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

To: Chisy who wrote (18384)	2/19/2000 11:08:00 PM
From: MGV	Read Replies (1) \| Respond to of 27311

The competition and its deep pockets, wide distribution channels, and experienced sales organizations has a chokehold on VLNC. Understand the issues or lose. Assuming for the sake of argument the VLNC technology eventually were to become better (you have to assume this or there really is no issue), then VLNC's exit strategy would be to be acquired. Why? Read on. The best technology doesn't win if you don't have capital, marketing, and distribution - sine qua non of an effective business model. Sometimes it isn't enough with all of that. Betamax is the classic example. VLNC has none of that. There is no objective evidence that VLNC is anywhere near having the best technology. To boot there is no objective evidence VLNC can produce in scale. There is objective evidence that VLNC has no sales force or marketing muscle or financial muscle. Before you argue and call names, try addressing the issues. If you think any part is wrong, then rebut it convincingly, if you can. If you cannot rebut convincingly, say nothing or whine like johnson, pallisard or yoest. Either way, the conclusion will be clear.

To: Chisy who wrote (18384)	2/20/2000 1:03:00 AM
From: Tickertype	Read Replies (1) \| Respond to of 27311

Regarding foreign patents, as I recall Valence has 100+ of which some are issued and some pending. Patents must be sought in individual countries, and it would be prohibitive to try and cover all countries in the world. So I'd assume Valence has applied for the most important patents in those countries that would likely be of most concern to them. The big question on all our minds is, of course, the one about additional PO's. In going over my meeting notes, one comment caught my attention. Lev said they have committed gen 1, 2, and 3 cells to customers now, but may not ship gen 1 as OEM's will want the higher capacity versions. And at this point they're running gen 2's in NI. If they've "committed to customers" it must mean that customers have asked for the product, which in turn means that Lev should be signing additional agreements whenever he feels he is ready to deliver. So the question is, how much volume can he handle at this point in time? - T -