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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (12719)	7/3/1999 4:24:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Larry, you would not expect inventories until these can be booked against potential "bona fide" shipment. Apparently all the material buying we were told of early in the year must have been for R&D. Don't misunderstand me, I am not long VLNC (this thread would tar and feather me if I was <G>). I am just saying that if VLNC can become a battery manufacturer, they would probably have a capitalization well in excess of their current $20 MM. But for what they are now, an R&D house, I thing they are expensive, and as Michael Gat reminded us, could still end up side by side with BTI. I explained few months back, why then I selected to buy ULBI rather than VLNC, and this argument still stand, they are already battery manufacturers, like VLNC they have two Asian "Partner" or subsidiaries, but the difference is that they are running very close to positive cash flow, and could, like VLNC, start shipping batteries any day. I believe that the first 100,000 batteries that either of them will ship, will be at a loss, because it is rare to get 80% plus yield in an actual full manufacturing environment from day 1, and without high yields (as the SEC document implied) profits are tough. Zeev