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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: barrcuda who wrote (1380)11/18/1997 12:19:00 AM
From: FMK  Read Replies (4) of 27311
 
Thanks David, your report brings clarity and provides more indication that it is all coming together. As the company previously explained it, their testing program seemed to require a time period of perhaps 60 days before samples would be released to the OEM's. I have believed for a long time, and had confirmed by non-company sources, that simultaneous testing was being performed because of an OEM's large investment in automated testing equipment.

Adding 60 days for the OEM's seemed to extend schedules unrealistically. Now it is clear that certain OEM's are testing concurrently with Valence, and was the basis for my recently-posted belief that we are within the timeframe for a contract.

I confirmed with the company today something I heard secondhand this morning - that batteries coming off line 2 presently meet OEM criteria and customers would be pleased with the results.

Why not ship now? The way it was explained, there is a dominating force within the company that is something of a perfectionist- no matter how good it is, it can still be made better! Perhaps a carryover from the 7 years starting Seagate's automated production of computer disk drives!

With the laminate process now in house, the company is fitting the equipment with some enhancements that should facilitate taking the test parameters "to the next level". Details will be considered proprietary. The company spokesman believes Valence has a substantial lead over any competitor.

I therefore believe you have adequate reason for <<... feeling very upbeat about this company .... and that very good news is coming soon...>>

Best Regards, FMK
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