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

To: P. Ramamoorthy who wrote (25651)	11/6/2002 1:51:09 AM
From: Rich Wolf	Respond to of 27311

I think Larry has the right read on this one. The Henderson plant had useful capabilities, and the overhead cannot have been that great, but VLNC has a need to trim costs and stay 'hunkered down.' Some of the workers in NV were probably offered to relocate to another site, we shall see. Sorry to hear of the layoffs. We met some bright and qualified folks there, a few years ago. But choosing between the installed facilities in NI and the research-only facility in NV, the call was obvious. Broader picture: Economy is heading down, and the market will reflect this before Christmas. have a merry! and then the whole of 2003 looks very dark. No recovery from oncoming deepening of recession and potential deflationary environment until '04 or later. Cash is king. CB and SG both know this. Still thinking that VLNC mgt is highly overpaid by 2-3x factor (more like 'bubble economy' salaries, in truth), given complete lack of performance... maybe not their fault, but.... They are, in essence, getting paid on the back of shareholder dilution.

To: P. Ramamoorthy who wrote (25651)	11/6/2002 4:31:33 PM
From: Tickertype	Read Replies (4) \| Respond to of 27311

Ram, I'm sure this was a move to cut operating costs, plain and simple. Payroll is by far the greatest cost for most companies, so if you want to save money that's where you do it. The advantages of outsourcing are not new to me, having gone that route many times over the past several decades (in various areas of the tech sector). However, it is one thing to farm out the production of non-unique technology (ex: N-Charge assembly) and highly specialized items like the phosphate batteries. The contract manufacturer must be in posession of specialized equipment and process capabilities, which limits the availability of suitable sources. I'm curious to find out if they will included non-VLNC licensees. I would assume the first thing we'll see in terms of getting off square one will be an agreement with a tier 1 OEM. SG still expects it to happen this year. In addition, if progress with the cylindrical units is on schedule, I think we could see some sales related news coming up on that front also before too long. JMO. - T -