Gary,
There are 150,000 printing presses worldwide in use. The PRST Pearl
system can be added to those presses. The real story is the 4 plates
purchased from PRST for each 4 color printing run. PRST is the only
company offering nonphotographic plates. That is a fundamental benefit
to the company. In most of this discussion fundamentals have been
overlooked. If I own a company, I want fundamentals. It isn't about
PE's or speculation about it's competition - there is none!
The future clearly will favor a company that can supply one of the
largest industries in the world (lithographic printing) with a
faster, cleaner, cheaper, and less toxic process. Plate preperation
time is cut by 40%, chemical disposal is elliminated, employee
exposure to toxics is elliminated & plates cost less to prepare.
Jim's question about how many of shareholders may be Cabot
subscribers. Don't know, but annual report estimates 1,200
shareholders and perhaps 500 others in street name. About 16,000,000
shares outstanding. The founder and his son own 2,800,000 and an
investor named Oxley owns 1,000,000. Total of officers and directors
is 20.6%. If this were a pyramid, wouldn't the directors be selling
shares, PRONTO?
Currently the Co. can issue 25,000,000 shares. that would not allow a
2 for 1 split. Such a split would bring the stock down only to $75. It
would seem reasonable to increase shares to 75,000,000 so that a 3 for
1 split can happen and bring the price down to $50. I assume that a
3/1 split is in the works. Also there are options outstanding that
will probably be exercised, making quite a dent in the 10,000,000
shares that remain to be issued.
Management consists of a number of former employees of Centronics.
They are not rookies to the printing business. Again, fundamentally,
PRST is in an enviable position. Printing is a huge business. This is
not a technology play. It's heavy industry - supplying plates, but
with a technology kicker.
Stay Long,
David
Your PE deduction based on revenues is flawed. You must assume that
margins will remain the same to conclude that 5 years will be needed
to justify the current price. Earnings should now escalate as startup
costs decrease. Catalina Coatings acquisition in Feb. will allow quick
ramp up of plate production.
speed of plate preperation
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