Manuel Asensio conducts a preliminary analysis of public companies when it believes that a company's stock is trading at a price that is wholly unjustified when compared to its peers and/or its own future prospects. Manuel Asensio's preliminary analysis candidates come from its following the activities of known fraudulent stock promoters and industry sources. These sources include medical researchers, executives of companies in the subject company's industry and financial experts with extensive research experiences, which are either well known to Manuel Asensio or investigated to confirm their experience and knowledge with the subject matter.
The above preliminary analysis may yield evidence that the subject company is either worthless or so over-valued that its shares are highly likely at most worth less than 20% of their current market value. If so, Manuel Asensio performs a background check on the subject's underwriters, promoters, directors and officers, and a fact-checking analysis of its disclosures to public investors.
The background check may yield documented factual evidence of past involvement in fraudulent public stock promotions. If so, Manuel Asensio performs a complete valuation analysis to independently calculate the subject's fair stock price. This includes an investigation of the subject company's business or scientific claims through research with highly specialized industry experts. This procedure varies from securities industry standards that rely on company statements and use in-house employees who are responsible for researching entire industries. These in-house industry generalists may lack first hand knowledge of the subject matter. Instead, Manuel Asensio relies only on individuals with specific personal experience and knowledge directly related to the subject company's claims.
Manuel Asensio then compares the subject company's own public disclosures made in its SEC Form 10Qs, Form 10Ks, proxy statements and prospectus filings and its press releases with Manuel Asensio's independently generated facts and analysis.
Simultaneously with this fact checking, Manuel Asensio investigates the subject company's historical methods for using the public markets to sell stock to investors to determine if it is "dumping" stock. Companies that sell options, warrants and/or stock privately at below market prices to private buyers and then file documents with the SEC that allow those private insiders to sell their "cheap" stock to the public often are engaged in disseminating misleading and false information to create buying interest. This distribution of false or misleading information is known as "dumping". These "dump" sales occur while the company is disseminating false positive information without notice to the public buyer that he is buying shares obtained by insiders "cheaply" directly from the company.
In a stock fraud the private buyers are compensated for their involvement with the fraudulent promote and often share their compensation with brokers who are paid to "box" the stock. "Boxing" a stock is the process of selling or "placing" large amounts of the stock for "cash". The stock is often sold "boxed" in small amounts to a large number of small retail investors. This process is also known as "burying" the stock. Brokers "bury" stock in cash accounts to prevent short sellers from obtaining the stock through a "borrow" and then selling it short. This eliminates the supply short sales create, the need to re-bury or re-box to stock the short seller would resell, and the incentive of the short seller to expose and combat the fraud.
A subject company must be both widely disseminating misleading positive statements of substantial importance to investors and omitting material negative information ("pumping") and "dumping" stock on the public by using prior private stock sales before Manuel Asensio will consider short selling and initiating coverage of its shares. Manuel Asensio will only issue Strong Sell and Short Sell reports on companies that it believes are over-valued, that are actually engaged in "pump and dump" transactions, and that it believes is disseminating false positive information about material alleged developments. |
