Neil:
You then state:"Think about it. Do you actually believe that Presstek would make the glaring error of not
providing any meaningful disclosure if the Heidelberg cutback would have, in any way,
substantially or materialy decrease company revenues and affect the shareholders
investment?
Presstek had no choice but to disclose if this were true. My bet is they would have or
would now be facing a repeat of the just completed SEC sanctions. Even though
Presstek received $7 million for a 25% temporary decrease in production in 1996,
management were censored for not reporting it. A 25% decrease today would equate to
a drop from 80 to 60 kits. Would you not think that Presstek knows what they are doing
and will not take risks to place them in jeopardy again? "
ANSWER - YES.
You mistate the SEC settlement. My interpretation was management reviewed, did not correct, and knowingly distributed forecasts known to be wrong, partially as a result of the Heidelberg reduction (1996), but also because forecasts by Cabot and/or Penn Merchant, estimated plate sales of 28 million, when Presstek's internal forecast was 7 million.
The recent announcements by managment of the reduction in DI production for Heidelberg, and no forecasts, could provide management the excuse to say it was already disclosed.
Neil, As long as your faxing posts to Presstek, why don't you fax a request to disclose Heidelbergs new order level, I would hate to you surprised and wiped out as result of uninformed optimism. |
