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

To: add who wrote (16615)	12/2/1999 9:52:00 PM
From: Rich Wolf	Respond to of 27311

add, It looks like CC has already sold (hedged) the entire remainder of the series B preferreds (580k shares plus interest) that they could obtain at the fixed conversion price. It looked like they stopped selling at $6.03 on the Friday after the conference call, let it go up a little on the following Monday, and then let it go totally the last half hour (resulting in a short panic that yanked the price up from 7 to 8 in the final 30 minutes of trading). This also correlated with our estimated time frame for when they would run out of shares to sell. So when we also saw them resume selling at 8 1/4 on the next day (Tues 11/16), it was a surprise, and looked to be the start of selling against the warrants. Since then, we've seen them quite active, but also trying to collect shares on the bid. However, looks like they've sold more than they've covered (maybe by 2:1 ratio? just a WAG). No, it makes NO financial sense from our perspective. They would seem to be following some sort of selling program, irregardless of how much more they could be getting for their shares if they quit containing the price so severely. I would note that today, during the run from 11 to 12+, they didn't lock the price, but sold some tens of thousands at each price level before backing off 1/8 ... sometimes coming back down if the buying slowed. All I can say is, when this stock runs from 20 to 40+ next year and beyond, CC will look in the mirror and curse themselves for the money they left on the table, when they dumped heavily at $4-5-6-8-10 the last few months. Maybe they'll wise up and let the stock run... but that would appear to be anathema to their stock-shorting blood nature, eh? But hey, that's what makes a market. Final note: I agree, they'll just let the unconverted B shares hang out there as long as the interest on the shares they borrowed to short is less than the 6%/year they collect in 'extra' shares as long as they remain unconverted. As others have said, 'yawwwnnn....zzzzzz'. Big deal.