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September 2007 Archives

WDC - (Western Digital Corp)

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WDC - (Western Digital Corp)
manufactures computer hard disk drives

there has been some criticism of Western Digital's
recent aquisition of Komag, Incorporated;
with the typical merger criticism
of the aquirer paying too high a price

Komag manufactures the magnetic heads
required to read and write the magnetic hard disk data

my WDC investment decision is based upon my belief that
such aquisition is a good utilization of corporate resources
considering Western Digital's P/E of about 10,
and 900 million dollars of cash.

Western Digital explains (September 5, 2007 Press Release):
http://biz.yahoo.com/prnews/070905/law119.html?.v=59
"It ensures our ongoing access to critical technology and supply,
and improves our cost structure.
Our goal of profitable growth is enhanced by
now having both head and media operations
integrated into our hard drive business."

I am also optimistic of future business based upon belief that
Microsoft's new Vista Operating System release
will result in many existing computer systems
being replaced by new systems
containing upgraded hardware capabilities
required by the new operating system

I also believe that more video content being provided over the internet
will also create demand for more storage capacity
from online multi-media providers

it seems that the world is evolving from
large quantities of people watching the same content
from television broadcasters,
toward a new era of people expecting
more flexible "on-demand" multimedia content

CRDC - (Cardica, Inc)

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CRDC - (Cardica, Inc)

manufactures their C-Port Flex A system,
which is a fully-automated system for the attachment (anastomosis)
of a blood vessel graft to a coronary artery during bypass surgery.

in their September 5, 2007 press release:
http://biz.yahoo.com/prnews/070905/aqw040.html?.v=23
Cardica announced that two independent groups of leading cardiothoracic surgeons
performed ground-breaking minimally-invasive, closed-chest bypass procedures
using Cardica's C-Port Flex A Anastomosis System
and Intuitive Surgical's da Vinci robot.

I already invest in ISRG - (Intuitive Surgical)
which manufactures the da Vinci robotic surgical system
(see my prior posting about that company)

"Minimally-invasive bypass surgeries produce better patient outcomes,
and substantially reduce pain and trauma"

"Conventional "open heart" coronary artery bypass graft (CABG) surgeries
are performed by cutting the sternum.
Patients who receive open heart CABG procedures
stay in the hospital an average of 5-9 days,
and it can take up to two months for the patient to return to normal activity.
Patients undergoing closed-chest CABG procedures
may be discharged in 24 to 48 hours following surgery,
and often return to normal activity levels within one to two weeks."

I believe that a lot of coronary bypass surgeries are performed,
and also believe that such minimally invasive robotic surgeries
are the new wave of medical technology

SRSL - (SRS Labs Inc.)

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SRSL - (SRS Labs Inc.)

similar to a lot of other people who are mathematically oriented,
I also have an interest in the mathematics of music,
and sometimes I play around with trying to put together some music.

my nephew, who, like a lot of younger people,
is interested in video gaming,
told me about SRS Labs Inc.

even though I consider myself to be kind of knowlegeable about audio,
I was not familiar with the company

I knew about Dolby Labs, and their surround sound processing;
a lot of movie theaters and DVDs are encoded with Dolby sound.

cnet has a blog about SRS Lab's "SRS Wow HD"
which includes "SRS 3D" which SRS Labs calls "wide stereo imaging"
http://reviews.cnet.com/4531-10921_7-6384149.html

the SRS Labs website has some online demos
http://www.srslabs.com/demosmain1300.asp

when I started researching into what their technology was all about,
I realized that SRS Labs was formed in 1993
from the audio division of the Hughes Aircraft Company
and the company now holds more than a hundred patents

http://en.wikipedia.org/wiki/SRS_Labs


if I'm not mistaken, I believe that is an audio technology
which I have heard about previously

my understanding is that the military contracted out
for the development of audio technology
for high tech jet pilots

problem is that piloting such aircraft at high speed
requires quite full attention with minimal distraction;
(looking away to try to read a radar screen
is such an unfavorable distraction)

the audio solution was to develop sophisticated audio technology
with which the high tech pilot could hear audible signals
about other aircraft

to be successful, the audio technology had to be quite good at
"spatial positioning" so that the pilot would be able to
correctly perceive 3D direction (relative to the pilot)

that might explain why Hughes Aircraft audio technology
might have potential in video gaming

VLNC - (Valence Technology, Inc.)

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VLNC - (Valence Technology, Inc.) is a technology company
which has commercialized Saphion technology,
a lithium-ion technology that utilizes a
phosphate-based cathode material,
which the company believes offers greater thermal and electrochemical stability
than traditional lithium-ion technologies.

a while ago there were major news headlines reporting about
problems with portable computer batteries catching fire,
with special concerns about the possibility of
such battery fires occurring on aircraft in flight.

some view Valence's Saphion battery technology as a safer alternative

Valence's financial's have indicated weak liquidity (Quick Ratio of 0.86)
which revealed a lack of ability to cover short-term cash needs.

and also a poor P/E ratio;
negative earnings per share, explained as:
problems getting the product into production

Valence has transitioned its powder manufacturing
from Las Vegas to Suzhou, China
to capitalize on lower manufacturing costs.

on March 14, 2007 Valence filed EX-99 2 exhibit_99-1.htm with the SEC
which explains that Carl E. Berg,
chairman and principal stockholder of Valence Technology Inc,
stepped aside and Robert L. Kanode took over as chief executive officer (CEO).

Valance stock fell more then 25% on the news

the new Valence CEO, Robert L. Kanode,
has previously been program manager for the IBM Think Pad

I believe that in portable computer products, such as IBM ThinkPad,
the battery supply is quite an important component

I personally have confidence in IBM managers with successful track record,
and it would seem to me that if such a person with IBM management credentials
demonstrates his belief in the Valance battery product,
to the point of his own career decision to become its CEO,
would be reason for confidence in the company's future

Valence Technology Inc's most recent financials,
fourth quarter of its fiscal year 2006,
substantiate a significant increase in sales;
and the company's liquidity has increased
indicating improving cash flow.

not only do I have optimism about Valence's battery technology
being seen as having promise in products such as IBM ThinkPad,

Valence has also indicated belief that its battery technology
might have potential for hybrid and electric vehicles