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

To: FMK who wrote (1294)	11/7/1997 6:41:00 PM
From: I. N. Vester	Respond to of 27311

When can we expect revenue from Korea to start flowing to VLNC's bottom line? Somebody with a greater grasp of the financials and perhaps familiar with this kind of joint venture contract (Mooter?) please help me understand this. I would conjecture that VLNC will see very little from Korea until that venture actually starts turning a profit. While the eventual flows from the joint ventures could eventually fuel explosive earnings growth for VLNC, I would suspect that from an earnings viewpoint, that effect might not kick in until the lisencees have their factory up and running with enough production for them to get their margins up and start making some $ themselves. I suspect therefore, that VLNC will not see much, if indeed anything at all in actual $$$ comming from in Korea ntil CY 1999. While it is important to have vision to understand the potential, it's also very important to understand the underlying financial architecture as clearly as possible. Again, if anyone with more expertise can confirm what sort of parameters to expect regarding what revenue flows might be possible in what time frame, assuming success in Korea, it would help to temper expectations. At least for now, I'm concentrating on what we might be able to expect for the next 6-12 months. Let's hope we can get to the $15-$20 range, and not get carried away with dreams of $80-100 just yet, however rosy the future may look for VLNC in the best of all possible worlds!