Black Box’s Black Wednesday from an investor advocate’s point of view.

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.” 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.”

Well 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. We 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) that fact seems worth noting.

You can read ###211.gif::our letter to Black Box ###on our website at Unfortunately, we did not get a response to show you.

Asensio & Company, Inc. is actively engaged in short sell investments and publishes research on securities it believes are overvalued. A complete documented history of Asensio’s published work with short-selling transactions, and the firm’s definition of gross overvaluation, is available on the Internet at John Wiley & Sons, Inc. has published a book about Asensio & Company’s short selling titled “Sold Short: Uncovering Deception in the Markets.” The book can be ordered on the Internet at

Posted in Black Box Corporation

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'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's work and its unique legacy. also strives to maintain a complete record of articles dealing with the companies that are the subject of research.
Investment Record
Click here to view a list of the companies that have been subjects of 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.