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

To: Dennis V. who wrote (6452)	12/30/1998 10:17:00 AM
From: FMK	Respond to of 27311

Dennis, I believe large shipments have already been made over the last several weeks and it was Lev's policy not to announce any shipments because the SEC does not require it. IMO Betsy's qualifier, shipping in earnest to begin after the first of the year probably means over 1000 per day. The shipments, as I understand it, will be from inventory that has been quarantined for 3-4 weeks and still hold an acceptable % of the formation charge. My estimate for yield remains around 75% to 80%. With time, I would expect yields to improve past 80%, which is the figure I used for year 1999 revenue and profit projections. The high yield is very positive for the bottom line because Valence originally budgeted 30% as enough to make their efforts worthwhile. 75% yield is 50% higher than Sony reportedly gets with canister-type Li Ion. Absence of the canisters and associated pressure release mechanisms and cheaper raw materials should make Valence's manufacturing costs lower as well.