Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kolo55 who wrote (9590)	3/20/1999 2:42:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Try again, Paul. There is no way the share count includes all of the common stock issuable upon conversion of the preferred shares. VLNC has 25.4 million shares outstanding before any preferred shares were issued. Under the best case scenario (fixed conversion price) there will be 2.5 million additional shares issued $15 million divided by $6.03. Therefore, if these shares were counted, there would be at least 27.9 million shares in the share count. And this does not count more than 800,000 warrants that are in the money. Any really experienced investor should be able to add and subtract share counts.

To: kolo55 who wrote (9590)	3/20/1999 2:45:00 PM
From: Zeev Hed	Respond to of 27311

Paul, I think you are mixing "diluted number of shares used for calculating earning per shares" with actual "outstanding shares". In the balance sheet under "Liabilities and stockholders equity", you cannot double count the same shares, it would mean that you add the preferred (as of Nov 1, $5.9 MM still on the BS) to the "additional paid in capital, or engage in "double counting, I think the SEC does not like this type of accounting. Once converted (and stock certificates delivered to the preferred against their yielding some of the preferred), you subtract (from $7.5 MM to $5.9 MM in case of the last available 10Q) the preferred and add that to "asdditional paid in capital. Zeev