VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: john t. brice who wrote (8822)	3/2/1999 12:48:00 PM
From: FMK	Read Replies (2) of 27311

Re: Value of patents. About a year ago a broker remembered that his company research estimated the value of Valence patents at somewhere over $8 per share. I heard an estimate recently that royalties from the phosphate patents, could easily be in the hundreds of millions $ per year. I remember statements last year that the company estimated that royalty income could very well exceed revenues from Valence's own battery production. I question whether this included the phosphate patents because they seem to have been developed more recently. If it doesn't, and nothing better comes along to improve battery performance by 40%, most all rechargeable battery makers will want it for competitive performance reasons and we might be looking at much higher annual royalty income! Using the $1 per share earnings consensus per production line for four lines, I get $4 per share earnings. If royalty income equals or exceeds this, we are looking at $8 per share earnings. When? I believe the consensus is now that it is a question of "when", and not "if". If you are convinced that the company will succeed, purcasing the stock under $10 should be a steal. Think how fast LITH quadrupled with only the news (that I am aware of) that they had diluted 50% and that a large company became represented on its board of directors and there may be future plans! Remember Valence already has joint-venture partners that have built plants! So it appears the events necessary for a quadripling are in place for Valence. MCI/Worldcom Chairman has come on board, but we have only yet to dilute 50%! I was reminded by a naysayer that getting to $100 might be very frustrating because the stock will probably split and we would have to work back up to $100 all over again! Regards, FMK

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