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

To: kolo55 who wrote (9264)	3/13/1999 6:33:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 27311

Paul, show me the SEC rule that requires a short interest to be listed as "beneficial ownership." In all the SEC filings I've read, I have yet to see a disclosure of a short interest as a "beneficial ownership." And even if they did have to report a short interest as a "beneficial ownership" presumably they would only have to report this short interest if it exceeded 5% of the outstanding shares, or more than 1.3 million shares. That amount is larger than the entire short interest outstanding. The fact remains that floorless variable-conversion deals are stuctured as they are because no institutional investor is willing to take the risk of buying shares at a fixed price. And again, if an institutional investor were willing to take the risk of buying shares at a fixed price, I would submit VLNC violated their fidiciary responsibility by risking unlimited dilution. You are suggesting Castle Creek went to the trouble of structuring the deal this way so they can't lose, but then did not bother taking advantage of the very structure that allows them to profit regardless of what happens to the stock price. I'm sorry but I simply don't buy it. You are free to believe whatever you want.