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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Greg Smith who wrote (4867)11/11/1998 6:30:00 PM
From: FMK  Read Replies (2) of 27311
 
I figure line 1 should be able to turn out 8 per minute x 60 min/hr x 23 hr/day or 11,000 per day. I would round down to 8000 per day which is a little more than 4x the 1800 per day required to break even. If you know the burn rate per quarter (90 days) you can figure how far into the profit zone anything more than 1800 per day represents. If the first 1800 is breakeven, anything past that should be profit, right? Therefore, once the 1800 are made, the remaining 6200 each day count as profit. I would use $60 to $80 each and figure about 40% of that as profit and then divided by the number of outstanding shares.

Remember there are other sources of revenue. Have fun with the numbers.

Regards, FMK
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