Ed,
Excellent post, will be on the top of the folder for quite a while.
As for the dilution, agreed, for PRST to achieve the sales in 5
years with just the customers they have, they will require capital
expenditures. This could happen in two ways, if the plate sales
can proceed at a 20% margin for the bottom line earnings the
company will become cash rich, thereby acquisitions and expansions
will be self-funded. Shareholders would see a additional gains.
Possible. The other option is as you have mentioned. And it is
very likely that in the infancy, you will see PRST purchase using
the shares at an high value. Again, it makes sense to buy when
purchasing power is high.
Stock of the decade? Even though I hold the stock long, I am not
convicted into saying that quite yet, and probably never will, my
investing don't allow me 'marry' a stock. In fact, this stock is
an abberration (sp) in my portfolio, as most of my investments
are value oriented and not momentum based.
As for the gap, 90% of the time gaps fill in the stock market. Why?
don't know, but history is on the gap fill side. Using PRST as an
example. on 4/23 PRST gapped from 115.75/125.5 on 4/22 to
127.25/138.25 on 4/23, guess what, it's been filled.
Where is the stock heading short term ??? Don't know, thats why
I'm on this board. General feeling back to the hard resistance line
at 112, or up to 141 and would expect it to remain at that level
pending 'real' news releases.
One thing this latest drop has done is make investors (not traders)
dismiss news, only two sources will now be believed, release on
PRST letter head for the long, release on SEC letterhead for the
shorts.
Compared to a roller coaster, the real 'thrill ride' is over (the
drop), now for the enjoyable ? part, all the twists and turns, but
you still need a good stomach.
Ed, thanx again for the post. |
