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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: BelowTheCrowd who wrote (5689)	12/23/1999 1:42:00 PM
From: Razorbak	Read Replies (2) \| Respond to of 10293

VLNC Financing Michael: Unlike some of the recent PPs, which were negotiated at a discount to the market price, this particular placement was priced at the average of the last 20 days closing price. The recent ramp-up is the only reason that the placement occurred at a discount to the current market price. That doesn't mean the price wasn't manipulated a bit, but at least the price wasn't negotiated up front at a discount. Also, the placement was managed by a reputable financier (Capital Guardian Trust Company). The placement price discount to the current market price may very well cause some downward pressure -- and I still think the company is overvalued given its current revenue and earnings outlook -- but I really doubt that this financing would have occurred if the company was really just a stock fraud. IMO, Valence is quickly becoming just an overvaluation play, like a lot of other legitimate tech stocks in this current NASDAQ feeding frenzy, but it's no longer a prudent "stock fraud" play. Of course, that's just my opinion. I'm obviously interested in hearing other perspectives. All the best, Razor