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

To: William who wrote (8722)	2/26/1999 10:12:00 AM
From: Rich Wolf	Read Replies (3) \| Respond to of 27311

William, most likely the analysts were also serving the purpose of providing third-party assessment to convince Castle Creek that loaning additional funds to Valence was a worthwhile endeavor. Given that CC waived the conditions on the first tranche and issued a second tranche, the visit was a success. Also, the buy side analysts would have been interested in getting their clients into the stock on the QT, without any fanfare. You wouldn't necessarily see it only as large institutional ownership. Lev told us at the SM that the analysts also prefer to visit on their own, so that other analysts don't read their assessment based on the kind of questions they ask, etc. He said the visits have been mostly one at a time, since then, but that there has been a steady stream of them. If the sell side analysts only recently visited, that would explain why there's been no public pronouncements hyping the stock. Ask yourself, what does an investment house benefit from having its own analysts' recommendations made public? (For they may well have already internally disseminated reports on the visit to their larger clients.) The most reasonable answer is, to increase the value of their holdings.... after they've taken their full positions. And it's reasonable for some clients to prefer to wait until the actual pronouncement of POs occurs, to remove the uncertainty. In so doing, they may miss the first double from here, but everyone has their own risk/reward assessment and cost function, and that's why there's only 716 shareholders at this point in time. If you bought the stock because you felt the market would assess the stock at greater value when the company transitioned to production, and the extent of their profit margins and potential revenue growth became more widely known and appreciated, then you need to wait until those events occur. I think most of us here appreciate your impatience, and share a similar desire to see the unfolding of events that are the reason we're all invested here. But many of us have been in the stock for a long time, and having seen how far they've come, especially in the last year alone, have the sense that we are VERY close right now. Rather than the impatience you express, I feel more a sense of anticipation of the reward soon to come. The evidence of this is quite strong, as we've discussed since the shareholders meeting.