Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DFCampbell who wrote (18830)	3/29/2000 6:37:00 PM
From: DFCampbell	Read Replies (1) \| Respond to of 27311

To satisfy my curiosity I called Valence headquarters at 702/558100. Asked to speak with their investor relations dept. Was given 310/4420599 to call and to ask to Ed McNally. So I called. I identified myself and asked if there was a material event, or if there was an official response to the 30% drop. He stated there was no material event. He stated that it (the drop) is most likely due to: 1)Bears and Sterns, the settlement, and selling of 600,000 shares, 2) short movements, 3) options related, 4) index funds taking a beating. I was also told that Guardian has not sold any shares. The 600K figure is interesting. What about the rest of the settlement shares? Does this mean they are holding those in reserve to short later? Hedging their bets by selling some now to pay people off and hoping/waiting for a raise in the price and collect big (for themselves) by going that way? I prefer the latter scenario, but I do not know which is more likely, or even if there is a 3rd, or 4th, or 5th scenario. I think it is fair to say there has been substantial short activity, so no real news there. I am not sure I understand his statement about there being some options plays involved. Perhaps I do not pay as much attention to that area of the markets as I should and am overlooking something. The point about the index funds taking a beating was curious. I thought VLNC wasn't held too heavily by mutual funds. At least that is what I remember when I looked into this aspect of the equation a a few months ago. I do not know if this information will help anyone, but there it is all the same. Feel free to double check me. Regards, DFCampbell