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  • dond_done dond_done Aug 1, 2013 12:57 PM Flag

    Nothing changes

    You know I miss the funny banter and odd arguments I used to find on this board. But the one thing that never changes is that we have all always been left in the dark on what anybody with any power or decision making ability was ever thinking; that has not changed. I never sold any of my shares, may not need the loss till next year anyway.

    Sentiment: Hold

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    • I am grappling with the question as to why a tiny microcap with a $9 million debt obligation would take more than a year to emerge (heading to 15 months) from bankruptcy or fold and the assets sold off to creditors. I think that Carl Berg holds all of the cards, including his $195 million dollar loss in equity (my estimate of 50% of float bought at an average of $4.50 as share) ... but this would pale against my assumption of his substantial net worth from California real estate. Why wouldn't he just clean the slate, take the loss, and move on? There, the answer may be in his investment in his e-vehicle enterprise. Since batteries are the main driver of cost in e-vehicle and hybrids, he has got to be figuring out the best way to continue to have a say in where Valence is going. As an aside, the longer this BK process drags out, time is playing into lithium viability. That there was a "bid" (from Johnson Controls) might have upset his applecart in simply forking over lowball bid of $12 million (a guess on my part also) to pay off all creditors and own the firm outright. Maybe someone else can mull over this time horizon puzzle, or perhaps provide other facets of this BK game. Like you DDone, I sit on shares and keep it on my spreadsheet as a poster-child reminder of the risk of owning microcaps. All the best.

    • Hey Dond, I am almost ashamed to admit that I still have a few shares of this #$%$ company. Oh well, at least I was able to do one short term trade and lower my cost basis. I only lost a couple of Thousand dollars all told.

      Who knows, maybe the company will emerge from BK without wiping out the existing shareholders. I figure there might be a 10 to 15% chance of that happening, only because a company that I worked for 25 years ago went into BK, the employees who had lots of stock figured all of our money was lost. Yet, the company issued new stock to the old shareholders, at a significant loss of course, then a couple of years later the company got bought out, and we actually made money. Well, we all got laid off, but that's a different story.

      I guess there is a small chance of something similiar happening with Valence.