Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Rich Wolf who wrote (13316)	7/23/1999 10:37:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Rich, of course it was fundamentals that was the ultimate reason for SCUR's plunge. Company's with good fundamentals are not forced to resort to floorless financing. My guess is the stock at $29 was ridiculously overvalued. Did Castle Creek help SCUR to seek its intrinsic value by shorting into a death spiral? Beats me. But it is apparent they were not involved in the investment to get rich on the long side. It is clear from SCUR's SEC filings that Castle Creek will be converting its shares at a price much lower than the fixed price, when they could have converted at $29 (in which the shares to be issued would be less than 1 million, they are registering 8 million). I doubt whether Castle Creek was unwise enough to take a loss on a nearly risk free investment. Therefore, since they are converting at low prices, it is almost certain they shorted at high prices, unless you want to suggest they lost money on this deal.