The stock certainly is holding up very well around the 7.75 - 8.25 area. I believe everyone in VLNC at these levels is waiting on the surge to the teens. No one wants to sell. Low volume the last two days on no news, and sideways trading action. I'm hanging tight.
I looked over the VLNC Oct annual meeting presentation again. A couple things intrique me:
1) There was a clear statement that they are "pursuing other Joint Venture relationships" in Japan, SE Asia and Europe.
2) I can't get over the fact that VLNC is building a facility in Korea in conjunction with its JV with Hanail with expected delivery in 1st Qtr 98. Whether it's 1st Qtr or 2nd, or even 3rd, to me it indicates that VLNC is pretty confident that they can mass produce. Why else would the JV start production. Same goes for the Alliant JV. Alliant is a 1Billion+ supplier to the military marker, and they are in bed with VLNC relating to battery tech, something Alliant knows a great deal about already. Why team up with VLNC? Because the have the "lock" on the next generation bettery tech.
3) There is never any mention of the progress of the R&D with GM. Granted this is a long, long term development project, but it offers some BIG TIME upside should VLNC breakthrough with some vehicle battery tech.
So, Vlnc has deals with GM, Alliant, and Goldtron/Hanail Telecom. Others on the way? Very large manufacturing facility in NI with several lines in development. Large expansion potential in NV. Plant being built in Korea. Prototype batteries in the hands of OEMs (confirmed in the conference call). Production bugs being worked out. Start to finish production capability being built by VLNC. Remember that last time around, VLNC inked contract deals with OEMs with only prototype batteries, promising that the commercialization was around the corner. This time, obviously, the OEMs won't sign unless they get samples from the real deal. They seem close. When it's done I think Don W's $80 price prediction will be, well, closer.
By the way, as I've asked before, do you know the relationship that Don W. has with VLNC? Why is he such an avid supporter?
Thanks for the posts... |
