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eMagin Stock Jumped 30% Following Fake News of Apple Investment in AR OLED Display Company

Earlier reports from RoadToVR, Bloomberg and many other sites have been refuted by the company in a press release.

February 12, 2018 4:00 PM

Shacknews may have been labeled fake news by Facebook recently, but we always update our stories with the correct information when we make a mistake. It appears that several news outlets mistakenly ran with a story earlier today that Apple, Valve, and LG had invested in the AR OLED display maker eMagin. This was later found out to be false. Fake news, if you will.

eMagin posted the following update to their investor relations website.

eMagin Corporation, or the “Company,” (EMAN) a leader in the development, design and manufacture of Active Matrix OLED microdisplays for high resolution imaging products, today is providing clarification in response to a media report in which the author apparently misconstrued a form underwriting agreement that the Company filed as an exhibit to its S-1 on January 23, 2018 and incorrectly stated that a group of certain consumer electronics companies participated in the recent offering of the Company that closed on January 29, 2018. As of today, to the Company’s knowledge, none of these consumer electronics companies have taken part in the offering.

It appears that the term "specified investors" was not clearly defined in eMagin's Form S-1 filing with the SEC.

TechCrunch reports that a source very close to Apple has said that the company did not invest in eMagin. eMagin has also clearly denied the rumors, stating that, "As of today, to the Company’s knowledge, none of these consumer electronics companies have taken part in the offering."

What makes this story more interesting is that eMagin's stock skyrocketed nearly 30 percent on this news, only to lose nearly all of the intraday gains once traders figured out that the story was false.

eMagin's stock hit a multi-month high of $2.05/share on the false new reports only to end up the day giving back a lot of its gains. Traders could have made a quick buck, but the company is still down materially from its all-time high of $9.31/share. Today's fake news event highlights the fragile current relationship between the stock market and media. Shareholders of eMagin definitely received a wake-up call today.

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

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