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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: FMK who wrote (12528)6/30/1999 9:55:00 AM
From: Zeev Hed  Read Replies (1) of 27311
 
Fred, your post assume $30 MM in profits and 40 MM shares, how do you get from that $7.5/share? I get $.75, and that of course assumes that everything will be "dandy". You must realize that at $1 billion in annual sales, they will need a good additional $100 MM to $300 MM in working capital to support receivable, inventories and other little "working capital items" , and thus probable increase in the number of shares.

On the other hand, if one has visibility of $1 Billions in sales in let say three years, then indeed the current stock price is low.

Zeev
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