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: Logain Ablar who wrote (17232)	12/23/1999 4:24:00 PM
From: Zeev Hed	Respond to of 27311

Hi Timothy, from a technical point of view I agree with you. On the fundamental front, this financing is certainly very good news. Unless VLNC experience very bad initial yields (and that is still a possibility), they should move to positive cash flow within a year and they have enough cash on hand to get to the promised land. However, until we see the actual COGS involved in this operation, it is difficult for me to assess how far it will go. From a competitive point of view, there are few Japanese participants and US participants lurching in the background and profitability will depend a lot on how much of a competitive pricing environment will prevail. In the DRAM industry, the participants have historically gone for market share at the expense of profits, and that is not unusual with what could become somewhat a commodity business. We'll have to see how the "scene" evolve. Zeev