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

To: kolo55 who wrote (14489)	9/10/1999 4:44:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

Trading only very light volume. Looks like this death spiral is going out with a whimper instead of a bang. Only 95,700 shares traded today, the lowest volume since at least August 1st. Seems to me that the two camps weren't in the market today. Now lets guess why that could be? The most likely theory is that CC and Valence have reached an agreement on the variable conversion issue, or at least are close to one. I suspect this is the case, and we may hear about it Monday (happy weekend to all you shorts out there). Of course, a second theory, espoused by Zeev, has CC just waiting to resume the death spiral selling. I see a lot of holes in this theory. BTW, I was buying at the close. Paul

To: kolo55 who wrote (14489)	9/10/1999 7:27:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

<<And if CC doesn't convert, then after CC is stripped of shares, we may see an uptrend in the price.>> That, of course, presumes that Castle Creek had to use up a great deal of "ammo" in order to get the conversion price to where it is. As Zeev and I have both suggested, they may be replenishing their ammo as they go. By continually shorting at a higher price, and covering at a lower price. The latest mini-rally may have been instigated by Castle Creek itself. You stated that you don't think they are doing this, but I see no evidence to support this claim. In other words, we may only have seen the opening salvo of a potential death spiral, rather than the end game you are suggesting. Like Zeev, I do not know whether Castle Creek is in "death spiral mode," but I would not discount the possibility, this week's mini-rally notwithstanding.