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 (14106)	9/1/1999 10:07:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

<<It would appear that the stock is finding a bottom in the low 4s and we'll just see how it plays out from here.>> Or, it could also simply be a pause in the downward trend. It is in Castle Creek's interest (assuming they are shorting) to bring the stock down in a slow, orderly fashion. Why? Because their conversion price is based on the average of the lowest 6 days in a 10 day period. If the stock drops too quickly and they keep shorting at this new low price, they would be shorting at a price considerably below the current conversion price. Incurring more risk than if the price (and their conversion price) drops in a slow, orderly manner. If so, they may be pausing here while the conversion price declines to about the current stock price. Only to resume the slow, orderly downward trend once the conversion price has fallen to the current stock price. As you say, we may know the answer to this soon enough.