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

To: kolo55 who wrote (11427)	5/26/1999 1:28:00 AM
From: mooter775	Respond to of 27311

Paul, I agree with your comments regarding today's announcement. While not an OEM contract, it verifies to me not only Hanil's confidence in the product and technology, but also Lev's confidence in the event to come shortly. My read on LD is that he does not take such statements lightly and his were quite bullish. 30,000 meters is a lot of laminate - nearly 19 miles of the stuff. I would not be surprised to see either Valence or Hanil announce a final resting place for all those laminate materials soon in the name of an Asian customer. As an aside, I do not expect the short interest to show a substantial drop at the end of this month. I expect - and hope - it remains high and even rises this month. As a further aside, the Seattle group is a former Henderson R & D group (four people, I think) which apparently developed the phosphate technology, but wanted to relcoate to Seattle instead of Henderson.

To: kolo55 who wrote (11427)	5/26/1999 1:42:00 AM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

<<The conversion occurs at the end of July, and if the stock price is over the $6.03 fixed conversion price, then the variable conversion issue disappears.>> Paul, the conversion does not necessarily take place at the end of July. Rather, until the end of July, any conversions that do take place are at the fixed price of $6.03. After July 27, any conversions are at the lower of the fixed price or the variable price. Conversions could take place after July 27 (there is probably a deadline for conversion, but I don't remember what it is). So the variable conversion issue does not necessarily disappear if the stock is trading above $6 on July 27. Presuming VLNC has announced purchase orders between now and July 27, the variable rate conversion issue should be moot because the stock price should be well above $6, and therefore, the fixed rate of $6 is the lower of the fixed rate or the variable rate.

To: kolo55 who wrote (11427)	5/26/1999 1:53:00 AM
From: kolo55	Respond to of 27311

Re-reading the conversion language again. Looks like the variable conversion on the second tranche kicks in on July 27, and hangs around for quite awhile (until 2001). This all becomes a mooter point if the stock takes off. Regarding the timing of the Hanil announcement today... its interesting in that Hanil is probably now planning to run some fairly extensive pre-production runs(at the least) on their assembly lines. Seems to me, that they would do this when: 1. They were confident Valence had worked all the bugs out of the assembly process. 2. They felt the market (for Valence's existing battery cell technology) was ready to take the cells (read as "customers willing to sign POs") soon, if not NOW. This announcement is sending us some clear signals about the status of the NI plant, and especially about customer willingness to buy the battery cells. Paul