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

To: Zeev Hed who wrote (14216)	9/3/1999 10:59:00 AM
From: Larry Brubaker	Respond to of 27311

Zeev, PCom, (PCMS) is another one of Castle Creek's victims. They did a floorless with Castle Creek in late December 1998. PCMS managed to get as high as $10 in January. Currently trading <$4.5. quote.yahoo.com And this is a company with $150 million of sales and a better balance sheet than VLNC (e.g., no working capital defecit). You can also see their short interest more than doubled since Castle Creek entered the picture. viwes.com We now have several instances (SCUR, FIBR, PCMS) in which Castle Creek floorless are done with dogs. Can anybody point to an instance in which Castle Creek did a floorless that turned out to be a toothless hoax?

To: Zeev Hed who wrote (14216)	9/3/1999 11:07:00 AM
From: MGV	Read Replies (1) \| Respond to of 27311

"I must say, however, that VLNC got itself a sharp new CFO. So far he got into the kitty some $9 MM under fixed terms, in what should be considered a tough environment." I disagree unless he was unable to sell more than $3M each month. Otherwise, month to month financing is debilitating to corporate planning and exacerbates market uncertainty. One could argue that he is expecting the price to rise any month now and therefore is seeking to keep dilution at such a low share price to a minimum. If so, his expectations have proven to be far off the mark, when you consider the share price was 11 in December when the funding issues were no less visible and they could have offered a substantial discount to any institutional buyer (with a good story) and still have sold at prices that are 50%+ higher than the present price. The judgement, unless you assume they could have not sold any more than they have, was very poor. Of course, if they could only unload no more than $3M, then though the CFO would be exonerated, the assessment of the company's plight would be all the more poor.

To: Zeev Hed who wrote (14216)	9/3/1999 11:09:00 AM
From: Rich Wolf	Read Replies (3) \| Respond to of 27311

Zeev, Paul, CC is just in it for the money. Give 'em an inch and they want a yard. When they see the current conversion price slipping away day by day, and if they keep shorting modestly each day to try to contain it, then their hand is forced. I see the strong buyers let the price come down to 'bait the hook' for a CC conversion, and now they'll take it up just as easily. The short MM has given up tens of thousands of shares today in an attempt to contain the price. The strong buying support will simply gently but firmly inch the price up each day, suckering a deeper short position. That way, CC has to take it in the end, just to be sure they can collect any extra shares at all, to cover all the shares sold below $6. Not on the sidelines here, I loaded for bear at the low 4 end. Just watching and waiting. Ready to continue to take advantage of the retracement back to 5+, then the acceleration in stock price to the 6-7 range. This, based first on short-term short covering (for shares heavily shorted in 5s), and then CC conversion before the window of the $4.4 conversion disappears. BTW, POs are no problem, IMHO. I'm very sanguine about developments with the company. We're on track.