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

To: Pronichev who wrote (16630)	12/3/1999 8:24:00 AM
From: Dennis V.	Respond to of 27311

Mike, normally, they look at EBITDA(?), earnings before interest, taxes and depreciation; at least, as regards year over year results. Here, with VLNC, I expect revenues will assume more importance than the above for one or two years. Any earnings will be a huge positive.

To: Pronichev who wrote (16630)	12/3/1999 9:07:00 AM
From: P. Ramamoorthy	Respond to of 27311

Congratulations to all longs! The second and more powerful wave is in progress. I expect the price to move up, with full force, above 12. CC or "short attacks" can not contain this powerful wave, imo. The catalyst for this powerful wave was yesterday's PO $15MM. It gave more details, for the first time: (1) the $ amount and number of units - We now know the unit price is $10/unit. Not price per cell, but price per unit. A unit may refer to the finished product with control circuit, etc. Since Lev gave the cell size, the estimated margin would apply to the finished product, not the cell. (2) It did not mention Moltech. Identified a second customer as an European customer. If VLNC has been working with more than 40 OEM's, probably since February 1999, I assume that these OEM's just finished up product testing (or product redesign) and getting ready to issue PO's. We can expect more PO's to match VLNC's run rate target of $40MM, moving to $80MM in 2000. (3) Important to realize both PO's are for cell phones. Focus on one market segment. (Recall Lev's statements about focusing on market share vs. market segments.) Once the lines are set up to run, they may run at an optimum speed for the best yield. (Lev mentioned 40 cells/min?) It is possible that VLNC plans to run both lines at full capacity at NI. We still have the Hanil plant that will be ready soon to process additional PO's. (4) It should not surprise anyone that lap top cells have better margin the cell phone cells - due to (a) product safety (b) VLNC has the patents on the Mn technology, and (c) demonstrated commercial production capacity. Enjoy the ride! Ram