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

To: Rashomon who wrote (25385)	2/15/2002 11:53:03 PM
From: Larry Brubaker	Respond to of 27311

<<It's perfectly reasonable that VLNC would write down equipment -- some of their older production equipment is never going to be used, so why amortize it over the next decade?>> That argument would be fine except for the fact that they have already written off most or all of the value of "older" production equipment (e.g., prior to this quarter, they had already depreciated or written off $72 million of assets). With the latest write down, they are now carrying only $14 million of plant, property, and equipment on their books. Seems a bit disingenuous for Godevais to say that things in Northern Ireland "have never been better", and on the other hand, write off more than half of their total plant, property, and equipment. It is these kind of shennanigans that are causing more and more investors in real companies to become disillusioned (see today's IBM fiasco, for example). For a company like Valence, which has been misleading investors for a decade, I guess it is simply business as usual.