The Globe and Mail and the Journal question KFx.

Below please find a link to an article published today authored by Michael Flaherty based on a series of interviews with asensio.com’s founder and former operator Manuel P. Asensio. The article mentions that KFx Inc. (AMEX: KFX, $7.85), a company listed on the American Stock Exchange, is among Mr. Asensio’s “current short-selling picks.”

In today’s edition of the Wall Street Journal’s “Tracking the Numbers” column Jonathan Weil wrote a story dealing with KFx’s failure to disclose and then after-the-fact disclose that Kanturk Partners LLC, KFx’s much-hyped want-a-be licensee, is actually controlled by a group of KFx shareholders. Kanturk is also shown to be a recently organized company.

The Journal article ponders KFx’s motives and notes that the deal with Kanturk “might be perceived as an independent validation of KFx’s technology, which the company concedes still isn’t operational after 20 years of development.” The Journal article goes on to also note that “three Kanturk partners stood to benefit if investors perceive a licensing agreement as good news for KFx.” Now there’s a motive.

The Journal article is focused on this one recent event. Investors should not make the mistake of believing that KFx, its K-Fuel and its Alaskan scheme are not riddled with other serious and highly material, questionable disclosures.

KFx’s K-Fuel dates back to at least 1975, or 29years ago, when Edward Koppelman began working with SRI International on the new coal processing scheme. As KFx concedes “still isn’t operational.” It is not as if processing or “beneficiating” coal was so revolutionary or difficult. Most coals (65% to 70%)must be processed at the mine before shipping and milled at the plant. Furthermore, there are over 55 plants in the U.S. already upgrading over 115 million tons of coal per year.

KFx’s Alaskan scheme is laughable. Even Alaska’s good coals from developed reserves have a difficult time competing in export markets. And KFx ain’t even pretending to be dealing with Alaska’s good coals. KFx’s inventors might be interested in the U.S. Government’s Energy Information Administration’s (“EIA”) data on the quality and quantity of Indonesia’s coal reserves and the recent investment activity in Indonesia’s coal industry. According to the EIA, Indonesia has 5.9 billion tons of recoverable coal reserves, of which 58.6% is high-quality lignite. The EIA goes on to note that Indonesia is already producing 114 million tons of coal annually and plans to double its coal production over the next 5 years mostly to export to Asia.

Clearly the fact that KFx’s Kanturk promotion was fact-deficient in failing to disclose its “self-dealing” aspects is but a grain of sand on the beach that is KFx’s 29 years history of stock promotion.

Famous Wall Street short seller softens his demolition man image
The Globe and Mail
By Michael Flaherty
Reuters News Agency
September 29, 2004

Tracking the Numbers: In Deals, There’s Often More Than Meets Eye
The Wall Street Journal
By Jonathan Weil
September 29, 2004

Click here to learn more about the Amex.

Asensio & Company, Inc. reports are published and distributed solely and exclusively to registered asensio.com subscribers who have read and agreed to the Mandatory User Agreement. This Mandatory User Agreement is included herein in its entirety by reference thereto and by notice of its availability.

Posted in KFx Inc.

Manuel Asensio doesn’t bet often. But when he does, it’s wise to pay attention.

Paul Kaihla
eCompany Now
1 2 3 4 5 6 7 8 9
About Our Founder
Learn more about asensio.com's founder, Manuel P. Asensio, and the website's origins. Click here to be directed to Mr. Asensio’s professional biography.
Media Record
Click here to see selected articles that discuss asensio.com's work and its unique legacy. asensio.com also strives to maintain a complete record of articles dealing with the companies that are the subject of asensio.com research.
Investment Record
Click here to view a list of the companies that have been subjects of asensio.com reporting and click here to see the complete investment record.
Asensio and FINRA
Asensio & Company, Inc. and Manuel P. Asensio are the only dedicated short sellers ever to have been members of FINRA. This unique-minority membership created complications in the regulatory relationship. Being the first activist short investors and among the first FINRA member firms with a website added to the complexity. A statement by Mr. Asensio is available here. Information necessary to obtain a meaningful understanding of the dispute is available in complete form HERE.