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

To: kolo55 who wrote (5006)	11/13/1998 8:56:00 PM
From: wm sharp	Respond to of 27311

Paul: Tardy thanks for all of your work on the filings issue, pricing and revenue estimates, etc, etc. Best, Bill

To: kolo55 who wrote (5006)	11/13/1998 9:02:00 PM
From: David Maginnis	Read Replies (1) \| Respond to of 27311

Why can't Valence sell the batteries for a loss and still make money with the payment from Ireland? Also I don't know much about shorting, however what happens if Castle Rock shorts 10M shares. Now lets say that Carl Berg takes them up on their little wager and buys those 10M (he doesn't have to report it until the 10th of the next month) and he allows that 10M that he bought to be shorted. So Castle Rock shorts another 10M and Carl buys that 10M and allow it to be shorted again. And again Castle Rock shorts 10M and Carl buys it but this time he does not allow the stock to be shorted. Now Castle Rock owes 30M shares but the float is only 25M with Carl holding the bag. Doesn't this put Castle Rock in a pickle jar?

To: kolo55 who wrote (5006)	11/13/1998 10:36:00 PM
From: Dennis V.	Respond to of 27311

To all--MANY THANKS for a debate worthy of "Firing Line": Dave Maginnis, Emmo, Greg Smith, hcirteg, IN Vester, Larry Brubaker, lws, mooter, Pallisard, Paul Klemencic, Pronichev, and Zeev Hed. May we prosper one and all (Prost!!). P.S. In case I've forgotten anyone, it was not by intention. Good night all. Dennis

To: kolo55 who wrote (5006)	11/13/1998 11:11:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 27311

Paul, you state: " In practice, the earliest one would expect a conversion is probably mid-February. It is during this period that many 'fear' a Castle Creek shorting blitz. Some on this thread and Yahoo have implied that Castle Creek benefits from shorting the stock down before that time. This is nonsense." The way I see it is slightly different, if I own those convertible, I can start and do some shorting "against the block" (the convertible I hold) right now. I continue to get my 6% on the convertible and have made an additional 30% on my money, and if I short against my "whole block", I keep getting 6% but also get to use the money for other purpose (I am getting paid when I short, since I deposit the convertible as a collateral for my short). Now, if the stock roars, I don't really care, I will deliver stock against the conversion at $6.03. If the stock drops, I can chose to cover and pocket the shorting profits. If the stock start to drop under $6.03 (for instance due to the failure of getting a "material order" by January 27, 1999), I am in fat city, since now, I own a floorless which I have shorted at $8, and I can engage in death spiral exercise. Thus the assumption that shorting will not start until mid February, might be erroneous. I would assume that the owners of the debenture, being relatively close to management, must have some inkling as to the likelihood of the "material order" materializing, before the rest of the public, and thus could better time the actual shorting, and use rallies as in the last few days to do that at a high price and without too much influence on the stock. The only risk they face, is losing the potential appreciation of VLNC in the event it does meets it goal and the stock rockets as some on this thread believe. All I can say is, quite possible, but faced with the certainty of a profit of 30% now and future interest of 6% on their investments, without any of that money now being at risk (they got paid back when they shorted, thus they get from here on 6% on no invested money, or an infinite interest rate), they could very well decide that two birds in the hands are preferred to one on the tree. Zeev