VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: kolo55 who wrote (15414)	10/24/1999 8:52:00 PM
From: Harold Hertzfeld	Read Replies (1) of 27311

You wrote CC " shorted so much against the series A and remaining series B, that they couldn't find any more shares to short.. so they had to convert to finish hedging pref B." I can understand that CC may have been notified that they could not short additional shares of stock to hedge the remaining pref b holdings. There are hopefully no (?) shares that can be borrowed by their investment house to make additional shorting possible. But to convert the shares to finish hedging pref B would mean what? How do you "finish hedging" the remaining shares unless you sell them short (again, using borrowed shares)? It may be that by closing out existing short positions --by delivering their long common shares from the A conversion-- that they would then make more shares available for hedging their remaining pref B stock. Putting on a new hedge will put additional selling pressure on the share price. What if CC was willing to stay long with the remaining shares with intention or selling them into strength after an announcement of a PO? I recall an earlier post that mentioned that all daily selling limits are off for CC when the VLNC stock is above $ 12.

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