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

To: Larry Brubaker who wrote (9324)	3/14/1999 3:09:00 PM
From: FMK	Respond to of 27311

Larry, If someone intended to take delivery of 100,000 and didn't yet exercise all of them, it may mean that there are 20,000 yet to be exercised, in that case, more stock may have to be bought next week to cover. If most of these were exercised on Thursday, isn't there a 3-day period for settlement for the writer of the calls to deliver the stock? If so, someone may be scrambling Monday to obtain the shares to deliver under the contracts he sold, if he didn't own the stock outright. Also, the exercise may have come as a surprise to the writer of the calls. He may have learned about it from his brokerage firm a day or two after the event, as with a margin call, such that he had no time to take action to buy the stock on Thursday or Friday because he may not have known about it then. The best he (they) could do was to try to scare a few investors into dumping a few shares in attempt to hold their purchase price down. My point was that call options definitely were exercised and I later heard more specifically that the amount was about 80,000. I didn't manufacture the information as Zeev implied. The sudden appearance by two new posters attempting to trash Valence and calling it a fraud plus dozens of posts by Zeev and yourself could very well be explained by someone in a bind, having to come up with 80,000 shares of stock at market prices on Monday, and by others being worried about covering their short positions (1mln shares or so outstanding). Think about it, it's not something I would do, but wouldn't you post negative opinions if you were forced to buy thousands of shares at market prices only to turn them over to someone else for $5?