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

To: Gordon Quickstad who wrote (4925)	11/12/1998 10:43:00 AM
From: kolo55	Read Replies (1) \| Respond to of 27311

I am still confused. I checked my notes on the August call, and my notes indicate that Lev said the company could breakeven on cash flow from 3000 cells per day. When I first analyzed that, I assumed he meant batteries, and have used that in my posts since. In this call, he said 1800 cells per day, lowering the bar even further. If he mis-spoke, he's mis-spoke twice. I think its possible he did mean 'cells'. If we believe Lev (and I do), then this is incredibly bullish. He's essentially said the company can breakeven at a very low production rate, i.e. only about 200,000 three-cell batteries per year. The market for original batteries supplied in portable computers will be about 14-15 million units in 1999, so this is a pretty small market share. Incidentally, most computer makers need the higher voltages along with higher battery lives, so they use three cells. It may be possible to run a computer on the lower voltages associated with a two cell battery, but I don't think this is common. Regarding production line samples to OEMs; he's always said 'no' before, so a 'no comment' this time is interesting. Paul

To: Gordon Quickstad who wrote (4925)	11/12/1998 10:56:00 AM
From: Dennis V.	Respond to of 27311

Thanks Emmo and Gordan. The concept of cells ganged as a parallel unit introduces options that I was unaware of. Still, I think that the VLNC page has been left in a somewhat dilapidated state by intention. Current production may very well approximate the recently published Hanil specs. Gordan has suggested a plausible reason for Lev's misspeaking to a very important matter. This being the case, the several folks speculating on this issue may be closer than I thought at first. Profits do seem on the horizon.