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

To: Greg Smith who wrote (4877)	11/11/1998 8:30:00 PM
From: FMK	Read Replies (1) \| Respond to of 27311

Greg, It takes 1800 per day to break even. My notes indicate that the machine's max design capacity is about 10 per minute. I doubt 8 per minute is stretching it. I have spent time in factories where machinery does not shut down for lunch or coffee breaks. Let's assume it does, then go to 7 hours per shift x 8 per minute or 3360 per shift. A yield of 80% would mean 2688 good ones. In my last post I suggested rounding down to 2500 good batteries per shift. Will you give me credit for the 168 difference? I believe you heard Lev say today that 1800 would be enough to break even. You seem worried that Line 1 can make a profit. To me its obvious that Line 1 alone can do that easily with just 1 shift per day. I would just leave it at that if these large numbers make you uncomfortable. Remember that the JV partners such as Hanil once worked similar numbers and concluded that their return on investment would be great enought to put up all the capital and then share the profits 50/50 with Valence. I try to remember that when the profit calculations start to become obscene. Again, enjoy the numbers!