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

To: mooter775 who wrote (7023)	1/12/1999 9:58:00 AM
From: FMK	Read Replies (1) \| Respond to of 27311

More on the 1800. o: +Greg Smith (4896 ) From: +I. N. Vester Wednesday, Nov 11 1998 11:59PM ET Reply # of 7022 Greg Smith PLEASE, don't expect everyone on this board to pamper you by answering you on every tiny detail. The numbers make sense for 1800 batteries - your own calculations indicated that this is consistent with the $/wH, etc and add up to a burn rate of $4M/quarter or so. Lev may have actually said 'cells' I don't know. If he did he clearly mispoke. We've done the calculations and are very comfortable with the CEO's statement that they can break even (on a $ basis) by running 1 line for 1 shift/day. That's why lots of money is coming into the stock. There are some inconsistencies in what the Korean press reported and what you heard from Lev. There were reports earlier from the korean press that hanil/valence would start producing this summer. Never take anything too seriously from the korean trade press. Literal accuracy does not seem to be a requirement over there. Lev's lack of concern about Jan 27 does not imply he's ignorant about important facts. He's not paying attention to that date, not because he's dumb, but because he knows it does not matter. I.e. he's weeks away from signing a contract but he could not tell you that on the call, as he carefully explained. Look at the chart - a lot of millions have been going into this stock. The smart money is comming in not going out. Go ahead and obsess all you want before deciding, but please try not to take up so much band width insisting that everybody help you get unconfused. You gotta help yourself a bit too. good luck!

To: mooter775 who wrote (7023)	1/12/1999 9:59:00 AM
From: Zeev Hed	Respond to of 27311

mooter, your statement sounds rational, yet my experience in launching new products and establishing a commanding position in a market which is already "served", is that you have to be twice as good at half the price (VBG). That is one of the reasons I do not think that such high selling prices will create rapid market penetration, and expect a rational person like Lev seems to be, to establish itself rapidly in the field with aggressive pricing. Of course, he can take the approach of taking first the cream of the market at premium prices (lower volume) and then increase penetration by lowering prices. In any event, gross margins of 60% seemed high. We will have to see a quarter or two of production to get a handle on this. Zeev