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

To: Rich Wolf who wrote (9102)	3/11/1999 2:35:00 PM
From: John Curtis	Respond to of 27311

Rich: Thanks for the input. Yup, I missed that earlier "expense to show up by" conversation. Sooooo, let's think about this further.......VLNC commercial production capability(via SEC document) end of March; let's say April 1. 30 days of quarantine puts us at May 1. At this point OEM's accept additional(reflecting earlier testing as stated by earlier L.D. commentary)but by now true commercial, 1st generation, product and commences their "by the numbers" testing. Hmmmmm.....by the numbers testing is what.....60 days(this based on prior VLNC c.c.'s)? This puts us at end of June. The half-way mark of 1999. OEM's acceptance occurs on, or about, this point leaving the remainder of the year for ramp-up to some norm of production and delivery modalities. Of course, it's possible that OEM's, while in the middle of their by the numbers testing, might wink, nod and feel comfortable "signing on the dotted line," but I wouldn't hang my hat on this possibility. Sooooo.....end of June it very well might be. All of the above is merely a guess of course and clearly reflects me thinking out loud. Come on VLNC, prove me wrong. John~

To: Rich Wolf who wrote (9102)	3/11/1999 2:39:00 PM
From: P. Ramamoorthy	Respond to of 27311

Rich John Re.: "...bet they'd give VLNC a wink and a nod as to when to commence production, since there's a minimum 30-day delay from initial production to shipping..." The above is a possibility. On the other hand, I would not buy and hold ten tons of material for three months or order new manufacturing line or hire a hundred workers, when my cash flow is running low. Without a solid purchase agreement (yet undisclosed) from OEM's I would not risk these expenditures. Lev perhaps has definite agreements (undisclosed) with OEM's before he bought (or leased): new manufacturing lines/equipment, raw materials, renegotiating current financing terms and seeking other financing options. However, Lev absolutely does not seem to have control over schedules: production, delivery, announcements, etc. A typical toll manufacturing scenario? The stock price and volume seem to reflect this uncertainty. Ram