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

To: FMK who wrote (7837)	2/3/1999 9:16:00 PM
From: gvander	Read Replies (2) \| Respond to of 27311

You seem worried FMK. Are you getting wind of what appears to be coming? You seem to follow the old saying the best defense is a good offense.

To: FMK who wrote (7837)	2/3/1999 10:18:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Fred, you earlier calculations were "more or less correct", namely your stated VLNC capacity is five times the 12.5 MM watt-hrs capacity per quarter I expect to see from ULBI, except I use 10 MM per quarter, since even in 8 quarters, I do not expect them to exceed 80% yields (why you always insist that VLNC will achieve perfection and 100% yield is beyond my comprehension, but it is possible that they are waiting to reach 100% yield before they shoot their first shot over the bow of the competition, you know much more about VLNC then I do). While capacity is important, it is not all, and once a process has been mastered, increasing capacity is not too difficult. However, committing to major capacity (and a capacity which is a substantial portion of the total expected market) could be construed by some as financial suicide. VLNC does not have a second bullet in the barrel if this one misfire. It seems, however that at this time, the market has a lot of faith that no misfiring will happen, witness the relative valuation of the two companies. Being a conservative guy, I like buying the "dream" at below book value, low and declining burn rates and a "fall back" position, which is what ULBI offers at this point. Zeev Zeev