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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: mooter775 who wrote (7023)1/12/1999 9:59:00 AM
From: Zeev Hed   of 27311
 
mooter, your statement sounds rational, yet my experience in launching new products and establishing a commanding position in a market which is already "served", is that you have to be twice as good at half the price (VBG). That is one of the reasons I do not think that such high selling prices will create rapid market penetration, and expect a rational person like Lev seems to be, to establish itself rapidly in the field with aggressive pricing. Of course, he can take the approach of taking first the cream of the market at premium prices (lower volume) and then increase penetration by lowering prices. In any event, gross margins of 60% seemed high. We will have to see a quarter or two of production to get a handle on this.

Zeev
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