Late breaking news !
DOW JONES 90-DAY NEWS/RETRIEVAL Int'l News & Research Services Page 1 of 3 Sequence Number : 4624 Story Date :
98/08/04
Neal Kohlhaas, an analyst with CSK Securities, called the allegations about Turbodyne's revenue potential by Asensio & Co.'s Manuel P. Asensio "totally false," adding that the short-seller may have put out the release to fortify his own investment position in the stock.
"I would guess that they have set up a major short (position) for
themselves," he said.
Short-sellers sell borrowed shares, hoping for a drop in the share price so they can buy back the shares at a lower price.
Asensio was unavailable for comment on Turbodyne.
Regarding Asensio's comments on Turbodyne's earnings potential, Kohlhaas said the company either has negotiated or is negotiating enough orders to "give the company a real earnings flow" in the future.
Specifically, Kohlhaas cited a recently won $30.7 million order from the city of Moscow for the company's Turbopac technology.
As reported, Moscow's TransBusiness Group ordered 10,500 Turbopac models 1500, 2200 and 2500. The order also comes with an option to buy an additional 10,500 Turbopac units at the same price for 12 months from the date of the purchase order, which is July 1.
Turbopac is an electric motor designed to reduce "lag" or delay in
turbocharger performance on vehicle engines, the analyst said.
Moscow is interested in giving its aging turbodiesel bus fleet a performance boost with the Turbopac technology, he explained.
Kohlhaas said he sees Turbodyne becoming profitable sometime next year.
Turbodyne officials declined to comment, adding that they will put out a "counter-release" commenting on Asensio's recommendations sometime Tuesday afternoon.
-Justin A. Oppelaar; 201-938-5175
(END) DOW JONES NEWS 08-04-98
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