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

To: David Maginnis who wrote (4337)	10/4/1998 10:15:00 AM
From: John Curtis	Respond to of 27311

David: What are Hedges? Good question best summarized by saying that they're complicated investment "vehicles" whose goal is to either protect a particular financial position, OR attempt to maximize gains using various spread strategies from a variety of investment instruments. Now just WHAT did I say, eh? Heh! Basically it's a refined form of gambling(sorry to those who both use theses instruments and who are most likely more knowledgeable than I regarding their true characteristics). At least that's my view of them. And there are usually all kinds of computer software involved in determining risk, potential value, etc.. Still, the recently failed(well.....almost failed) Long Term Capital is proof that no matter how well educated you might be(college educated idiots is the term my father often uses), no matter how successful you have in past times been, when "gambling" on market direction each roll of the dice subjects you to the possibility of total failure. Be that as it may, hedges use a variety of strategies. Here are some URL's that should help clarify them for ya: For articles describing various hedge strategies in layman terms, thehfa.org For strict definition of hedge strategies: vanhedge.com Of course, I bow to those such as Mooter who, with more in-depth financial training, can probably speak vastly better than I on this topic. Regards! John~

To: David Maginnis who wrote (4337)	10/4/1998 1:13:00 PM
From: lws	Read Replies (1) \| Respond to of 27311

While I agree that a smaller short interest would be a welcome sign of greater investor confidence in Valence, I take consolation for now in the likely effect on share price of the combination of a rising short interest with a decreasing float since the recent purchases by insiders. The combination is a prescription for a classic short squeeze. People on these Valence threads have long speculated about a spike in share price after an announcement of production and/or purchase orders. These "technical" conditions reinforce the fundamental conditions necessary to sustain such a spike. lws