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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: GregFoot who wrote (14854)9/27/1999 10:03:00 AM
From: kolo55  Read Replies (1) of 27311
 
Several problems with this theory.

You wrote:"If CC converted less than half of their convertible shares, they still have plenty of ammunition left to play with."

CC will have to short shares against the preferred shares, then convert later. The availability of short shares is getting tight.

Also they have been selling at just above 5. Their current conversion price is still 5.26. They aren't making any money against their conversion price.

The buyers aren't stupid; if CC keeps selling, they will lower their bids as the conversion price drops, and they still see CC on the ask. Their goal is to strip CC of shares at a low price, but they want the shares. The longs want the shares at a low cost basis, and the shorts want the shares to cover. Its an interesting balancing act.

Right now, CC is still on the ask. They still have some shares left. It will be interesting to see what happens when they run out.

Paul

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