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

To: P. Ramamoorthy who wrote (24774)	8/23/2001 11:04:04 PM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 27311

The conf call answered some questions: (1) Hanil - no production, shut down, do not know what they want to do. (2) China PO - see the above (3) Panasonic - After the conf call in Korea, Lev was leaving for Japan to see Panasonic. Panasonic was supposedly switching from cobalt to manganese. They are in a waiting mode. (4) NI plant production, ramp up - All factories have issues and problems. NI plant has its own problems. After Telcordia IP purchase, VLNC turned their focus away from production. It takes 6-9 months to fill the battery sales pipeline. (5) Bluefin, Telematics, etc. - Not mentioned. Probably not worth. (6) Other PO's - (Alcatel, Nokia, ???) same as above. (7) German machine production - Still qualifying and begin production Jan, 2002 (8) Royalties revenues - Not much except the revenue from Hanil j/v conversion The above explains to me the deterioration in the stock price and Lev's problems. Positives - (1) Phosphate battery - real and soon to be produced 1Q 2002 (2) Patent position - Strong. Infringes no one, according to attorneys. (3) Revenue mix - battery sales will play a big part, relative to licensing. (4) Energy solutions provider - probably he is working on Dell notebook PC. Stephan should know the Dell notebook PC market pretty well and how much he can penetrate with VLNC battery. He has the Dell management team to support this first venture. (5) Other markets - Stephan talked repeatedly about electric vehicle and UPS for telecom as well as replacing NiMH batteries. EV's and UPS are huge markets. Lead acid battery packs can be easily replaced. May be these are the new areas he wants to compete. He did not show any interest in PDA's or cell phones. Unlike Lev, Stephan and his VP finance are able to give guidance for the next 3 qtrs. I suspect they have a reason or two to be confident. May be not. Time will tell. Only 6 months to call their bluff! Ram