Claim: Wellington Buys 14% of Unipixel, Therefore Unipixel isn’t a Fraud

Claim: Wellington Buys 14% of Unipixel, Therefore Unipixel isn’t a Fraud

Penny stock pump and dumps are somewhat of a guilty pleasure of LST… so enter Unipixel (“UNXL”), a ~$300 million market cap stock with the following characteristics that a long-term investor would love:

(1) $16 million in total assets (of which $12 million is recently infused cash via an equity raise)

(2) a management team with a long history of failure/capital misallocation

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More

(3) Price/Sales multiple in the 3,000-4,000x range

(4)  Laundry list of other red flags

UNXL has nevertheless returned over 400% to shareholders within just 1 year. 

Despite the stock’s impressive performance, an SEC filing yesterday showed that Wellington Management increased their stake in UNXL to 14% stake up from 5%, essentially indicating they expect more upside. To the unexperienced market participant, this would seem to support the prevailing belief that the critics’ concerns (and laundry list of red flags) are much ado about nothing. The market is efficient, it discounts all information, big money is smart money… right?

LST believes that facts speak for themselves. Here are a few facts about Wellington Management’s track record, when it co