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

To: lws who wrote (22202)	11/10/2000 3:09:25 PM
From: Rashomon	Read Replies (1) \| Respond to of 27311

Perhaps the conference call was Lev's attempt to talk the price down to get more friends in ;-). Seriously, it was an awful call. He should have addressed the manufacturing problems and revenues ahead of the questions, as well as the lack of licensing revenue. It's impossible to believe he knows nothing of the licensing cash flows. If the news yesterday hadn't offered such promise, VLNC would be tagging 12 today. Had we had a good conference call, even with the problems internally and in the market, it would have broken 20 today, IMHO. Lev seemed ill-tempered, under-informed, and unprepared to answer questions straight forwardly. I'm still long, but this call was a disappointment.

To: lws who wrote (22202)	11/10/2000 3:45:24 PM
From: Robert Cohen	Read Replies (1) \| Respond to of 27311

I could not agree more. I spoke to Ed MCnally at FRB last week who indicated that he was also not pleased with the quality of question. He said he would be willing to accept questions via email to submit to the CC. On another note, my only remaining doubts continue to be the question of can we make volume batteries (many 100K/month)at acceptable yields and at a profit. I think we must demostrate this not only to prospective licensees but to OEMs and to the investment community. This has not been demonstrated to my satisfaction. For me to maintain my sizable positon, I must have faith in management, the business plan and the technology and remain patient. It will become more important in the next 2 quarters whether Valence can in fact ramp up production, increase yields, and lower costs. There is no doubt in my mind that Li-Poly will be the dominate technology for the portable and wireless revolution in both performance, design flexability,safety and cost for the forseeable future. Valence is in the enviable position of now now being the potential dominate force in this market. Other musings: The issue of revenue stream from the existing Telcordia/Bellcore licensees is unimportant. Lev sees a warehouse sitting on a large piece of property that he wishes to develope into a manufacturing facility. He cares not what the income from the warehouse is. Although I feel I have a resonable feel for the manufacuring process, it has become apparent that there is no oportunity for me to make investment decisions based on which lines are installed, the back end processes etc etc. I will instead focus on the status of the various contracts and future licensing agreements, the volume of batteries shipped/month, yields, and cost/sales numbers. Why heck with that new WEB site (Hey Robert Pointer, I doesn't look like the bac seat of a junked out Ford anymore:)why not put up a counter with a running total of the number of Watt hours shipped. It would seem that potential licensees could begin using powders, laminate and certain processes almost imediately. Existing licensees with installed assembly equipment could likewise convert, then test, then produce within 3-6 months. New manufacturing facilities, physical plant, equipment could be years away. Look how delivery of VLNC's high speed,varible format has been delayed. Regards, Robert