VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: FMK who wrote (19045)	4/7/2000 2:49:00 AM
From: Larry Brubaker	Read Replies (2) of 27311

Fred, if you are going to start posting on a regular basis again, you are going to give me plenty of material to update my list of favorite FMK posts. Lets start with this one. At your predicted $50 on July 10, VLNC would then have a market cap. exceeding $2 billion. With 43 million fully-diluted shares, they would need profits of 43 million to earn $1 per share. At your $50, that would equal a p/e ratio of 50. Do you see VLNC earning a profit of $43 million this year? Next year? The following year? I would submit that even under the most wildly optimistic scenario, VLNC could not possibly earn profits of $43 million before the year 2002. So, your call for a $50 share price by July would give the stock a 2-year forward-looking p/e ratio of 50 under a wildly optimistic scenario. Before the company has even booked any significant revenue, let alone proven it can produce in volume at sufficient yields to earn any profit at all. You better hope the tulipmania isn't on its way out, Fred. Otherwise, your $50 by July scenario seems to be just a tad unrealistic.

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