SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : VALENCE TECHNOLOGY (VLNC)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: barrcuda who wrote (2785)5/4/1998 9:56:00 PM
From: FMK  Read Replies (2) of 27311
 
David - Here's an eye opener
ULBI's offering reminds me of a comparison I once made between VLNC and ULBI. After the recent offering, ULBI has 8.9 plus 2.5 = 11.4 million shares outstanding while Valence has about 23.7 million.

It is known that the Valence high speed Italian lines have twice the capacity(batteries/year) as their line 1. Valence's first 3 lines therefore have 5 times the capacity of Valence's line 1 and therefore 5 times the capacity of ULBI's similar solid polymer line from the same Florida manufacturer as Valence's line 1.

Comparing Valence's first 3 lines with ULBI's single line and adjusting to a per share basis, (5 x 11.4/23.7 = 2.4), it appears Valence has 2.4 times the solid polymer production capacity per share as ULBI.

If you can project earnings according to production capability and can assume that ULBI is fairly priced at $14 , it should be reasonable to conclude that an equivalent price for Valence would be $14 x 2.4 or $34 once they announce contract(s) and get some analyst coverage as ULBI has done. An underlying assumption is that the bulk of ULBI's future earnings will be derived from solid polymer batteries.

As stated in their press release:"..Lehman sees enormous growth potential over the next several years, fueled by highly promising lithium-ion solid polymer rechargeable batteries."

Another way to look at it is that a dollar invested in Valence at $6 buys 14/6 x 2.4 or 5.6 times the solid polymer production capability.

Regards, FMK
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News