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

To: P. Ramamoorthy who wrote (9095)	3/11/1999 11:03:00 AM
From: jean1057	Respond to of 27311

I remember comments posted here from attendees of the shareholder meeting , that Lev stated that they wanted to raise additional money from issuing additional shares at "substantially" higher prices, instead of outside financing??? would that not suggest a material event announcement before the end of March??? and what would drive the price up , but a PO announcement...???

To: P. Ramamoorthy who wrote (9095)	3/11/1999 11:09:00 AM
From: Rich Wolf	Respond to of 27311

Ram, While it would be nice to make a 'splash' with a larger contract first, if the large OEMs are dragging their feet on this, I think VLNC would be wise to take on some smaller contracts. This would allow them to experience a daily routine, and get the entire process more into balance, while allowing a little more flexibility in their production schedule as they address the issues that will inevitably arise as they start running full shifts every day. The downside could be that even if the pipeline isn't full enough with orders, staffing the production lines through the startup phase has to entail a commitment to full-time employment for some current part-timers. Thus a large initial order would be preferable, in order to keep them busy. Either way, they need to fill the pipeline with orders. I also thought that the 'end of March' has been a probabilistic guide as to when orders would have been likely to have been placed. But things often take longer, for whatever reason. I feel pretty comfortable that come June, we'll definitely have seen evidence of production under POs. I think it will have happened before then, however. But you never know. The 'end of March' time frame for cash squeeze has also been extrapolated from the SEC documents. But if the additional warrants etc. have been exercised, VLNC may well have more cash on hand than the SEC filing for the end of December indicated. We'll be hearing something about financing in the next month or so, I'm sure, but it's more an issue about whether they can put it off until after a 'material event,' in order to issue at the highest possible stock price (estimate the desired secondary in the $20+ price range, BTW, if it is priced in accordance with earnings projected from running more than one line, and potential royalties from licensing). Either way, I'm confident that Lev has other financing options already lined up as a 'fallback,' to get them through the startup phase.

To: P. Ramamoorthy who wrote (9095)	3/11/1999 1:07:00 PM
From: John Curtis	Read Replies (2) \| Respond to of 27311

Ram: Why indeedy!! Let's see now....using L.D.'s comments regarding those "tens of metric tons"(Hey, exactly how much space does that level of materials consume anyway?) purchased we should be able to glean the proof of that statement from the most recent SEC filing, no? Any of the bean-counters out there amongst us willing to point out the category whereby that "surge in expense" would be noted since it's reasonable to assume the purchase occurred during this SEC documents last coverage cycle? After all, one doesn't just "pop down to the 'ol pub" and buy a few tons of material the last week in the month. Be that as it may, let's go out on a wild-ass limb and, using such data as has been provided from the SEC document regarding when the line(s) are gonna be ready, guess why he'd do this. L.D., et.al., have seen the results of their limited line production. The results, at a minimum, meet their expectations. They also know how much further it's gonna take before they've truly created a production environment(once again back to the SEC document). They further expect no variation from original testing results for the products coming off said fully functional line(s). Therefore, why not gamble on that end of March date, have raw materials standing by so that warehousing of finished product can be underway while your potential clients are doing one last round of testing using yer products off of that line(s). Seems like a slam-dunk of a gamble, no? Particularly since L.D. has continually stated, "no sweat," with regards to future funding. But regardless of this, the potential clients are gonna want to do that final round of testing "by the numbers," hence my subsequent timeframes. All of this is just a guess of course, but it's using the one document(SEC filing) that over the past several years has proven(cut and pasting aside--but notice that line functionality 1st qtr aspect WAS put in this time around) to be the most accurate independent source point available . I'd love to be proven wrong, but meanwhile I'd like to see, if not p.o.'s, a corporate news release confirming the functionality of those lines. Nothing "secretive" about that, and one I'm expecting to see by the first couple of weeks in April. Bottom line? Time will reveal all(as I remove my swami hat) so let's see how it goes..... John~