SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : VALENCE TECHNOLOGY (VLNC)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Pallisard who wrote (4535)10/25/1998 5:59:00 PM
From: FMK   of 27311
 
Pallisard,I don't remember estimating quite that high.

I remember working some numbers, however, and estimating laptop earnings at $1 per shift. I would not be surprised if line 1 can break the company even at 2000 per day and will turn out over 8000 good batteries per day. If the first 2000 break the company even, and profits must equal the burn rate of say $18 million per year, then each additional 2000 batteries should be able to earn another $18 million or about $25 profit each etc.

Overall, I feel its safer to keep initial estimates at around $1 per line and to chalk it up as a pleasant surprise when it turns out higher. After all, 3 lines totaling $3 per share earnings is as big a number many would be willing to believe, until shown otherwise!

We may have to endure being ridiculed if our estimates were too low, but I expect we will cope!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext