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

To: Zeev Hed who wrote (7662)	1/28/1999 10:57:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Zeev, I mentioned to Bruce a while back that I don't necessarily think the growing short position for VLNC is the ominous sign it might imply. There was plenty of opportunity for Castle Creek to hedge it's bets on VLNC at a considerable profit between December 10 and January 10 (the period covered by the new report). If they are largely responsible for the increasing short position, it could simply mean they are cashing out and moving their money elsewhere. By the same logic, if Castle Creek is largely responsible for the short position, one should not expect a big assist from short-covering if good news is announced. Castle Creek will be able to cover its short through the common shares it acquires via the conversion of preferred shares. At prices above $6, they can short with inpunity.