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

To: Larry Brubaker who wrote (16003)	11/12/1999 8:17:00 AM
From: Mark Johnson	Respond to of 27311

Looks like a lot of posters have been swattin' Larry with that rolled up newspaper. He's still not housebroken....but it is a good start. <VBG> Nice to rub his nose in "it" a little! Happy days ahead!!

To: Larry Brubaker who wrote (16003)	11/12/1999 9:16:00 AM
From: John Curtis	Read Replies (1) \| Respond to of 27311

Larry: Floor-less outlawed? Now on THAT I'm sure everyone will agree. At least, on some aspects of its use. I understand what you're saying about hedgies having a fiduciary responsibility to their shareholders. I also understand that most hedgie managers live in fear of "cash out" day which typically occurs once a year. This certainly drives their rather myopic focus on the bottom line. Still, the floor-less instrument as originally conceived looks to have been designed as a mechanism by which struggling, young companies could derive financing when most other means are not available. And at the beginning I suppose it was paradisical for them as it operated in just that manner. But human nature always seems to find an unfortunate lower level, and it must have very soon become obvious to professionals of that ilk that they could derive extremely fast, "fish in a barrel" type profits by both providing the funding then running the spiral. This, to me, is a basic conflict of interest. The equivalent of your mortgage bank operating in collusion with the real estate industry to first float you a loan at extremely high interest rates and property valuations, then red-lining your neighborhood and driving property prices to the floor, all while leaving you still responsible for the original valuation....a gross example, but applicable. So bottom line? Just as in other financing instruments that've been abused, my prediction is folks will continue to abuse the "spirit" of the instrument until such a point is reached that the Fed's step in. So it goes out here in the jungle. Now let's see how VLNC does today... John~