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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: BelowTheCrowd who wrote (12676)7/2/1999 1:52:00 PM
From: Larry Brubaker  Read Replies (1) of 27311
 
Michael, I am curious to hear a short's perspective of why you don't think there is much downside in the short-term.

From my perspective, the risk of a substantial break to the downside increases every day. There is the $8 million of negative working capital. There is the immediate need to raise additional capital; $25 million needed. There is the floorless variable rate conversion feature of the existing financing that becomes a possibility in three weeks. And there is the steadily-increasing short position itself, which could be Castle Creek (the holder of the floorless) positioning itself for a substantial profit if the stock breaks down.

These factors, plus the statements of the status about production in the recent filings led me to sell. I'll consider repurchasing if they resolve these financial uncertainties in a favorable manner.

But I'm curious about why you chose to cover at this time? Get tired of waiting?
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