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 (13328)	7/23/1999 12:15:00 PM
From: David Penfield	Read Replies (1) \| Respond to of 27311

David, there will be no death spiral mechanism enacted here. Castle Creek has a lot more money to make by staying long. If they destroy the stock, Valence cannot get adequate financing and goes under. Castle Creek would be killing the golden goose. This is not what they invested for, and this is not what is being played out here. Rich - I think CC can make more money by shorting and would not care if they killed the "golden" goose. Besides, the goose may not have any gold in it. I think you are naive to think of CC as a white knight. I don't think they have any concern for whether VLNC goes under or not. We will just have to wait and see what happens, but I don't know of any companies that did floorless convertibles that didn't suffer a huge decline in their stock. If you are indeed an investor that doesn't understand how floorless convertibles and death spirals work then do yourself a favor and read up on them before you lose any more money in VLNC. David