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: William who wrote (9684)	3/22/1999 6:44:00 PM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

At what level would CC 'accumulate?' We need to watch the tape over time to determine that. And the 'threshold' level, if tripped, would not trigger an avalanche of covering. Only a deep penetration and snap back would really tell us something. But to answer your prior question, the reason for speculating at the level was that the warrants are for stock priced at $6.78 (unless they select a cashless exercise), so anything below that is cheaper than the shares available via the warrants (loosely speaking). It's still a waiting game, and the different players have their own timelines and agendas. With some investment houses under trading restrictions, the price can be moved a lot on light volume. Today was a favorable contrast to the market's reaction to a similarly worded document back in December. However, on another topic, it's not clear that we have to hear anything about finances before the end of March, though I'd expect it within a month or two. They've added cash from options exercises and sales of samples, etc., during the quarter, and they just received the $7.5M from CC at the end of the December quarter. Lev also said the cash burn rate would be dropping dramatically, as most of the equipment was now paid for. It's a fair bet that Lev, as a major shareholder, is trying to stretch it out until he can obtain less dilutive terms than the last set. There is still the $7.5M loan available from Carl Berg that he can tap into. Bottom line: we won't know their cash situation until they tell us, probably by means of an SEC filing about the financing terms. I noted that the annual filing (which includes the March quarterly financials) wasn't filed last year until the end of June.