Jeff, You have presented John Tooker a few very candid, to the point questions....
I have often wondered why is it so hard to find a post by those with negative opinion of PRST when the stock has a good day? Those that are long on this stock post on the good days and the not so good!
John has stated that he had a special nitch in his print business to fill with the Quickmaster Press. Knowing the cost of a Quickmaster, it would seem to me that obviously, John believes he will recoup this amount back through press runs over an extended period of time.
Although John feels that competition will replace the need for PRST plates in the next couple of years, most of the material I can find indicates this future competing technology will not become available until after the turn of the century. However, PRST will not be standing still during this time. They are also placing a large part of the budget to R/D.
Other present direct computer to plate imaging technology is just too slow, much to expensive to buy and operate, has less dpi, and just not cost competitive with the new Quickmasters.
If the industry intends to compete against another local printer owning a Quickmaster in the market of 4 color, 1500 - 2000+ copy range today, they will be soon be required to "join the crowd" to satisfy the demands of the client. The thought of many is the client will come to expect the fine quality resolution and perfect copy produced using PRST plate technology and will settle for no less.
I would think that if we have 4 or 5 years prior to new technology (laser) coming to market, at 40 Quickmasters a month, starting Q2 97, that's 1920 additional Heidelburg presses to market, plus the 250 or so in the market now. A total of 2170 from Heidelburg alone in just 4 years. If each pays Prestek only for one shift at $332.50 a day for plate consumption, times 250 work days a year, that equals $83,125 per press per year - direct payment to PRST....x 2170 presses...The future revenue is more than astounding and will lead to net earnings that will demand a price exceeding 200! This does not include the other agreements PRST has with press manufacturers, or any future JOAs. It does not include the PEARL platesetters or conversion of other existing presses to PRST plate usage.
Am I crazy or is the rest of the financial world out there blind? I am not hyping, I totally believe this stock is a big winner long term.
What I just can't believe, is that the industry will all change to this present new technology overnight, the same way I do not believe that in 4 or 5 years, the complete industry will again make another complete change. PRST only needs a small percentage of the market to propel their stock beyond the prior highs, just based on the plate profit.
John, do you believe that PRST will not be able to provide plates for at least 2000 presses within the next 4 years? Will the interest in Heidelburg DI's die prior to then? If so, when do you estimate this occuring? Can you be sure that no other companies intend to utilize PRST technology and won't announce this in the future?
Why are so many printers on the net advertising across the front page of their website as follows: "Quickmaster DI coming soon" "We Have The Heidelburg Quickmaster D.I." "Color Like Never Before with the Quickmaster from Heidelburg" They are selling this new press like it was God's gift to the client! Will they use a competing plate technology...will the printers make their own plates???? You have stated in the past that you are the one that knows...I am really interested in your views? Give us some information to work with and research.
Take care,
Neil |
