TRBD: Asensio just put out a 'strong sell' on TRBD, which is a
Vancouver-based co. with a nasdaq traded stock.
The market cap is now $460 M, up nearly 8X from earlier in the year.
Disclosure isn't as good as with US companies, but Edgar does
have some filings.
A quick read of the annual report lends some support to Asensio's
claims in his release.
ANNUAL REPORT for the FY ending 12/97 is here:
sec.gov
In the annual, I noticed that in 9/97 the co. did a $10 M discounted convertible
financing. They did another deal in February, too. (These converts
flipped long ago, so this isn't an issue except for what it reveals
about the company's finances.)
QUARTERLY REPORT for 3/98 is here:
sec.gov
One peculiar thing I noticed is that AR is bigger than the last 12
mos of revenue, indicating that they are claiming still as revenue
stuff that hasn't been paid by customers for in over a year.
PROXY for last annual meeting is here:
sec.gov
Below I paste a MarketGuide Report. I'm still trying to figure out if
the float is only 4 M, as stated by MG:
UPDATED Market Guide Quick Facts Report
Turbodyne Technologies SYMBOL: TRBD EXCHANGE: NASD
PRICING DATA (AS OF) 07/31/98 RATIOS & STATISTICS
Price 17.00 Price/Revenue (TTM) NA*
52 Week High 17.13 P/E (TTM) NM*
52 Week Low 2.00 Price/Book (MRQ) NA
Beta NA Price/Cash Flow (TTM) NA
Avg Daily Vol (10 Day) 1.03 Mil ROA (TTM) NA%*
Avg Daily Vol (3 Month) 0.72 Mil ROE (TTM) NA%*
Current Ratio (MRQ) NA
DIVIDEND INFORMATION Total Debt/Equity (MRQ) NA
Indicated Annual ($) 0.00
Yield 0.00% NOTE: TTM = trailing twelve months
MRQ = most recent quarter
SHARE RELATED INFORMATION SHORT INTEREST INFORMATION
Market Cap. ($) 509.354 Mil Current Month 2.394 Mil
Shares Out. 29.962 Mil Previous Month 2.065 Mil
Float 4.200 Mil Short Interest Ratio 2.8 Day
INSTITUTIONAL & INSIDER OWNERSHIP
PURCHASES SALES NET PURCH %OWNED
Institutions (3 Months) 0.177 Mil 0.367 Mil -0.190 Mil 5.8%
Insiders (6 Months) 0.000 Mil 0.000 Mil 0.000 Mil 86.0%
BUSINESS SUMMARY TRBD manufactures aluminum cast automotive products,
including engine components and specialty wheels, and
develops products to enhance performance and reduce
emissions of internal combustion engines. For the FY ended
12/31/97, revenues rose from $13.9M to $39.2M. Net loss
totalled $13.2M, up from $5.6M. Revenues reflect the
inclusion of the light metals division for a full year.
Higher loss reflects costs associated with expansion.
*PRELIMINARY: For the quarter ended MAR 1998, revenues were
9,726; after tax earnings were -4,018. (expressed in Thousands)
) REVENUES (Thousands of U.S. Dollars)
QUARTERS 1997 1998
MAR 9,045 9,726*
JUN 0
SEP 0
DEC 30,120
TOTAL 39,165
EARNINGS PER SHARE
MAR -0.120 -0.130*
JUN 0.000
SEP 0.000
DEC -0.460
Here is Asensio's release:
aluable Technology
NEW YORK, Aug. 4 /PRNewswire/ -- Asensio & Company, Inc. initiates
coverage of Turbodyne Technologies, Inc. (Nasdaq: TRBD) with a Strong
Sell and Short Sell recommendation.
Investors may be buying shares of Turbodyne Technologies, Inc.
believing that the earnings potential of its Turbopac and Dynacharger
products ("Turbodyne products") are worth significantly in excess of
the company's approximate $700 million market capitalization. There
is no factual or reasonable basis for this belief. In fact, we
believe this false perception has been purposely cultivated by
management in order to defraud investors. Turbodyne does not possess
any patents on any ignition, combustion, fuel or intake design or
product that offers engine manufacturers any new technology in
emission reduction or power output. The Turbodyne technology, which w
as acquired for stock worth less than $500,000, is merely a
supercharger that is driven by an electric motor instead of a belt.
In the last five years Turbodyne has claimed deals with 12 different
companies in over 14 different countries. No manufacturer has ever
incorporated a single Turbodyne product in a new engine or vehicle.
Turbodyne has been promoting the sales potential of its Turbodyne
products technological breakthrough for over five years. During this
period, it has had no sales of Turbodyne products. However, during
this same period, Turbodyne has used its product claims to sell over
25.6 million shares at an average price of approximately $2.18 per
share to the public. None of these shares were sold under a U.S.
registration statement or through a legitimate underwriting. In
fact, the vast majority of Turbodyne's 44.2 million fully diluted
shares were created through below market private sales to insiders
who then resold the shares to the public without further disclosure
to the buyers.
Despite raising and spending over $55 million in equity capital,
Turbodyne has failed to create any new products. As of March 31,
1998, Turbodyne had over 36.3 million shares outstanding, and 7.9
million options and warrants outstanding at well below market
exercise prices. We see no asset or future earnings potential that
can remotely support Turbodyne's current stock price. We believe this
gross overvaluation combined with Turbodyne's complete inability to
generate any earnings per share will cause the stock to fall to well
below $1 per share. Furthermore, we believe that Turbodyne's
upcoming initial Form 10-Q will require a more detailed risk section
and significantly greater disclosures, which will be damaging to
Turbodyne's factually deficient stock promotion.
Asensio & Company is a New York based institutional investment bank
specializing in corporate valuations and equity research. Asensio &
Company also specializes in investigating fraudulent stock promotions
and publishing research on grossly overvalued companies. Asensio &
Company's published research reports, including a copy of our report
on Turbodyne Technologies, Inc. and a complete record of our previous
Strong Sell reports, are available on Asensio & Company's Internet
home page located at asensio.com.
Copyright 1998 by Asensio & Company, Inc. All rights reserved. This
report should not be construed as an offer to sell or solicitation of
an offer to buy any securities. Opinions expressed are subject to
change without notice. This report has been prepared from original
sources and data which we believe to be reliable but accuracy is not
guaranteed. This research report was prepared by Asensio & Company,
Inc. whose stockholders, officers and employees may from time to time
acquire, hold or sell a position in the securities mentioned herein.
Asensio & Company, Inc. may act as principal for its own account or
may sell or buy to or from its customers the securities described
herein. Asensio & Company, Inc., may from time to time perform
investment banking or other services for, or solicit investment
banking or other business from, any company mentioned in this report
or its affiliates.
SOURCE Asensio & Company, Inc.
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