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

To: Chisy who wrote (11272)	5/20/1999 4:13:00 PM
From: William Epstein	Respond to of 27311

Chisy; I am sorry, I can see that I am misunderstood. I meant with respect to expectations of a big contract, in the air or a PO announcement. I do expect to make a profit. In that sense, I am as conventional as anyone else. PHOTOMAN

To: Chisy who wrote (11272)	5/20/1999 4:29:00 PM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

Chisy, I agree. If the PO comes through before the end of summer (at the very latest), or possibly much sooner, and one was out of the stock when the double/triple occurred (because one tried instead to 'play the swing' and grab a total of 20% at best (the 'mean' inside spread of two swings)), it would be sad indeed.... especially if the investment had been 'dead money' for a year. The ramp in price will likely be very quick; in fact, one could imagine trading being halted while news was announced, and then the stock simply gapping up. My own risk/reward function prevents me from selling at 8 at this point in time. It would appear from the tape that many other investors are behaving likewise. If we get to the end of June and there's no PO, and they issue debt, the swing probably resumes. But everyone will be looking at the amount of financing (probably small, to minimize dilution until a PO arrives), and for no floorless provisions (most likely), AND for Lev to take action to null out the floorless provision for the last tranche of debt issued to Castle Creek. Given that CC was willing to waive the conditions on the first tranche, most investors are likely comfortable in believing that Lev can arrange to do the same here. He's certainly motivated, being a large shareholder himself. In this regard, even a small PO before the end of July would nullify that provision, if Lev uses another source for funds than CC. At this point in time, it's increasingly likely that Valence has already borrowed additional money from Carl Berg, since from all accounts the company would have needed money some time ago. This would also hint that the company believes itself to be in the final stages of negotiating the terms and/or preparing for production in response to POs. It's going to be an interesting summer!