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

To: mooter775 who wrote (3918)	8/23/1998 10:59:00 PM
From: Tickertype	Read Replies (1) \| Respond to of 27311

I've been trying to second guess the VLNC strategy based on some of the clues we have at the moment. A few months ago, some were speculating that the company may skip the cellphone business altogether due to the low prices and margins associated with the small batteries. More recently L.D. said they were concentrating on the laptop batteries at this point because of the much greater returns. But now we know that the next two assembly lines to arrive in NI are dedicated to cell phone batteries, so the question is why? Two assembly lines represent a major capital investment, so why go for the smaller ROI? Could it be that MOT has dusted off the old (and very sizeable!) contract of a few years ago and dangled it in front of Lev & Co. again? What do you all think? - T -