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 (7279)	1/21/1999 11:06:00 AM
From: Rich Wolf	Read Replies (2) \| Respond to of 27311

Accepted and appreciated, Bruce. I also regret having stated my thoughts about your motives as if they were fact. My apologies as well. Back to the topic at hand, my sense is that if CC is cashing in their stock (by shorting or converting now, it doesn't matter) and selling at these levels, that won't drive the price down. It does put a lid on it, however. And we are likely seeing that lid as the effect of the share dilution (roughly 10% total, for both tranches, at the fixed conversion price; neither good nor bad). It would take a concerted effort at some later point to drive the stock below 6 and hold it there long enough to get a lower conversion price (other market factors aside), so at this time, that seems like the low-probability event. Recall the revised conditions for the potential 'floating conversion' were harder to meet. I would ask, 'Why would CC agree to more difficult terms to the floating conversion, unless it's just a fail-safe mechanism, not truly intended to be used?' I see no reason to focus our attention on the potential 'floating conversion' issue, at this point in time.

To: Bruce A. Thompson who wrote (7279)	1/21/1999 11:10:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Bruce, if Castle Creek is shorting in anticipation of a floorless conversion, you would not see a big increase in the shares outstanding yet. The conversion of shares at the variable price can not take place until the end of July. However, you would also not see massive volume on the short side if they are shorting, as a previous poster suggested. The new terms of the financing limit Castle Creek's trading in the common to around 30,000 shares per day, if my "misinterpretation" of the "dated" "attorney disclaimers" in the S-3 is correct. I assume this limitation applies to short sales.