VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Pallisard who wrote (8567)	2/20/1999 4:41:00 PM
From: MGV	Read Replies (1) of 27311

Piper Jaffray issues Strong Buy rating on MIKL. The PJ analyst estimates that the Kohler plant problem will amount to all of $0.05 in lost earnings. PJ's new estimate for F1999 is $2.00. The analyst acknowledges that this represents a very conservative 10% over F1998. Therefore, there is considerable room for upside in the estimate. The note also confirms that MIKL is trading at an unjustified 50% + discount to its industry peers. Even at a 30% discount the stock would be at $33, based on $2.00 on the bottom line. If the company delivers on the CEO's stated goal of min. 15% annual revenue growth, it would be reasonable to expect multiple expansion from 10x to 18-20x within the next 18-24 months. If so, the math is relatively easy (unless you are a VLNC freak : ] to come up with a $41 to $46 range for MIKL. To deliver, the company must show consistent revenue growth over the next several quarters. Additional upside, according to the note, will come from accretive acquisitions made possible by MIKL's strong balance sheet, solid management, and generally depressed asset values in the food sector.

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