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Uni-Pixel Plunges 24 Percent on Scathing Seeking Alpha Article

Shares of Uni-Pixel (NASDAQ: UNXL) plunged 24 percent on Friday after a shocking story published on Seeking Alpha.

Uni-Pixel, headquarted in The Woodlands, Texas, manufactures films for touch screen and flexible electronics markets in the United States. According to its website, it offers finger print resistant protective films for touch enabled devices.

The subject of the article was related to the company’s Uniboss technology. According to the 2010 release announcing the product, Uni-Pixel said that it’s a:

“unique embossing technology that enables high-speed, low-cost production of printed electronic devices. In addition, the technology eliminates the need for photolithography or screen printing typically required to produce fine line conductors for rigid and flexible electronic devices.”

“Potential applications for UniBoss include the production of transparent electrically conductive grids or patterns that can be used for capacitive and resistive touch and multi-touch displays. In addition, the process can be used to fabricate both flexible and rigid printed circuit boards, RFID antennas, as well as transparent electromagnetic Interference (EMI) and radio frequency interface shielding films.”

The problem is that very few people, including investors has seen the technology but the author of the Seeking Alpha article who goes by the name, Seth Shaw, said that he was able to see it and take pictures when company executives weren’t looking.

The product in his words, is substandard.

“The lines are too visible. No consumer electronics company would approve this in a display for their product. If it works, it’d be relegated to a niche, low-end product where optical quality doesn’t matter.”

Barron’s spoke to an unnamed source familiar with the technology who said that the sample Shaw saw was broken and the company will reveal a new sample at an industry conference next week that will work as expected.

Shaw, later in his post, says that he will post a second article detailing the shady nature of the company.

This is turning into some quality financial drama.

Disclosure: At the time of this article, Tim Parker had no position in the company mentioned.

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