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: kolo55 who wrote (16127)11/15/1999 12:28:00 PM
From: Rich Wolf  Read Replies (2) of 27311
 
According to articles this last year in the WSJ, Rayovac stole market share from Eveready (#2 in the field of primary consumer batteries, behind Duracell) by price-cutting. This would reasonably put Rayovac's gross-margins below those of the other two, and hence the lower premium attributed to its shareprice. I remember seeing the last year of Duracell's balance sheet as a pure play, before they were acquired by Gillette, and at that time (if memory serves) their gross margins were only about 10%.

This certainly puts potential gross margins for Valence of 50% in perspective, and justifies the higher multiple you quoted, Paul.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News