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

To: mooter775 who wrote (9265)	3/13/1999 6:18:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Mooter, well confirmation must be taken seriously, but it does not jive with the behavior of the trading in the options. If somebody the options to me, I either would have had the shares available (because I sold covered options as I do quite often on my MRK shares), or if I was a naked seller of the options, I would not wait a minute and go into both the option market and the stock market to cover my butts. Unless this transaction happened on the close on Friday and the uncovered party had no time of doing anything about it, you surely would have seen some action in both markets. I am left to conclude that if indeed yours and FMK's sources are correct, the seller of the options simply engaged in a typical hedging action and is going to deliver shares he already has. We will see Monday, I presume. In the last three years I was forced once to actually deliver the underlying shares and then go back in the market to reacquire these. It happens on the last day of the cycle and I was not notified by my broker until the following Monday. By the way, did your source tell you when the exercise occurred? By the way, of the seller was not covered, I am sure he would have grabbed whatever is available on the instinet after hours. Zeev