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

To: Larry Brubaker who wrote (6635)	1/2/1999 9:42:00 PM
From: FMK	Read Replies (2) \| Respond to of 27311

Larry, If the newer version of the battery holds 25% watt hours, and batteries are priced by watt-hours, they would have 25% more revenue for the same number of batteries. At the time, I think there were about 25 mln outstanding shares. Their choice, as you defined it, was to dilute by 3 million shares, or 12%. The net result of having 25% higher revenue is 25/28 x 1.25 or a about 11% greater earnings per share after dilution and a far superior battery. Sorry Larry, but with your criteria, I can't see this as a negative in the long run. It didn't help share price in the short term, and I can understand that you view this as negative because you are not a long term investor. I'll go for the 12% increase in earnings with the newer version.