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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: Tickertype who wrote (3920)8/24/1998 9:52:00 AM
From: mooter775  Read Replies (3) of 27311
 
Three reasons why Valence would dedicate lines 2 and 3 to cellphone batteries come to mind:

(1) It represents a quicker contract or contracts: as Lev stated on the last conference call, the cellphone battery manufacturers have alternative sources of supply, so they are apparently more willing to purchase new battery technology.

(2) Valence is having problems building a laptop battery or anticipates a long design-in period for laptop batteries - may or may not be true depending upon the customer. I personally think we'll see both small and large laptop battery orders before the end of the year - smaller ones within 30-45 days and a larger one later.

(3) They are seriously negotiating a very large cellphone battery order.

Take your pick.
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