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

To: Zeev Hed who wrote (9845)	3/26/1999 7:25:00 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 27311

Zeev OT I beleive the company it was Coleco.

To: Zeev Hed who wrote (9845)	3/26/1999 10:53:00 AM
From: Gordon Quickstad	Respond to of 27311

VLNC has had actual contingent contracts already with the likes of Hewlett Packard and Motorola. It would look like a failure of product performance, given this past history, if they were to sign on something like Mao Ting Computor Ltd. I think the delays are due to the need to get potential product returns down below some acceptable rate. The performance of the battery will be directly perceived as the performance of the appliance. When you're working below, say, a 3% rate of return, it takes a lot of fine tuning. Rollers have to be adjusted, batch making equipment has to be monitored, (and add in a couple of hundred other checks in this space). I'm confident that VLNC will be profitable. The last shareholder's meeting, the new cathode patent, and Bert Roberts (BoD) confirmed it for me. The delays, in my mind, are due to fine tuning to reduce defects to the standards of modern quality control. Perhaps a potential contract is awaiting ISO9xxx certification.

To: Zeev Hed who wrote (9845)	3/26/1999 11:38:00 AM
From: Tickertype	Read Replies (2) \| Respond to of 27311

<<When you couple these strategic consideration with a negative Altman Z factor, you see a company risking its life on the line that indeed the launch of the portable battery will be successful.>> Zeev, of course the company is risking its life on the success of this battery, that's been a fact since day one. They have no other product - this battery will make 'em or break 'em. But after most likely testing hundreds of thousands of samples (I recall that SM attendees saw the serial number 115,000+ on one sample) the company probably has a pretty good idea what the performance of the battery is by now, so the "dip a toe in the water" approach may not be necessary. More likely they will start production at a lower rate in terms of units/minute, ramping up as experience is gained. This would still allow them to accept a large contract from the start. - T -