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

To: Zeev Hed who wrote (16920)	12/11/1999 9:44:00 AM
From: Dennis V.	Read Replies (1) \| Respond to of 27311

Zeev, I think you may be underestimating margins and hence, the timeline to profitability. Taking a quick look at your track record, you correctly predicted the hedging by CC, but overreached on the "death spiral". You correctly predicted that it would take longer to get to the first PO but underestimated the concomitant rise in the stock. As always, your input is engaging.

To: Zeev Hed who wrote (16920)	12/11/1999 7:28:00 PM
From: mooter775	Read Replies (2) \| Respond to of 27311

Zeev, I think you are too conservative. Lev, and others, have indicated $ 40 mm for breakeven. My assumptions on gross margins are higher than yours. Company in August conference call postulated cash flow breakeven in 12/99 quarter. Delays in initial purchase order have pushed that back, in my opinion, to 3/31/00 quarter, and 6/30/00 at the latest. Think quarter after cash flow breakeven will be modestly profitable. So take your pick. I personally expect profitability in 6/00 or 9/00 quarter, but certainly I've been too optimistic before.