Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pallisard who wrote (14435)	9/8/1999 9:37:00 PM
From: John Curtis	Read Replies (1) \| Respond to of 27311

I can think of at least one reason, and it's a classic dilemma in large companies. You've got embedded technological interests which you don't want to cannibalize. Think IBM waaaay back when PC's/mid-size computer systems were starting to kick off. They were caught on the horns of a dilemma, sell mid-size systems of increasing popularity, and screw the sales of their "big iron"(main frames), or stick with their love, the big iron. They chose the big iron and spent years trying to catch the competition in a section of the market that damn near went on to eat their lunch, ie. the DEC PDP-11, Data General series, and such as Apple, etc.. In the battery manufacturers case, they've got all this technology and embedded infrastructure with a stable product platform. Why mess with the success of lith-ion for relatively little earnings performance(from their point of view, of course)? Of course, this is just me hypothesizing. The answer's probably simpler than this. The answer's probably that they haven't been able to make the processes work yet at a mass manufacture level. The same as everyone else. Bottom Line? The game's a long way from a sure thing for them, too. Speaking of game, I see there's some talk about the shortie tacticians. Well, consider Septembers production has been spoken for. Consider, too, that vaunted end of September N.I. SEC "stuff". The question becomes, what about the months ahead?? You've got a plant ready to go; with nobody willing to take its end product? Naaaah, not likely. So we're entering an uncertain period from the shortie point of view. If I was in their shoes I'd be seriously considering getting myself out of a potential blind side position. I'll bet they're moving to the sidelines. At least for now, if only to guard against something nasty(from their point of view) happening between now and Septembers end. After all, it's reasonable to hope VLNC is now laying plans for having their production capability between now and years end sold to somebody(or somebodies). In other words, maybe we'll get to hear some news? However it goes, though, the game's clearly still in play. John~