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Manuel Asensio Report: Mar. 13, 2003 BBOX Wednesday from an investor advocate's point of view. |
Manuel Asensio and Asensio & Company, Inc. ("Asensio") report that yesterday Black Box Corporation (NASDAQ: BBOX, $26.78) closed down 32% from Tuesday's closing stock price. Yesterday's drop may seem like a harsh reaction to a Black Box press release that includes a statement that Black Box feels, "very strongly that we have built a service offering that is strategically relevant and has no peer." Manuel Asensio and Asensio point out that Black Box's press release also states that, "from an overall marketing perspective, with approximately 3% market share, Black Box today is the largest service company in this space. We believe, through proper execution, there is an enormous opportunity to capture significant market share in this very fragmented $20 billion market." and that, "we are just in the early phases of exploiting the service capabilities of Black Box."
According to Manuel Asensio and Asensio, investor advocates (sometimes referred to as "short sellers" in the financial media) have a different perspective about Black Box's prospects. On October 15, 2002 we wrote to Black Box. Manuel Asensio and Asensio asked for an explanation of Black Box's reported increasing margins while sales were rapidly falling despite its continued and expensive acquisition spree. Black Box's press release did not state that its expected $131 million in revenues for the quarter ending March 31, 2002 is approximately 50% below its pro forma revenues for the same quarter two years ago. To an investor advocate (short seller) like Manuel Asensio and Asensio, that fact seems worth noting.
You can read our letter to Black Box on our website at www.asensio.com. Unfortunately, Manuel Asensio and Asensio did not get a response to show you.
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