|
|
|
|
|
Manuel Asensio Report: Jun. 06, 2002 Update on our Research Frontiers forecast |
Attached is a copy of our letter dated June 4, 2002 to Research Frontiers Inc.’s (NASDAQ: REFR, Price $12.51) Board of Directors. The letter reiterates the Manuel Asensio and Asensio & Company, Inc. ("Asensio") position concerning Research Frontiers’ stock and its earnings potential claims. Manuel Asensio and Asensio initiated coverage on Research Frontiers on June 15, 2001. Research Frontiers’ stock was $27.90 on that date. Last week Research Frontiers stock traded at a low of $11.09. The attached letter advises Research Frontiers that our opinion has not changed and that we still believe Research Frontiers stock is worth less than $1 per share. The letter further notifies Research Frontiers’ Board of Directors of Asensio & Company, Inc.’s opinion that its management is excessively and inappropriately promoting Research Frontiers’ stock by disseminating highly questionable investor representations and using irregular securities transactions to extract gains from those misrepresentations.
Manuel Asensio and Asensio report that during the last 15 years, since Research Frontiers began selling stock to the public, Research Frontiers has repeatedly issued, sometimes in identical form, the same promotional "hype" concerning the earnings potential of its unproven 60-year-old product concept. During this same unprofitable period, management has taken large amounts of cash compensation and Research Frontiers has almost constantly sold stock thereby taking advantage of the "hype" affected stock price and the volume created by the questionable promotional activity. Manuel Asensio and Asensio believe Research Frontiers shares are grossly overvalued and are worth less than $1 per share and expects the shares to trade for less than $1 per share soon. The firm and its clients have a short position in Research Frontiers shares. In the opinion of Manuel Asensio and Asensio Research Frontiers illustrates a fundamental problem with the securities industry’s self-regulation. Manuel Asensio and Asensio believe that the mere fact that the NASD has not delisted Research Frontiers or commenced an action against Research Frontiers’ stock promoters adds undeniable but wrongful credibility to this penny-stock scam with an uninterrupted 36 year record of absurd promises and total commercial failure. |
|
