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

To: Rashomon who wrote (22222)	11/11/2000 12:38:35 AM
From: ikonoklast53	Read Replies (3) \| Respond to of 27311

Lev mentioned in todays cc a German battery mfg was ready to do a jv prior to vlnc's acquistion of the Bellcore patents, now more likely will become a licensee. Being the curious type (G) I found this recent (11-7-00) news article regarding Varta I find awlfully interesting. Not sure if they are one of the 15 licensees, but... Coincidence? auto.com <<...Varta, based in Hannover, desperately needs new investment money to change its battery technology both for automotive and for portable devices like phones and computers. Varta is the No. 2 battery maker in Europe, based on 12-volt lead-acid battery technology, but future 42-volt systems will require lithium-ion and nickel-metal hydride batteries. For small batteries using older zinc-carbon and newer alkaline-manganese technology, Varta is a global leader, but the future is in lithium-polymer flat cells and lithium-ion button cells. "We need an additional 150 to 200 million euros ($130-175 million) for development over the next several years," said spokeswoman Elke Doehring. That means doubling recent investment levels of about $48 million a year. Varta has remained profitable in part by limiting development expenses, but company executives say the only hope for the future is to increase development spending on new technologies. Taking the company private resolves the conflict...>> Pretty interesting...heh!

To: Rashomon who wrote (22222)	11/11/2000 1:50:32 AM
From: I. N. Vester	Read Replies (2) \| Respond to of 27311

need both volume production AND lisencing: Valence shareholders need to see bigger volume production because that adds significant value to the company. They should be able to get profitable very soon based on their own mft alone (tho we have been hearing that for a long time now). It would also be very nice if they didn't keep bleeding cash at the rate of $6M or so a quarter!!! Bigger volume production is not, IMO, needed to convince other battery manufacturers to lisence the PLiON Telcordia-Valence technology. If they see the finished product and see the NI plant, there is already more than enough "proof of concept". The battery OEM's have enough mfg expertise to know exactly what they can do with the technology. With much more mfg experience than VLNC, some of them may in fact be in a much better position to take the PLiON technology and run farther faster on the mfg end than VLNC has been able to execute so far. I sure hope so because Valence has been fumbling around way too long. VLNC native mfg operations remain a very significant sink for millions of $ every quarter. As a shareholder I expect much better execution. Lev has consistantly over promised and underdelivered, and this quarter was no exception. The stock would be in the toilet for their performance on that end for the Q if not for the "rabbit out of the hat" announcement. What will it take for institutional investors to pour in? I think there is a good chance to see 1 or more major lisencing deals with big name players, even without any greater demonstration of success by VLNC in large scale mfg. I think this will be enough to convince instititions this is huge lisencing opportunity. Some will not wait especially those who really know this business. But shareholders need both lisencing, and I damn well expect Valence's own mfg to start booming too. The stock might go up significantly even on a big lisencing deal, but the company and the stock will be MUCH stronger if they can stop dicking around and/or screwing up and sell some bloody batteries at a profit.