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

(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...