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

To: FMK who wrote (7402)	1/23/1999 3:48:00 PM
From: Dennis V.	Read Replies (2) \| Respond to of 27311

Hi FMK, thanks for the bulletin. The Barron article caused some old concerns of mine to surface. Darkgreen was right about that. The Japanese strategy is to continue to dump lith ion batteries on the US market until they are ready to market their lith poly products "in earnest"(sometime in Y2000). This is a normal predatory strategy for them; for example they have increased steel shipments 8-fold in the last six months. The plan is to smother the competition by supplying product below cost to whomever will buy. The cover story for all this is that temporary measures are in place due to the Asian economic crisis. Fortunately, there are intervening factors such as the increase in the value of the Yen and Valence's technology. The US posture towards unfair foreign competition is something to watch also. Maintaining a high research profile, as Lev promised, is vital to Valence's competitiveness. The Japanese companies will use their own, or any available technology, no matter who owns it. A license agreement is possible, but you can bet that the Japanese firms will be calculating whether Valence can afford to battle patent infringement. Probably, the Motorola guy's statements are just a reiteration of the quotes made at the Power 98 conference. If the statements were meant to apply to Valence in some way, it suggests to me, at least, that the only batteries they had evaluated at the time the statement was made are the manganese models shown on the website. I suspect that the latest production batteries supplied by Valence will cause Motorola to rethink their position. IMO