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

To: Tickertype who wrote (13695)	8/13/1999 12:11:00 AM
From: wm sharp	Respond to of 27311

Now here's a "conversion" of a different sort. Larry and his master Hed's new found fascination for... the VERBAL utterances of management. I guess that makes it unanimous: 100% fishbowl heads all 'round. Newcomers to the thread can reference this stellar proclamation from the oracle, albeit pre-conversion: Message 10399324

To: Tickertype who wrote (13695)	8/13/1999 1:51:00 AM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

Significant extract: there was a third time this topic of what is required to attain the '$70-some-odd M' came up, during the response to questioning from an A.G.Edwards broker (John's pt.6). From a transcript of the tape, Lev Dawson speaking: "I can be very specific... We have the capability of making, with the investment of several million dollars of equipment downstream from the assembly machine... We have capabilities (of building batteries) installed: we have NO more coating capabilities necessary; NO more mixing; liquids runs are quite sufficient for us and our JV partners, we have laminating capabilities necessary to reach the targets I've told you about ($70+ M), installed; we have assembly machines installed and working, NICELY, now, to do the numbers I've talked about; ... conditioning systems, we're going to buy some more conditioning systems now, I anticipate a million ($$) or two, but we have plenty, plenty enough to get going, but we anticipate more of those downstream; we have extraction capacity, but we have to buy more extraction machines with production ramp-up, but the turnaround on those is about 4 weeks, they're about $6-7000 apiece; after that, degas/reseal, we have a new $1.5M degas/reseal machine arriving in the next couple of weeks. Have I forgotten anything, guys? THAT will balance the line. And that means that we can make $70-some-odd M worth of product, when all that's installed. In the meantime, we can make more than enough product for any anticipated needs that we see in the short term. Now, I don't expect customers to order 4M batteries; I'd expect them to put it in a top-end product, put it in the market, watch it's performance, and ramp up from there. And I think we're well-balanced for that plan. And with the IDB money, there's more than enough IDB money arriving early in the game for us to finance all the additional capital equipment we need, to attain the $70-some-odd M production rate. ...To take it up beyond the $250M production rate, cash out of our pocket is only about $10-11M. And I think that's a specific answer." My point: This $70+ M production capacity is not 12 months away, and they are ready to begin responding now to volume POs.