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Update:
Valance Technology ups revenues in FY 2001 Q1
Valence Technology Inc. (VLNC:NASDAQ), our favorite high-tech battery maker, reported that it lost US$9.3 million, or (US$0.25) per share. That's compared with a net loss of US$8.4 million last year, or (US$0.31) per share.
Those numbers look like a wash, as the reduced loss-per-share is balanced by an increase in shares outstanding. The real positive comes from the fact that the company recorded revenues of US$2.0 million for the quarter, compared with zero revenues the year before. These are the first revenues based on commercial sales, and it seems that the company is well on the way to becoming viable.
The stock sold off recently after an inexplicable ramp-up last week. It remains a buy at these levels.
MEDIA 100 crushed on downgrade
Media 100 (MDEA:NASDAQ) got stomped after pie-eyed Jeffry downgraded the whole industry, citing segment growth. The good news is that we now know where the bottom is. MDEA remains a buy.
TALK.Com
Talk.com is extremely undervalued. It is trading at a P/E ratio of 6.7, 0.87 times book value.
The company said it lost US$890,700 or 1 cent a share in the second quarter, which compares to a profit of US$14 million or 22 cents a share in the same quarter last year. Still losing money, but less that expected as it burns through funds in its aggressive build-out program.
Though Talk.com beat the Street, it continues to blame sub-par revenue and gross profits on AOL and its low margins on high debt costs.
On a positive note, the acquisition of Access One will boost TALK's bottom line going forward as it becomes an "all-distance" provider in the Southeastern portion of the US.
At US$5, I'm a buyer, not a seller. The worst is behind us.
ClearWorks goes wireless
ClearWorks (CLW:AMEX) just inked a letter of intent to buy out Link 2 Communications, a wireless broadband company. The acquisition is expected to add US$10 million to the top line in the next 12 months.
It also builds out the company's ability to supply a flexible solution for the large retrofit market. ClearWorks tacked on 19 percent on the announcement today.
ClearWorks continues to experience massive organic growth while carrying a small market cap of US$79 million.
Broadband is analogous to women or beer — it's hard to get enough. And ClearWorks is supplying that last mile into the home. There is plenty of upside here.
Baltimore Technologies
Taipan's favorite security/tech company, Baltimore Technologies (BALT:NASDAQ), or Balto for short, came out and said that they will announce higher sales and greater losses next Wednesday.
I'm not sure what's the point of announcing that you will announce earnings while announcing what those earnings will be, but there it is. I don't quite understand political conventions either.
Anyway, Balto rose over the past week (buy the rumor) and has now sold off with the rest of the market on the news. It is currently trading slightly above my buy price of US$16.
The company will report revenues of between £12.9 million (US$19.43 million) and £14.1 million for Q2.
Pre-tax loss is expected to widen to between £20 million and £23 million in Q2.
Balto was recently tossed out of the FTSE 100 due to the decimation of its share price. But don't worry, this isn't like being kicked out of the S&P 500. The FTSE 100 is much more flexible — and recalibrates faster than the Democratic platform, based solely on market cap. It remains a solid buy under US$16.
Ho, Ho, Ho Chi Minh
When I returned to civilization in 1971, a hippie spat on me as I stepped off the tarmac. I did my duty for my country, watched my buddies get blown apart and that's the respect I get? I'm saving the world for democracy from the pinko-commie menace, and some dirty, long-haired, pot smoking dropout calls me a baby-killer...
Ok, I'm making that stuff up. I was born in 1968. But we've come a long way, baby, and if there's a chance to profit from leftover angst, I'll find it somewhere.
Charlie goes capitalist
Forget NAFTA and the EU — Vietnam just opened trade with the United States.
Vietnam's export tariffs to the U.S. of 40% will drop to just 3%. That means more cheap rubbish in K-mart, and more opportunities for Kathie Lee as shoes, garments, furniture and seafood exports jump from US$608 million in 1999 to an expected US$800 million this year.
Ok, so US$800 million won't buy you a good airplane these days. But they also opened a stock exchange. Ho Chi Minh City Securities Trading Center closed its first day on a volume of 4,200 shares for its two listed companies. Refrigeration Electrical Engineering and Cable and Telecommunications Material Joint Stock make up the
VC Index.
My bet's on the Telecom, but if you are looking for another way to play it, Templeton Vietnam and Southeast Asia Fund, Inc. (TVF:NYSE) just announced that it was buying back some shares. It's run by Mark Mobius and currently has total assets in excess of US$44 million. Put it on your radar screen. Contact: Franklin Templeton Fund Information, tel. (800) 342-5236.
In addition to his duties at Taipan, Chris DeHaemer is the editor of The Hammer.
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