Cathi,
Response to today's call is ok. CC continues to sell their remaining B tranche shares, but in so doing, while not driving down the price, increasingly exposes the naked short position.
Clearly, if CC remains unhedged on their B tranche, which they have continually, even last week, claimed to Valence management, then there are about 1.5 mm naked shorts out there. Know any of them???
Rumor has it thatCC apparently asked to BUY an additional 1.0 mm shares late last week, as a modest discount to the market. Company told them to F.O. in so many words - and lo and behold - the stock began to get hit on Monday.
REDI has sold about 500,000 shares since midday Monday, and they are often used as a CC vehicle.
Despite this, stock has moved up.
THE REAL HAMMER WILL COME WHEN THE COMPANY ANNOUNCES THE SECOND AND THIRD ORDERS - PRETTY SOON NOW - AND THE SHORT SELLERS THROW IN THE TOWEL.
I expect we will see CC convert the remaining shares of their B tranche before that, but that's okay. When cleaning out the privy, better to be sure and scape up all the remaining crap.
If you are short, Cathi, and I suspect you are, you probably have as much as 2-4 weeks to cover, before you find the impact of second or third orders for Valence batteries.
Good luck. |
