FIRM'S SHARES TUMBLE FURTHER; TURBODYNE HEAD RESPONDS TO CLAIMS.Byline: Ben Sullivan Daily News Staff Writer Turbodyne Technologies Inc. shares fell an additional 16 percent Wednesday, one day after a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of short-seller accused it of trying to cheat investors. Turbodyne shares dropped $1.625 to close at $8.375, with more than 2 million shares changing hands, or about 2.5 times the issue's six-month average daily volume. The company has lost half of its value since Friday. Tuesday, New York-based short-seller Manuel Asensio initiated coverage of Turbodyne with a ``strong sell'' recommendation, saying in an accompanying release that Turbodyne has no valuable technology. Asensio said Turbodyne management has purposely pur·pose·ly adv. With specific purpose. purposely Adverb on purpose USAGE: See at purposeful. Adv. 1. misled mis·led v. Past tense and past participle of mislead. investors about the value of its core technology ``in order to defraud To make a Misrepresentation of an existing material fact, knowing it to be false or making it recklessly without regard to whether it is true or false, intending for someone to rely on the misrepresentation and under circumstances in which such person does rely on it to his or investors.'' Turbodyne President and Chief Executive Walter Ware said in a written statement Wednesday that Asensio's charges were ``false and misleading.'' In the company's first public response to the charges, Turbodyne said it holds patents on six engine technologies and has applied for patents on 19 more devices and technologies. In addition, the company said Turbodyne equipment has been selected by a major European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. vehicle and engine manufacturer to be included as standard equipment on three classes of buses being manufactured for the 1999 model year. On Tuesday, Asensio also said Turbodyne has raised and spent $55 million in equity capital but has failed to create any new products, generate significant sales or turn a profit. ``We believe this gross overvaluation o·ver·val·ue tr.v. o·ver·val·ued, o·ver·val·u·ing, o·ver·val·ues To assign too high a value to: overvalued the painting. combined with Turbodyne's complete inability to generate any earnings per share will cause the stock to fall to well below $1 per share,'' Asensio said. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. documents filed with the Securities and Exchange Commission, Turbodyne lost $110,000 last year on sales of $27.7 million. So far in 1998, the company has lost $130,000. Short-sellers like Asensio wager that a firm's stock will fall, so they borrow shares, sell them and then replace the shares later with ones they hope will be at a lower price. If the shares drop, the trader can keep the difference. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion