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

To: Rich Wolf who wrote (13326)	7/23/1999 12:06:00 PM
From: David Penfield	Read Replies (1) \| Respond to of 27311

Rich - Read Zeev's post that I posted the link to and then see if you have any questions. David

To: Rich Wolf who wrote (13326)	7/23/1999 12:24:00 PM
From: David Penfield	Respond to of 27311

Rich - Here are answers: David, you have not explained the mechanism. Where is the market off-shore where the shares would be traded? Off-shore refers to the broker being outside of the US and therefore being able to enact short sales without borrowing beforehand. Who's doing the buying? Naive investors like you that are going to get fleeced. Is the 'short' bet entirely self-contained off-shore, or does the buyer off-shore then sell into the US markets? The lenders (CC in this case) sell the shares through an off-shore broker into the US markets. And how could that be accomplished if he has no actual shares in hand? You don't need to borrow shares to short off shore. But CC does have a contract for conversion that they could use as collateral against a short position. I find no substance in your proposal unless you can provide answers to all these questions. TIA I think I have answered all your questions and provided a link to a well written explanation by Zeev that make everything crystal clear. If you still want to invest in VLNC, be my guest. At this point I don't care if you understand or not. David