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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Gordon Quickstad who wrote (663)6/29/1997 8:40:00 PM
From: FMK   of 27311
 
Hi Gordon, I tried several times to respond to John Curtis, this time I will attempt via the last post on the thread-perhaps the problem has been there for a while, its been pretty quiet.

getting this message:Not found: EXEC submitsreply
'fmk',@idTo=3420754,@strDateStamp='Jun 29 1997
8:36PM',@idSubject=3584,@idParent=1678497,@intPublic=1,@idReply=

Problem fixed-- here goes:

Hi John, thanks for the feedback. Re your question :<is Motorola REALLY "standing by" to use their product?> I've understood for some time that Motorola's (cellphone OEM) and Laptop OEM's positions have been, "when you are ready, we will buy it".

When I raised the issue that production lines appear capable of generating about twice the revenue with the larger laptop cells, a company spokesman responded "we are aware of that". When I mentioned that Motorola's requirements alone could tie up most of the early production, the response was: "Motorola would love that".

I can imagine what it was like 5 years ago when Valence and Motorola worked together to set up manufacturing of their first technology. I am sure many challenges were met along the way as a result of their teamwork. They celebrated the small victories and shared the eventual disappointment. I doubt if there was much finger-pointing within the group.

I have been involved in the startup of many process and manufacturing plants around the continent. It's my experience that lasting friendships are made when working weeks at a stretch with some round-the-clock shifts when required. This is why I accepted at face value a statement from outside the company that Motorola engineers were recently in the Ireland plant. It made sense that If "they have finally done it", some of the old team would want to participate, especially if Valence batteries were again to be integrated into their company's products!

By saying as much as I have and by naming Companies, I may have made it difficult for some contacts to speak freely. Motorola and VLNC have a long history, but in general, phone calls inquiring about ongoing negotiations or careless statements on the internet could break a deal. For the same reason, I don't expect the company to reveal much about pending agreements during Tuesday's conference call.

I would suggest that if they seem unconcerned about the short-term performance of the stock, it's because they know what is about to happen!
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