Most companies play by the rules, releasing accurate information and making a genuine effort to generate profits for their shareholders. But occasionally a company and a group of stock promoters will deliberately withhold crucial information, disseminate false information, or simply be an outright sham. When this deception is publicly disclosed, all sorts of accusations and denials will fly, but experience has shown that sooner rather than later the company’s stock is likely to decline sharply. And anyone selling short the stock of such a company will profit when it crashes. Manuel Asensio is probably the world’s most visible practitioner of this brand of aggressive short selling. And this is his story.
In the midst of the greatest bull run the stock markets have ever seen, Mr. Asensio has been taking on public corporations large and small with the twin goals of exposing deception and making money. And for over five years Asensio has been harassed by his targets and private regulators with conflicts of interest, dragged through the courts in attempts to silence him, and disparaged in the press. Yet in those five-plus years not one of his many statements and reports has ever been proved even partially false much less inaccurate or incomplete. And in that time, his meticulous research and bold declarations have indeed enriched any investor savvy and prudent enough to pay attention and act accordingly.
Mr. Asensio has published “short-sell” recommendations on over two dozen companies, and in this book he relates the highlights, including:
• Exposing the fast-rising young English banker who caused Morgan Grenfell to lose half a billion dollars yet avoided prosecution by appearing in court in a dress
• Determining that one of the very first red-hot $120 Internet stocks was promoting a dated and virtually non-saleable technology
• Uncovering the accounting trickery and press release sleight of hand that was bogging down the largest public-works project in the history of New Jersey and causing Turnpike commuters to blow their stacks
• Digging into the purchases of a highly regarded Dreyfus mutual-fund manager and finding a mother lode of junk stocks in which the manager held a compromising interest. The manager was fined $50,000 and sanctioned by the SEC
In this lively and often funny book, Manuel Asensio not only recounts his “greatest hits,” but also shows you how to identify these shaky stocks yourself. These stories reveal that anyone—Arthur Andersen, senior exchange officials, and state public officials—can get caught up in a complex web of deception. Who knows? Your portfolio might have one or two of these stocks in it right now. Better find out before someone else does…
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Sold Short. By Indi Community News - June 25, 2001 |
SOLD SHORT: Uncovering Deception in the Markets
By Manuel Asensio
John Wiley & Sons, Inc. 240 pages, $29.95; our price: $22.00
Reviewed by Christopher "cwmayer" Mayer
"A bum stock is like a straying partner: You may not want to hear about it, but you need to know." - Manuel Asensio
Manuel Asensio is every investor's best friend. Asensio has uncovered a number of frauds and deceptions since issuing his first strong sell and short sell recommendation on General Nutrition Corporation in 1996. As the founder of Asensio & Company, he is well known for his activities on the short side. |
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12-Jun-01 08:46 ET [BRIEFING.COM - Robert V. Green]
Frequent visitors to message boards know that any one criticizing a company can get labelled as a "short seller." In some people's minds, there is no lower appellation. But most of that antagonism is misplaced. If you want a real glimpse into the mind of a major-league short seller, you should read this book. |
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Book Review: Sold Short by Manuel Asensio |
By Mike Kreusch, Senior Columnist
Saturday, July 28, 2001 3:58 PM ET
Manny Asensio engages in what you might refer to as 'active' trading. Not that he diversifies. Asensio & Co. generally pour all of their efforts into a relatively small number of positions. Short positions, no less. Manny Asensio, Cuban emigre, Ivy-leaguer, scorned by the 'white shoes' of Wall Street who decided 'to hell with them' and broke out on his own to form 'An Investment Company Based on Research'. |
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