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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Razorbak who wrote (9963)3/28/1999 1:29:00 PM
From: golden_tee   Read Replies (1) of 27311
 
Since the Altman Bankruptcy Predictor is being discussed, can you or Zeev shed some light on the origin of this formula? Has it ever appeared in any written publications, a thesis, or the like? Does it come with disclaimers as to what types of companies that it is applicable for use? It is completely worthless (IMHO) for R&D startups. They will all consume huge amounts of capital, have zero earnings, and would be predicted to go bankrupt by the formula. Another point to remember is that patents are not tangible assets and are not accounted for. BelCore can not account for their patents except in the form of royalty payments which have been minimal to date. What do you think that those patents could be sold for? I would guess about $50M based on the patents' earning potential over the next 5 years or so. What are Valence's current and pending patents worth? When GM's Delco (now Delphi) broke off from the U.S. Advanced Battery Consortium to partner with VLNC in making batteries for electric cars, they made the statement that between VLNC and Delco's patent portfolios, no one else could make LiPoly batteries. Funny, could patent problems be why there aren't any LiPoly batteries for sale to consumers? Other companies can make them and have announced shipments, why aren't they for sale? Lev made the public statement that no one could produce LiPoly without stepping on some of VLNC's patents. Food for thought Razor.
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