Networm, here's the skeptic's view on your questions,
1. Lev's leadership/trustworthiness. Big difference between the rosy scenario Lev paints in the conference calls and press releases vs. the SEC filings. An analyst during the last conference call even asked why the discrepancy between the two. Lev acted like he didn't understand the question, and later said both the filings and the conference calls are correct. My take is that if both are correct, then the small purchase order they recently received does not mean they have commercial production capability (meaning the ability to produce in volume, at a profit).
2. VLNC's position among peers. Nobody seems to be producing large volumes of lithium polymer batteries.
3. Burn rate is high and increasingly so. Debt to equity, is high because there is not much equity. Total debt is not that much, however.
4. REAL short term order outlook. The $64,000 question. Depends on whether you believe the conference calls or the SEC filings, which say their technology requires further development before they can produce in commercial volumes.
For me, I want to see further confirmation (e.g., multiple purchase orders and/or substantial financing at reasonable terms) before I change my skeptical view. Without such confirmation, my personal opinion is the current price is not sustainable.
Now you've got the skeptic's view. I'm sure Rich will tell you a different story:-) |
