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

To: kolo55 who wrote (13835)	8/19/1999 4:24:00 PM
From: I. N. Vester	Read Replies (2) \| Respond to of 27311

Paul conversion $ is average of lowest 6 out of previous 10 days closes. Who knows what CC will do, but if they do convert that will most likely signal end of game for the shorts and spark others to cover their butts. LB takes margin squeeze panic selling for shorting. Today's action looks really healthy to me.

To: kolo55 who wrote (13835)	8/19/1999 10:06:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

<<If the price rebounds above 5 1/2 and stays there, do you think Castle Creek will take advantage of the ten days of low prices and convert their preferred shares sometime in the next week? Or do you think they will let this window of opportunity to convert pass, and keep the convertible preferred, and look for another sell-off to even lower prices in the future?>> Paul, it is in Castle Creek's best interest to convert at as low of a price as possible, whether they have a short position or not. Whether they would use the recent dip to convert or not depends on which way they think the stock will go from here. I have no idea what they think about the future direction of the stock, so I have no opinion as to whether they will use the current 6 lowest days for conversion or wait for an even better price. If and when they do start converting, you will know they think they've got their best price. That would be a buying opportunity if you have confidence that Castle Creek would have a good idea of where the bottom lies. You can find out if they are converting by calling the transfer agent for the stock and finding out how many shares are outstanding. There were 26.7 million outstanding as of June 28, and another 1 million shares sold in the two private placements since then. If the transfer agent reported significantly more than 27.7 million shares, it would be a signal Castle Creek is converting.