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

To: mooter775 who wrote (15354)	10/22/1999 11:43:00 AM
From: MGV	Read Replies (2) \| Respond to of 27311

The conversion is bullish. I think it might suggest a fundamental improvement in VLNC's business. It is not, however, a full conversion. It apparently does not convert the shares subject to the floorless. This is the conversion that holds the most import and it is the one that I have been addressing. That said, your fixation on a "qualifier" and your representation that it somehow was a change in position is spurious. The conversion has always been a function of fundamentals in my view. This is in contradistinction to klemencic's view that CC was engaged in a manipulative game. The fundamental position in VLNC has been a function of market acceptance of its product in commercial quantities. Confirmation of a change in fundamentals then would be an OEM contract. That has been my position all along. It has also been my position that VLNC would not get a significant OEM contract. They still may not get a significant contract. According to my view the conversion today could be a signal of a fundamental improvement for VLNC. It could portend a contract announcement, a significant financing deal or both. It would be more convincing if the conversion involved the floorless. Apparently it does not. The floorless is the "option" analogue that has been at the center of my position on this point. Still, the conversion of the fixed is somewhat surprising. Its good news for VLNC.