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

To: Tickertype who wrote (1371)	11/16/1997 5:43:00 PM
From: Paul Dubsky	Read Replies (1) \| Respond to of 27311

Re: ULBI shipping in volume laptop and cell phone batteries. Good question! I've also dug a little deeper in comparing VLNC to ULBI, on R&D and PP&E, two components I keep careful watch on with VLNC since it's a start-up company. 3 months 9/30) VLNC ULBI (97/96) (97/96) PP&E $22,800,000/17,200,000 $20,200,000/18,800,000 R&D $4,400,000/2,700,000 $1,100,000/800,000 On both R&D and PP&E, Valence comes out on top, especially R&D. And remember, VLNC nets any development and grant fees they receive from GM and others against R&D, not revenue. So, gross R&D is probably even high. It's interesting to note VLNC's increase in R&D, almost double that of a yea ago, while ULBIs is only under 50% higher. VLNC has spent 4X that of ULBI in R&D for the latest Qtr. Also, PP&E - VLNC increased $5.2M over prior year (ULBI only increase of $1.4M) and is now $2.2M ahead of ULBI. For a company that is supposedly the leader in the lithium polymer battery market (as ULBI spouts itself as being), they certainly don't show it on these two key measures. Regardless of ULBIs numbers, I am extremely pleased with the increase in #s of VLNC. PP&E supports their comments that they're building facilities to mass produce batteries, and R&D supports their comments that they're closing in on mass production. Remember, R&D includes BOTH research AND DEVELOPMENT, which seems to be major portion of their R&D costs. The more I research and do DD on VLNC, the better I feel. Certainly a good feeling to have with this "type" of stock, development stage... Regards, Paul