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

To: David Maginnis who wrote (5008)	11/13/1998 9:14:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

If Castle Rock was really short term oriented; then they would short now. They can convert their preferred at any time now at $6.03 and deliver against shares sold short at, say $8, and make over 30% on their $7.5M investment since the end of July. And still have a nice number of warrants to participate in the upside. There might not be any unconverted shares by the end of January. And at $6.03, the $7.5M converts to only 1.24M shares. Given the high volume recently, these shares could have been absorbed already. Of course, I don't think this is happening. I think Castle Creek put their money and time at risk to make a killing. And the only way they make a killing, is if Valence succeeds in producing and selling their batteries. I think this is the high probability scenario, and that is what the market in Valence shares seems to be saying now. Paul