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

To: Rich Wolf who wrote (7289)	1/21/1999 11:55:00 AM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 27311

Rich, Agree with all of your observations. MM's accumulating shares? Ram

To: Rich Wolf who wrote (7289)	1/21/1999 12:37:00 PM
From: Zeev Hed	Respond to of 27311

Rich, I do not think that CC has to liquidate its position at all. They can short when the stock is in the current range of $7.25 to $8.5 (and I presume more so at the higher prices) raising money to put somewhere else (as you said). They still hold the floorless (which is not floorless as Larry mentioned until July). If the stock runs away, they deliver stock by converting at $6.5 or so, if the stock takes a beating back to a new trading range ($5.25 to $7 or so) they cover by going into the market until things clear up, or if they know good reasons why it should not get better, then they can continue shorting, and by the time July comes around, they can make a decision what next. They will probably not do any shorting under their current ceiling of $6.5 until the securities they hold becomes floorless. IMHO. By the way, none of this is any "company bashing", it is simply a "hypothetical analysis of possible hedging actions the holders of the floorless securities could take. Zeev