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

To: The Vet who wrote (14181)	9/2/1999 5:34:00 PM
From: Larry Brubaker	Respond to of 27311

Yes, the vet, that is certainly a possibility. However, if they decided to cover (an assumed) 1 million plus shares in the open market, they would quickly lose their best price. IMO, they would get a far better price to cover through conversion rather than going into the open market. Remember also, they always have the right to purchase a substantial number of warrants at a fixed price to guarantee a profit on any significant up move. Also, if they did decide to cover their shorts in the market (in order to retain their preferred shares for an upside move), I doubt they would convert the preferred into common until they are ready to sell. They still earn interst on the preferred shares.