Uni-Pixel's (NASDAQ:UNXL) less than stellar reputation as a company due to the previous leadership is mostly to blame to the current share price. Additionally, the market is only rewarding results and continues to punish potential, which gives shorts an advantage at the moment.
Uni-Pixel is a speculative Wall Street Forensics pick that can represent 1-2% of your portfolio. Although, I remain upbeat on the long term prospects of the company an uphill battle to deliver cost improvements, new customers and transfer of Uni-Pixel's material science expertise over the next 3-6 months is all that remains to determine the amazing success or possibly the final failure of this well storied company.
If you want to judge the book by the cover (share price) you would assume that Uni-Pixel is dead, but the recent PR activity and CFO interview conducted in June suggest otherwise. The CFO interview was conducted by Samuel Dergel, CFO Search Specialist in late June. At the time of the interview Uni-Pixel's shares were trading around $3.00 versus the current price of around $1.
During the interview Christine Russell, Uni-Pixel's CFO a silicon veteran with over 30 years experience defined a formula with just three elements for success when it comes to employment and she believes Uni-Pixel has all three elements for success.
#1 The company really needs to be serving a large market.
#2 The product needs to be something that's really useful and can be differentiated in the market.
#3 The CEO needs to be a leader - somebody thoughtful, decisive, and with a bias for action.
To me, UniPixel has all of these elements - a multi-billion dollar addressable market in touch screen devices that have both technological and cost advantages and a CEO with a deep background in display and optical and who has run public companies before with great success (DergelCFO).
SD: What are you most excited about in your new role?
Christine Russell: I'm really excited about this being a pivotal time for UniPixel. We just acquired the Atmel touch film technology and the production facility in Colorado Springs. We are combining the best aspects of the UniPixel technology that we worked on with Kodak and the Atmel technology to come up with something that is more than just one plus one. I'm also very excited about the CEO I'm working with. The number of people he knows and who greeted him at a recent information display convention in San Jose was very heartening for me.
I recently visited the newly acquired Colorado Springs facility and the energy level there is amazing. These people are now able to work with a much smaller, more nimble and flexible company rather than being under a small vision of a large company. The energy level there is still like a start-up (DergelCFO).
The Christine Russell full interview provides some color in black and white for investors to digest. Russell is a seasoned veteran with over 30 years of experience and likely could have opted for retirement planning instead of taking a calculated risk working for Uni-Pixel. Her excitement of things to come led her to purchase 10,000 shares of UNXL at $0.94 on August 20th.
Russell also acknowledges that CEO Jeff Hawthorne has tremendous knowledge and contacts in the industry and she witnessed it first hand when Uni-Pixel presented at the Society for Information Display (NYSE:SID) exhibition held in San Jose June 2-4 2015.
I had an opportunity to meet and talk with Uni-Pixel's CEO Jeff Hawthorne in person back In December 2014 during the analyst day held at the Kodak manufacturing facility. I also spoke with Jeff during the afternoon after Uni-Pixel announced the purchase of Atmel's Xsense sensor business.
I do believe he is the CEO that can finally lead Uni-Pixel to the promised land (revenue ramp, new customers and eventual profitability). However, nothing is certain and Uni-Pixel's Q3 conference call will provide a very important update on the progress of several key initiatives, revenue outlook and possibly a peek into 2016.
Disclosure: I am/we are long UNXL.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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