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

To: Zeev Hed who wrote (14601)	9/15/1999 12:39:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

That will have ocurred AFTER the period covered... ...in the short interest report. You asked: "Paul, on the other hand, if CC converted and delivered shares to cover their short, we should see a good 500,000 decline in the short position, is that not correct?" The next short interest report should only cover through September 9th or so, therefore it won't show if CC delivered shares against a short position this week. Lets look at this another way. We know there were 2.5 million short on August 9th, versus only 300,000 or so before the floorless was issued a year ago July. Based on the tape action since August 9th, it seems as though the short position has increased to about 3.0 million. It takes 1.3 million short shares to hedge the full amount of the preferred A, and about another 1.7 million to hedge the full amount of the preferred B at the price CC got Monday (and if they haven't or don't convert the rest soon, then CC doesn't even get 1.7 million). All in all, it would take 3.0 million short shares to fully hedge all the preferred shares converted. Well somebody out there has sold enough shares to hedge ALL the converted shares. If it wasn't CC (which I believe), then they will have to cover as CC converts, and the death spiral fears abate. If CC was smart, they would have converted almost the full amount, then sell only 10,000 to 15,000 shares a day into the short covering rally. This way they would let the shorts push the price up, and gradually hedge their position at a very nice profit. And if we get the EPS sale and a PO announcement soon, they could participate very nicely in the stock price pop. Gee, I hope that CC is listening. Paul