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

To: steve leftwich who wrote (1995)	1/30/1998 2:14:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

Remember the discussion of licensing agreements and notes taken by an analyst at the AEA convention last fall? Please refer to my post #1328 <<https://www.siliconinvestor.com/readmsg.aspx?msgid=2688531>> I recently heard from a 3rd source that the company had been negotiating with Sony at the time. I understand that the Sony group were insulted with an implication that they couldn't be trusted with technology and discussions were terminated. Later, during a conf. call, Cal Reed stated the there would be no licensing agreements. The willingness of Sony to enter a licensing agreement is yet another statement of the viability and demand for the technology. What a difference we would have seen in share price if such a deal were announced instead of Cal's resignation! I believe licensing agreements are still a viable mechanism for deriving additional revenues and market penetration, and are now more likely in view of the management change. We should keep in mind the earnings potential of Valence's first 3 production lines alone. From several reiterations of capacity calculations, it would appear that 2 shifts per day should earn $2.00+/sh. A PE of 25 would then yield a stock price of $50. This would put it somewhere between Red Chip Review's $18/sh yearend target and Don Wolanchuk's $60 -$100 target in 12-24 months after Nov '97. Regards, FMK