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

To: Tickertype who wrote (8891)	3/4/1999 9:15:00 AM
From: lws	Respond to of 27311

Hi, Everyone, Hell, I might as well indulge one of my own cranky thoughts on the Wright matter. This is off-topic. When the hi-tech rides (which I gather is the product of Iwerks) first started showing up about 10 years ago in malls, I started thinking about the economics of the business. My off-hand reaction was that the capital and maintenance costs must be astronomical relative to the ticket price and volume of traffic that could be reasonably be expected. I thought the sticker shock of the prices would be sufficient to insure the economics couldn't possibly work. I thought they must be crazy if they think this is the next big wave in entertainment. But everyone was excited at the time -- the entertainment industry, the hi-tech industry, Wall Street... Then, about 5 years ago a friend was consulting for a company that wanted to build a variety of these hi-tech rides. Their plan was to truck them around from city to city, putting on weekend "shows." I thought this made a bit more sense than fixed locations (excepting perhaps Orlando, Las Vegas, and Hollywood) since the infrequent visits would lend the thing a novelty that would help offset price sticker shock. Have heard nothing about this since, though... Anyway, my point is that I don't think the economics of the business ever made sense, and I suspect the share price history of Iwerks reflects that dawning realization among investors. Why Wright thought he could save the company (if that was his job), I don't know. Now I just hope it was a good learning experience for him. I hope he learned that the market for a product is a function of the product's price. Good fun is good fun, but if nobody can afford it, then good fun is not a good business. The economics rule in the end. Regards, lws