Pierre
Nice post, thanx. Let the discussion begin.
1) Agree with the customer doesn't want a single source, as
people get around the patent it is generally an inferior product.
The niche that the QM-DI is filling is high quality, and
the best product will win. (PRST or competition)
2) I believe the 'wash up' problem has been resolved at last check.
The other thing to remember is their is also a paid inventory being
held at PRST, which is being retrofitted prior to shipment.
3) Agree about the margins, research says I cannot justify more than
2.10 net profit per plate. Have been thru this one many times, as
that is the driving force behind this stock. And there is a hard
ceiling at 2.10, granted, if the volume of plates skyrockets then
PRST, Rexham, and Catalina will implement cost reduction programs
to squeeze every penny or 1/10th penny out of production costs.
4) Don't know where you are coming from on this one ?
From the 10k
Backlog
As of February 29, 1996 the Company had a backlog of products under contract aggregating approximately $16,822,000 (including royalties payable to the Company) compared to a backlog of $2,800,000 as of February 28, 1995 (including royalties payable to the Company).
They only have reported backlog on a 10-K basis, if you have another
souce please let me know as I am interested more in sales than
in earnings.
5) No comment on the CFO item except that sales per employee are
going up and costs per employee are very stable at 94k per employee.
Don't know the full teir of management.
6) The AGFA item was a 'trade secret' violation, which AGFA counter-
sued, prompting PRST to state they would defend their patents
to the fullest extent possible. Now in arbitration as you stated, and
as with 'trade secret' will have to show 'no ties'.
7) Agree, management needs some younger blood, am not familiar with
Catalina Coatings management, this may provide the infusion required.
8) The target market for the QM-DI is not quick print, it is short
run. Big difference, in the two, both in the product and the customer.
9-10) Agree, have been watching the Austrailian market closely for
developments in this regard. The Austrailian market is the closest
supplier to Asian market that I can track.
11) Addition of press makers is key to the future of PRST, watching
for news in this regard. With the addition of PR firm, expect an
announcement about such, unless the PR firm was hired only for
the suit fiasco.
12) So far from the press releases on both sides, the suits are not
being backed with fact.
13) On a price sales ratio basis, do not expect more than the values
you suggest, causing any attempt to be rejected. Were is there a
discussion of PRST being a takeover target ?
Off to another subject, what do you know of the change in payment
plan for the licensing ? 1996 was the start of a different method
of payment but have not been able to break it out of the reports.
Been assembling a website consisting of PRST information, Heidelberg
information, and digital imaging information. If you have 'text' other
than forums of PRST information please post where the information
came from, as I would like to include the info at the site.
The site is at www.digitalmall.net/opertech/stocks/prst.html
Later, TOM |
