Hank, have you read: cfs-news.org recently?
I have. I think Asensio is quite vulnerable again, despite the myth you guys buy into.
It mentions some of the problems Asensio has had over the years, with a focus on Hemispherx and, of all people, Oprah. I love some of the lines here and we know it must be true because it was in the Wall Street Journal and newspapers NEVER publish mistaken statements per Asensio.
Asensio seems to have a sense of mission about what he is doing, and he is quoted as having said "God has given me this power -- it's the power of good vs. evil."
All I can say is, Thank God I am an atheist.
Mr. Asensio denies the allegation. But the doctor’s counterattack blunted the short-seller’s assault, costing him $2 million in legal fees, forcing him to postpone a planned initial public offering of his holding company, Asensio.com, and frightening away clients of his Asensio & Co. brokerage unit. Hemispherx stock “went from $2 to $19 while I’ve been there,” Mr. Asensio fumed in a deposition taken in April. “No company has ever done that.”
What can I say. If he sticks around, another company will do it to him, and worse.
Meanwhile, with his legal bills mounting, it became harder for Mr. Asensio’s firm to continue churning out successful short selling campaigns. The last two firms he targeted, Internet registrar Network Solutions Inc (now part of VeriSign Inc.) and video-and-telecommunications firm Parkervision Inc., proved resistant to his attacks. Mr Asensio stopped making new ”strong sell” recommendations.
another quote:
Short-selling is a risky game, as Mr. Asensio discovered with Hemispherx. While investors who are “long” a stock can lose 100% of their investment, short-selling magnifies losses because there’s potentially no end to just how high a stock can climb. One big client of Mr. Asensio’s, holding 300,000 shares of the stock, lost about $3 million in just one month, he says, when Hemispherx rose from around $9 a share in early February to around that $19 mark in early March. The rise forced the client to meet margin calls along the way to make up for the losses.
and
Dr. Carter’s suit subpoenaed a broad swath of Asensio clients and others. John Paulson, a hedge-fund manager and old friend of Mr. Asensio’s, was flabbergasted when he received a subpoena demanding that he turn over all trading documents relating to Mr. Asensio. Mr. Paulson, who soon stopped doing business with Mr. Asensio, declined to elaborate.
and
All the wrangling has taken its toll: Mr. Asensio says he recently has given up his firm’s short position on Hemispherx, though he continues to sell the stock short on behalf of clients.
Read the original and other similar stories.
I am not saying Hemispherix is a great company or not worth shorting. I am saying a bully can be taught a lesson especially when he uses rough tactics. If he chooses a company willing to fight back, he can be whomped. As a repeat offender, it gets worse every time. He has made many enemies, albeit some when he did legitimate shorting of stocks that made others lose money. But enemies are enemies.
REFR has access to very fine lawyers and feel free to look up the record of Joe Harary who I admire more than almost anyone else. If they want to slam Asensio, they can make a dent. Shareholders have already discussed filing their own suit. I will pay my share. The NASD has been getting tremendous pressure to not only investigate but fan out and get all involved and go for a conviction, and not make any deals. We keep supplying them with evidence and are identifying the clients shorting with Asensio.
See. I have nothing to worry about.
As for me, what concerns you? I assure you you guys take up an inconsequential amount of my time and abilities. I can skip your attempts to make insults, since it would involve humiliating you.
The short position on REFR has been discussed and it has roughly tripled since October. The days to cover was listed last month within the top 200 for Nasdaq Stocks, more importantly. It is immaterial whether that is good or bad for the stock unless you are a trader. The vast majority of REFR shares are held by LONG term investors who expect the stock price to reflect earnings soon enough. So, I would not be upset if the shorts slinked away with some dignity nor if they were squeezed. My plan is to sell a few shares now and then over the years at prices that would make your head spin, not into a squeeze. Someone else will have to help guys like you out.
But, at the current time, the heavy short position is, indeed, good for me. It insulates REFR from being able to fall much under the latest Jihad call by Asensio the Great. The stock was at 24.38 last Friday when Asensio showed up on that excuse for a radio show and a week later we close at 22.6 for a drop of 7% on a week the NAZ is basically unchanged. Clearly, the Asensio effect hit the stock but all that pressure did not do much, in my opinion, nor do I expect it to matter much longer.
I do spot checking and many places have no stock for loan but I found a little here and there. So, I do not expect much more shorting to be possible, legally, without some intermdeiate covering. What can happen is for some people who are long and short (which does not seem to be very legal) to sell more and go naked. There are limits, clearly, and buyers can absorb that, especially at lower prices where it becomes very attractive.
I expect minimal problems with margin, for longs. I expect minimal selling because we are on to most of the tricks and we KNOW products are here even if you see no evil.
So, this bloated short position is actually quite welcome. It is very tempting to take it out. I have a group of fellow shareholders who hold shares on no margin but have the ability to borrow. We are very tempted to work together and double our positions but there is one hitch. We believe in following the rules and that would be collusion, to an extent. I think there would be howling if people tried to buy a few million shares all at once, don't you think. It would be trivial, and I can not assure you others won't do it without telling me. LOL!
I am saving my margin in case the company triggers the poison pill defense so I can buy quadruple the shares I have for a song. Of course, if tempted by a low enough price, I will use margin on my own. If the short position is tight enough, that could trigger a squeeze too. It can take very little to panic people. You guys should know that. Pick a stock held by fools and you will do well every time. Pick a stock with people like me, and you get what you deserve.
I note Wexler is in close proximity with Lashinsky. Their phone records could be interesting.
Tell Asensio for me. |
