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

To: Zeev Hed who wrote (13851)	8/19/1999 9:01:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Zeev, you mentioned that the 10-day look back period allows Castle Creek to continue to short with impunity, even though the price is below the $6 ceiling for conversion. I don't think this is necessarily the case. Suppose Castle Creek were responsible for most of these big blocks that were being sold today between $4.5 and $4 (somehow managing to get around the 30,000 share restriction). If it were Castle Creek doing today's selling, most of this was at a price well below the average of the 6 lowest closes of the last 10 days. Unless the average 6 lowest closes within a 10-day period is below the price at which they are shorting, it seems to me they are not shorting with impunity. Thus my comment that if Castle Creek was shorting between $4.5 and $4, they were putting money at risk because the price at which they were shorting was lower than the lowest price at which they could convert (so far).