To All - Something that gets dumped in my e-mail every now & then
Exclusive to Mr. Cyriuss
March 6, 1998
"Quick Flip on Crystallex", by the Guerrilla
Manuel Asensio's Crystallex bashing should bring at least a brief spike
into KRY shares on Friday or Monday. We analyzed four previous Ansenio
hit-list targets and found that each had small reversals (up to 20%)
from the initial bashing.
NO material developments have occurred (yet) with Crystallex. Just as a
stock promoter temporarily pumps up a share price, a high-profile
shortseller such as Asensio creates an OVERSOLD situation in a stock
until a material development actually takes place.
While Asensio's predictions may come true or not is irrelevant in this
matter. KRY will move up or down on the release of the Venezuelan
Supreme Court decision. KRY's shares moved down on Wednesday and
Thursday because weak shareholders were shaken out. In all likelihood,
KRY and others will seek support to shore up their share price. That
activity should temporarily lead to a recovery in the share price.
We look for a 20% spike in KRY shares (Amex/TSE), starting today.
KRY shareholders may find this an excellent, if only temporary, moment
to average down. Non-KRY shareholders may wish to exploit this brief
opportunity. We only look for the brief speculative spike and do not
wish to HOLD stocks for the long term!
In the typical Asensio shortsell recommendation, there may be up to six
rallies, over a three-four month period, permitting fleet speculators
several quick flip opps. We hope to apprise you of each future KRY rally
before it happens, unless the Venezuelan Supreme Court rules in KRY's
favor, which then ends this story.
For Cyriuss' Notes,
The Geurrilla.
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---- T H E G O O N S Q A D ----
Exclusive to Mr. Cyriuss
March 6, 1998
Mr. Short clarifies March 5th Commentary: Crystallex & Asensio
We meant no disrespect yesterday, when highlighting Mr. Asensio's
commentary and background, with regards to Crystallex (American/Toronto:
KRY). We sincerely apologize to anyone who was offended by our Mr. Short
commentary of Crystallex. There was no attempt made to belittle this
junior gold producer at this critical point in its growth. Neither did
we make disrespectful remarks of KRY mgmt and corporate officers nor do
we intend to. The emphasis of yesterday's commentary was to bring to
your attention Mr. Asensio's nasty and notorious habit of being deadly
accurate in his assessment of grossly overvalued stocks (his term, not
ours). In the course of our commentary, we did not reprint Mr. Asensio's
statements or beliefs with regards to KRY. You can read them, as we
have, at his website (http://www.asensio.com).
In the spirit of this clarification, we would like to bring several
observations to your attention. When in doubt about something, ask
questions and gather data. That is all part of doing one's due diligence
on a stock. Simply believing a story, pro or con, can be a fatal and
costly mistake. Investigating and spending a gallon of sweat is cheaper
than spilling a pint of blood.
1. Following Mr. Asensio's SHORTSELL recommendation of Crystallex, a
Final Judgement court document found its way around the Internet
newsgroups and was given credence to by at least one Internet
commentator. This judgement involved a defendant with a similar, but
different name. The guilty party's name was Manuel P. Asencio, not
Manuel P. Asensio. We ran a nationwide Internet name search on this name
and found numerous Asencio and Asensio individuals throughout the United
States (located in California, New York, Massachusetts, Ohio, Michigan
and Pennsylvania). None in this white page search were listed as Manuel
P Asensio or Manuel P Asencio. None were located in Florida, where this
litigation occurred. We sincerely doubt that Mr. Manuel P. Asensio (with
an "s" not a "c") conducted his business affairs in Stuart, Florida
(approximately 70 miles north of West Palm Beach) in 1989; he was
working for Bear, Stearns in New York City at that time. The Internet
message appeared to have been a deliberate attempt to discredit the
notorious shortseller. Judging from our Thursday email messages, that
Internet message fooled quite a few! Did it not occur to those who
believed that message that Mr. Asensio has been in the thick of battle
with many companies, and in the media spotlight, for the past three
years, and would have already been "found out" had he actually been a
convicted fraudster?
2. One should read an illuminating article, which features Mr. Asensio,
in Business Week. Click businessweek.com
3. Check out Mr. Asensio's CURRENT track record in spotting losers.
Visit any Internet website that has charting functions and review the
share price performance of his last few short picks.
Ticker symbols: ZONA, ERGB, AVNT, SOLVQ
Suggested websites with charting functions:
cbsmarketwatch.com
pcquote.com
investorama.com
Asensio's most recent "victim" is Avant! and you can read more about
this company on Silicon Investor (www.techstocks.com). AVNT has since
shedded an enormous amount of market capitalization.
Another is Ergobilt, which from this past autumn, has fallen from about
$15/share to under $5/share. At that time, Motley Fool had commented it
would be interesting to see whether the bulls or bears would win in
evaluating this company's future share price. Ticker Symbol: ERGB
4. It is of interest to detect a pattern in corporate denials
articulated by companies that Asensio selects for his shortsell
recommendations. The corporate denials may sound familiar to what you
are reading elsewhere on the Internet about KRY. Some selected excerpts
from two of Asensio's shortsold victims:
AVNT: "...Asensio's misleading, exaggerated attacks may continue. Avant
expects its technological breakthroughs and business success to
continue..."
SOLVQ: "...I think it is important to point out that Asensio seems to
be desperately afraid of our impending success and is disseminating
false information so shortsellers can profit..."
SOLVQ: "...I vehemently object to the complete distortion of facts by
an admitted shortseller who seems to have little regard for the
truth..."
AVNT: "...Asensio has repeatedly ignored the facts in his futile
efforts to justify his wrong-headed bet against Avant..."
SOLVQ: "...I am fully prepared to support and defend any statement made
by the Company or me personally, but I question whether Mr. Asensio is
prepared to do likewise..."
AVNT: "...In fact, in his releases, Asensio states that 'accuracy is
not guaranteed' for his reports..."
AVNT: "Avanti's fundamental business strength cannot be obscured by the
increasingly desperate tactics of shortseller Manuel Asensio..."
AVNT: "...Asensio's chronic ignorance of the facts is especially
obvious in his recent 'analysis'...."
SOLVQ: "Our Company has been the subject of many abuses...Performance
will be the test of our capability."
SOLVQ lost 90% of its share value after being exposed by Mr. Asensio.
AVNT has lost 60% of its share value while disputing Mr. Asensio's
claims.
5. KRY investors should realize that this company, during Marc
Oppenheimer's reign, have paid stock promoters such as Robert Chapman,
G.C., Ed Taxin, Richard Radez and others to present Crystallex in a
favorable light. Mr. Asensio is correct in stating that KRY has financed
its operation through voluminous stock sales, such sales having come
about from a high-profile investor relations campaign. Rumors have swept
throughout the Internet, over the past year, claiming that KRY's shares
will run up to $20. This is typical in any corporately sponsored stock
promotion.
Summary:
The outcome of KRY's fate comes not from Mr. Asensio, but from a justice
system in a politically unstable country, whose currency is likely to be
massively devalued in the next fiscal year. While we may side with Mr.
Asensio's judgement in this matter, we won't be exploiting this
opportunity to shortsell KRY shares and continue to remain completely
independent of KRY or Asensio.
It has been widely reported that Mr. Asensio is obnoxious and
self-serving by aggressively releasing his shortsell recommendations on
PR Newswire and elsewhere. We find him extremely promotional and
distasteful in his methods of bringing down grossly overvalued
companies. Other shortsellers tend to remain in the shadows, quietly
having others do their dirty work for them: public relations,
investigations and treachery (bribery, deceit, extortion, theft, etc).
Generally, it is the self-promotional types who wear thin, over time,
and get into the most trouble. Perhaps, Mr. Asensio will find his most
dismal failure in Crystallex. Time will tell if his recommendations were
those of a desperate shortseller, praying he could drive down the share
price and cover his position before a judicial ruling financially ruined
him, or whether he again hit the bull's eye.
We don't ask you to sell KRY shares. We don't ask you to short KRY
shares. We only ask you to look at the fates of Mr. Asensio's four
latest victims. The charts don't lie. His track record can not be
ignored or discounted |
