10th Anniversary Creation of Activist Short-Selling

Today, June 27, 2006 marks the Tenth Anniversary of the first ever publication of a research report by a National Association of Securities Dealers (“NASD”) member firm or any other professional organization advocating that investors avoid the purchase of a certain stock due to serious questions about management’s representation and conduct.

On this day in 1996 Asensio & Company, Inc., then an Securities and Exchange Commission (“SEC”) and NASD member firm, responded to an appearance on CNBC’s “Squawk Box” television show by Diana Corporation’s (“Diana”) Chief Executive Officer (“CEO”) with a press release and publication of a research report on the then brand-new Internet. Diana was one of Wall Street’s first darling Internet bubble stock. In the CNBC appearance Diana’s CEO hyped its technology and profit potential.

The first activist short selling reports, issued by Asensio shortly after Diana’s CNBC appearance, criticized the company, its products and CEO, and revealed the CEO as a serial stock promoter with a long list of failed schemes, and also proved Diana’s product to be fatally flawed. The stock fell rapidly and steadily from its high of $125 price at the time of commencement of Asensio’s activist short selling campaign, to zero when it filed for bankruptcy.

Posted in Diana Corporation, Investor Advocacy

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.