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

To: John Curtis who wrote (3584)	8/5/1998 10:59:00 AM
From: hcirteg	Respond to of 27311

Hi John- Just been watching the VLNC tape this AM....something is up! The MM's IMHO drove the stock down early to get more shares. Probably there were some stop losses they saw for some nice volume of shares. The stcok has 90K+shares traded and it is only 11:00AM! Accumulation continues...this baby looks like she is real CLOSE to exploding. Good Luck- HC

To: John Curtis who wrote (3584)	8/5/1998 4:15:00 PM
From: I. N. Vester	Read Replies (1) \| Respond to of 27311

JC: re shorting discussion on yahoo Terms state that the variable pricing on conversion of perfered to common is ONLY available 1 year AFTER 1st closing. That term goes down to 6 mo. if PO are not announced within 6 mo. For now, no possibility for holder to short and convert and a depressed price. Their conversion price is FIXED for now. If no PO within 6 mo. then nothing stops them from pursuing that strategy. As long as po comes in we're cool. Some very big risks if not. Think that indicates 100% confidence by LD & Co. that PO will be in hand within 6 mo. I believe the above discussion covers the ONLY reason that this particular instance of variable conversion should not pose undue risks of very unfavorable dilution. I don't see anything else in the terms which would avoid the risk.