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

To: Robert Cohen who wrote (20290)	6/28/2000 1:11:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Shipping a bad batch is of course a major issue. Shipping a batch that was very good after quarantine and then mishandling by end user causes unforeseen problems is another. Most importantly, however, is the danger of "commoditization". When seeking hegemony pricing is often used as a tool to achieve market share (see Japan Inc.), and if that happens in this market segment, margins may come under heavy pressure. Another danger is that access to capital markets may close temporarily, just as the build up in sales will require additional working capital creating cash flow problems. I do not say that any of these will happen, but these are quite normal Business risks" and with little financial depth to weather "bad storms", these may become "corporate survival" issues (see Hayes). Zeev Zeev