DATE: May 14,2013
TO: Barron's Editors Edwin A. Finn, Jr., Fleming Meeks, Phil Rooosevelt, Lauren Rublin, David Schutt, Beverly Goodman
Gentlemen, and Ms. Rublin and Goodman M
You may have a serious problem: I believe that one of your young staff writers may have been either paid off, or corrupted, or seduced, or somehow misled into writing a totally inaccurate, badly slanted, ineptly researched, and grossly misleading hatchet job on a little company called Uni-Pixel ("Out of Touch, May 13, 2013) in which I am a large shareholder and options holder.
Who would arrange this, you ask, and why? The answer: The shorts, who bet wrong against UNXL and are now $70,000,000 underwater and facing a gigantic squeeze because they are short almost the entire float of he stock, including approximately one million naked shares. They desperately needed some horrific event to try to break the back of this fledgling company, which the respondents to your own Big Money Poll two weeks ago picked as one of their nine favorite stocks for 2013.
All the relevant information is in the documents contained herein, which I published Sunday on my Seeking Alpha Instablog. (I have also previously written two very favorable articles on Seeking Alpha about Uni-Pixel, plus two other Instablogs, and am a former magazine editor and a litigation attorney for 32 years until I retired in 2010.) I further refer you to additional evidence and astute analysis of the offending article contained in a Seeking Alpha Instablog published yesterday by Chris Hoffman, titled "My Email to Barron's Regarding Uni-Pixel," and to the outpouring of other mail you have received yesterday and today, which your online video commentator dismissively dubbed "hate mail."
As a long and devoted reader of Barron's. on which I have frequently relied for quality investing information, I am shocked and dismayed by what appear to be many breaches of journalistic ethics and sound reporting practice in this article, all set forth in detail in the enclosed documents.
I call upon you to immediately investigate this situation. You need to know: What assignment was the staff writer given? By whom? Whose idea was it originally? Was he instructed to write a negative article? Does he have any friends or lovers who are short UNXL? How was it that no editor realized how one-sided and incorrect his diatribe was? Did anybody get paid by the desperate shorts to have this appalling article published? How did something so far beneath the high standards of Barron's get published? You should also seek the advice of legal counsel regarding the consequences of retaining in your employ anyone whom you determine has committed actionable wrong herein, either negligently or intentionally.
I further write to inform you that I am in the process of assembling a team of top torts professors and a class-action law firm to determine whether a legal action, on behalf of all those who owned stock in UNXL as of 8:00 AM EST Monday, will be cognizable against your parent company for the $20,000,000 in early-morning loses sustained yesterday as a result of this recklessly negligent article, which was quite possibly motivated by legally actionable malice. The opening drop in the price may have caused many who owned UNXL shares on margin to be sold out as the consequence of a margin call, and to lose the prospect of their gains once the stock resumed its normal upward climb, which had already taken it from 5 to 35 in six months, and which many of us have good reason to believe will take it well into the triple digits and beyond in the next few years. Further, dozens of inexperienced investors who owned the stock were likely, as someone at Barron's may have intended, to be panicked by your article to sell at any price at the opening, thus incurring actual losses and the deprivation of potential gains.
If you wish to mitigate some of the damage and distress this inexplicable behavior has caused, and demonstrate to your readers and subscribers, and the innocent shareholders of Uni-Pixel, a sense of fairness and sound journalistic ethics, I respectfully submit that you publish, in your next issue, this letter, and that of Mr. Hoffman, and a fair cross-section of the many others that you have received on this matter. I further respectfully suggest that you promptly interview the President and CEO of Uni-Pixel, Reed Killion, on tape, about Uni-Pixel and its products and prospects, and print his responses without slanted editing in your next issue.
I look forward to the favor of a prompt and positive reply and to the result of your investigation, as do, I am sure, thousands of loyal Barron's readers who depend on your otherwise excellent publication for fair, honest, comprehensive, and unbiased financial guidance..
Disclosure: I am long UNXL.