VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: I. N. Vester who wrote (9247)	3/13/1999 4:32:00 PM
From: FMK	Read Replies (1) of 27311

Another reason for a "frenzied attack". I spoke with someone who took delivery last week of almost 100,000 shares of stock by exercising his March $5 calls, most of them late in the week. Whoever was on the other end of these calls is required to deliver the stock at $5. That person(s) would have written (sold) the contracts and collected the money at an earlier date, hoping the stock never made it to $5. At any rate, if the person owned the stock at the time, he would have had to turn it over at $5 per share. If the person didn't own the stock, he would still be still be required to hand over the shares at $5. If these options were exercised late in the week, he might have 3 trading days to buy the stock on the open market in order to fulfill the requirements. Could this help explain why new posters have turned up, going as far as calling Valence a fraud and hoping to shake lose a few cheap shares from impatient longs? With this in mind, a strategy for longs might be to add to their positions early next week and hold, to force the shorts and whoever bet against Valence to cover at higher market prices!

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