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

To: John Curtis who wrote (4971)	11/13/1998 10:36:00 AM
From: Dennis V.	Respond to of 27311

John, you have touched on "the" issue, the variable conversion. Of course, even though this has been discussed in adfinitum, the reality is that this will be raised again and again unless some event such as COMDEX puts it to rest. If the debate is to continue, it would be best undertaken by the most qualified, not newbies such as me. Various folks have demonstrated, by reason of their analytical skills and objectivity to be in position to refine our understanding. I would suggest that the areas to explore would be Paul's take on the S-8 and LWS's observations offered in his latest post. For example, as a recovering curmudgeon, I can relate to the short shrift that, according to Paul, Lev gave to a questioner. Paul's interpretation would seem to minimize the looming problem based on a reading of Lev's handling of the matter. On the other hand, LWS and others gave accounts which seem to imply something else. Different references were used and may somehow account for the difference. Nevertheless, the different interpretations are out there. Is this where we stay or, time permitting, could this gap be narrowed on reflection? Any constructive comments by you or others would be appreciated.

To: John Curtis who wrote (4971)	11/13/1998 10:45:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

John, a question to ponder is whether, our hedge fund friends, if they were so inclined to attempt to drive the stock price down, would wait until after 1/27 to do so. This is the first time I've seen this particular animal of financing. One in which the conversion is at a fixed rate under one set of circumstances, and a variable rate under another set of circumstances tied to milestones and dates. Obviously our friends at the hedge fund would incur less risk by waiting until 1/27 to decide. On the other hand, if they became pretty certain at some point prior to 1/27 they would see no contract by then... Particularly if they thought there would be more to gain by shorting sooner because of a higher stock price. A while ago, one poster compared VLNC to an option in that its stock might have a declining value as it gets closer to the expiration date (e.g. 1/27). I thought this was a pretty interesting comparison. So I guess all this is a long-winded way of saying I'm not sure you'll have until Feb. before you will see the effects of a variable rate conversion, should it come to that.