Neil, then your post continues
My thoughts on the positive end result of the SEC settlement to Presstek:
1. Any stigma surrounding the accusations with the SEC officially ends.
Response: Actually, Neil the Stigma becomes worse as is evidenced by the decline in stock price. While you may be blinded by passion for Presstek, most investors are not pleased, and institutions avoid companies who they feel have mislead them. e.g. Oxford Health, and Scholastic.
2. The short position loses their last remaining ace in the hole.
Response: This was not even viewed as a card by many shorts. My short position is based upon a view that this company is overvalued on the fundamentals. The SEC was never a factor in my decision. However, the loss of management credibility is now a key factor.
3. The SEC saves face and recovers their investigation costs.
No response.
4. The shareholders are protected, as well as the Presstek company from future
deterioration of earnings, caused by fines and the long standing legal costs associated
with defending the SEC allegations.
5. The shareholder suit has very little substance remaining.
RESPONSE: You are very wrong on this point, The shareholder suit is strengthened. Their claims are substantially identical to the SEC, and Class counsel will seek the deepest pockets for restitution to the shareholders who were harmed. I don't believe (IMO) that the company, who is defendents, will be able to argue it was Howard and Verando-the Chairman and President, and not the company.
6. Mutual Funds and Money Managers that may be waiting for the bottom of this
correction, are now free to buy at bargain basement prices.
RESPONSE: First, PResstek price is far from bargain basement at 65 times trailing earnings. Second, What mutual fund manager is going to take the risk on a company who's mangement just paid 2.9mm to settle charges of defrauding shareholders. Their are too many CLEAN companies without this risk.
7. Companies that would like to associate with Presstek for their expertise and
contract for their technology, now know that their desire to affiliate with the company,
will allow them to complete any started business transactions as Presstek will remain
quite viable,
profitable, a producer of new technology, and free to negotiate and fulfill their
business commitments, with guarantees to their partners of their continued success.
RESPONSE: This is a "Neilism" with no support, but it sounds good.
8. Presstek should now be free from further positive disclosure restraints that could
have been a fear of the Company due to being under the microscope of the SEC. This
should allow them to divulge more forward information, not less!
RESPONSE: Neil, how can you keep a straight face and make this statment. Management announced they would make fewer disclosures, not more. And now the Presstek homepage, states you cannot copy or link the information on the net. This management has a siege mentality, deservedly so.
In fact, later in your post, you state:
"In response to my questioning the NON-DISCLOSURE NOTIFICATION PRESTEK RECENTLY ANNOUNCED, [emphasis added] non-disclosure notification the bears and now even some of the uneasy bulls that have chosen to sell
shares, have interpreted this announced decision to not disclose details in a negative way.
They interpret it to mean Presstek simply does not want to provide us any "early
notification" regarding the "for sure gloom and doom" Presstek is bound to be facing, due
to the Heidelberg cutback and their guess that the Fuji alignment must be smoke and
mirrors, concocted by unreliable and crooked management, that truly belong in a cell!
Your intrepretation of the shorts position as to why, is not far off.
Cont. |
