Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ULBI..Ultralife Batteries -- Ignore unavailable to you. Want to Upgrade?

To: Justin Pressley who wrote (293)	11/24/1998 8:33:00 PM
From: webpilot	Read Replies (1) \| Respond to of 522

I have been reading in the WSJ and IBD about the new "FMK Ranking System". It is very impressive, and is considered by many savvy Wall Street analysts as one of the key reasons for the the recent run up in Internet related stocks. The "FMK" is primarily being used by New York baby boomers to quickly add to their retirement accounts. It's primary purpose is to uncover hidden value in stocks that normally appear to be worthless. All of the traditional measurements are out the window. Such things as PE, debt, revenue, management, book value, etc. are Mooter. What the experts are saying, is just compute the "FMK", and that is all you will need to do. For those that cannot multiply, or are not able to get easy access to the internet, just a quick call to your broker asking for the "FMK", for a particular stock is all that is required. Once you have your "FMK" rating, simply subtract today's stock price and you will see the true upside potential for your favorite stock. For example, the "FMK" for VLNC is 100, that is the projected stock price in about 6 months, although it may be sooner, and subtract today's price of about 8 (rounding is permitted) and you come up with a figure of 92. A lot of Wall Street technicians are starting to plot this information. It is a very powerful tool. I called my broker for the "FMK" for ULBI. Since I was quite nervous, I also asked for the calculations that were used. He e- mailed them to me and I thought that I would share them with you. An assumption was made by the broker that ULBI would be at a break even point by January 1999. He said that their sophisticated and extensive line of primary batteries will more than cover all of the company's overhead starting this next quarter. He then took the potential revenue from sale of cell phone batteries from the company's new integrated rechargeable battery operation. This is the key to the "FMK", potential. He took 50 batteries per minute (ULBI's figures) X 60 minutes X 16 hours (2 shifts), X 363 days = 17,424,000 cell phone batteries. I asked why 363 days? He said that they will only be closed on Christmas Day, and on Dec 3 which is the new Wall Street holiday known as "FMK DAY". He then said that ULBI's stated sale price for the battery was $12-15. Always be conservative and use the lower number, in this case $12 and you come up with revenue of $209,088,000. Margins of 40% are then applied and you come up with $83,636,200 operating profit. Divide by the number of shares 10,500,00 and you have $7.97 per share. The "FMK" uses the standard 30 PE multiple, and you come up with a projected share price of $237. This is also known as the "FMK". Take today's stock price of $6 and you have a rating of 231. I said, isn't this a very conservative way to value ULBI's prospects? He said that this is the beauty of using the "FMK", it is always on the low side. I asked the broker, if ULBI has a rating of 231, and vlnc has a rating of 92, does that mean that ULBI is a better value, or a safer investment? He respodned "absolutely", not only safer, but much more upside potential.

To: Justin Pressley who wrote (293)	11/28/1998 11:43:00 AM
From: gvander	Respond to of 522

State of the Industry Articles: November 30, 1998. techweb.com techweb.com Betting on the small configurations will pay off big both directly (in more application) and indirectly (competitors retooling for having batteries that are too large) Some makers are just now realizing that their batteries our bigger than the new notebooks comming out. They are going to loose 6 months to 18 months to their competitors. The best sized battery for the greatest number of notebook-type applications is the one pictured here (this was a geat forward looking design): penton.com The company that manufactured this battery also has correctly geared most of their capacity toward smaller cells such as those for cell phones. The market has not yet realized how great of an advantage this will be.