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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: John Curtis who wrote (5058)11/14/1998 9:57:00 PM
From: FMK  Read Replies (1) of 27311
 
Hi John, I somehow knew if I put out an "eh" as bait it would attract a few words from a prominent poster from the Northeast, eh?

I agree with your thoughts on the category of Castle Creek in terms of comparative track records as to whether they conduct their DD for the purpose of finding companies they can exploit with floorless convertible terms. I was told they tended to stick with higher quality companies and intended to profit from a financed company's success rather than its demise. Again, if someone were to acquire the percentage of how many companies fail after financing with a floorless convertible clause, I suspect the percentage with Castle Creek would be somewhat lower than most.

I just asked a CFA and managing director of a large brokerage firm this question. The CFA (chartered financial analyst) was not familiar with Castle Creek but would be surprised if the percentage exceeded my 5% estimate. So without corroborative percentages from those that warned us, that's about as good as I can do for the moment.

So, I would put such warnings in the category of just slightly higher risk than many of us face everyday when we worry about making our house payments. It seems the naysayers(short interest, holders of put options or writers of call options) are running out of subjects to worry the shareholders. The financing fine print has been about the best they can come up with lately. It does appear they have been able to at least distract us temporarily from the positive trend in volume and direction.
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