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

To: Zeev Hed who wrote (9688)	3/22/1999 8:13:00 PM
From: Rich Wolf	Read Replies (3) \| Respond to of 27311

Zeev, the point I was making was that we don't know the current burn rate. Lev said it would drop dramatically. We also don't know the CURRENT balance sheet. So it's wait and see. Rich

To: Zeev Hed who wrote (9688)	3/22/1999 9:00:00 PM
From: I. N. Vester	Respond to of 27311

I trust VLNC management and the BOD. They have been running on just in time financing for some time now, and all your warnings aside, have not hit any disaster. The market obviously trust them because the stock is not priced for bankrupcy. The visability is not there, so yes it is subject to a bit of nerviousness and volitility, perhaps greatly strengthend by bulls on margin. Tho the margin players have been shaken out a lot already. If P.O.'s are say 30 days away, I'm betting they'll hold the finances together with bailing wire and do some kind of stock placement in the low to mid teens. Even if they sell at 5M shares at $12 after a PO they will then be on very solid ground and I'd gladly take that kind of dilution for $$ needed to really grow the business. My DD tells me these guys are confident for a reason, and I have plenty of stomach to wait for the confirmation. I know you'll sit on the sidelines until you see more of a sure thing. We both have our reasons.

To: Zeev Hed who wrote (9688)	3/22/1999 10:47:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Zeev (or anybody else), help me out with this one. The suggestion is being made that VLNC's burn rate will decrease dramatically due to a big reduction in equipment purchases. But I can find no evidence of major equipment purchases on their last quarterly statement. Would equipment purchases be included in Research and Development expenses? Wouldn't equipment purchases normally be capitalized and not be included in R&D? Also, from looking at the reconciliation of income to cash, the depreciation amount for the 9 months ending December 31 was only slightly higher than the depreciation for the same period a year ago. Where might we find evidence in the last quarterly financial statement of major equipment purchases?