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

To: Emmo who wrote (2126)	2/12/1998 9:04:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

Emmo, I believe OEM's have had production samples for some time. The company needs to be careful with this information because of the competitive market and OEM's non-disclosure requirements. I recall that line 1 cellphone batteries were being inventoried for testing in July. At the time, it made sense that VLNC would test some of this inventory and later submit it to potential customers. It also made sense that at least one of the OEM's spent a substantial sum for automated testing equipment, and if two companies work together, substantial time can be saved if both the OEM(s) and Valence test simultaneously. I have understood for some time that OEM's have been ready and don't believe testing programs should now significantly delay a contract. Valence's policies differ from ULBI's, and Ultralife announced contracts with Toshiba over six months ago. I recently spoke with an engineer after he toured their Newark, NY plant. He reported that they have yet to debug their production line to share the workloads of hundreds now assembling their batteries by hand on a 3-shift/day basis. So, what should we expect when Valence contracts are announced? For some relevant thoughts, please refer to the following: Message 3050555 Message 3051674 Message 3104769 Regards, FMK

To: Emmo who wrote (2126)	2/12/1998 9:04:00 PM
From: Larry Brubaker	Respond to of 27311

I see yesterday's announcement of earnings (or lack thereof) as a non-factor in yesterday spike. I would guess yesterday's action was more related to the low stock price, and the perception that CR must be about through selling. In other words, it ain't going to get any lower, so may as well buy before its higher.

To: Emmo who wrote (2126)	2/12/1998 9:25:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

Emmo, I believe OEM's have had production samples for some time. The company needs to be careful with this information because of the competitive market and OEM's non-disclosure requirements. I recall that line 1 cellphone cells were being inventoried for testing in July. At the time, it made sense that VLNC would test some of this inventory and later submit it to potential customers. It also made sense that at least one of the OEM's spent a substantial sum for automated testing equipment, and if two companies are working together, that substantial time could be saved if both the OEM(s) and Valence tested simultaneously. I have understood for some time that OEM's have been ready and don't believe testing programs should now significantly delay a contract. On the subject of production line readiness vs contract timing, Valence's policies differ from those at Ultralife who announced contracts with Toshiba over six months ago. I recently spoke with an engineer after he toured their Newark, NY plant. He reported that they have yet to debug their production line to share the workloads of hundreds now assembling their batteries by hand on a 3-shift/day basis. So, what should we expect when Valence contracts are announced? Please refer to the following posts for some relevant thoughts. Message 3050555 Message 3051674 Message 3104769 Regards, FMK

To: Emmo who wrote (2126)	2/12/1998 10:02:00 PM
From: wm sharp	Respond to of 27311

Two comments re your assertion that there will be a long delay prior to OEM clearance of samples: 1) I recall Cal Reed stating in the last conf call that OEMs were working with actual batteries alongside Valence engineers in Henderson. I also recall him saying that these OEMs were well aware of the specs and that clearance of the mass produced product would thus be routine. 2) Due to the competitive advantage of being first to market with an improved battery system, I believe that OEMs have a tremendous incentive to be as clear as possible on battery performance prior to generation of the final product. They'll naturally want to reserve whatever production they can get ahead of any competitors. Having said this, I think that if negotiations are presently underway, it's highly unlikely that Lev will provide any OEM details on Tuesday. If he remains quiet for now, I'm hoping for a rational response by investors. The stock may be in stronger hands now.