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

To: mooter775 who wrote (15470)	10/27/1999 11:56:00 AM
From: kolo55	Read Replies (2) \| Respond to of 27311

Short interest report confirms CC short theory. As you know, I have postulated CC has continued to short the stock heavily. Based on the tape action, after the partial conversion of 3000 Series B share in September into 690k common shares, CC delivered about 300k against a short position at that time, and sold the rest, and has shorted even more against the remaining series B preferred.So the actual short interest has actually gone UP over the last month, in spite of the partial conversion. Today the short interest is reported at 2.833 million shares as of October 15. Here is my theory of how that breaks out: Total shares short 2.83 million Short against Series A 1.33 million Short against remaining Series B 0.50 million Naked short position 1.00 million Now since the trade date of October 12 reflected in today's short interest report, CC has likely sold another 300k shares. And they converted the series A to deliver against short position. So now the numbers would likely look like this: Total shares short 3.13 million Delivered against Series A 1.33 million Net shares short 1.80 million Short against Series B 0.80 million Naked short position 1.00 million Note that I believe CC has sold short 800k of the 1010k they would receive from the series B if it converted at today's conversion price. This is if the big recent selling through JPMS is due to CC and cohorts. CC is likely almost finished hedging the series B, and will need to convert if the stock price strengthens above 5.00, since their average short price is less than 5.00 against the series B. If JPMS selling isn't CC, then CC has still likely shorted 200k or more against the remaining series B, and the naked short position is 1.60 million shares... I don't think this is likely. We are starting to see signs that shorts are beginning to cover, as CC sells the last of their shares. This is a great opportunity to buy Valence shares while CC finishes selling. Paul