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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Zeev Hed who wrote (17225)12/23/1999 4:12:00 PM
From: Logain Ablar  Read Replies (1) of 27311
 
Hi Zeev:

The good news from today is this helps VLNC in selling their product which should lead to more orders. From my experience many companies would be reluctant to order / buy if there is high risk the company wouldn't have the funds to purchase the materials, pay expenses, etc to make the product and meet the order committment (no matter what the sales man says about being able to meet the committment). When you borrow from Peter to pay Paul (as this company has been forced to do) it makes it difficult for buyers to committ.

Todays news eliminates the financial uncertainity from the buyers perspective. Now its only a competitive issue and the ability to intergrate the battery into the phone designs.

So we have Nokia, Erricson, MOT, Samsung, QCOM (phone division which is being sold to Japanese company). Once one start to use the battery the others would have to follow from a competitive standpoint. A lot of potential here.

Of course Murphy's law always comes into play and you can't expect any news from a European company until after year end.

I agree we won't go past $27 without news and can actually drift back to $18ish range (on low volumn of course). However the market seems to want to go higher (today looks like some other areas started to participate) and I've seen many a stock take a day or two to react to good news.

Have a good holiday.

Tim
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