580)	1/26/1999 3:22:00 PM
From: FMK	Respond to of 27311

Near the end of this post are links that show naysayer manifestations with foot in mouth disease! Post on Yahoo by Chuzzelwit helps explain ex employee option exercise: <<Quashimoto- You are right, The naysayers missed something important. For many months, there have been indications that ex-employees have been exercising options (fringe benefits or "perks") that gave them the right to buy stock from the company at very low prices. I heard there were several thousand at 25 cents and thousands more shares at prices like $1.50, $2.40, $4, $5.50, $6, $8.88 etc. The employees reportedly were given a full year to buy them after they left the company. I was told someone was trying to keep track, and figured that all these shares amounted to around $5 million at their low purchase prices. The result was income for the company whether they wanted it or not. These ex employees had to find a way to pay for these shares and to pay capital gains tax. Many of them probably retired or don't have large incomes so they sold a smaller number of shares, maybe 70% of them, on the open market. The effect was to put hundreds of thousands of shares for sale on the market during recent months. I was told institutions who did their homework knew this was happening, so they kept their bids low to accumulate cheap stock. I heard that the ex-employee buying should have ended around the 2nd week of January and most of their selling was finished then. There was a little more since, but they should done by now. So what should the effect be if around 50,000 shares of selling per week disappears? We saw the light volume the last few days. Buying of any size moved the price up fast. A darkside naysayer was apparently unaware of this, and may now be very worried if he has puts or a short position. He said this about Dave Archibald's recent stock sales: <<No matter how you count them, the sale of 30,000 shares less than a month ago speaks volumes about his view of the likelihood of imminent commercial success.>> Check these posts and you should see what he was missing. exchange2000.com exchange2000.com exchange2000.com exchange2000.com I think there is reason to believe we should have some good news announced before long. When it is, there won't be much stock available for sale. That's probably why the naysayers are working so hard lately and why Quashimoto said he plans to buy more.>>