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Chris DeMuth Jr.
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"It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a misplaced bet - that they can occasionally find one." - Charlie Munger I look... More
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  • UNXL's Product Is UNXL's Stock 12 comments
    Dec 12, 2013 3:06 PM | about stocks: AAPL, UNXL, KODK

    There was a lot to learn from UNXL. If you want to go into the business of promoting a stock, you first need an association with something awesome. Apple (NASDAQ:AAPL) is legitimately awesome. Then you need a fuzzy connection to that awesome thing (you will want to keep it a bit vague what exactly that connection really is). Use the word "disruptive" a lot. Pick a huge number (I like one billion) and toss that around, whether it refers to market cap, sales or profits does not really matter. So: Disruptive technology involving Apple which was founded by the disruptive genius Steve Jobs, reaching billions of people and worth a market cap of billions selling billions of… thingies. Eastman Kodak (NYSE:KODK) is not as awesome as Apple because it was recently bankrupt, but it is still famous so it will do in a pinch. Also, it may help to have at least one "x" in the ticker, which increases the appearance of awesomeness.

    Here are the early results of our UNXL short idea:

    (click to enlarge)

    UNXL's product is UNXL's stock. Our view is that they will issue more shares and that the value per share will be massively diluted. Our estimated value per share is between $2-3. The company is managed by stock promoters with a long history of wild - and subsequently broken - promises. They executed one of history's best timed secondary offerings earlier this year. However, they will need to keep executing stock offerings in order to keep going. Most of the promoters will probably prefer to load up the circus train and head on to the next town.

    Stocks: AAPL, UNXL, KODK
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Comments (12)
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  • JBird61
    , contributor
    Comments (285) | Send Message
     
    I read this twice and couldn't find a fact in it except that UNXL made a stellar move in their capital raise early 2013.
    This instablog is a pure opinion piece unsupported by present facts.

     

    UniPixel has plenty of cash and their capital expenses are low compared to their competition - so not much capital is needed to build planned production capacity. They have no reason to issue more stock, especially at deflated prices.
    12 Dec 2013, 03:48 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » You're right! I agree. I think that you will find many other fact light or fact free offerings elsewhere on my blog here: http://bit.ly/120m0yj. Also, elsewhere on the internet generally. Search here: https://www.google.com. But of all the silly, juvenile things you could find to be lacking even on the first read, you know what gets the most strident defense? Stock frauds.

     

    At the peak of our work on Chinese reverse merger frauds in 2010, most of our shorts were Chinese (here is a list of some of our favorites from the time: http://bit.ly/1jG8sLX). Of the several that were subsequently de-listed, promoters and enthusiasts kicked up such a fuss about any opposition... right until the end. I don't quite know why. I think that it has to do with the fact that promotions need to keep their stock price propped up until they can get out and ideally before the whole operation gets much scrutiny.

     

    Value investments? I prefer it when the value is as divergent as possible from its price. What do I do with shorts? I listen to them and I welcome them: http://seekingalpha.co...
    12 Dec 2013, 03:57 PM Reply Like
  • Keubiko
    , contributor
    Comments (1984) | Send Message
     
    Yep. Spot on.

     

    As to why the greasier companies and frauds get the most vicious defenders, in my opinion it's due to self-serving bias:

     

    http://bit.ly/1bASQb0

     

    "A self-serving bias is any cognitive or perceptual process that is distorted by the need to maintain and enhance self esteem. When individuals reject the validity of negative feedback, focus on their strengths and achievements but overlook their faults and failures, or take more responsibility for their group’s work than they give to other members, they are protecting the ego from threat and injury."

     

    When people buy into these companies and someone comes and effectively and convincingly shows that they may very well have made a foolish decision, the instinct is to lash out, blame the person raising the issue, etc. To acknowledge the big mean short is to admit you may have been wrong, or worse, a mark or bagholder. Not an easy thing to admit.
    12 Dec 2013, 04:14 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » UNXL new 52-week low
    27 Mar 2014, 11:16 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » UniPixel Inc (UNXL) new 52-week low
    5 Apr 2014, 02:25 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » UniDigit Inc (UNXL) at a new 52-week low
    7 Apr 2014, 01:42 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » (UNXL) at a new 52-week low.
    21 Apr 2014, 02:53 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » (UNXL) at a new 52-week low
    22 Apr 2014, 09:56 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » (UNXL) at a new 52-week low heading into the weekend.
    25 Apr 2014, 06:32 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » (UNXL) hits a new 52-week low.
    9 May 2014, 01:42 PM Reply Like
  • kadison
    , contributor
    Comments (195) | Send Message
     
    What has caused the bounce today? Shorts covering?
    9 May 2014, 02:04 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4592) | Send Message
     
    Author’s reply » Good question; I'm not sure.
    9 May 2014, 02:08 PM Reply Like
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