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

To: kolo55 who wrote (14356)	9/7/1999 6:23:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 27311

Paul you got to be careful with your calculations, CC may stand to lose the opportunity to convert an additional 170,000 shares, but they are not going to lose $825,000. The potential loss depends on where they would have sold these shares, not the current cost of these shares. If you wanted to put a value, you could say that it is the difference between their ceiling of $6/share and the current potential conversion price time the number of additional shares or less than $200,000. Of course, if the working assumption is that CC has been shorting in the $7 to $8 range since January, then this "loss" is only a small portion of the nice gains they have on their short. You should compare this potential loss against their potential gain, if for instance, after a short respite here, the price resumes its decline, to let say, $3.75. That is probably an exercise that the person at CC responsible for managing this part of their folio is doing when deciding on his strategy relative to CC's position. Good luck. Zeev

To: kolo55 who wrote (14356)	9/9/1999 5:19:00 PM
From: kolo55	Read Replies (3) \| Respond to of 27311

Updated conversion information The August 26 closing bid of 4.50 became stale today, and CC will have to convert prior to one minute before noon ET tomorrow to get this conversion price. The conversion price including tomorrow's closing bid, will increase unless the closing bid tomorrow drops to 4 1/2 or below. Here are the closing bids for the last ten days, and a forecast what will happen if the closing bid remains at 5 3/8 through the next week: Date Bid Conversion price 23-Aug 4.8750 5.1026 24-Aug 4.7500 4.9974 25-Aug 4.5625 4.8711 26-Aug 4.5000 4.7607 27-Aug 4.3125 4.6344 30-Aug 4.3438 4.5450 31-Aug 4.3125 4.4714 1-Sep 4.2500 4.4240 2-Sep 4.5625 4.4240 3-Sep 4.6875 4.4240 7-Sep 4.8750 4.4240 8-Sep 5.6250 4.4240 9-Sep 5.3750 4.4240 Forecast if bid remains unchanged from current bid: Date Bid Conversion price Shares Shares Lost Each Day 10-Sep 5.3750 4.4556 1,759,000 12,500 13-Sep 5.3750 4.5503 1,722,400 36,600 14-Sep 5.3750 4.7239 1,659,100 63,300 15-Sep 5.3750 4.9027 1,598,600 60,500 16-Sep 5.3750 5.0921 1,539,100 59,500 17-Sep 5.3750 5.2289 1,498,900 40,200 20-Sep 5.3750 5.3446 1,466,400 32,500 21-Sep 5.3750 5.4288 1,443,700 22,700 If CC doesn't convert in this period, under these conditions, they stand to lose a total of 328,000 shares worth about $1,760,000 at today's close. By comparison, the current face value of the convertible preferred is about $7,840,000. Paul