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

To: rli123 who wrote (24436)	6/19/2001 12:25:36 PM
From: Robert Cohen	Read Replies (1) \| Respond to of 27311

The only problem with "Berg Financing" is that it is dilutive. The trick will be to reach break even without going to the well again. I am not sure Stephan will be able to perform that feat. I think that it will be a least a year until licensing royalties will have any effect on the bottom line. If I am correct then the major effort must be to make batteries at the NI plant, lots of batteries, large format batteries with high margins. The major problem however, is that we have no such contracts. The reluctance of management to quantify the aggregate total of contracts on the books spreaks volumes to their actual worth. Management has indicated that they can be profitable with the existing equipment. Let's see how effective the sales force can be. IMO neither royalties nor sales of batteries will support the stock price in the next 2-3 quarters. Perhaps the phosphate story and new licenses will. Robert