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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: Rich Wolf who wrote (15037)10/5/1999 2:50:00 AM
From: Larry Brubaker  Read Replies (1) of 27311
 
Rich, under whose scenario would Castle Creek make more money?

Your scenario where they short at $8+, box their shorts at $6.5, sell their boxed shares as low as $4.25 (taking $2 per share out of their profits), and converting 40% of their preferred shares at $4.47 and then converting the remainder at a higher price.

Or my scenario where they short at $8+, cover at $6.5, short at $8.5, short some more below $6 cover at $4.25, convert 40% of their preferred shares at $4.47, short at $6.25 (adding $2 per share to their profits), cover at ...? Convert the remainder at a lower price than $4.47.

I think the answer is clear. Its just not the answer you want to see. And I think Castle Creek is earning a killing for their partners on this investment. And probably Daddy Warbucks is picking up some easy money as well.
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