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

To: I. N. Vester who wrote (1247)	11/3/1997 9:22:00 PM
From: Larry Brubaker	Respond to of 27311

Mr. Vestor: "Sales do not equal revenue" Sorry, but yes, sales does equal revenue. Revenue is the top line, not the bottom line. However, your point is valid. Revenue doesn't mean much if they don't earn a profit on that revenue (net income, or bottom line). Red Chip projects a gross profit margin of 40% by 4th quarter 99, and earnings of 9 cents by 3rd quarter 99 and 15 cents by 4th quarter 99. As production ramps up, their projection for profit margins also improves. Obviously, the biggest wild card in making projections for an unproven operation is projecting profit margins. I explained last night why it appears that Red Chip's revenue projection is conservative. It may also be that their profit margin projection is similarly conservative.