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

To: John Curtis who wrote (13671)	8/12/1999 6:07:00 PM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

The $76M revenue can be achieved by lines 1+2 alone, running at their current quoted rates (6 laptop cells/min and 10 cellphone cells/min), with reasonable yields and pricing. I will post more detailed numbers later, but what this means is this revenue rate is obtainable by the end of the current quarter, once the POs are in place to deliver the product to. NOT '12 months from now.' Lev stated a target that was low-ball, essentially already 'in the bag,' and he clearly stated that they would 'run through' that run rate before the 12 months were over. Which means adding in the third line being delivered soon, increasing the run rates beyond what has been quoted, increasing yields, etc. are what will allow them to attain the $250M revenue target. Consider this: the line 1+2 assembly units are already running at these rates, and Lev specifically commented how all he has left is to add remaining back-end equipment (conditioning units, extraction, etc), and then these two lines would be running 'in a balanced fashion.' And able to generate $76M. It's happening soon, not a year from now. All we need are the POs to start the show.

To: John Curtis who wrote (13671)	8/12/1999 6:08:00 PM
From: MHS	Read Replies (1) \| Respond to of 27311

John, I also found interesting that they have already been approached for licensing. Who else wants to build Li Poly batteries? But is scared to step on patents. Sounds like some others do recognize the value of the patent portfolio. mhs

To: John Curtis who wrote (13671)	8/12/1999 6:30:00 PM
From: Zeev Hed	Read Replies (4) \| Respond to of 27311

John, the only minor problem I have with the rosy "fundamental" picture from the CC is that the TA does not reflect that rosy picture, at least not now. A lot of selling must have come in to stop VLNC from ascending today, does someone else read the CC in a manner quite different than the thread does? Maybe at $76 MM/year (with ramp up type yields) they are just going to break even (quite an achievement, but possibly too early to justify about $180 to $200 MM in capitalization)? Zeev