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

To: mooter775 who wrote (16915)	12/11/1999 6:30:00 AM
From: J. M. Burr	Read Replies (3) \| Respond to of 27311

Mooter: Let me set up a syllogism: Major premise; there are a number of major corporations following VLNC developments very closely. Minor premise: a corporation desperate not to be left behind by competitors will finance a production line to ensure its competitiveness. Conclusion: corporations will themselves offer to invest in machinery/plant to improve VLNC production. Now, if this were the case (subjunctive voice), how long would it take to create a new Northern Ireland plant?

To: mooter775 who wrote (16915)	12/11/1999 9:14:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 27311

mooter, positive cash flow might not be in for another 18 months, when their annual sales rate should exceed $100 MM. I do not think that they will be profitable for most if not all of next year, since I believe they'll need sales rate of about $75 MM to be profitable. Under normal circumstance, getting to that $100 MM in sales might require in excess of $60 MM in financing (about $35 MM in working capital and another $25 MM to cover losses and some additional capital). All these however, are of little importance to the stock price, first because they now have access to about $40 MM of working capital from the NDB (?). All they'll need to raise is the $25 MM Lev mentioned. Of course, if the price stays around the $20 level, I think it would be wise to raise twice as much. Going forward, you have to watch for Mr. Murphy's games, things can go wrong, and usually they do. Good luck. Zeev