VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: kolo55 who wrote (15817)	11/9/1999 8:19:00 PM
From: I. N. Vester	Read Replies (3) of 27311

Paul, CC might still try to mount a last strong attack the day of or right after the cc. They seem to be holding off conversion and betting that they can force the price down to 4.5 or lower again. They may be betting that there will be some disappointment and that at least some longs will throw in the towel even after a positive call but no P.O. Then CC will start selling like crazy to try to create a panic selloff. I don't expect them to have any success because I think most of the longs know how close the company is to getting some initial contracts and going into profitability. Also, very little weakness due to longs being over-leveraged on margin. But it does look like CC are very determined vultures who will circle until the intended victim shows decisive strength. To add insult to injury, CC also has the warrant position so they will profit when the company takes off, too. Actually it might even be that a part of the "naked" short position is really partly hedged by the warrants. I think they're priced at 6.75. CC knows that the stock will double on a good P.O. so they can count on getting their $ back easily even if they lose some on the short side, and even if they lose some of the warrants to cover a naked short of a couple hundred thousand shares. I think they have close to 1M warrants. Fortunately we have already survived very serious onslaughts and CC & cohorts have spent 100's of thousands of shares pushing the price down to 4.5 and trying to keep it from escaping to the upside. A few weaker longs may sell, but by now most shares are in strong hands. No way is CC going to get the price below the conversion prices they have just missed. But once a vulture, always a vulture, I guess. So much so that they might even be willing to take some risk in the hope of getting a negative call followed by a selloff which they think they can push down to new lows. Personally I'm sure that's not going to happen, but trying telling that to a vulture. Only one thing on their minds: "hurry up and die so i can eat."

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