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

To: Rich Wolf who wrote (9376)	3/15/1999 11:11:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

Rich, if indeed a big chunk of 1.2 MM shares short are hedge position is by CC as a hedge, than I would expect them to cover in the open market as long as the price is below their shorting point. I would also expect CC to know before us the likelihood of a "material PO" coming down the pike before we do. As a result, we would see some technical strengthening of the stock. That was the rationale for my stating last week that two weeks before the "drop dead" date (namely the point at which VLNC has to go back to the financial well), I would have expected to see some positive technical action in the stock if a PO was imminent. By the way, on this 800 contract of March 5 calls, one way for CC to make additional returns on its investment is indeed to write covered calls on either their existing position (1.3 MM shares?) or even against their preferred. In their place, however, I would have chosen strike prices like $7.5 and $10, since these provide much better premiums and thus better returns. Zeev