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

To: hcirteg who wrote (6532)	12/31/1998 12:29:00 PM
From: Dennis V.	Read Replies (1) \| Respond to of 27311

HC, sure, a licensing agreement is as good as gold. One downside that I can see would be the squirrely accounting practices that many of these Asian firms indulge. Zeev alluded to this with his comments about Valence's share of Hanil profits. When "Hollywood" accounting is used, profits seem to be illusive, no matter the revenues. It all depends on the wording of the agreement and the laws(if any) of the country. This is the second lith poly plant that I'm aware of for Taiwan. The Taiwanese are anxious to get out from under Japan. If the timetable is what I think, Valence won't see this competitive element until 2001. Again, as Zeev pointed out, competition is necessary to establish alternate sources of supply for the OEM's. Alternate suppliers give them a comfort level and allow them to play off the suppliers against one another. The addition of Dr. McFeely to the board didn't hurt either.