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

To: Greg McDaniel who wrote (5082)	11/15/1998 12:16:00 PM
From: Roger A. Babb	Respond to of 27311

Greg, we should start by defining "failure" of a convertible. If you mean that to be failure of the convertible holders to profit, then your 5% number is about right. But it is very different if viewed from common stockholders point of view. If you define failure as the common trading at a significantly lower price within two years following the initiation of the convertible, then the failure rate is closer to 90%. I suggest that you do your own research. Search the 8k SEC postings for convertibles issued in the past two years. Then look at the stock price performance following the convertible date. For fun, look at the SI postings around the convertible date. In each case, this time it is different and the convertible is good news, but mostly it did not turn out that way.