We may get a nice bounce this week.
There has been so much mis-information on this stock. The latest selling appears to have been indiscriminate dumping by one holder based on fears the 8K financing gives Castle Creek an incentive to short the stock now with the price in the range of 4-5. I've read the 8K thoroughly, and I see no incentive to short the stock at these levels at this time. The only times Castle Creek would benefit is in the price adjustment period (either 6 months or 12 months from now), or if the stock rises significantly above the conversion price set in late July, to lock in some profits.
The MMs simply got out of the way of this large holder dumping on Thursday and Friday, and we saw the big block at the bid on Friday. As soon as this guy is done selling, I expect a significant bounce.
Regarding Mark: he has come clean- he didn't know much about Valence. It has become clear that Mark based his stock opinion on one quick reading of the 10K. Most of the info there was simply a repeat of previous disclaimers and revealed the status of the company in most respects, as of end of March, 1998. He didn't much know about the technology, market, competition, similar company valuations, start-up status of the NI plant, testing status by OEMs, financing details (Berg's commitment to provide low cost loans) etc. Much of this information was discussed in previous conference calls, or is available from reading competitor filings and general industry articles etc., as well as a thorough reading of the SEC filings. We now know enough to pretty much discount his unknowledgeable opinion.
Paul |
