Mooter, you wrote:
"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."
I appreciate your attempt to be helpful to me, but not only am I not short VLNC....I have never shorted a stock in my life. Not that I have any objections to shorting....just find being long stocks risky enough for my tastes.
As a matter of fact, I am STILL long VLNC. Though I did try to exit twice several months ago. (First time put the limit sell order in right at the bid....too greedy..:-)....not filled. Second time, weeks later, MMs were "too greedy", because I put the limit sell order in two ticks BELOW the bid and still did not get filled.) I attempted to sell because I felt it was clear VLNC would be under a LOT of pressure from the floorless and it was.
I have no way of knowing how credible Castle Creek's word to VLNC is regarding their hedging (or lack thereof.) Personally, after owning 5 stocks that ended up in a floorless situation (and only one of those...SCUR...already had the floorless when I bought) I find it MUCH SAFER to assume that the debenture holders will, indeed, hedge their interests sufficiently. (BTW, just as a note of interest, SCUR announced on Monday that the last tranche of their floorless with Castle Creek had been converted. Interestingly, the stock was already soaring and continued to.....no apparent selling by Castle Creek of their newly converted shares certainly lends credence to the idea that they had ALREADY hedged those shares.)
Last, but not least, I do not think today's market response was "ok" as you put it. I own many stocks that have shot up like gangbusters on mere rumors. We have waited over 2 years for today's announcement. I consider this announcement to be very "material." This is absolutely the first independent verification that this technology is viable. So, I find it quite puzzling that there wasn't a better market response. And when the market does not respond the way it could be expected to to a given event, it behooves an investor to look for the reason why. That's what I am doing, Mooter....looking for the reason why.
Cathi |
