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

To: Tickertype who wrote (5302)	11/18/1998 9:17:00 PM
From: FMK	Respond to of 27311

Ticker, today I discussed line 1's 1800 per day breakeven number with a large institutional shareholder and his analyst. We projected line 1 earnings indirectly by equating the profit on 1800 per day with an assumed annual burn rate of $20 mln. We used 340 days x 1800 and arrived at 612,000 per year to break even. We then divided $20 mln by 612,000 and arrived at $33 profit per laptop battery. We then had agreed that 2500 good batteries per shift was feasible but scaled down to 2000 per shift to be conservative. We didn't take the projection any further, we just agreed line 1's production numbers alone were extremely impressive. If Valence is close to a contract these numbers become very relevant. They should be able to build at least 6000 laptop batteries per day with line 1 alone. If the first 1800 pay the bills, the remaining 4800 per day at $33 profit each x 340 days/year equals $53.8 mln profit contribution after paying the bills, just from line 1! Does anyone have thoughts on how to translate that to earnings per share? I would expect on Dec 3 the analysts will see a high-speed Italian line in operation as well. It should be very impressive. Perhaps they will be told what customers the batteries are being made for!

To: Tickertype who wrote (5302)	11/18/1998 9:35:00 PM
From: Mark Johnson	Respond to of 27311

Ticker: It looks like to me our little Valence is starting to be noticed by some of the big guys, MCI/Worldcom, Eveready, and the Comdex rumors. Alan Shugart of Seagate inside purchases of late and don't forget Motorola and the Iridium project plus Bellcores interest and their 1.5 million share investment. Lev's on the cusp press release and the volume increase in the stock. Our company has been in the spotlight of late. I believe the coming out party is at hand! Good Luck