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

To: John Curtis who wrote (14125)	9/1/1999 9:12:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

<<I posit that there resides in the marketplace jungle a community of hedgies, tacticians and individuals who work over company financial filings just so's they can find a floor-less convertible.>> That may be true, John. I have started doing this very thing based on my observation about the typical scenario of floorless financing. The problem with using this as a theory to explain VLNC's current weakness is those not holding the preferred shares incur substantial risk in trying to ride a floorless "coatails." The holder of the preferred shares incurs substantially less if any risk. Therefore, I have to assume that the majority of the $18 million that is bet short against VLNC is held by the holders of the preferred shares.