Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bruce A. Thompson who wrote (7272)	1/21/1999 10:00:00 AM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

Sorry, Bruce, but if the major selling we've seen is by Castle Creek (which is what I've posted as a hypothesis), then it is most likely going to result in shares being converted at the fixed conversion price. NOT floorless conversion. Why? Because it is very controlled selling, at a price of around 7 1/2, even in the absence of buyers. It telegraphs that CC has arranged with the MM to unload some of their shares at a quick 25% profit. But they are NOT choosing to dump large quantities of stock, to drive the price below the fixed conversion rate. And it means that the MMs will necessarily want to sell these shares back to the market at prices higher than 7 1/2. Looks like a floor to the price, rather than a floorless case. Quite the opposite to what you are arguing. Certainly just a hypothesis, but one more consistent with the evidence. Your arguments, on the other hand, are both illogical and hysterical. What gives? I think you have an agenda, sir.