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

To: P. Ramamoorthy who wrote (24788)	8/24/2001 2:22:07 PM
From: Robert Cohen	Read Replies (1) \| Respond to of 27311

The only numbers we can hang our hat on are the following. Etion stated that the costs of raw materials were ~70% of the total cost of production. But remember, their labor costs are much lower than Valence's. Therefore, raw materials make up significantly lower % than 70%. In addition we have no real handle of what % the phosphate specific components are in relationship to the total raw materials cost.Your guess is as good as mine. The only other number we have are the volume prices to OEM's which are most probably between $2-3/Wh for the manganese cells. I doubt then, that the margins are anywhere as large as your figures indicate. Robert