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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Eli74 who wrote (14560)9/14/1999 9:41:00 AM
From: MGV   of 27311
 
Risk/Reward is exactly why they would not convert. Not converting is not equivalent to holding a short position. That is at least one point where your analysis is flawed egregiously!

They hold an option. The analysis is no different than option theory analysis. The option holds value. VLNC was forced to give that value away last year because of its poor financial state. CC will not give it back absent convincing evidence of product success and profitability. They will not exercise the option unti it is "in the money." This is not rocket science. Just open your eyes, clear your head, and think instead of reacting.

The answer you seek was available for some time. Did you miss that too? ; )
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