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

To: Rich Wolf who wrote (9689)	3/22/1999 8:22:00 PM
From: Chisy	Read Replies (1) \| Respond to of 27311

Anyone here follow Mission West Properties? Carl Berg is the CEO. Is that the same Carl Berg? Strange, but Don W. is also recommending that stock too.

To: Rich Wolf who wrote (9689)	3/22/1999 8:37:00 PM
From: MGV	Respond to of 27311

There is enough data to make an educated guess. You do know the 160+ employees aren't working for Saltines. Now you know one reason why the share price is trending down.

To: Rich Wolf who wrote (9689)	3/22/1999 10:30:00 PM
From: Larry Brubaker	Respond to of 27311

Rich, Lev's comment about the burn rate dropping dramatically is a new one to me. I thought we were looking for it to increase as a sign production is, in fact, imminent. A couple of comments. First, to some extent the burn rate for operations (as opposed to capital equipment purchases) will increase due to the loss of the Delphi support. The last quarterly financial statement attributed part of the increase in the burn rate from $6 million to $7.5 million to the loss of Delphi's support. Also, this thread has stated several times that VLNC bought metric tons of materials at the end of the year that did not show up in the quarterly statement for the period ending December 31. That should increase the burn rate for operations. Maybe these will be offset by a reduction in expenditures for equipment, we'll see. VLNC began this quarter with a working capital deficit of about $2.5 million, if memory serves. Assuming the burn rate did not decline, they are probably approaching a working capital deficit of $10 million. They will certainly need more money soon. There is only so far you can go in juggling a working capital deficit. Maybe Berg will eliminate the conditions on his $7.5 million loan, or maybe they will meet the conditions in time. Or maybe they will arrange some other source of financing. At any rate we are likely to get a resolution to the next financing (and a good clue about their progress) long before we see the next financial statements.