Update on our Research Frontiers forecast

Attached is a copy of ###192.gif::our letter dated June 4, 2002 to Research Frontiers Inc.’s ###(NASDAQ: REFR, Price $12.51) Board of Directors. The letter reiterates our position concerning Research Frontiers’ stock and its earnings potential claims. We 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.

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. Asensio believes 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 our opinion Research Frontiers illustrates a fundamental problem with the securities industry’s self-regulation. We 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.

Posted in Research Frontiers Incorporated

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.