UniPixel -8.7%; SA author skeptical of manufacturing progress


After Intel stated in a June 1 presentation UniPixel (UNXL) has begun production of its roll-to-roll metal mesh touch sensor film in Q2, UniPixel contacted Intel to tell them production hasn't begun, says SA author Richard X. Roe. Intel later removed the comment from its presentation.

Roe doesn't expect a June 25 operational update call (previous) to reveal major progress towards mass-production, and declares "a failure to start production would simply be admission of another delay," given UniPixel and partner Kodak (KODK) have forecast commercial production would start by July 1.

He adds recent CEO comments and the website of a UniPixel sub-contractor suggest improving roll-to-roll plating yields remain a challenge, and states the company's Diamond Guard film is "apparently nothing more than a commodity off-the-shelf acrylic coating."

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Comments (7)
  • Buysider2
    , contributor
    Comments (344) | Send Message
     
    A question: What is Mr. Roe’s purpose in publishing his Uni-Pixel (UNXL – 7.56) article on Seeking Alpha this morning? A 4-page article with a lot of detail took a lot of time and effort. What is the point, when the company is set to make its own disclosure 8 days from now?

     

    If the substance of the article is TRUE, the disclosure of such information on UNXL's scheduled June 25 operational update call would likely cause a severe drop in the price of UNXL’s stock. Would it not be smarter to short as much of the stock as one can between now and June 25 instead of publishing something that might cause the stock to go down BEFORE June 25? Why not wait 8 days? What’s the rush?

     

    If the information in the article is NOT correct, however, there could be two reasons for publishing it BEFORE June 25: (1) to drive the stock down before June 25 in order to cover a short position or (2) to drive the stock down before June 25 in order to go long at a lower price.

     

    I leave it to the readers of this thread to decide which of the aforementioned scenarios is most likely.

     

    It would seem that when UNXL announced on June 5 it would hold an operational update call 3 weeks hence, or June 25, it knew on June 5 what it would be saying on June 25. Correct? Is that not a reasonable assumption? However, if the information to be disclosed on June 25 is what Mr. Roe has speculated it is, UNXL would have a FIDUCIARY DUTY to disclose it on JUNE 5, not 3 weeks later, and if it did NOT disclose such material negative information as soon as it was known (June 5 or earlier), UNXL could be sued for lack of timely disclosure. Given the SEC inquiry into the actions of the company under its previous CEO, which inquiry was announced by UNXL last November, it would seem unlikely UNXL would delay the release of material negative information.

     

    Moreover, there is a reasonable explanation that could explain why UNXL did NOT tell us June 5 what it planned to tell us on June 25, which is a question Mr. Roe and other posters on the UNXL thread have asked. UNXL is working with Kodak and other partners on this project and may need to get the approval of such partners before disclosing information – approval of what it can say or not say. After Intel incorrectly said at an industry conference on June 1 that UNXL had ALREADY started volume production of its metal-mesh product, UNXL may have decided that to counteract the negative appearance of UNXL’s request that Intel withdraw or correct what it had said at that conference (on Slide 76), UNXL needed to disclose right away its plan to update investors on its progress 3 weeks hence. In any event, 3 weeks advance notice of a conference call is not unusual.

     

    Regarding the fact that UNXL is not on the list of presenting companies at the Liolios Group Gateway Conference scheduled for September 4, the conference website at http://bit.ly/1pFPb4Q~public/conference_hom...
    says Liolios expects more than 60 small-cap companies to attend. The website further says that as of June 11, only 39 companies had confirmed their attendance, so more than 21 companies have NOT YET confirmed their attendance. The fact that UNXL is currently NOT one of the companies that has confirmed its attendance at the conference, which conference is more than 2 ½ months away, means nothing, in my opinion.
    17 Jun 2014, 03:18 PM Reply Like
  • Richard X Roe
    , contributor
    Comments (2654) | Send Message
     
    Buysider2: Your questions and concerns have been addressed here: http://seekingalpha.co...
    17 Jun 2014, 03:36 PM Reply Like
  • Paxmaker
    , contributor
    Comments (63) | Send Message
     
    I have re-read Buysider 2's commentary above and also your article. Buysider 2 raises a number of motivational questions as other possible reasons for your conclusions above which you do not address. Also raised are several alternative reasons for the Jun 25 call to which you do not respond. Finally the speculations about the reasons for the deletion completely of the INTC slide are only negative possibilities as is the statement about not yet attending the conference. What are the positive alternative reasons? Interesting technique, if your strategy is to pile up only negatives, Obvious, very obvious
    Finally, what is the reason for your cheap shot on Diamond Guard? I believe this is the real TELL of your orientation. A Bash, to achieve one of the two options cited in Buysider 2's response above. No answer on your part to the resin marketing option of Diamond Guard. I'll give you one thing. You put in a lot of effort on your piece....too much, IMHO. Also a TELL.
    17 Jun 2014, 11:29 PM Reply Like
  • Richard X Roe
    , contributor
    Comments (2654) | Send Message
     
    Paxmaker: Which motivational questions or alternative reasons, specifically, have I failed to address in my response to his comment? Did you read the comments section of my article?

     

    There is nothing positive about UNXL telling INTC that production has not started in such a way that INTC now has no idea when production will start, if ever. Also, there is nothing positive about UNXL lack of desire to meet investors and potential new customers.

     

    Cheat shot on Diamond Guard? Did you see it offered on ebay for 12c/sqft last year? I believe some poor Australian soul was trying to get rid of it, but nobody was biting. There is no "resin marketing option of Diamond Guard." The previous CEO, Mr. Killion, had been promising resin sales since early 2013. What happened?

     

    And, of all things, you blame me for being diligent and writing a good article?
    17 Jun 2014, 11:42 PM Reply Like
  • Buysider2
    , contributor
    Comments (344) | Send Message
     
    And Richard, I replied to your replies at the address you have linked to, which is your article on Uni-Pixel (UNXL - 7.53) this morning, following which the price of UNXL's shares fell $0.85.
    17 Jun 2014, 11:42 PM Reply Like
  • aoa
    , contributor
    Comments (9) | Send Message
     
    In conferee call CEO also said we do not give timeline because we get in trouble afterward. So I think good news is coming don't throw ur stocks..
    17 Jun 2014, 05:26 PM Reply Like
  • Richard X Roe
    , contributor
    Comments (2654) | Send Message
     
    aoa: Really? Which conference call might that be?
    17 Jun 2014, 09:29 PM Reply Like
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