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

To: Rich Wolf who wrote (14631)	9/16/1999 11:12:00 AM
From: kolo55	Read Replies (1) \| Respond to of 27311

Thats my interpretation, Rich. That damn loophole allows CC to hold at least 1.45 million shares long, in addition to the preferred, without reporting. So in addition to the 700,000 shares they took on Monday, CC could also be long another 750,000 shares, and they wouldn't have to file a 13D next month, and still be in compliance with the SEC regs. Paul

To: Rich Wolf who wrote (14631)	9/16/1999 11:30:00 AM
From: kolo55	Respond to of 27311

Looks like a stand-off here. CC doesn't want to sell, unless the price climbs into the sixes. Why sell below the fixed conversion price still in effect on 4500 preferred shares? The bulls don't want to buy up into the sixes, because they will run into CC. They don't want to sell, because they just weathered a ferocious attack, and are hanging on for news of PO. Most likely, many of the bulls are waiting to see if the selling coalition tries to attack again. The naked shorts don't want to cover at a loss, so they don't buy here. They are hoping CC sells their quota every day and drives the price down some. But so far, no big selling. And so we sit here with no volume. But time is on the longs side. The EPS sale is supposed to be complete by September 30, and the chances we get a PO announcement in October are quite sizable. Of course, we have heard this before, and nothing came to pass. But the insiders and new (presumably informed) institutional investors keep putting money in this company, so they must be making progress. We probably will see another capital infusion of $3 million at a slight discount to market price at the end of the month. My guess is then within several weeks of an EPS sale, I expect we see an announcement of some sort of purchase deal from Valence. There are only ten more trading days until the end of September, so if there is a large naked short position (as I suspect), time is running out for them. Paul