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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: Tickertype who wrote (25648)11/5/2002 10:40:00 PM
From: P. Ramamoorthy  Read Replies (2) of 27311
 
Ticker,
Remember that Stephan comes from Dell. He knows about outsourcing, contract manufacturing, and "just-in-time" financing. An easy and quick way to cut operating costs is to cut manpower, to assure company's survival. Since we do not have access to all the details, we can only assume they are trying to cut costs. Nothing new here. You know "outsourcing" is common in many sectors especially the tech sector since it takes the "capital burden" off their books. Contract manufacturing in Taiwan, Singapore, Malaysia, Mexico, etc. (Jabil, etc.) offered several advantages during the tech boom.

The question for me is how well the product qualification by OEM's is coming along and when they expect a PO. The rest is "day-to-day management" stuff. I do not understand the significance of issuing a press release. We shall find out soon at next the conference call. Ram
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