“For as long as I can remember, veteran businessmen and investors – I among them – have been warning about the dangers of irrational stock speculation and hammering away at the theme that stock certificates are deeds of ownership and not betting slips… The professional investor has no choice but to sit by quietly while the mob has its day, until the enthusiasm or panic of the speculators and non-professionals has been spent. He is not impatient, nor is he even in a very great hurry, for he is an investor, not a gambler or a speculator. The seeds of any bust are inherent in any boom that outstrips the pace of whatever solid factors gave it its impetus in the first place. There are no safeguards that can protect the emotional investor from himself.”
– J. Paul Getty
I last wrote to you on May 6th, expressing my sentiments about Uni-Pixel (UNXL). I ended the letter by stating; If UNXL gets it half right, today’s price will be looked upon in 1-2 years as an incredible bargain. The caveat – expect continued stock-price volatility! Well… we certainly got the latter – volatility off the charts! We initially bought UNXL at $5/share in 2010. The stock ran to $41in April and it now sits at $14 today. My letter stated the reasons for maintaining our positions because we were making the longer bet – 2 more years to reach sizeable production/profitability. What we did NOT expect immediately after this mailing: ethical violations, lawlessness, and the bottom dropping out of the stock. Let’s just say that the first amendment right is being fully utilized and… the Securities Exchange Commission could have a field day with this if it chose (but won’t). What we DID expect: that there would be a quiet period prior to production and something unknown would upset the apple cart.
Uni-Pixel’s production plan has been delayed 2+ months (we believe due mostly to the release of Windows 8), thus lengthening the QUIET period and allowing those shorting (betting that it will go down) the stock to continue the non-stop negative barrage. The key to all that has happened the past two-months is that we have purchased a pre-production company and speculators can and have said anything they choose, without retribution. Truth and facts are not relevant at this point. UNXL has to get into production!
In late June, I spent time in The Woodlands, TX with UNXL’s management. I also spent time with a key Kodak executive discussing the reasons behind Kodak’s decision to establish a joint venture (jv) with UNXL. This venture is critical to Kodak’s future and transition from bankruptcy. Tremendous effort, thought, and money went into Kodak’s decision to join UNXL. Trust me… Kodak’s creditors are also most interested in this venture! If you choose to read all the negative articles (Seeking Alpha), please do me a favor – Do not send them to me or call to discuss. Instead, re-read my May 6th letter and attempt to stay calm. I know watching the stock price decline and reading these negative articles is painful, but take solace in the fact that several large, worldwide companies believe in UNXL’s next- generation touch-screen technology. About Seeking Alpha – the authors are not vetted and they are paid on the number of times the article gets “hit”. The more controversy in an article, the more the author will likely earn.
Let the mob have its day. The future belongs to the bold, not the irrational … whatever may unfold, protect yourself from an emotional over-reaction. We are not impatient, nor .. even in a very great hurry, for we are investors, not gamblers or a speculators. Keep in mind the words of Abraham Lincoln, “Failed failed failed and then.. ”
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